The Government Accountability Office (GAO) warned last month that the excise taxes that feed the Airport and Airway Trust Fund have been lower than previously forecast, while estimates of future revenues have declined because of a drop in passenger traffic, fares and fuel consumption. Meanwhile, the uncommitted balance in the trust fund has been decreasing since Fiscal Year 2001. So, for the short run, lower-than-expected excise taxes will reduce the balance even further and could affect funding for this year and next.
In the longer run, continued declines in trust fund revenues could require Congress to cut spending on FAA operations and capital projects, or increase revenues for the trust fund by introducing new fees, increasing taxes or increasing the portion of the FAA’s funding provided by the General Fund. Currently, about 75 percent of the agency’s annual budget comes from the Aviation Trust Fund. The General Fund provides the remainder of the funds.
More In Regulations and Government
