US Says Subsidies for Air Service to Rural Areas to End as Early as This Weekend
Federal officials has stated that funds from a federal initiative that subsidizes airline routes to rural airports are scheduled to end as soon as Sunday because of the current federal funding lapse.
The US transportation department indicated that subsidies under the Essential Air Service initiative are expected to expire as early as this weekend after the department moved separate financial resources from the Federal Aviation Administration as an advance.
The department is in the process of alerting carriers about the financial gap and informing local areas about potential effects.
The government provides approximately $350 million in annual funding for the program.
In recent months, the administration suggested reducing funding by $308 million for the Essential Air Service, which has support among GOP legislators because it offers connectivity to rural, largely Republican areas.
During the initial term of the former president, the administration proposed eliminating the Essential Air Service program – but lawmakers chose to boost financial support instead.
The program typically subsidizes two round trips each day using 30- to 50-seat aircraft – or more frequent flights with smaller planes. According to the department that under the program, approximately 65 areas in Alaska 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 be impacted,” the transportation chief commented during a media briefing, observing the program had bipartisan support. “We don't have the funding for that program going forward.”
