Government Announces Funding for Air Service to Rural Areas to End as Early as This Weekend

The Trump administration has stated that funds from a federal initiative that subsidizes commercial air service to remote airfields are set to expire as early as this weekend due to the ongoing government shutdown.

Federal transportation authorities indicated that subsidies under the Essential Air Service initiative are likely to end as early as this weekend after the agency transferred separate financial resources from the FAA as an temporary measure.

Transportation officials is in the process of alerting airline operators about the financial gap and alerting local areas about potential effects.

The government allocates approximately $350m in annual funding for the program.

Earlier this year, the administration suggested reducing financial support by $308 million for the Essential Air Service, which has support among GOP legislators because it provides services to predominantly Republican rural regions.

During the initial term of Donald Trump, the administration proposed eliminating the Essential Air Service program – but Congress chose to boost funding instead.

This initiative typically supports two round trips daily using medium-sized planes – or more frequent flights with smaller aircraft. According to the department that under the program, approximately 65 areas in Alaska have air access and 112 communities across the other 49 states and Puerto Rico that otherwise might not receive any airline service.

“All states nationwide will feel the effects,” the transportation chief stated during a press conference, noting the service had bipartisan support. “We don't have the funding for that program going forward.”

Donna Hoffman
Donna Hoffman

A seasoned financial analyst with over 15 years of experience in corporate accounting and personal finance management.