US Proposes $308M Cut to Essential Air Service Program

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The U.S. government has proposed a $308 million reduction in discretionary funding for the Essential Air Service (EAS) program, a move that could impact air connectivity in rural communities. The proposal was included in President Donald J. Trump’s 2026 federal budget, released on May 2.

The administration argues that EAS subsidies often fund underutilized flights between airports located within short travel distances of each other and do not efficiently serve the broader rural population. The budget document claims that EAS spending more than doubled between 2021 and 2025 and calls for reforms to adjust eligibility criteria and subsidy levels.

“Spending on programs is out of control,” the budget reads, adding that the changes aim to address rural transportation needs more sustainably. However, the proposal does not specify which communities or airports might lose funding or how lost services would be replaced.

The EAS program was created after the Airline Deregulation Act of 1978 to maintain air service to small communities that might otherwise be unprofitable for commercial airlines. As of late 2024, the U.S. Department of Transportation was providing $591.7 million in subsidies to support air service to 65 communities in Alaska and 112 locations across the contiguous United States, Hawaii, and Puerto Rico.

The budget proposal is not final and will require Congressional approval. Airlines currently operating EAS routes include SkyWest Airlines, Cape Air, Contour Airlines, Alaska Airlines, Advanced Air, Boutique Air, JetBlue Airways, and others.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

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

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