The FAA is threatening to cut off federal grants if New York's three big airports carry through on a threat to block any flights won through a controversial slot auction. In a "notice of investigation," the FAA asked for a response from the Port Authority of New York and New Jersey, which operates Kennedy, LaGuardia and Newark Liberty airports, within 30 days. The three airports received a total of $27 million in federal funds through the Airport Improvement Program during fiscal 2008. Separately, the Port Authority has asked to join a lawsuit by the Air Transport Association seeking to block the first auction, scheduled for Sept. 3.

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