Click here to view the Department of Transportation Budget for Fiscal Year 2008, as presented to Congress by the Administration on February 5, 2007.
A look at page 793 shows in black and white that the FAA proposes to cut $600 million in revenue that could be used for air traffic control modernization.
Also note significant cuts in the Airport Improvement Program (labeled here as “Grants-in-Aid”) and the complete elimination of the Small Communities Air Service Program. A major cut in the Essential Air Service Program is listed under the office of the Secretary of Transportation.