Gov Shutdown Threatens Essential Air Service Funding

‍WASHINGTON — The U.S. Department of Transportation (DOT) has warned that the Essential Air Service (EAS) program is on the brink of suspension amid the ongoing federal government shutdown, with subsidies set to run out as soon as Sunday, October 12, according to Transportation Secretary Sean Duffy.

The DOT has reportedly exhausted all available stopgap measures, including temporary fund transfers from the Federal Aviation Administration (FAA), to sustain payments to airlines serving small and rural communities. With those resources now depleted, the department must notify participating carriers and affected municipalities of the impending funding lapse.

If the shutdown continues, EAS contracts will be nullified beginning October 13, potentially grounding flights to more than 175 communities — including 65 in Alaska and over 100 across the lower 48 states and Puerto Rico. While air traffic controllers and TSA officers continue working without pay, thousands of non-essential DOT employees have been furloughed.

Origins of the Essential Air Service Program

Before airline deregulation in 1978, U.S. carriers were required to provide at least two daily round-trip flights to every city on their route certificates. Lawmakers feared that deregulation would prompt airlines to abandon smaller, less profitable markets, leaving many communities without air service. To prevent that outcome, Congress created Section 419 of the Federal Aviation Act, establishing the Essential Air Service (EAS) program to preserve air links for rural communities through federal subsidies when needed.

Authorized initially for ten years, the program has since been made permanent. The administration of EAS was shifted from the Civil Aeronautics Board to the Department of Transportation on January 1, 1985, and remains there today under a Congressional mandate.

Alaska and Rural States Face Severe Disruption

Alaska, which relies heavily on subsidized air links due to its sparse road infrastructure, is likely to suffer the most severe impact. The program typically funds two daily round-trip flights on 30- to 50-seat regional aircraft, or more frequent service with smaller planes, providing a critical transportation lifeline for isolated communities.

Political, Financial Background

Funded at roughly US$350–US$400 million annually, EAS has faced repeated budget scrutiny under prior administrations but continues to enjoy bipartisan support in Congress. The DOT administers community eligibility and carrier selection through a formal application and public comment process.

As the shutdown persists, uncertainty looms over the continuity of regional air links, which are vital to the nation’s rural network.