US Says Subsidies for Rural Airline Service 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 subsidies under the Essential Air Service program are expected to expire as early as this weekend after the department moved unrelated funding from the FAA as an temporary measure.
Transportation officials is currently notifying carriers about the financial gap and alerting local areas about potential effects.
Federal authorities provides approximately $350m in yearly financial support for the program.
Earlier this year, the White House proposed cutting financial support by $308m for the Essential Air Service, which has support among GOP legislators because it offers connectivity to rural, largely Republican areas.
Throughout the initial term of the former president, the White House suggested terminating the Essential Air Service initiative – but Congress chose to boost funding instead.
The program typically subsidizes two return flights each day using medium-sized planes – or additional frequencies with smaller planes. Officials report that under the program, approximately 65 areas in the northern state have air access and 112 locations across the other 49 states and Puerto Rico that likely wouldn't have any commercial air connectivity.
“All states nationwide will feel the effects,” the transportation secretary commented during a media briefing, noting the program had bipartisan support. “We don't have the funding for that program moving forward.”