Feds ramp up scrutiny in yearslong dispute over California airport money

Hundreds of millions of dollars could be at stake if California cannot solve a yearslong dispute with the Federal Aviation Administration. 

The federal agency questions whether California is spending money gleaned from taxing jet fuel according to federal rules, which aim to ensure states are maintaining airport infrastructure. It gave the state’s Finance Department until the end of March to produce detailed records on how it is spending those taxes, or it “reserves the right to take appropriate compliance and enforcement actions as necessary,” according to a letter it sent to the state agency dated March 5.