US Says Subsidies for Air Service to Rural Areas to Expire as Soon as Sunday
The Trump administration 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 because of the ongoing government shutdown.
The US transportation department indicated that subsidies under the Essential Air Service initiative are likely to end as soon as Sunday after the agency transferred separate financial resources from the Federal Aviation Administration as an temporary measure.
The department is currently notifying airline operators about the financial gap and alerting local areas about potential effects.
The government allocates approximately $350m in annual funding for the program.
Earlier this year, the White House proposed cutting financial support by $308m for the Essential Air Service, which has support among GOP legislators because it offers connectivity to predominantly Republican rural regions.
During the first presidency of Donald Trump, the White House suggested terminating the Essential Air Service initiative – but Congress opted to increase financial support instead.
This initiative 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 Puerto Rico that otherwise might not receive any commercial air connectivity.
“All states nationwide will feel the effects,” the transportation secretary stated during a press conference, observing the service had support from both parties. “We lack the funding for that program moving forward.”