The general fund is to be the source for the Essential Air Service (EAS) program, with the passage of the $67.8 billion Transportation-Treasury Housing and Urban Development (TTHUD) Appropriations bill. Roughly $67 million of the $117 million slated for the program would come from the general fund rather than the Airport Improvement Program (AIP). However, any funds remaining in the budget at the end of the fiscal year will not be rolled over for use in the following year. The same deal was struck for the Small Community Air Service Develop Program, which was funded by appropriations at the $20 million level. (RAN, June 12)

"The funding increase with respect to EAS is a clear signal that Congress has heard our message on rising EAS carrier costs and the importance of continued air service through the program," said RAA. "The additional money was stripped altogether last year in a procedural battle between appropriators and authorizers, where authorizers routinely object to the use of AIP funds for non-airport expenditures. We are very pleased that authorizers have this year instead determined that a general fund contribution is more appropriate."

While many aviation programs were subjected to amendments designed to redirect funding to other transportation sectors such as Amtrak as well as cuts aimed at reducing expenditures overall, most of the aviation-related funding survived at Committee-passed levels. The bill now moves to the Senate for consideration, where pressure to reduce spending is much greater.

Additional details of the TTHUD Appropriations bill:

• Extends the FAA's war risk insurance program.
• Provides funding $200 million higher than President Bush's requested $67.6 billion, with the FAA receiving $15.2 billion, $1.4 billion above Bush's request.
• Includes $3.11 billion for the FAA's Facilities and Equipment account, with $18 million appropriated for hiring and training 132 new air traffic controllers.
• Provides $134 million for Research and Development.
• Provides $8.36 billion for FAA operations, which is actually below the President's request but $400 million above FY06 funding levels.
• Prohibits using any federal funds for the so-called "bridge to nowhere," linking Ketchikan, Alaska with the sparsely populated Gravina Island, or to reimburse Alaska for any related expenses.
• Provides $3.7 billion to AIP, nearly $1 billion over the President's budget request.
• Prohibits DOT from implementing proposed regulations easing restrictions on foreign investment in domestic airlines.
• Prohibits DOT from implementing any cost share requirement for EAS communities and gives DOT authority to reallocate up to $10 million to EAS from other DOT accounts if needed, but also prohibits use of transferring remaining EAS funds from one fiscal year to the next.
• The House approved an amendment prohibiting consolidation of TRACONS in "high threat urban areas."
• Grants DOT authority to reallocate $1 million of EAS funds for marketing grants for up to $50,000 to up to 20 communities, to help communities market EAS services with an eye to increasing enplanements and decreasing subsidy reliance.
• Provides $97.5 million for the Contract Tower Program and $8 million for the Contract Tower Cost-Sharing Program.