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1 1 (May 3, 2018)

handle is hein.crs/govzgb0001 and id is 1 raw text is: Congresina Reerc enc Updated May 3, 2018 Key Issues in FAA Reauthorization in the 115th Congress Background Reauthorization of federal civil aviation programs, including operations of the Federal Aviation Administration (FAA), has been a prominent issue in the 115th Congress. Congress has passed a series of short-term measures, extending FAA aviation programs and aviation trust fund authority through the end of FY2018. Long-term FAA reauthorization bills are under consideration in both the Senate (S. 1405) and the House (H.R. 4). In the House, a decision to set aside a controversial proposal to privatize air traffic services cleared the path for passage of H.R. 4 on April 27, 2018, and the bill now awaits consideration in the Senate. Aviation Funding Most FAA programs are financed through the Airport and Airway Trust Fund (AATF). Since FY2009, the AATF has provided between 66.6% and 93% of FAA's total annual funding, with the remainder coming from general fund appropriations. Taxes and fees on passenger transportation, including a 7.5% tax on tickets and a $4.20 per passenger tax on each flight segment, provide about 70% of trust fund revenue. Other revenue sources include taxes on air cargo, aviation fuels, and international arrivals and departures. AATF revenues have been adversely affected by the recent trend among airlines to impose fees for a variety of add-on services and amenities such as checked bags, onboard wi-fi access, or seats with additional leg room. Generally, fees not included in the base ticket price are not subject to the federal excise taxes. Financing Airport Improvements The aviation system in the United States is the largest in the world, encompassing more than 19,000 airports, of which 3,340 are eligible for federal funding. Nonetheless, air traffic is heavily concentrated at a comparatively small number of airports. Thirty large hubs account for 72% of all passenger enplanements, while the next tier of 31 medium hubs handles another 15% of passengers. The busiest of these hubs face chronic capacity constraints that have cascading effects across the entire national airspace system. Over the past decade, several major airports have expanded their infrastructure, including new runways at Atlanta, Chicago O'Hare, and Philadelphia airports and more efficient taxiway configurations at Los Angeles and Dallas-Fort Worth. The federal Airport Improvement Program (AIP), funded by AATF, is normally reauthorized in FAA authorization acts. AIP provides grants to airports for construction of improvements related to aircraft operations, such as runways and taxiways. Commercial revenue-producing facilities are generally not eligible for funding, nor are operating costs. Approximately $3.2 billion of grants is distributed annually according to a formula that favors smaller airports and on a discretionary basis per FAA selection criteria. Although the taxes that fund AIP are paid overwhelmingly by passengers using a relatively small number of large hub airports, 58% of outlays go to airports that have little or no commercial traffic (Figure 1). Large commercial airports receive relatively small amounts from AIP and rely mainly on other revenue sources, such as locally imposed passenger facility charges. H.R. 4 would create a new supplemental funding authorization for AIP discretionary funds from the general fund appropriations, starting in FY2019 with $1.02 billion and rising to $1.11 billion in FY2023. Funds would be distributed at the discretion of FAA and could be used for airport planning and development and noise compatibility planning and programs at airports that are not designated as large hubs. Figure I. Distribution of Airport Improvement Grants 72% & Percent of Ajrline Passengers (CY2014) E Percent of Outlays (FY2014) 34% 24% 15% 9%14% WIEE 10%g 4% 0%' Large Hubs Medium Small Hubs Non-Hub Other # OF (30) Hubs (31) (72) Primary (2,950) AIRPORTS (249) Source: Data from FAA Airports Branch; FAA National Plan of Integrated Airport Systems (NPIAS) 2017-2021. NextGen Future aviation capacity expansion will largely come from technology to allow more efficient routing and closer spacing of aircraft in all weather conditions. This is being carried out under the NextGen program, which is gradually shifting air traffic control from ground-based radar and radio navigation aids to more precise satellite-based navigation and aircraft tracking. FAA has invested more than $5 billion in NextGen so far and seeks annual appropriations of about $1 billion for the next several years to implement the system. System users who must equip their aircraft for NextGen are particularly concerned that FAA may not be able to deliver NextGen's promised benefits in a timely fashion. Small general https:/crsreports.congress.go)

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