Government Announces Subsidies for Rural Airline Service to Expire as Soon as Sunday
The Trump administration has announced that financial support from a US government program that subsidizes commercial air service to rural airports are set to expire as soon as Sunday due to the current federal funding lapse.
The US transportation department stated that subsidies under the Essential Air Service program are expected to expire as early as this weekend after the department moved unrelated funding from the Federal Aviation Administration as an advance.
The department is in the process of alerting airline operators about the financial gap and informing local areas about possible impacts.
Federal authorities provides approximately $350m in annual funding for the program.
Earlier this year, the administration proposed cutting financial support by $308m for the air service program, which has support among GOP legislators because it offers connectivity to predominantly Republican rural regions.
During the initial term of Donald Trump, the White House suggested terminating the Essential Air Service program – but lawmakers opted to increase funding instead.
The program typically subsidizes two round trips daily using medium-sized planes – or more frequent flights with smaller planes. Officials report that under the program, approximately 65 communities in the northern state receive service and 112 locations across the other 49 states and the territory that otherwise might not receive any commercial air connectivity.
“All states across the country will feel the effects,” the transportation chief commented during a press conference, noting the service had bipartisan support. “We lack the money for that initiative moving forward.”