Government Announces Funding for Rural Airline Service to Expire as Early as This Weekend
Federal officials has stated that funds from a federal initiative that supports commercial air service to rural airports are set to expire as early as this weekend due to the ongoing government shutdown.
Federal transportation authorities stated that subsidies under the Essential Air Service program are expected to expire as early as this weekend after the agency moved unrelated funding from the Federal Aviation Administration as an advance.
Transportation officials is currently notifying carriers about the financial gap and informing local areas about potential effects.
Federal authorities provides approximately $350 million in annual funding for the program.
In recent months, the White House suggested reducing financial support by $308m for the air service program, which enjoys popularity among GOP legislators because it provides services to rural, largely Republican areas.
Throughout the first presidency of Donald Trump, the administration suggested terminating the Essential Air Service initiative – but Congress opted to increase funding instead.
The program typically subsidizes two round trips daily 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 likely wouldn't have any commercial air connectivity.
“All states across the country will be impacted,” the transportation chief stated during a media briefing, observing the service had bipartisan support. “We don't have the money for that initiative going forward.”