US Says Subsidies for Rural Airline Service to End as Soon as Sunday
Federal officials has announced that funds from a US government program that subsidizes airline routes to rural airports are set to expire as soon as Sunday because of the current federal funding lapse.
Federal transportation authorities stated that subsidies under the Essential Air Service initiative are expected to expire as soon as Sunday after the agency moved separate financial resources from the FAA as an advance.
Transportation officials is in the process of alerting carriers about the funding shortfall and informing local areas about possible impacts.
The government provides approximately $350m in annual funding for the program.
Earlier this year, the administration proposed cutting funding by $308m for the air service program, which has support among Republican lawmakers because it offers connectivity to rural, largely Republican areas.
During the first presidency of the former president, the White House suggested terminating the Essential Air Service program – but lawmakers chose to boost funding instead.
The program typically subsidizes two round trips each day using 30- to 50-seat aircraft – or more frequent flights with smaller aircraft. Officials report that under the program, approximately 65 communities in Alaska have air access and 112 locations across the other 49 states and Puerto Rico that likely wouldn't have any airline service.
“All states across the country will feel the effects,” the transportation chief commented during a media briefing, noting the service had bipartisan support. “We don't have the money for that program going forward.”
