US Says Subsidies for Rural Airline Service to Expire as Early as This Weekend
Federal officials has stated that financial support from a federal initiative that supports commercial air service to remote airfields are set to expire as soon as Sunday due to the ongoing government shutdown.
The US transportation department stated that financial assistance under the Essential Air Service initiative are expected to expire as early as this weekend after the department transferred separate financial resources from the FAA as an advance.
Transportation officials is currently notifying carriers about the funding shortfall and alerting communities about potential effects.
Federal authorities allocates approximately $350 million in annual funding for the program.
Earlier this year, the White House proposed cutting funding by $308 million for the air service program, which has support among GOP legislators because it offers connectivity to rural, largely Republican areas.
Throughout the initial term of Donald Trump, the administration proposed eliminating the Essential Air Service initiative – but Congress opted to increase financial support instead.
This initiative typically subsidizes two round trips daily using medium-sized planes – or additional frequencies with smaller planes. Officials report 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, noting the program had bipartisan support. “We don't have the money for that initiative moving forward.”
