Senate Appropriations Committee Approves DOT/FAA Funding Bill with PFC and AIP Increases
27-Jul-2017 The Senate Appropriations Committee has just approved a FY 2018 funding bill for DOT/FAA that would raise the PFC cap to $8.50 for originating passengers and increase AIP funding by $250 million. The bill was approved on a unanimous, bipartisan vote of 31-0. Committee members did not consider any amendments addressing the PFC increase during today's meeting. Transportation Appropriations Subcommittee Chairman Susan Collins (R-ME) said that the DOT funding measure "provides opportunities for airports to make much-needed capacity improvements." As we reported earlier this week, the Senate DOT funding bill would increase the federal PFC cap by $4 for originating passengers but keep the $4.50 limit in place for connecting passengers as a way to address concerns raised by rural state lawmakers that their constituents often pay twice the amount in PFCs as travelers with direct flights. The bill would also increase AIP funding from $3.35 billion to $3.6 billion in FY 2018.
What's Next??
It is a major development that the Senate has now passed a bipartisan bill through committee that includes a PFC increase, and Senators Collins and Reed deserve immense credit for their work in moving this legislation forward. Unfortunately, the legislative process is cumbersome, and we have a long ways to go before a final FY 2018 DOT spending bill and a potential PFC increase are enacted into law. From a process standpoint, the Senate DOT funding bill should next move to consideration by the full Senate. That is unlikely to happen because of a crowded legislative calendar and a lack of consensus overall on spending priorities between Republicans and Democrats.
Ultimately, the Senate DOT funding bill - and other Senate annual appropriations measures - will have to be reconciled with companion spending bills moving through the House of Representatives. As you will recall (see Alert) the FY 2018 DOT funding bill working its way through the House does not include a PFC increase, meaning that this issue will likely be left to be resolved among House and Senate leaders on the appropriations committees and in House and Senate leadership. There are a number of key House leaders who oppose a PFC increase, as you know, so we have our work cut out for us in keeping the PFC alive as part of the appropriations process. The exact path forward for the DOT spending bill is unclear at the moment, but the most likely scenario is that it will be folded into an omnibus spending package later in the year.
While the process ahead is uncertain, it is absolutely clear that we will need to remain engaged with lawmakers in the House and Senate to urge action on a PFC bill as part of the final FY 2018 DOT spending bill or as part of FAA reauthorization legislation. Stay tuned for further updates and calls to action, and THANK YOU for all your assistance in making the case for the PFC and AIP increases in the Senate. Finally, some good news from Washington!