The optics of this are certainly questionable. But, a few things to consider:
From what I understand in the article below, the airport has the right to use the funds in this manner and they used it to help bring much needed flights back to the area (I travel way too often for my job and using PHF by far is the best option)http://pilotonline.com/news/local/trans ... f1af8.html
If some of the followers on this thread live on the Peninsula and read the Daily Press often, you will know that the paper is full of stories that do not state all the facts. So I generally look around at other area papers to piece a story together and the VA Pilot does report both sides. I think as a tax paying citizen, if our money is authorized to be used a certain way and it benefits me and the community (like airports do), then it should be invested.
Seems like with legal opinions and a program allowance as reported, then it should be cleared once everyone goes through the process of checking.
As far as PHF is concerned, I think they are doing everything possible to stay competitive in this ever-changing industry. I see it often in many small communities I have to travel to. So, PHF should continue to convince airlines to add capacity. It seems logical for Spirit or Frontier to have a few destinations form there.
My two cents...