VA HB1231

Increases entitlement fund allocation to commercial service airport sponsors (excluding MWAA) from 40% to 50% of available Commonwealth Aviation Fund revenues

Establishes a fixed 6% entitlement allocation to the Metropolitan Washington Airports Authority (MWAA), replacing the previous formula of 60% of new funds up to $2 million annually

Sets new caps and floors for individual commercial service airport sponsors: maximum 25% of funds, with minimum thresholds of 8% in fiscal year 2026, then 4.5% for airports under 10,000 annual enplanements or 6.5% for larger airports in subsequent years

Updates airport classification terminology throughout, replacing "air carrier airports" with "commercial service airports," "reliever airports" with "regional business airports," and "general aviation airports" with "community business and local service airports"

Reduces discretionary fund allocation for community business and local service airports from 20% to 10% during the first six months of each fiscal year