Federal News
Senate Calls FAA to Review DIA Grants
March 18, 2026
Senator Ted Cruz has formally requested the Federal Aviation Administration (FAA) to review federal grants awarded to Denver International Airport (DIA) following the Denver City Council's December 2025 rejection of a lease contract with Key Lime Air, an aviation company working with U.S. Immigration and Customs Enforcement (ICE). The lease involved 1,200 square feet of storage space at DIA. Senator Cruz alleges that the City Council's decision violates FAA grant assurances that prohibit discrimination against tenants with federal law enforcement contracts. This review could jeopardize between $90 million and $385 million in federal funding for DIA, raising significant compliance and funding risks for the airport and its municipal stakeholders.
- Why this matters: Procurement professionals and contractors should be aware that federal grant compliance, especially regarding nondiscrimination clauses tied to law enforcement-related tenants, is under scrutiny and can impact airport funding.
- The FAA's review may lead to enforcement actions or funding adjustments affecting DIA and potentially other federally funded airports with similar lease or tenant disputes.
- Aviation companies, particularly those contracting with federal law enforcement agencies, should monitor municipal and federal policies that could affect lease agreements and access to federally funded airport facilities.
- Municipal agencies managing federally funded infrastructure must carefully evaluate lease decisions to ensure adherence to federal grant assurances to avoid risking critical funding streams.
The Denver City Council knew it was voting to violate the FAA grant assurances but chose to proceed anyway. The FAA must ensure that federally funded airports comply with federal law and do not discriminate against lawful aviation operators.
— Senator Ted Cruz
Agencies
Federal Aviation Administration, U.S. Senate Committee on Commerce, Science and Transportation, Denver City Council, City of Denver, U.S. Immigration and Customs Enforcement
Vendors
Key Lime Air, Denver Air Connection
Contracts
Locations
Sources
- Sen. Ted Cruz calls for review of DIA grants over Key Lime Air vote · The Denver Post · Mar 18