US Says Subsidies for Air Service to Rural Areas to Expire as Soon as Sunday
Federal officials has announced that financial support from a federal initiative that supports airline routes to rural airports are set to expire as early as this weekend because of the current federal funding lapse.
Federal transportation authorities indicated that financial assistance under the Essential Air Service initiative are likely to end as early as this weekend after the agency moved separate financial resources from the FAA as an temporary measure.
The department is in the process of alerting airline operators about the funding shortfall and alerting communities about possible impacts.
The government allocates approximately $350 million in yearly financial support for the program.
In recent months, the White House proposed cutting funding by $308 million for the air service program, which has support among GOP legislators because it provides services to rural, largely Republican areas.
During the initial term of Donald Trump, the White House suggested terminating the Essential Air Service initiative – but lawmakers opted to increase funding instead.
The program typically subsidizes two round trips each day using medium-sized planes – or additional frequencies with smaller planes. According to the department that under the program, approximately 65 areas in the northern state have air access and 112 communities across the remaining states and the territory that likely wouldn't have any commercial air connectivity.
“All states across the country will feel the effects,” the transportation chief stated during a media briefing, noting the program had support from both parties. “We don't have the money for that initiative going forward.”