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

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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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