US Says Funding for Rural Airline Service to Expire as Soon as Sunday
Federal officials has stated that financial support from a federal initiative that subsidizes 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 subsidies under the Essential Air Service program are expected to expire as early as this weekend after the agency transferred unrelated funding from the FAA as an temporary measure.
Transportation officials is currently notifying carriers about the funding shortfall and alerting communities about possible impacts.
The government provides approximately $350 million in annual funding for the program.
Earlier this year, the White House suggested reducing funding by $308m for the air service program, which has support among Republican lawmakers because it provides services to predominantly Republican rural regions.
Throughout the initial term of the former president, the administration suggested terminating the Essential Air Service initiative – but Congress chose to boost financial support instead.
This initiative typically subsidizes two round trips each day using 30- to 50-seat aircraft – or additional frequencies with smaller planes. Officials report that under the program, approximately 65 areas in Alaska receive service and 112 locations across the remaining states and the territory that otherwise might not receive any airline service.
“All states across the country will feel the effects,” the transportation chief commented during a media briefing, noting the service had bipartisan support. “We don't have the funding for that program going forward.”
