September 29, 2008
What's at Issue
The U.S. House of Representatives and U.S. Senate Democratic committee leaders reached an agreement on an additional six-month extension to continue funding the Federal Aviation Administration (FAA).
Why It's Important
Congress passed legislation, H.R. 6984, the Federal Aviation Administration Extension Act of 2008, Part II, to extend spending authority and the taxes that finance the Airport and Airway Trust Fund through March 31, 2009.
Major Provisions
The following provisions are included in the bill:
The bill includes $1.95 billion in contract authority for the first six months of 2009, which will enable airports to move forward with important safety and capacity projects. The bill also authorizes appropriations for FAA Operations, Facilities and Equipment, and Research, Engineering, and Development programs.
Aviation excise taxes are extended through March 31, 2009. These taxes are necessary to support the Airport and Airway Trust Fund, which has provided about 80 percent of the FAA's budget. With an uncommitted cash balance of approximately $1.4 billion at the end of fiscal year 2008, any lapse in the aviation taxes could put the solvency of the Trust Fund at risk.
NATA Position
NATA is concerned about the time frame in which Congress decided to extend FAA Reauthorization legislation. A new presidential administration will be transitioning each cabinet official, including a new administrator of the FAA, in January, and it is unclear whether significant changes will be made to FAA Reauthorization legislation in March 2009. Whatever the circumstances, NATA remains committed to ensuring that user fees remain out of the legislation and that key provisions such as repealing the fuel fraud provision remain.
Status
Taxes and spending authority were due to expire September 30, 2008. This is the fourth short-term extension enacted since Vision 100 aviation authorization law expired one-year ago.
Staff Contact: Kristen Moore
Director, Legislative Affairs
kmoore@nata.aero
For general press inquiries, contact Shannon Chambers at 703-298-1347 or schambers@nata.aero.
The National Air Transportation Association (NATA) has been the voice of aviation business for more than 80 years. Representing nearly 3,700 aviation businesses, NATA’s member companies provide a broad range of services to general aviation, the airlines and the military and NATA serves as the public policy group representing the interests of aviation businesses before Congress and the federal agencies.