Authorizes the Secretary of Transportation under the air traffic control contract program to provide grants to a sponsor of a primary airport or a nonprimary airport from certain airport development and noise compatibility planning program funds for: (1) the construction or improvement of a nonapproach control tower (formerly known as a level I air traffic control tower); (2) the acquisition and installation of air traffic control, communications, and related equipment to be used in that tower; and (3) reimbursement for the cost of tower construction or improvement, and acquisition and installation in the tower of such equipment, if certain requirements are met. Revises eligibility requirements with respect to such grants.
Limits the Federal share of cost of construction of a nonapproach control tower to no more $1.1 million.
Authorizes the Administrator of the Federal Aviation Administration to enter into a lease agreement or contract agreement with a private entity to provide for construction and operation of a nonapproach control tower. Sets forth certain agreement terms and conditions.