Anti-Airport Funding? Did East Hampton divert airport funds to fight airport use?

The NBAA has appealed an FAA administrative decision to the next level, which in this case is to the FAA Associate Administrator for Airports.  Here is the question on appeal:  Does the federal prohibition on revenue diversion – as set forth in assurance #25 for Airport Improvement Program (AIP) grants (as mandated by 49 U.S.C. Sec. 47107[b]), as well as more generally by 49 U.S.C. Sec. 47133(a) – foreclose an airport sponsor – in this case, the town of East Hampton, New York – from using airport revenue to fund unsuccessful litigation specifically intended to perpetuate illegal restrictions on aeronautical operations at an airport?

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