US Says Subsidies for Rural Airline Service to Expire as Soon as Sunday
Federal officials has announced that funds from a US government program that subsidizes commercial air service to remote airfields are set to expire as early as this weekend because of the current federal funding lapse.
Federal transportation authorities stated that subsidies under the Essential Air Service initiative are expected to expire as soon as Sunday after the agency transferred unrelated funding from the Federal Aviation Administration as an advance.
The department is currently notifying carriers about the financial gap and informing local areas about possible impacts.
The government provides approximately $350m in yearly financial support for the program.
Earlier this year, the administration suggested reducing funding by $308m for the air service program, which has support among GOP legislators because it offers connectivity to predominantly Republican rural regions.
Throughout the initial term of Donald Trump, the administration proposed eliminating the Essential Air Service program – but Congress chose to boost funding instead.
This initiative typically subsidizes two return flights each day using medium-sized planes – or more frequent flights with smaller planes. According to the department that under the program, approximately 65 areas in Alaska receive service and 112 communities across the remaining states and Puerto Rico that otherwise might not receive any airline service.
“All states nationwide will feel the effects,” the transportation secretary stated during a press conference, observing the program had support from both parties. “We lack the funding for that initiative moving forward.”