The Essential Air Service (EAS) program will run out of funding as early as Sunday, Transportation Secretary Sean Duffy said. His comments come as a federal government shutdown continues into its second week.
Certain federal government employees – including air traffic controllers and TSA officers – will continue to work without pay. But Duffy added that non-critical workers within his agency have been laid off as a result of the shutdown.
During a press conference on Monday, Duffy sounded the alarm about the potential impacts on communities subsidized under the federal government program, while blaming the shutdown on Democrats.
“So there’s many small communities across the country that will now no longer have the resources to make sure they have air service in their community,” he stated.
Due to its heavy reliance on the program, Alaska will be heavily impacted, the secretary noted.
“The number one user of this [program] is Alaska. Again, you don’t have roads in Alaska,” he continued. “They travel by air, and a lot of these are small communities. Alaska will be impacted, but every state across the country will be impacted by the inability to provide the subsidies airlines [need] to service these communities.”
Communities seeking air service under the program – which is funded by Congress and administered by the DOT – must submit a formal proposal when service is at risk or an incumbent carrier plans to exit. The process typically begins when an airline notifies the DOT of its intent to terminate service to an eligible small community.
The agency then issues a request for proposals (RFP), inviting qualified carriers to submit bids outlining proposed schedules, aircraft types, and subsidy requirements. These proposals are published in the Federal Register and shared with local officials for review and comment.
After evaluating the bids, the DOT selects a carrier based on factors such as reliability, proposed service frequency, community input, and subsidy cost.
In a notice issued Monday, the agency warned that if the shutdown extends beyond October 12, it will relieve air carriers of their obligations under all active Essential Air Service (EAS) contracts.
Beginning October 13, the DOT said it would suspend subsidy payments until Congress restores funding. The department noted that carriers choosing to continue operations beyond that date would do so “at their own risk,” as reimbursement cannot be guaranteed.
Last-Minute Funding
Duffy added that funding for the EAS program was originally slated to run dry by Thursday, but that his agency found “some more money to put in.”
Now, he says EAS funding will cease by Sunday.
“Essential Air Service subsidies are expected to expire as soon as Sunday. USDOT exhausted every resource in trying to prolong an EAS shortfall, including transferring unrelated funding from the FAA as an advance,” a DOT spokesperson said as part of a statement.
“USDOT is in the process of notifying carriers of the shortfall and alerting communities of the potential impacts,” the spokesperson added.
Despite efforts by the Trump administration to dramatically slash EAS funding as part of President Trump’s ‘Skinny Budget,’ Duffy called the program “important,” adding that it has continually maintained bipartisan support in both chambers.
“But we don’t have the money for [it] moving forward,” he concluded.
