US Says Subsidies for Air Service to Rural Areas to End as Soon as Sunday

Federal officials has announced that financial support from a US government program that subsidizes commercial air service to remote airfields are scheduled to end as early as this weekend because of the current federal funding lapse.

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

Transportation officials is currently notifying carriers about the funding shortfall and informing local areas about possible impacts.

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

In recent months, the administration suggested reducing funding by $308m for the air service program, which has support among Republican lawmakers because it provides services to rural, largely Republican areas.

During the first presidency of the former president, the White House suggested terminating 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 more frequent flights with smaller aircraft. Officials report that under the program, approximately 65 areas in Alaska have air access and 112 locations across the remaining states and Puerto Rico that likely wouldn't have any airline service.

“All states nationwide will be impacted,” the transportation chief stated during a press conference, observing the program had bipartisan support. “We lack the funding for that program going forward.”

Jennifer Foster
Jennifer Foster

Tech enthusiast and business strategist with over a decade of experience in digital transformation and startup consulting.