US Says Subsidies for Air Service to Rural Areas to End as Early as This Weekend
The Trump administration has announced that funds from a federal initiative that subsidizes airline routes to remote airfields are scheduled to end as soon as Sunday due to the current federal funding lapse.
Federal transportation authorities stated that financial assistance under the Essential Air Service initiative are expected to expire as soon as Sunday after the agency transferred separate financial resources from the FAA as an temporary measure.
The department is in the process of alerting carriers about the funding shortfall and alerting local areas about potential effects.
The government allocates approximately $350m in annual funding for the program.
In recent months, the White House suggested reducing funding by $308m for the Essential Air Service, which enjoys popularity 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 opted to increase financial support instead.
The program typically subsidizes two return flights daily using medium-sized planes – or more frequent flights with smaller aircraft. Officials report that under the program, approximately 65 communities in Alaska receive service and 112 locations across the remaining states and the territory that likely wouldn't have any airline service.
“All states across the country will be impacted,” the transportation chief commented during a media briefing, noting the program had bipartisan support. “We don't have the funding for that program going forward.”
