Did the state of New York announce in April 2024 a "historic $2.3 billion tax-funded grant" exclusively for "non-White or women-owned businesses" to "fix up" the John F. Kennedy Airport in Queens, as a post on X claimed? No, that's not true: As part of a $19 billion public/private redevelopment program to build new terminals and redevelop existing facilities at the international airport, $2.3 billion in contracts -- not grants -- was awarded to Minority and Women-Owned Business Enterprises. Government contracts differ from grants in that they provide supplies or services to the government with appropriated funds through purchase. Grants, on the other hand, provide less-regulated funds for public services and to stimulate the economy.
A version of the claim appeared in a post on X, formerly known as Twitter, on May 7, 2024, with a caption that read:
New York just announced a historic $2.3 billion tax-funded grant to fix up the JFK International Airport.
This grant, signed off by Governor Katy Hochul, is exclusively for non-White or women-owned businesses.
'This is FOR US, and made BY US'
Below is how the post appeared at the time of this publication:
(Source: X screenshot taken on Thu May 9 19:25:07 2024 UTC)
Lead Stories determined through a Google keyword search (archived here) that the clip was taken from a video (archived here) posted to YouTube by the Port Authority New York & New Jersey on April 29, 2024. The video was of the announcement of the Minority and Women-Owned Business Enterprises (MWBE) contract awards for redevelopment and construction at John F. Kennedy (JFK) Airport. The woman speaking is identified at the 48:42 mark as Assemblywoman Alicia Hyndman (archived here). The clip above was taken at the 50:38 mark in the video, at which point Hyndman states the following:
What we didn't want to happen is to go back to the community ... and people look at us and say, 'Well, what did you do? No one on that project looks like us. No one on that project represents us.' We did not want to have those conversations ... As annoying as it was, we knew it was for us. For us. By us. To make sure that this community that we represent looks like us.
The Port Authority of New York and New Jersey (archived here) oversees the operations of state transportation infrastructure and facilities. As part of a $19 billion public/private redevelopment program (archived here) to build new terminals and redevelop existing facilities at the JFK Airport, $2.3 billion in contracts was awarded to MWBE. According to the April 28, 2024, governor's news release (archived here), "To date, 680 MWBEs have been awarded contracts at JFK along with more than 200 businesses based in Queens." It continues:
To increase MWBE participation at the JFK Redevelopment Program, and across the agency, the Port Authority and its private terminal partners at JFK hosted a variety of capacity-building and technical training programs that prepared firms to be successful in navigating what can at times be complex airport-related procurements.
The $2.3 billion meets the governor's office's goal of funding 30 percent of MWBE participation in the Port Authority's capital projects, including redevelopment projects at JFK Airport.
Government contracts differ from grants. According to the Office of Sponsored Programs at the University of Pittsburgh (archived here):
The government uses grants and cooperative agreements as a means of assisting researchers in developing research for the public good, whereas it uses contracts as a means of procuring a service for the benefit of the government. Grants are much more flexible than contracts.
Simply put, contracts provide supplies or services to the government with appropriated funds through purchase, according to the U.S. Department of Agriculture's Glossary of Government Contracting Terms (archived here). Because contracts are used as a procurement mechanism, they often require stricter reporting mechanisms, notes the Office of Contracts and Grants at the University of Colorado, Boulder (archived here).
Grants, on the other hand, provide less-regulated funds for public services and to stimulate the economy. According to grants.gov (archived here), an official website of the U.S. government, a grant is a way the government funds ideas and projects to "provide public services and stimulate the economy." This type of financial assistance can take the form of innovative research or recovery initiatives. Grantees must report progress and expenditures to ensure the project complies with the terms of the grants, and if requirements are met, an auditor or grant officer will close the project once it is completed (archived here).
Other Lead Stories fact checks related to politics can be read here.
