US Says Subsidies for Air Service to Rural Areas to End as Early as This Weekend

Federal officials has stated that funds from a US government program that subsidizes commercial air service to remote airfields are set to expire as soon as Sunday due to the ongoing government shutdown.

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 transferred separate financial resources from the FAA as an temporary measure.

The department is in the process of alerting carriers about the funding shortfall and alerting communities about potential effects.

Federal authorities allocates approximately $350m in yearly financial support for the program.

In recent months, the White House suggested reducing funding by $308 million for the air service program, which has support among GOP legislators because it provides services to rural, largely Republican areas.

During the initial term of Donald Trump, the administration proposed eliminating the Essential Air Service initiative – but lawmakers chose to boost financial support instead.

This initiative typically supports two return flights daily using medium-sized planes – or additional frequencies with smaller planes. Officials report that under the program, approximately 65 communities in Alaska have air access and 112 locations across the remaining states and the territory that likely wouldn't have any airline service.

β€œAll states across the country will feel the effects,” the transportation secretary stated during a media briefing, noting the program had support from both parties. β€œWe don't have the funding for that initiative going forward.”

Stacey Hoover
Stacey Hoover

A seasoned business consultant and tech enthusiast with over a decade of experience in digital transformation and startup advising.