House Passes Federal Aviation Administration Reauthorization Measure
The U.S. House of Representatives today passed H.R. 2881, the Federal Aviation Administration (FAA) Reauthorization Act of 2007. The bill would authorize $68 billion for FAA programs over the next four years.
H.R. 2881 would authorize $15.9 billion over the next four years for the Airport Improvement Program (AIP)—the primary source of federal funding for airport capital improvements. Under the bill, the AIP program is authorized to receive appropriations of $3.8 billion for FY 2008. The House-passed version of the FY 2008 Transportation Appropriations bill would provide $3.6 billion.
H.R. 2881 also allows for an increase to the Passenger Facility Charge (PFC)—local fees imposed by airport operators that can be used for a variety of airport capital projects—from $4.50 to $7.00 per passenger. AGC worked with the Airports Council International/North America and other stakeholders to prevent floor consideration of an amendment that would have removed this provision from the bill.
The measure also includes a four-year extension of the current tax system that funds the Airport and Airway Trust Fund, as well as an increase on jet fuel and aviation gasoline taxes used by noncommercial aviation. Specifically, the tax on general aviation jet fuel would be increased by 14.1 cents per gallon (cpg) from 21.8 cpg to 35.9 cpg for a 65 percent increase. The tax on general aviation gasoline would be increased by 4.8 cpg from 19.3 cpg to 24.1 cpg for a 25 percent increase. Revenues generated by these increases, however, can only be used towards air traffic control system modernization.
The Senate Commerce, Science, and Transportation Committee approved its version of the FAA reauthorization bill in May. The Senate Finance Committee may consider this week the revenue portion of the legislation, including an amendment to address the projected Highway Trust Fund deficit in FY 2009. Current FAA programs expire on September 30. The White House has issued a veto threat on H.R. 2881.
For more information, contact Karen Bachman at firstname.lastname@example.org or (202) 547-4733.
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