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

Federal officials has announced that funds from a US government program that subsidizes airline routes to remote airfields are set to expire as early as this weekend due to the current federal funding lapse.

The US transportation department indicated that subsidies under the Essential Air Service initiative are likely to end as soon as Sunday after the department transferred unrelated funding from the FAA as an temporary measure.

Transportation officials is currently notifying airline operators about the funding shortfall and alerting local areas about potential effects.

The government allocates approximately $350m in yearly financial support for the program.

Earlier this year, the White House proposed cutting financial support by $308 million for the Essential Air Service, which enjoys popularity among GOP legislators because it offers connectivity to rural, largely Republican areas.

Throughout the first presidency of the former president, the White House proposed eliminating the Essential Air Service initiative – but lawmakers opted to increase financial support instead.

This initiative typically supports two round trips daily using 30- to 50-seat aircraft – or more frequent flights with smaller aircraft. Officials report that under the program, approximately 65 communities in the northern state receive service and 112 locations across the remaining states and the territory that likely wouldn't have any airline service.

“Every state across the country will be impacted,” the transportation chief commented during a press conference, noting the service had bipartisan support. “We don't have the money for that initiative moving forward.”

Dr. Margaret Moore MD
Dr. Margaret Moore MD

A seasoned financial analyst with over a decade of experience in wealth management and market trends.