US Says Subsidies for Rural Airline Service to End as Soon as Sunday
The Trump administration has announced that funds from a US government program that subsidizes commercial air service to rural airports are scheduled to end as soon as Sunday because of the current federal funding lapse.
The US transportation department indicated that financial assistance under the Essential Air Service initiative are expected to expire as soon as Sunday after the department transferred separate financial resources from the FAA as an temporary measure.
Transportation officials is in the process of alerting airline operators about the financial gap and informing communities about possible impacts.
Federal authorities allocates approximately $350 million in annual funding for the program.
Earlier this year, the administration proposed cutting financial support by $308 million for the Essential Air Service, which enjoys popularity among Republican lawmakers because it offers connectivity to predominantly Republican rural regions.
Throughout the first presidency of the former president, the administration suggested terminating the Essential Air Service program – but Congress chose to boost funding instead.
This initiative typically subsidizes two round trips daily using 30- to 50-seat aircraft – or additional frequencies with smaller aircraft. According to the department that under the program, approximately 65 areas in Alaska receive service and 112 locations across the other 49 states and Puerto Rico that likely wouldn't have any commercial air connectivity.
“All states nationwide will feel the effects,” the transportation secretary stated during a press conference, noting the service had support from both parties. “We lack the funding for that initiative moving forward.”
