Government Announces Subsidies for Rural Airline Service to Expire as Early as This Weekend

Federal officials has stated that financial support from a federal initiative that subsidizes commercial air service to rural airports are set to expire as soon as Sunday due to the current federal funding lapse.

Federal transportation authorities stated that subsidies under the Essential Air Service program are likely to end as soon as Sunday after the agency transferred separate financial resources from the FAA as an temporary measure.

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

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

Earlier this year, the administration proposed cutting funding by $308m for the Essential Air Service, which enjoys popularity among GOP legislators because it offers connectivity to predominantly Republican rural regions.

Throughout the first presidency of Donald Trump, the White House suggested terminating the Essential Air Service initiative – but Congress opted to increase financial support instead.

This initiative typically supports two round trips daily using medium-sized planes – or more frequent flights with smaller aircraft. 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 likely wouldn't have any commercial air connectivity.

“Every state across the country will be impacted,” the transportation secretary stated during a press conference, noting the program had bipartisan support. “We lack the funding for that initiative going forward.”

Ms. Angela Friedman
Ms. Angela Friedman

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