FAA shutdown likely to continue into September

US Transportation Secretary Ray LaHood said there has been little progress in resolving the partisan stand-off between the houses of Congress over the Federal Aviation Administration funding bill (AP/Reuters, 01-Aug-2011). A last-minute compromise deal proposed by US Senate Democrats reportedly faltered on Monday, increasing the likelihood that the dispute and shutdown will continue through August and into early September. US Republicans have publicly stated they will block any reauthorisation bill that does not eliminate air service subsidies for communities that are within 90 miles of a major airport. The office of House Majority Leader Eric Cantor stated the House of Representatives last action prior to a recess will be to vote on the debt-limit compromise announced on Sunday night (Washington Post, 01-Aug-2011). The Senate is expected to adjourn on Tuesday.

US Department of Transportation: "Debt and deficit was resolved yesterday afternoon. Now Congress needs to focus on putting FAA workers and construction workers back to work. Do not hold people's jobs hostage for things that can be worked out," Ray LaHood, Transportation Secretary. Source: AP, 01-Aug-2011.