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Rural airline service subsidies could expire in days: Trump administration

The U.S. Department of Transportation plans to end subsidies that support flights to 177 rural communities, risking loss of essential air service after funding expires Sunday.

  • On Monday, the U.S. Transportation Department said subsidies in the Essential Air Service program are expected to expire as soon as Sunday after using unrelated FAA funds as an advance.
  • The White House proposed cutting funding by $308 million for the Essential Air Service program in May and earlier sought to end it before Congress boosted support.
  • Program rules require subsidies under $650 per passenger unless communities are 175 miles from a major airport, serving about 65 communities in Alaska and 112 in other states with 30- to 50-seat aircraft.
  • USDOT will stop reimbursing carriers on Sunday and told them they can halt contracted flights, warning airlines that continuing service would be 'at their own risk,' while Transportation Secretary Sean Duffy said `"Every state across the country will be impacted"`.
  • The department is notifying carriers and alerting affected communities about the potential impacts, while administration officials said they lack funds to continue the program moving forward.
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Bloomberg broke the news in United States on Monday, October 6, 2025.
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