Mr. Speaker, pursuant to House Resolution 357, I call up the bill (H.R. 2553) to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, to amend title 49, United States…
Mr. Speaker, pursuant to House Resolution 357, I call up the bill (H.R. 2553) to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, to amend title 49, United States Code, to extend the airport improvement program, and for other purposes, and ask for its immediate consideration.
I yield myself such time as I may consume.
Mr. Speaker, for the third consecutive Congress, we are working to pass a long-term reauthorization of the FAA. This year both the House and Senate passed their own reauthorizations; but, unfortunately, negotiations with the Senate have slowed, and it is necessary for us to pass another extension to enable the FAA to continue to operate.
This bill is a short-term extension of FAA funding and programs through September 16 at current levels. This extension also includes important reforms to the Essential Air Service program. These reforms could result in as much as $20 million in savings for the American taxpayer.
The first reform provision was adopted unanimously by the Senate and is included in its reauthorization bill. That provides that only airports that are 90 miles or more away from a large- or medium-hub airport would be eligible to participate in the Essential Air Service-- 90 miles away. People can obviously and in most instances would prefer to drive 90 miles rather than take a connecting flight. It seems like a sensible thing. We hadn't thought about it when we passed our original
legislation; the Senate did. We are including their reform. So we are, in effect, acceding to the Senate. In the case of one airport under the current program which is within 90 miles, we are paying a per passenger subsidy of $851, and the nearest hub is 82 miles away. That is a $10 per mile subsidy.
So the second provision dealing with Essential Air Service caps the subsidies for each passenger, in addition to the fares they pay, at $1,000. During this economically difficult time, it is not possible to justify using taxpayer dollars to pay a subsidy of $1,000 per passenger at an EAS airport, and subsidies can frequently exceed that amount. If there are difficulties with that, there is other language that would allow the executive branch to waive this provision.
The EAS provisions included in the extension are limited and sensible reforms that target the most indefensible of the subsidies. If we can't do this, what can we do, especially after 23 or 24 extensions that have been holding the whole program and the efficiency and improvements in the air infrastructure of our country hostage.
The House-passed bill actually phases out the Essential Air Services program for all but Alaska and Hawaii. We are not insisting on that at all. We are modifying that and going along with largely what the Senate itself has been suggesting in this regard. So these provisions are a compromise, and EAS will continue to be discussed as we work to finalize the bill.
As Congress tries to find a way forward to address deficit and long- term debt issues, if we can't put an end to these extravagant subsidies, then we will never be able to rein in spending where really hard decisions are necessary.
Although I continue to hold out hope that we will reach a compromise with the Senate in the near future, it is necessary to pass this extension to provide the FAA with continued funding authority and provide needed EAS reform. Ultimately, we need to get back to the negotiating table to work out a long-term FAA bill. Short-term extensions are not the way to run such an important agency.
I urge my colleagues to support the bill.
House of Representatives,
Committee on Ways and Means,
Washington, DC, July 18, 2011.
Hon. John Mica,
Chairman, Committee on Transportation and Infrastructure,
Rayburn House Office Building, Washington, DC.
Dear Chairman Mica: I am writing concerning H.R. 2553, the
``Airport and Airway Extension Act of 2011, Part IV'' which
is expected to be scheduled for floor consideration this
week.
As you know, the Committee on Ways and Means has
jurisdiction over the Internal Revenue Code. Sections 2 and 3
of this bill amend the Internal Revenue Code of 1986 by
extending the current Airport and Airway Trust Fund (AATF)
expenditure authority and the associated Federal excise taxes
to September 16, 2011. In order to expedite H.R. 2553 for
Floor consideration, the Committee will forgo action on the
bill. This is being done with the understanding that it does
not in any way prejudice the Committee with respect to the
appointment of conferees or its jurisdictional prerogatives
on this or similar legislation.
I would appreciate your response to this letter, confirming
this understanding with respect to H.R. 2553, and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during Floor
consideration.
Sincerely,
Dave Camp,
Chairman.
Mr. Speaker, I yield such time as he may consume to the distinguished gentleman from Florida (Mr. Mica), chairman of the full Transportation and Infrastructure Committee.
I yield such time as he may consume to the gentleman from Florida (Mr. Mica).
