(DENVER, COLORADO) The Denver City Council voted 11-1 on Monday, December 15, 2025 to block a small lease at Denver International Airport that would have given Key Lime Air 1,200 square feet of dedicated space near the south cargo area, with several councilmembers saying they were acting because the carrier operates ICE deportation flights. The move, aimed at making a political and moral point, now puts the city’s airport at risk of a federal compliance fight that could threaten hundreds of millions of dollars in aviation grants.
What the lease would have done — and what the rejection means
The rejected lease was not for new gates or a major terminal footprint. It was designed to let Key Lime store snow removal equipment and place an office trailer in a defined area.
By voting the lease down, the council did not remove the company from the airport, but it did force Key Lime to rely on common-use cargo apron space, which the city says is free but less convenient than a dedicated site.
Council debate: values, morality and practical concerns
Several councilmembers tied their votes to Denver’s identity and moral stance on immigration.
“When we’re talking about the values of our city… I cannot support a corporation that does not prescribe to that,” — Councilmember Serena Gonzales-Gutierrez
“I have been following Key Lime Air… there is no way I could ‘morally or ethically’ vote affirmatively on the expansion,” and calling deportations “illegal.” — Councilmember Stacie Gilmore (District 11)
The lone vote in favor came from Councilmember Kevin Flynn (District 2), who argued the decision would do little to change the company’s work in practice. Opponents of the lease emphasized that symbolism matters.
Public commenter Madalia Maaliki called the denial a “clear moral and political statement” against helping ICE detention and transport — a sentiment that has become more common in cities where immigration enforcement is a flashpoint in local politics.
Who is Key Lime Air and why the controversy?
- Key Lime Air is based in Colorado and headquartered at Centennial Airport.
- The carrier has drawn anger from immigrant advocates for its role in the federal deportation system.
- Some reports have described it as Florida-based, but the company is rooted in the Denver metro area.
- According to the source material, Key Lime operates two aircraft for ICE, moving people in shackles between hubs such as El Paso, Texas, and Alexandria, Louisiana, and it does not fly deportation missions from Colorado.
That operational detail has not eased local pressure. Groups including Aurora Unidos CSO have protested at Key Lime’s headquarters and at the University of Colorado Boulder, which has been a client since 2011. The company did not respond to media inquiries about the council vote or the protests, according to the source material, leaving city leaders and advocates to argue publicly about what leverage Denver should use when a private business earns revenue from the federal removal pipeline.
Legal and financial stakes: why the small lease could matter
Although the practical airport impact may be modest, the legal and financial stakes are significant.
Airports that take federal funding must follow rules limiting discrimination against airlines based on who their customers are or what politics are involved. Those rules allow restrictions mainly for safety, capacity, environmental, or efficiency reasons.
- Because councilmembers said the lease was rejected because of the carrier’s ICE work, Key Lime could have a clear path to challenge the decision.
- A complaint to the Federal Aviation Administration (FAA) could trigger a compliance review tied to the airport’s “grant assurances” — the conditions that come with Airport Improvement Program money.
- The FAA explains those obligations publicly on its official page: FAA Airport Sponsor Grant Assurances.
If Denver were found out of compliance and did not correct course, the airport could face penalties that include loss of future federal funds.
Recent and potential grant amounts at risk
The source material lists substantial FAA grant amounts tied to DIA:
| Period | Amount (FAA grants) |
|---|---|
| 2022–2024 | $300–310 million |
| 2025–2027 | $267 million (eligible) |
For a fast-growing airport that relies on federal help for infrastructure, safety projects, and long-term planning, even the threat of a funding freeze can cause budget and bond-market problems — not just a political argument about values.
Political context: tensions with the federal administration
Timing matters. Denver’s relationship with the Trump administration has already been strained over immigration and local policy choices.
- A late April 2025 letter from DOT Secretary Sean Duffy threatened to withhold transportation grants over issues including sanctuary policies, DEI, and non-cooperation with ICE.
- The message, as described in the source material, signals the administration sees federal money as a tool for forcing local compliance and may be willing to test that approach.
Denver has fought back in court.
- The city sued in May 2025 over $300 million in transportation grants and $24 million in FEMA reimbursements connected to migrant aid, warning of a $250 million city budget hole in 2025–2026.
- Courts issued injunctions, including an order from U.S. District Judge William Orrick that blocked cuts to sanctuary cities including Denver.
- Denver has filed four lawsuits and submitted amicus briefs against Trump policies, setting up a long-running legal clash even before the airport lease vote.
Why airport administrators avoid political language
Airport lawyers and administrators typically avoid language that sounds like viewpoint discrimination because:
- Political decisions made in open session can become evidence in an FAA record.
- A federal response can be framed as routine FAA grant-assurance enforcement rather than punishment for local politics — giving federal officials a legitimate “hook” for enforcement.
Immigration advocates who pressed the council to act argue that local government should not help expand any company’s airport footprint if that company helps remove people from the United States 🇺🇸 in ways the advocates see as cruel or unlawful.
Airport compliance specialists counter that, whatever a city thinks of ICE, federal aviation money comes with strings that can be unforgiving.
Next steps and upcoming dates
- The council may revisit related items on December 22 at 5:30 p.m.
- Both sides are expected to keep pressing their case:
- Immigrant rights groups demanding Denver cut ties with deportation logistics.
- City and airport officials weighing whether a symbolic rebuke is worth a possible FAA complaint and the millions of dollars that could hang on its outcome.
According to analysis by VisaVerge.com, the Denver fight shows how quickly a local protest can turn into a federal funding risk when immigration enforcement intersects with federally funded transportation systems.
Denver’s City Council voted 11-1 to block a 1,200-square-foot lease for Key Lime Air at Denver International Airport, citing the carrier’s role in ICE deportation flights. The denial forces Key Lime to rely on common-use cargo apron areas and may invite a challenge to the decision. A complaint to the FAA could trigger a grant-assurance compliance review and jeopardize hundreds of millions in federal airport funding. The council may revisit related items on Dec. 22.
