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US says subsidies for rural airline service to expire Sunday
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US says subsidies for rural airline service to expire Sunday
Oct 6, 2025 2:10 PM

WASHINGTON, Oct 6 (Reuters) - The Trump administration

said on Monday that funds from a U.S. government program that

subsidizes commercial air service to rural airports are set to

expire Sunday because of an ongoing partial government shutdown.

The U.S. Transportation Department said the subsidies in the

Essential Air Service program will end Sunday after the

department transferred unrelated funding from the Federal

Aviation Administration as an advance unless a government

funding standoff is resolved.

USDOT will stop reimbursing carriers on Sunday under the program

and told them they can stop flights they had signed contracts to

fly, according to a notice seen by Reuters.

The government told airlines if they fly Essential Air

Service flights beyond Sunday during the government shutdown

they "do so at their own risk as the department may not be able

to pay the contracted subsidy."

The department is in the process of alerting communities of

the potential impacts.

The government has about $350 million in annual funding.

In May, the White House proposed cutting funding by $308 million

for Essential Air Service, which is popular with Republican

lawmakers because it provides services to rural, largely

Republican areas.

To be eligible, the program requires a subsidy per

passenger of less than $650, unless the community is 175 miles

or more from the nearest major airport.

During the first Trump administration, the White House

proposed killing the Essential Air Service program, but Congress

opted to boost funding.

The program generally subsidizes two round trips a day with 30-

to 50-seat aircraft, or additional frequencies with smaller

aircraft. The department says under the program about 65

communities in Alaska receive service and 112 communities in the

other 49 states and Puerto Rico that otherwise may not receive

any airline service.

"Every state across the country will be impacted,"

Transportation Secretary Sean Duffy said at a press conference,

noting it has bipartisan support. "We don't have the money for

that program moving forward."

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