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

The Trump administration has announced that financial support from a US government program that supports airline routes to rural airports are scheduled to end as soon as Sunday because of the current federal funding lapse.

The US transportation department stated that subsidies under the Essential Air Service program are likely to end as early as this weekend after the department transferred unrelated funding from the Federal Aviation Administration as an temporary measure.

Transportation officials is currently notifying carriers about the funding shortfall and alerting communities about potential effects.

Federal authorities allocates approximately $350m in annual funding for the program.

Earlier this year, the White House suggested reducing financial support by $308 million for the air service program, which has support among GOP legislators because it offers connectivity 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 chose to boost funding instead.

The program typically subsidizes two return flights daily using 30- to 50-seat aircraft – or more frequent flights with smaller planes. Officials report that under the program, approximately 65 areas in the northern state receive service and 112 locations across the other 49 states and Puerto Rico that otherwise might not receive any airline service.

“All states across the country will feel the effects,” the transportation secretary commented during a press conference, observing the service had bipartisan support. “We lack the funding for that program going forward.”

Kyle Glenn
Kyle Glenn

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