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

Federal officials has announced that funds from a US government program that supports commercial air service to rural airports 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 program are expected to expire as soon as Sunday after the department transferred unrelated funding from the Federal Aviation Administration as an advance.

The department is in the process of alerting carriers about the funding shortfall and alerting communities about possible impacts.

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

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

Throughout the first presidency of the former president, the White House suggested terminating the Essential Air Service program – but lawmakers chose to boost financial support instead.

The program typically supports two return flights each day using 30- to 50-seat aircraft – or additional frequencies with smaller planes. According to the department that under the program, approximately 65 areas in Alaska receive service and 112 locations across the remaining states and Puerto Rico 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, noting the program had support from both parties. “We don't have the money for that program moving forward.”

Caitlin Serrano
Caitlin Serrano

A seasoned business analyst with over a decade of experience in market research and corporate strategy.