Long-term funding authorization for the FAA will have to wait. Last week, Congress passed a bill mandating yet another short-term temporary funding strategy. This one extends through the end of March next year — a total of three months from the expiration of the current funding that expires at the end of this month. Congress has funded FAA with a series of extensions since its last long-term funding authorization expired in 2007. The current extension continues the policy of collecting funds for the Airport and Airway Trust Fund via airline ticket taxes and general aviation fuel taxes. Last May, the House passed a long-term re-authorization bill that did not include user fees, an issue that sharply divides the airline industry (in favor of user fees) and general aviation interests (which prefers to continue with the current funding protocol). In its annual appropriations funding for 2010, Congress allocated $3.515 billion for the Airport Improvement Program, the same amount allocated for the past four years. With the Obama administration leaning toward spending on infrastructure improvement so help stimulate the economy, the most often mentioned projects focus on highways and bridges. But administration insiders indicate that aviation could be one of the largest recipients of the funding focus. With much of the funding for the financial rescue program now available for other projects, some believe that aviation could find itself among the beneficiaries.
FAA Receives Another Short-term Funding Plan
Key Takeaways:
- Congress has passed another short-term funding extension for the FAA until March next year, continuing a series of temporary measures since 2007 and maintaining funding through airline ticket and general aviation fuel taxes.
- A long-term funding solution is stalled due to disagreement over user fees, which are favored by the airline industry but opposed by general aviation interests.
- Despite static funding for the Airport Improvement Program, there is potential for increased aviation infrastructure investment as the Obama administration looks to stimulate the economy with infrastructure spending.
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