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The U.S. 2027 fiscal budget proposal that was released on April 3 includes a drastic decrease in funding for the Essential Air Service (EAS) program.
The budget claims that the spending for the program is out of control and plans to cut $372 million from its funding, reducing it from $680.2 million to $315.7 million. It claims that EAS's spending has more than doubled between 2021 and 2025 and proposes a mix of reforms to adjust eligibility and subsidy rates that it claims will make the program more sustainable to maintain while still helping rural communities' air transportation needs.
"The EAS program funnels taxpayer dollars to airlines to subsidize half-empty flights from airports that are within easy commuting distance from each other, while also failing to effectively provide assistance to most rural air travelers," said the budget.
This is the second year in a row the White House has proposed cutting funding for EAS. In the fiscal 2026 budget cycle, it was proposed to cut the funding in half. Instead, Congress approved a $514 million for EAS in the enacted transportation spending bill and included language to prevent the DOT from abruptly terminating contracts. EAS is meant to preserve access to the national air transportation system for rural communities that would otherwise lose that access through airline deregulation. Eligibility requirements would exclude airports within 75 miles of other commercial airports.
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The DOT claims EAS serves 65 communities in Alaska and 112 communities in the 48 contiguous states, Hawaii, and Puerto Rico that otherwise may not receive any scheduled air service. The Regional Airline Association (RAA) states the program is the economic backbone of rural air service, according to Aviacoin.