Government Announces Funding for Rural Airline Service to Expire as Early as This Weekend

The Trump administration has announced that funds from a US government program that supports airline routes to remote airfields are scheduled to end as soon as Sunday due to the current federal funding lapse.

Federal transportation authorities indicated that subsidies under the Essential Air Service program are likely to end as soon as Sunday after the department moved unrelated funding from the Federal Aviation Administration as an temporary measure.

The department is currently notifying carriers about the financial gap and alerting local areas about possible impacts.

Federal authorities provides approximately $350m in annual funding for the program.

In recent months, the administration proposed cutting funding by $308m for the Essential Air Service, which enjoys popularity among Republican lawmakers because it offers connectivity to predominantly Republican rural regions.

During the initial term of the former president, the administration suggested terminating the Essential Air Service initiative – but Congress chose to boost funding instead.

This initiative typically supports two round trips each day using 30- to 50-seat aircraft – or additional frequencies with smaller aircraft. Officials report that under the program, approximately 65 areas in Alaska receive service and 112 locations across the remaining states and the territory that likely wouldn't have any commercial air connectivity.

“Every state across the country will feel the effects,” the transportation chief commented during a press conference, observing the program had support from both parties. “We don't have the money for that initiative moving forward.”

David Wolf
David Wolf

A seasoned business analyst with over a decade of experience in UK market research and economic forecasting.

Popular Post