Trump Budget Proposes User-Fee-Funded ATC Spinoff
May 25, 2017
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  • The budget request appears similar to House Transportation and Infrastructure Committee Chairman Rep. Bill Shuster’s (R-Pa.) plan to transfer ATC to a nonprofit corporation, but Trump’s proposal does not address how the new entity would be structured. The move would support user fees and, according to a Trump administration fact sheet, “The Budget estimates assume the ticket tax will end, but the precise tax rates for the remaining aviation excise taxes have not yet been developed. The Administration will work with Congress to establish successor tax rates.” Additionally, this move would increase the federal deficit by an estimated $46 billion over 10 years.

    “We are always open to new ideas that could make the FAA more efficient, but we are not hearing reports from our members about problems associated with air traffic control, and we will continue to oppose user fees on any segment of general aviation,” said AOPA Senior Vice President of Government Affairs Jim Coon.

    Funding for the FAA expires in September, and Rep. Sam Graves (R-Mo.), a member of the House Transportation and Infrastructure Committee, recently told Politico he expects the committee to begin marking up the FAA reauthorization legislation in June.