SENATE PASSES BILL TO LIMIT AIRLINE SECURITY FEES
January 2, 2015
President Obama on December 22, 2014 signed into law H.R. 5462, which caps Transportation Security Administration (TSA)-imposed passenger security fees for US-based round-trip itineraries at $11.20.
Federal airline security fees were increased from $2.50 to $5.60 per one-way trip as part of the Balanced Budget Act of 2013 but TSA has routinely imposed the $5.60 tax for each stopover (a break in travel of more than four hours between two domestic flights) as opposed to the entire trip, which disproportionally hurt customers traveling from remote locations who commonly used more one-way trips to reach their final destination.
The bill, originally sponsored by Rep. Richard Hudson (R-North Carolina), passed both chambers of Congress unanimously and stipulates that “[fees] shall be $5.60 per one-way trip … except that the fee imposed per round trip shall not exceed $11.20.” While the legislation does cap the total cost of each one way trip at $11.20, it makes no mention of nor changes the final destination for collected fees, which under the Balanced Budget Act are directed to the government’s general fund. A4A estimates the new law will eliminate $60 million in potential revenue for the TSA.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).