The funding cut for a rural airport subsidy in the Federal Aviation Administration (FAA) reauthorization bill is a mirage, according to a watchdog group.
Taxpayers for Common Sense found that, although the FAA bill appears to slash funding for Essential Air Services, the bill will actually result in a funding increase for the program, which subsidizes flights to and from rural airports.
Rather than cutting funding for the program by $111 million over four years, the deal reached by lawmakers will actually result in a $44 million increase for the program, the group found.
The watchdog says cuts to the subsidy negotiated by lawmakers will be more than offset by an increase in the so-called “overflight” fees that air passengers pay when they fly through U.S. airspace en route to another country. The FAA plans to increase the overflight fees three times in the next three years, generating an additional $155 million in revenue.
Previously, $50 million of the funding from overflight fees was allocated to the subsidy program each year, with the rest allocated to future budgets for the program.
But the FAA bill would change that, allowing all of the overflight revenue to be used immediately for the rural airport program.
The watchdog estimated that all adds up to an increase of $44 million over four years for the subsidy.
The FAA legislation was finalized this week in conference committee but has yet to be voted on in either chamber of Congress.
Watchdog: Cut to rural airport subsidy is a mirage (The Hill)
Discussion
Sign Up for Updates
