Posts Tagged ‘FY 2019 federal budget’

Trump Budget Also Targets Air Service, Fees

February 15, 2018

Amtrak is not the only form of transportation with a target on its back in the Trump administration’s budget proposal for fiscal year 2019.

In the same way that the budget seeks to slash funding for Amtrak, particularly its long-distance trains, the administration wants to cut funding for essential air service to small airports.

The budget proposed cutting expenditures for the EAS program from $150 million to $93 million.

The budget would also raise fees related to transportation security, and customs and immigration fees paid by airline and cruise passengers. The federal air traffic control system would be privatized.

Amtrak funding would fall from $1.5 billion to $738 million. The budget proposal said Amtrak’s long-distance trains suffer from poor on-time performance and carry just 4.7 million of Amtrak’s nearly 32 million annual passengers. It also said the long-distance trains lose more than $500 million annually.

These proposals are not new. Most of them were in the FY 2018 budget, but Congress did not heed them.

The Trump administration budget proposal calls for appropriating $15.6 billion for the Department of Transportation, a cut of 19 percent from what Congress gave it in FY 2017.

The most recent data available from the U.S. Department of Transportation, dated October 2016, shows that the federal government funded commercial airline flights to 120 communities in the continental U.S and Hawaii.

The program, which began in 1978, also makes 237 Alaskan communities eligible for funding.

The rational for the EAS program was to enable remote towns to remain in the national air traffic network following airline deregulation, which resulted in scores of airports losing commercial service.

“However, today many EAS flights are not full and have high per-passenger subsidy costs. Several EAS eligible communities are relatively close to major airports,” the budget proposal says.

The recommendations were part of the $4.4 trillion budget proposal the administration sent to Congress on Monday.

Among the travel security-related fees that the administration wants to increase are the 9/11-passenger security fee that is assessed on airfare from the current $5.60 per one-way trip to $6.60 in 2019 and then to $8.25 beginning in 2020.

Although the 9/11 fee is supposed to fund Transportation Security Administration airport operations, Congress has sent about a third of it to items unrelated to security.

The administration said raising the fee would result in the traveling public paying for the full cost of aviation security.

The custom inspection fee would increase from $5.65 to $7.75. This fee is assessed on air and cruise ticket prices for people arriving in the United States.

The immigration fee, which is also assessed on tickets held by air and cruise passengers entering the U.S., would go from $7 to $9.

The proposal includes ending an exemption on that fee for passengers arriving via sea from Canada and Mexico.

The budget proposal said that the customs fee and immigration fee were last increased in 2007 and 2001, respectively.

Air traffic control is now overseen by the Federal Aviation Administration, but the Trump administration wants to shift it to an independent private organization.

Doing this, the administration believes, would speed implementation of a satellite-based NextGen system while removing air traffic control from contentious appropriation debates in Congress.

Critics have said doing this would reduce public accountability and harm the interests of private aviation.

An ATC privatization bill has twice made it out of the House Transportation Committee, but has failed to pass either the full House or the Senate due to bi-partisan opposition.