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US Department of Transportation secures funding extension for Essential Air Service

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US Department of Transportation secures funding extension for Essential Air Service
Policy
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Sean Duffy U.S. Secretary of Transportation | U.S. Federal Aviation Administration

The United States Department of Transportation (DOT) has secured an additional $41 million in funding to continue the Essential Air Service (EAS) program, according to an announcement by Secretary of Transportation Sean Duffy. The EAS program supports air connections for rural communities throughout the country.

The program had faced a possible shutdown due to a funding lapse that was linked to a political impasse. Without new funds, the DOT would have been required to suspend its contracts with air carriers providing these services, potentially cutting off flights that serve as critical links for employment, medical needs, and cargo transport in isolated regions.

"The continued operation of flights is a lifeline for work opportunities, medical transport, and the transportation of commercial goods," Duffy said.

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The EAS was established after the Airline Deregulation Act of 1978 removed federal oversight from airline fares and routes. Its goal is to ensure that small or remote communities maintain at least minimal scheduled air service. Over time, eligibility rules have evolved but the central mission remains: connecting these regions to larger economic centers and supporting local economies.

For 2024, nearly $500 million had been allocated for EAS funding. Typically supported by both major parties in Congress, this year’s budget became contentious after President Trump proposed reducing support for the program.

Currently, 177 communities across all 50 states and Puerto Rico benefit from subsidized flights under EAS. Alaska is particularly reliant on this support; in 2024 alone it received more than $41 million in subsidies. The Regional Airline Association told NBC News that EAS generates about $2.3 billion in economic activity annually and helps sustain up to 17,000 regional jobs.

By law, DOT must provide eligible communities access to national air travel networks—often through two daily round-trip flights on smaller aircraft linking local airports with major hubs such as Denver International Airport or Chicago O’Hare International Airport. Funding may be given directly to airlines or airport authorities.

Examples include Muscle Shoals in Alabama (served by Contour Airlines), Show Low in Arizona (Contour Airlines), Quincy in Illinois (Contour Airlines), Vernal in Utah (Contour Airlines), El Centro in California (Southern Airways Express), Alamosa in Colorado (Key Lime Air), Kalaupapa in Hawaii (Southern Airways Express/Mokulele Airlines), and Owensboro in Kentucky (Contour Airlines).

Most communities served by EAS can book flights as they would any other commercial ticket except certain destinations—mainly those in Alaska—which are accessible only via air taxis.

To qualify for subsidies under federal law, a community generally must be at least 210 miles from a large or medium hub airport or meet specific requirements outlined by legislation such as the FAA Modernization and Reform Act of 2012. The maximum subsidy allowed per passenger is $200 unless exceptions apply.

The cost-effectiveness of the program has drawn scrutiny when subsidies per passenger run high on lightly used routes; however, some cities highlight participation as an incentive for attracting business investment.

Duffy emphasized ongoing bipartisan cooperation: "This program remains an essential economic lifeline for the airports that receive these services... its benefactors continue to urge Congress to remain bipartisan for the good of the American public."

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