U.S. Department of Transportation warns that funding for Essential Air Service (EAS) program may soon lapse amid ongoing federal government shutdown

Key Takeaways

UPDATE

On October 8, Secretary Duffy announced that USDOT secured $41 million in additional funding to support EAS program operations though November 2. 

Read memo on EAS funding extension

On October 6, Secretary of Transportation Sean Duffy announced that, due to the ongoing government shutdown, funding for the Essential Air Service (EAS) program would lapse on October 12. This would mean that, starting October 13, the U.S. Department of Transportation (USDOT) would relieve all EAS carriers of their obligations under EAS contracts.

The EAS Program

The EAS program provides federal subsidies to commercial airlines to provide affordable, reliable air service to hundreds of counties across the country. This ensures that residents of those counties and surrounding communities have access to air travel and the opportunities it brings.

Counties strongly support the EAS program. During the 118th Congress, counties advocated for both the program’s reauthorization and an increase to the EAS’s funding authorization in the FAA Reauthorization Act of 2024 (P.L. 118-63). Additionally, counties have urged Congress to continue robust funding for the EAS program amid calls for cuts.

Read more about the EAS program and its importance for counties.

Government Shutdown Impacts

With Congress failing to pass appropriations legislation for Fiscal Year 2026 before the October 1 deadline, the federal government has entered a shutdown. While some USDOT programs—namely formula funding through the Highway Trust Fund—can continue during a shutdown, other programs that are subject to appropriations are put on pause.

Although the EAS program is funded through both Congressional appropriations and fees collected from aircraft operators that fly through U.S. airspace without landing in the U.S., appropriations provide the bulk of the funding for the program. As such, this week Secretary Duffy stated that after October 12, the agency will be unable to continue to provide subsidy payments to carriers for EAS flights.

In its notice, USDOT noted that air carriers may continue to provide EAS flights after October 12, but they risk not being able to receive payment for the contracted subsidy or full reimbursement. This uncertainty poses challenges for both airlines and EAS communities alike.

NACo continues to urge Congress to work in a bipartisan manner to enact funding for FY 2026 and re-open the government. In the meantime, NACo will continue to monitor the EAS program, including the impact of a potential lapse in funding.

Read USDOT’s Notice of Funding Lapse for the EAS Program