US Says Subsidies for Rural Airline Service to Expire as Soon as Sunday
The Trump administration has announced that funds from a federal initiative that supports commercial air service to remote airfields are scheduled to end as soon as Sunday due to the current federal funding lapse.
Federal transportation authorities indicated that subsidies under the Essential Air Service program are expected to expire as soon as Sunday after the agency transferred separate financial resources from the Federal Aviation Administration as an temporary measure.
The department is in the process of alerting airline operators about the funding shortfall and alerting local areas about possible impacts.
The government allocates approximately $350 million in annual funding for the program.
In recent months, the administration proposed cutting financial support by $308 million for the Essential Air Service, which has support among GOP legislators because it provides services to predominantly Republican rural regions.
During the initial term of Donald Trump, the administration suggested terminating the Essential Air Service initiative – but lawmakers opted to increase funding instead.
The program typically supports two round trips each day using 30- to 50-seat aircraft – or more frequent flights with smaller aircraft. According to the department that under the program, approximately 65 areas in Alaska have air access and 112 locations across the other 49 states and the territory that likely wouldn't have any airline service.
“All states nationwide will feel the effects,” the transportation secretary commented during a press conference, observing the service had support from both parties. “We lack the funding for that initiative going forward.”