I would just point out to my colleagues that the provision that was changed by the National Labor Relations Board to which my colleague referred has been the law of this land for a generation. So it's not anti-labor fervor at all; it's more regular order.
Madam Speaker, how much time does each side have remaining?
I yield such time as he may consume to the chairman of the full committee, the gentleman from Florida (Mr. Mica).
I yield myself such time as I may consume.
Madam Speaker, I just thought, as long as we were spending some time talking about the modest cleaning up of the series of, kind of, earmarks that have accumulated over the years in the Essential Air Service program, which was referred to by the chairman of the committee as a program that started out as a true essential air service to help provide access to the outside world to very isolated communities, it has gradually been kind of earmarked, going from $50 million to some $200 million in cost. They're not isolated, but they are subsidized. God knows why.
Let me just mention a few of the areas that would be affected by these modest changes: that it has to be more than 90 miles from another airport and, secondly, that we try to cap the subsidy, unless it's varied somewhat by the Secretary, at $1,000 per seat, per flight.
One that would be affected that is currently being subsidized is Jonesboro, Arkansas. It's 82 miles from Memphis. You can't drive 82 miles, and you want the Federal Government to provide service?
Athens, Georgia, is 72 miles from Atlanta, and it's getting subsidized.
We're worrying about billions of dollars of subsidies. If we can't even do this, where do we start? They say a big journey starts with a single step, and we're not willing to take even in this small area the most modest of steps.
Harristown, Maryland, which is north of here, is 78 miles from the Dulles Airport. It's getting a subsidy of over $800 per flight, and it's right near Baltimore as well.
There is Glendive, Montana, which is 60 miles from another essential airport in Montana. It's just 60 miles. You could drive over to Sidney--but no, they're asking for a $1,357 subsidy, per passenger, flying from Glendive under this program.
Alamogordo, New Mexico, is 89 miles from a hub airport in El Paso, but instead of driving 89 miles, there continues to be a $1,500 subsidy. You can rent a car. This is a profligate, hard-to-defend use of the taxpayers' money, yet people are talking about closing the government down or the FAA down unless they can spend $1,500 to subsidize a flight when you can drive 89 miles to another airport.
This is what we're talking about, and this is why my constituents and many others are wondering when we're going to get serious out here about taking the modest steps to get our financial affairs and our stewardship of the Federal taxpayers' money under better control.
I reserve the balance of my time.
Madam Speaker, how much time is remaining?
I yield such time as he may consume to the chairman of the full committee, the gentleman from Florida (Mr. Mica).
I reserve the balance of my time.
Madam Speaker, let me just conclude by urging my colleagues to support this 21st extension with a very, very modest change from a purely clean extension in that it yields to the Senate for a provision that's included in the Senate bill to eliminate, quote- unquote, ``Essential Air Service for airports within 90 miles of another airport.''
We've talked about the individual flight subsidy. Let me just look at this issue from another point of view to make it perfectly clear what we are talking about.
Eight of the 10 airports that would be affected are because they are within 90 miles of a hub airport. So that makes it much more convenient to just drive over. And what's the subsidy to each airport each year? Let me just mention it: Athens, Georgia, over $1 million of Federal money so that people don't have to drive 72 miles. We have Morgantown, West Virginia, right near the Pittsburgh hub, nearly $1.5 million. The same thing with Hagerstown, over $1 million so you don't have to drive 70-some miles to Dulles. Jonesboro, Arkansas, gets an $800,000 subsidy when it is right next to the Memphis International Airport. The same thing, $1.6 million going to Johnstown, Pennsylvania, which is 84 miles from the Pittsburgh International Airport. Franklin/Oil City is getting a subsidy of nearly $1 million a year. They are 85 miles from the Pittsburgh International Airport. Lancaster, Pennsylvania, nearly $1.4 million, also by Pittsburgh. And Jackson, Tennessee, $1.2 million in Federal taxpayer money, which is only 86 miles from the Memphis International Airport.
It's hardly essential use of Federal taxpayer money to provide nonessential, subsidized airport service for people who could otherwise drive in an hour, hour and a half to a hub airport that most of the people in the area probably are doing already. So it's a very modest step. We are just doing what the Senate provides. I would urge my colleagues to support the legislation.
I yield back the balance of my time.
Madam Speaker, I reserve a point of order on the motion.
I withdraw my point of order, Madam Speaker.