US EAS Funding to Halt Amid Ongoing Government Shutdown

The U.S. Department of Transportation (DOT) has warned that funding for the Essential Air Service (EAS) and Alternate Essential Air Service (AEAS) programs will lapse on October 12, 2025, if the ongoing federal government shutdown continues. The agency notified participating airlines that all contractual obligations will be suspended effective October 13 unless Congress restores funding.

Under the EAS and AEAS programs, the federal government subsidizes air service to smaller and rural communities that lack sufficient commercial air connectivity. The programs are funded through congressional appropriations and overflight fees collected by the Federal Aviation Administration (FAA). However, the DOT confirmed that appropriations are frozen during the shutdown, while available overflight fees fluctuate daily and are insufficient for sustained operations.

The DOT cautioned that any carrier operating EAS flights after October 12 would do so at its own financial risk, though the agency would pay valid claims on a pro rata basis if limited funds become available.

Currently, eleven U.S. carriers hold EAS contracts totaling about USD 234 million in annual subsidies, with another USD 37 million allocated under AEAS agreements. The largest beneficiaries include SkyWest Airlines, Contour Airlines, and Southern Airways Express/Mokulele Airlines.

Despite the uncertainty, Contour and SkyWest have pledged to maintain service during the shutdown. Both carriers emphasized the critical role these routes play in connecting rural America, calling the EAS program an “essential economic lifeline” for the communities they serve.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com