TRUMP SEEKS TO SIGNIFICANTLY RESHAPE TSA 9/11 FEE
April 5, 2017
The Trump Administration is proposing to increase the September 11th airline security fee “to ensure that that cost of government services is not subsidized by taxpayers who do not directly benefit from these programs.” While the Administration has not publicly stated the exact amount of the increase, it has noted that fees should be raised high enough to cover 75% of passenger security operations. Reports indicate that the current $5.60 fee for each leg of a flight could rise as much as $1.00. The higher fee is projected to generate $40 billion over its first decade and contribute $12.6 billion to deficit reduction. A4A has asked the D.C. Circuit Court of Appeals to review the fee hike and we expect to see significant opposition from airlines if the proposal moves forward.
In addition, the budget seeks to eliminate TSA grants to state and local jurisdictions to incentivize police patrols at airports because “[the patrols] should already be a high priority” and includes a reduction of the Visible Intermodal Prevention and Response team that patrols airports with bomb-sniffing dogs.
With respect to DOT, the budget is calling for a 13% ($2.4 billion) reduction in the Department of Transportation’s (DOT) funding. This includes moving air traffic control from the Federal Aviation Administration to an independent, non-governmental organization and eliminating the Essential Air Service (EAS) program, which subsidizes air carriers to operate unprofitable passenger routes to rural communities in the United States.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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