US Says Subsidies for Rural Airline Service to Expire as Soon as Sunday
Federal officials has stated that funds from a US government program that subsidizes commercial air service to rural airports are set to expire as early as this weekend because of 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 transferred separate financial resources from the FAA as an advance.
The department is currently notifying carriers about the funding shortfall and informing communities about possible impacts.
Federal authorities allocates approximately $350 million in yearly financial support for the program.
Earlier this year, the White House suggested reducing financial support by $308m for the Essential Air Service, which enjoys popularity among GOP legislators because it provides services to predominantly Republican rural regions.
Throughout the first presidency of Donald Trump, the administration suggested terminating the Essential Air Service initiative – but lawmakers chose to boost financial support instead.
The program typically subsidizes two return flights each day using 30- to 50-seat aircraft – or additional frequencies with smaller aircraft. Officials report that under the program, approximately 65 communities in Alaska receive service and 112 communities across the other 49 states and Puerto Rico that likely wouldn't have any commercial air connectivity.
“All states across the country will feel the effects,” the transportation chief stated during a press conference, observing the service had support from both parties. “We don't have the money for that initiative going forward.”