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Are User Fees Coming?

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Key Takeaways:

  • Significant changes to aviation user fees are imminent, driven by a large federal deficit and unified airline efforts to shift their tax burden, particularly fuel taxes, onto business and general aviation (GA).
  • The FAA deems the current Airport and Airway Trust Fund insufficient and seeks a more stable and predictable revenue stream, reducing reliance on general fund contributions.
  • General aviation advocates for retaining the fuel tax as the most equitable and efficient method for collecting its share, arguing that GA uses the excess capacity of an airline-focused system with minimal incremental cost, and should fight to preserve this mechanism even if the rate increases.
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The current administration appears to be determined to collect more money from those of us who use the national airspace system. People at the National Business Aviation Association (NBAA) expect a bill that will raise fees on aviation users to be introduced into Congress no later than this spring. And they’re not alone in that belief.

All of aviation has been talking about, and worrying about, “user fees” for decades, but nothing much has happened yet. This time, several factors have aligned which makes it very likely that there will be changes in the way aviation users are taxed.

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