AAAE: The Week Ahead in Aviation: White House to Unveil FY 2019 Budget Proposal, Infrastructure Pac

09-Feb-2018 After an eventful week in Washington that included a brief overnight government shutdown, the focus next week will be on the White House's FY 2019 budget proposal and long-awaited infrastructure plan that the administration plans to release on Monday. The White House is scheduled to release its budget proposal for the upcoming fiscal year, which starts in October, on Monday morning. The administration will also unveil its infrastructure plan that day, although it is unclear how much detail we will see. There are several key airport priorities to keep an eye on in the FY 2019 budget blueprint. In last year's White House proposal, the administration sought to eliminate the TSA law enforcement officer reimbursement program, undo the federal mandate that TSA staff airport exit lanes and significantly reduce funding for the Essential Air Service program. That budget outline also missed an opportunity to help airports with a PFC-related adjustment. On the infrastructure package, a draft document that supposedly outlines the White House's principles was leaked several weeks ago, but it was not an official release and it is unclear if the document reflects the current plan. The six-page draft revealed some modest proposals that could help airports finance their infrastructure but was silent on airport calls to raise or eliminate the federal cap on local passenger facility charges. We will send a comprehensive summary of the administration's FY 2019 budget proposal and infrastructure plan after they are released on Monday. House Democrats Introduce Their Own Infrastructure Plan House Democrats this week unveiled an outline for a $1 trillion infrastructure plan that calls for increasing public investment in airports. A two-page summary of the House Democratic plan indicates that the package will "increase public investment in our airports and aviation system so Americans arrive at their final destination safely and on time, and with more money in their pockets." It also points out that airports have approximately $100 billion in infrastructure needs over the next five years. However, the summary does not mention how much of the proposed $1 trillion in "federal investment" would go to airports or indicate whether the plan would allow airports to generate more revenue themselves by adjusting the federal cap on PFCs. Separately, a document from House Transportation Committee Ranking Member Peter DeFazio (D-OR) prepared for a party retreat this week outlines Democratic opposition to the White House's expected infrastructure proposal and calls for eliminating the PFC cap. The 12-page paper calls for passage of legislation authored by Ranking Member DeFazio and Republican Rep. Thomas Massie (KY) that would remove the federal cap on local PFCs. "Congress last increased the PFC cap, from $3 to $4.50, in 2000; it has remained untouched since that time, despite a growing need, year over year, for increased investment in airports that are bursting at the seams with travelers in terminals and airplanes on runways and taxiways," the document says. CR Enactment Paves Way for FY 2018 Omnibus As we reported earlier today, Congress passed a continuing resolution early Friday morning to reopen the government after a brief overnight shutdown. The CR, which runs through March 23, includes a two-year budget framework, nearly $90 billion for disaster relief, a suspension of the debt limit into 2019, and a number of tax and health care provisions. The measure also includes more than $104 million for FAA hurricane recovery efforts, an extension of TSA and CBP fees, and several visa-related provisions (see our Alert for a summary of those sections). Enactment of the long-sought deal on spending caps and a six-week CR means that lawmakers are entering a critical phase of negotiations on an eventual FY 2018 omnibus appropriations package that will decide the fate of a bipartisan proposal to increase the PFC to $8.50 for originating passengers, funding for the TSA law enforcement officer reimbursement program and other airport priorities. With so much on the line, we wanted to once again urge you to weigh in with your elected officials on the PFC and LEO reimbursements. Stay tuned for additional calls to action next week. Reminder: Please Sign Our Pilot Shortage Letter As AAAE Chair Scott Brockman highlighted in a recent video update, AAAE is continuing to urge Congress to address the pilot shortage and adopt a provision that would create alternative pathways for meeting federal training requirements. But we need your assistance. In an effort to keep up the pressure on lawmakers and to convince them to adopt a proposal from Senate Commerce Committee Chairman John Thune (R-SD), we request that you sign a letter we intend to send to key leaders on Capitol Hill. If you would like to sign the pilot shortage letter, please send a copy of your signature (preferably a JPEG image) to Maribeth by Friday, February 16. There is more information in our Action Alert. As always, we appreciate your assistance. Additional Updates