US Says Funding for Rural Airline Service to Expire as Early as This Weekend

Federal officials has stated that financial support from a US government program that subsidizes airline routes to rural airports are set to expire as early as this weekend due to the ongoing government shutdown.

Federal transportation authorities indicated that financial assistance under the Essential Air Service program are expected to expire as soon as Sunday after the agency moved unrelated funding from the FAA as an advance.

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

The government provides approximately $350 million in annual funding for the program.

In recent months, the administration suggested reducing financial support by $308m for the Essential Air Service, which enjoys popularity among GOP legislators because it offers connectivity to rural, largely Republican areas.

Throughout the initial term of Donald Trump, the White House suggested terminating the Essential Air Service program – but Congress chose to boost funding instead.

The program typically subsidizes two return flights daily using medium-sized planes – or additional frequencies with smaller aircraft. According to the department that under the program, approximately 65 communities in Alaska receive service and 112 communities across the other 49 states and the territory that likely wouldn't have any airline service.

“Every state across the country will feel the effects,” the transportation secretary commented during a media briefing, noting the service had support from both parties. “We don't have the funding for that initiative moving forward.”

Nicole Scott
Nicole Scott

Seasoned entrepreneur and startup advisor with over a decade of experience in tech innovation and business scaling.