As the federal government shutdown moves into its second week, the Essential Air Service (EAS) program’s future remains uncertain.
During a Monday press conference in Newark, New Jersey, Transportation Secretary Sean Duffy said funding for the program would dry up by Sunday. The Department of Transportation later told EAS carriers that they would be relieved from serving subsidized communities should funding lapse.
According to the Regional Airline Association, 169 airports throughout the U.S. are subsidized under the program, with many located in Alaska. There are roughly 40 EAS-eligible communities in Alaska, which Duffy acknowledged Monday.
“The number one user of this [program] is Alaska. Again, you don’t have roads in Alaska,” he said. “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.”
Grant Aviation is the largest holder of EAS contracts in Alaska, with 22 communities served as of October 2024. Annual subsidy rates for these contracts total over $11 million.
Alaska Airlines also holds several EAS contracts in its namesake state, including Adak, Cordova, Yakutat, Gustavus, Petersburg, and Wrangell. In a statement, an airline spokesperson said it “takes seriously our unique obligation to serve as the critical transportation link for these communities to hubs within and beyond the state of Alaska.”
The carrier acknowledged the DOT’s notification of a potential lapse in funding should the government not reopen by Sunday, though it committed to continue serving these communities.
“Despite this potential uncertainty, Alaska Airlines currently plans to continue operating reliable flights as scheduled while the federal government works to resolve the shutdown,” the spokesperson added.
Grant Aviation did not respond to AirlineGeeks’ request for comment on the potential lapse in funding.
Lower 48
While the state of Alaska will likely be one of the hardest hit regions should EAS funding cease, the contiguous states are not immune to the uncertainty.
Perhaps most vulnerable to this would be regional airline SkyWest, which holds the most EAS contracts in the Lower 48. It provides federally subsidized service to around three dozen communities.
The carrier receives nearly $200 million in annual subsidies for EAS service, according to 2024 DOT data.
But much like Alaska Airlines, the carrier also plans to continue service should funding lapse amid a prolonged shutdown.
“We are working with each community and evaluating our capabilities in the event of a longer-term government shutdown,” a SkyWest spokesperson told AirlineGeeks in a statement. “It is our intent to honor our service commitments, including those under the Federal EAS program who rely on SkyWest’s reliable air service as an essential economic lifeline.”
Other EAS contract holders – including Denver Air Connection and Contour – have publicly echoed SkyWest’s comments.
“Contour Airlines recognizes the vital nature of the air service we have been entrusted to provide to rural America,” a Contour spokesperson told The Parkersburg News and Sentinel. “Accordingly, Contour will continue to operate its full flight schedule during the federal government shutdown.”
Southern Airways Express CEO and COO Deanna White told AirlineGeeks in a statement that the carrier remains “committed to maintaining regional air connectivity for the Essential Air Service (“EAS”) communities we serve through Southern Airways and Mokulele Airlines.”
“EAS subsidy funding from the U.S. Department of Transportation will pause beginning October 13th as long as the federal government remains shut down. Despite this potential funding interruption, we will continue flying all EAS routes with full scheduled service as planned,” White continued.
Alongside SkyWest and Contour, the carrier holds a large number of EAS contracts, including four in Hawaii.
Should airlines continue operating these flights beyond Sunday – if the shutdown is not resolved – the DOT said they’d be doing it “at their own risk,” as reimbursement cannot be guaranteed.
Editor’s Note: This story was updated on Wednesday, October 8, 2025, at 9:37 a.m. ET to add comments from Southern Airways Express.
