Government Announces Subsidies for Rural Airline Service to End as Early as This Weekend
The Trump administration has announced that financial support from a federal initiative that subsidizes airline routes to rural airports are set to expire as early as this weekend because of the ongoing government shutdown.
The US transportation department stated that subsidies under the Essential Air Service program are expected to expire as soon as Sunday after the agency transferred unrelated funding from the Federal Aviation Administration as an advance.
Transportation officials is in the process of alerting airline operators about the funding shortfall and informing local areas about potential effects.
The government provides approximately $350 million in yearly financial support for the program.
Earlier this year, the White House suggested reducing funding by $308m for the air service program, which has support among GOP legislators because it offers connectivity to predominantly Republican rural regions.
Throughout the initial term of the former president, the administration suggested terminating the Essential Air Service initiative – but lawmakers chose to boost financial support instead.
This initiative typically subsidizes two return flights each day using medium-sized planes – or more frequent flights with smaller planes. Officials report that under the program, approximately 65 areas in Alaska have air access and 112 locations across the remaining states and the territory that likely wouldn't have any airline service.
“All states across the country will feel the effects,” the transportation chief stated during a press conference, observing the program had support from both parties. “We lack the funding for that initiative going forward.”
