Hillsboro Airport Receives Yet Another Government Handout
An article by Nick LaMora, Federal Funds Fuel Major Taxiway Project at Hillsboro Airport, appeared in the 5/14/2025 edition of the Forest Grove News-Times. It focuses on yet another HIO expansion project. The author credits U.S. Senators Ron Wyden and Jeff Merkley for their role in securing the grant money.
The announcement followed on the heels of a controversial decision by the Port of Portland to revoke its Diversity, Equity and Inclusion (DEI) policies to comply with Trump Administration threats to withhold federal funding from recipients who honor their commitment to addressing the injustices perpetrated by government agencies against minority, indigenous, and disadvantaged peoples. It also followed on an earlier Port decision to approve an HIO hangar development project for an out-of-state firm that serves wealthy jet owners.
The Hillsboro Airport (HIO) primarily serves Hillsboro Aero Academy, a for-profit flight training school owned by two east coast investment firms: Graycliff Partners and Renovus Capital. It is managed by Max Lyons, the previous owner of the flight school and current owner of Hillsboro Aviation. In addition, HIO caters to charter jet companies as well as private and recreational pilots.
Below are the opening paragraphs of the News-Times article:
Millions in federal dollars are being directed toward upgrades at Hillsboro Airport to ease delays and accommodate growing air traffic.
On Wednesday, May 14, Oregon lawmakers announced $22.7 million in federal airport improvement grants for seven airports statewide from the Federal Aviation Administration — $3.14 million of which was allocated to the Port of Portland for work in Hillsboro.
The funding will support construction of a new 1,300-foot crossfield taxiway, dubbed Taxiway K, designed to improve safety and efficiency at the north end of the airfield. The new strip will connect two taxiways and enhance access to a main runway, according to Port documents.
To view the article in full click here.
HIO's Reliance on Government Funding
Ownership of the Hillsboro Airport (HIO) was transferred from the City of Hillsboro to the Port of Portland in 1966. From the outset the Port was reliant on Federal Aviation Administration (FAA) funding (Pg. 1-2). In the nearly 60 years the Port has operated HIO, it has not been able to run a solvent, self-sustaining, revenue generating facility. Instead HIO remains chronically dependent on government hand-outs, funding that is largely generated by fees affixed to the ticket prices paid by airline passengers flying in and out of commercial airports. In addition to federal grants, HIO also receives money from the Oregon Department of Aviation.
The primary source of federal airport funding is the Airport and Airway Trust Fund (AATF). The FAA Airport Improvement Program (AIP) is part of this program.
According to the FAA, the trust fund "may cover both capital and operating costs." Per the AATF website:
In recent years, the Airport Improvement Program (AIP), which provides grants for construction and safety projects at airports, has been supplemented by the General Fund, including $400 million in both FY 2020 and FY 2021 and $554.2 million in FY 2022.
The Trust Fund provides the primary source of funding for FAA and receives revenues principally from a variety of excise taxes paid by users of the National Airspace System. The excise taxes are imposed on domestic passenger tickets, domestic flight segments, and international passenger arrivals and departures, and on purchases of air travel miles for frequent flyer and similar programs. In addition, taxes are imposed on air cargo waybills and aviation fuel purchases. The largest source of excise tax revenues are related to transportation of passengers.
Since HIO is a General Aviation (GA) airport that does not provide scheduled commercial passenger service, the users of this airport contribute very little into funding this facility. Instead, they essentially get a free ride on the public dime. Though larger jets pay a landing fee, the vast majority of the student, private and recreational pilots do not. In addition, owners of private aircraft pay less to register their aircraft than owners of motor vehicles do.
For example, my husband and I recently paid $221.00 in registration renewal costs for our 2017 Corolla: $196 went to the Department of Motor Vehicles and $25 to the Department of Environmental Quality. Our renewal is required every two years so this comes to just over $110 per year. Shockingly, our fees exceed the $65 annual cost of registering piston engine helicopters and single engine aircraft in Oregon. A twin-engine aircraft that delivers twice the noise and pollution as a single engine, pays only $150 each year. These are the types of aircraft frequently used by the student pilots who relentlessly circle homes, schools, neighborhoods, prime farmland and waterways while spewing noise, lead, and other toxins, often at low altitudes. For additional information on ORS 837.045 aircraft registration fee requirements click here.
In short, GA airports essentially serve those wealthy enough to own, lease, and charter helicopters, fixed wing aircraft and private jets, as well as for-profit flight training and other aviation businesses.
To fund the privileged few who use these airports, the Port and the aviation sector lobby millionaires in Congress to subsidize their expensive hobbies, transportation choices, and lavish lifestyles. Based on 2018 data, roughly two-thirds of U.S. Senators and half of all Congressional Reps are millionaires. Among their ranks are Oregon Senators Ron Wyden and Jeff Merkley, both of whom advocated to increase funding and expand operations at HIO while conveniently ignoring environmental, ecological, global warming, livability, and public health impacts.
Neither of Oregon's senators expressed any concern whatsoever about the three-quarters of a ton of lead HIO releases into the environment each year or the relentless noise generated by this facility. After all, the children and minorities disproportionately impacted by this airport aren't major contributors to their campaign funds, whereas affluent pilots, jet owners and aviation businesses have the potential to generously line their pockets.
This is but one of a myriad of examples of the degree to which politicians and lawmakers, in their zeal to cultivate wealthy donors, have lost touch with their constituents.
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