US Says Subsidies for Rural Airline Service to End as Soon as Sunday
Federal officials has announced that financial support from a federal initiative that subsidizes airline routes to remote airfields are set to expire as soon as Sunday because of the current federal funding lapse.
The US transportation department stated that subsidies under the Essential Air Service initiative are expected to expire as soon as Sunday after the agency moved separate financial resources from the FAA as an advance.
The department is currently notifying airline operators about the financial gap and alerting local areas about potential effects.
Federal authorities allocates approximately $350m in yearly financial support for the program.
In recent months, the administration proposed cutting funding by $308 million for the air service program, which enjoys popularity among Republican lawmakers because it provides services to predominantly Republican rural regions.
During the first presidency of the former president, the White House suggested terminating the Essential Air Service program – but lawmakers opted to increase financial support instead.
This initiative typically subsidizes two return flights each day using medium-sized planes – or additional frequencies with smaller planes. According to the department that under the program, approximately 65 communities in Alaska receive service and 112 communities across the remaining states and the territory that likely wouldn't have any airline service.
“All states nationwide will feel the effects,” the transportation chief commented during a press conference, noting the program had bipartisan support. “We lack the funding for that initiative going forward.”
