Senate May Shutter FAA to Keep $1,000 Ticket Subsidy

"This extension adopts unanimously-passed Senate language and stops three airports from receiving passenger ticket subsidies in excess of $1,000," said Transportation and Infrastructure Committee Chairman John L. Mica (R-FL). "Every ticket at the Ely, Nevada airport is underwritten $3,720 by federal taxpayers."

This is the 21st FAA extension since the expiration of the previous FAA authorization, which became law 7 ½ years ago.

"It is now up to the Senate to pass this bill and not shut down FAA programs over a little provision that eliminates huge government subsidies to just three small airports," Mica continued.

"Of the two relatively small Essential Air Service provisions in this extension, one has already been approved by the Senate in its long-term FAA proposal," Mica continued. The second provision sets a reasonable subsidy cap of $1,000 per passenger and eliminates three small airports from the program. Shutting down FAA programs to protect these three highly subsidized airports would make absolutely no sense.

"While I am frustrated that House and Senate negotiations have not concluded on a final long-term FAA bill, the House is prepared to continue negotiating in good faith with the Senate to reach agreement on a final bill as soon as possible," Mica concluded.

"During this economically difficult time, it is not possible to justify using taxpayer dollars to pay for a subsidy of $1,000 or more per passenger at an EAS airport," said Aviation Subcommittee Chairman Tom Petri (R-WI). "As Congress tries to find a way forward to address deficit and long-term debt issues, if we can't put an end to these extravagant subsidies, then we will never be able to rein in spending where really hard decisions are necessary."

This 21st extension, H.R. 2553, maintains current funding levels for the FAA, its employees, and airports across the country through September 16, 2011. The extension also includes a common sense Essential Air Service (EAS) reform provision, which the Senate passed unanimously during Floor consideration earlier this year. This provision, which was section 420 in the Senate's FAA bill, would limit EAS eligibility to communities that are located 90 or more miles from a large or medium hub airport. It also includes a waiver should the Secretary of Transportation determine that geographic characteristics result in undue difficulty accessing the nearest medium or large hub. This modest reform, already approved by the Senate this year, could eliminate 10 EAS communities located within 90 miles of a medium or large hub airport, resulting in $12.5 million in annual savings.

The extension also includes a pro-taxpayer cap on the EAS passenger subsidy provided by the federal government. Setting the subsidy cap at $1,000 per passenger eliminates three additional communities from the EAS program and saves an additional $4.1 million on an annual basis. The current per passenger subsidy rates for these three airports: Ely, Nevada, $3,720; Alamogordo/Holloman AFB, New Mexico, $1,563; and Glendive, Montana, $1,358.

Some non-safety critical FAA programs will no longer be funded after Friday if the Senate fails to act on this extension.