Thousands of US Federal Aviation Administration (FAA) employees remained on furlough and billions of dollars in infrastructure projects stayed stalled as the US Congress failed to pass an extension to the agency's now-expired reauthorisation before adjourning for its August break yesterday.
The agency needs the authorisation to collect a variety of taxes from users of the national airspace for the government's transportation trust fund, and to pay employees and projects from that fund. Roughly 80% of the agency's $15.5 billion budget this year comes from the trust fund, with the remainder coming from the government's general fund.
As a result of the inaction, the FAA said 4,000 employees, including 1,000 from its Washington DC headquarters and 600 from its technical research centre in Atlantic City have been furloughed since 22 July. The agency said aviation safety inspectors, who are also paid through the trust fund, were deemed "essential" employees and as such must continue to work without receiving pay.
In addition to lost productivity, the agency is losing significant revenue - $28.6 million per day in uncollected ticket taxes, arrival and departure fees, cargo waybills and other fees - as the issue drags on. A small percentage of the fuel tax continues to be collected as required by tax code.
Officials have been forced to issue stop-work orders on more than 200 contracts totalling $2.5 billion, including tower construction jobs, runway status light installations at numerous airports and numerous next-generation air transportation system technology projects.
Democrats say the House Republicans are holding up the passage by not offering a "clean" bill for consideration, referring to language in the bill that Democrats say would make it more difficult for airlines workers to unionise.
President Barack Obama, speaking today, remained hopeful that an extension could be passed "this week" through an unanimous consent process, which would not require members to return to Washington.
If the issue remains in limbo until Congress returns in early September, the FAA estimates it will have lost approximately $1 billion in trust fund revenue.
Source: Air Transport Intelligence news
