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Airport Construction Funds in Limbo
in What's Up - Construction News and Trends |
on July 25, 2011
(Based on a report from www.transportationissuesdaily.com)
Due to an impasse between the U.S. Senate and the House of Representatives reauthorizing funding for the Federal Aviation Administration, the FAA began implementing a shutdown of some operations — including airport construction projects — last Friday afternoon.
Airports will remain open, air traffic controllers will continue to work, and most flights will not be affected. However:
- Construction projects funded through the Airport Improvement Program will shut down until the FAA authorization bill is extended
- About 4,000 FAA workers will be furloughed across the country, mostly engineers, scientists, planners and analysts
- $200 million a week in airline taxes cannot be collected and deposited into a special trust fund that funds some of the FAA’s work
The FAA bill expired in 2007, and the impasse came during talks toward the 21st extension of the funding legislation. The House and Senate have been diametrically opposed on a labor provision and other issues.
House Republicans included a provision that was unacceptable to Senate Democrats. The provision would eliminate 13 airports from an FAA program that pays airlines to serve airports they otherwise would not because the routes are unprofitable. The cut would save an estimated $16.6 million annually that Republicans believe is wasteful spending.
One of the House’s proposals would have limited eligibility of the Essential Air Service program to communities that are at least 90 miles from a medium or hub airport. Another provision includes a cap that would eliminate airports from the program that require subsidies of more than $1,000 per passenger.
Some of the 13 airports the House has targeted are in the home states of Democratic Senate Majority Leader Harry Reid, Finance Committee Chairman Max Baucus and Commerce, Science & Transportation Committee Chairman Jay Rockefeller. The latter is the lead on the Senate’s FAA bill.
Congress is expected to resume talks about the extension this week.

