What Happened
White House Seeks To Rein In Subsidies For Rural Air Travel
The US President’s fiscal 2027 budget proposal includes a $372 million reduction in discretionary funding for the Essential Air Service program, citing concerns that the subsidy system has strayed from its original purpose. The program, which supports 177 communities, including 65 in Alaska, has been a target for reform in recent years. The administration argues that EAS now sends taxpayer money to support ‘half-empty flights’ between airports that are often close to one another. The proposed reforms aim to ‘rein in’ subsidies through changes to eligibility rules and subsidy rates. The budget proposal was reported by AeroTime.