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CRS INSIGHT


Aviation Bills Take Flight, but Legislative Path Remains

Unclear

July 25, 2017 (IN10735)




Related Authors




    *Rachel Y. Tang




Bart Elias, Specialist in Aviation Policy (blia52cr5s -7QY, 7-777 1)
Rachel Y. Tang, Analyst in Transportation and Industry (ranc,4crs  cD-o, 7-7875)

Both the House Transportation and Infrastructure Committee and the Senate Committee on Commerce, Science, and
Transportation acted favorably on bills to reauthorize the Federal Aviation Administration (FAA) and other aviation
programs during the last week of June. The two bills, H R 2997 and S. 1405, have significant differences, many of them
related to provisions in the House bill that would create a not-for-profit private corporation to take over responsibility
for running the national air traffic control system. The Senate bill contains no similar provisions, and the path forward
for the legislation will depend on whether the two houses can reach agreement on an issue that they were unable to
bridge last year. Lack of agreement on air traffic control reforms in the 1 14th Congress led to the passage of a one-year
aviation extension (P L 114-190) that will expire at the end of FY2017.

Whereas S. 1405 would fund FAA programs through FY2021, H.R 2997 would extend funding through FY2023 (see
Table 1). Since the House committee bill provides that the proposed corporation would take over air traffic services
starting in FY2021, it would eliminate all Airport and Airway Trust Fund (AATF) financing for FAA operations and air
traffic facilities and equipment beyond FY2020. Consequently, taxes on airline tickets, cargo, and commercial fuel
would be reduced by roughly 80% starting in FY2020. These temporary tax reductions would expire after FY2023, and
would therefore need to be revisited in subsequent FAA reauthorization debate. AATF funding of facilities and
equipment not directly tied to air traffic functions and general fund financing of aviation safety programs would
continue through FY2023 under the House bill.

Table 1. FAA Maj or Account Funding Authorization and Appropriations

(in millions of dollars)


FY2018 FY2019 FY2020 FY2021 FY2022 FY2023