FAA Faces Double Government Shutdown as Deadline to Renew Law Aligns with Federal Funding Expiry
As the deadline to extend federal funding approaches this weekend, the Federal Aviation Administration (FAA) is facing a potential double government shutdown. The deadline to renew the law that supports the existence of the FAA coincides with the deadline to extend federal funding, leaving the agency in a precarious position.
If both deadlines pass without resolution, air traffic controllers and some aviation safety inspectors would continue to work without receiving pay. However, the training of new air traffic controllers would cease, technology upgrades would be disrupted, and the agency would lose over $50 million per day in revenue from taxes on airline tickets and fuel that fund its operations.
While immediate effects on flights or aviation safety are not expected, the looming shutdown puts the FAA in a challenging situation. This comes at the end of a tumultuous year for the agency, which has been operating without a full-time leader, grappling with staffing shortages at a key New York facility, and experiencing a technology failure that resulted in the closure of the nation’s skies.
The Senate has linked the fate of the FAA to the broader government funding effort by combining a measure to fund the government with a three-month extension of the agency’s authorization law. However, this proposal is unlikely to pass the House, which is considering a stand-alone bill to keep the FAA running.
Rich Santa, president of the National Air Traffic Controllers Association, expressed hope that Congress would prioritize governing over politics in a message to members. Santa emphasized the severe consequences a shutdown would have on FAA employees, the American public, and the nation’s aviation system.
During the previous government shutdown in 2018-2019, disruptions to air travel eventually led President Donald Trump to back down from demands to fund a border wall. Although air traffic controllers were required to work, rates of absenteeism increased as the shutdown continued, leading to delays at major airports.
The FAA’s authorization bill was last passed by Congress in 2018, setting the agency’s direction for five years. As the expiration date of the law approached, lawmakers started working on another long-term bill. The House passed its version in July, but the Senate’s version has been hindered by a dispute over qualifications for airline pilots.
In the past, Congress has struggled to agree on a plan for the FAA. After the authorization legislation expired in 2007, lawmakers passed a series of short extensions before finally agreeing on a long-term bill in 2012. In 2011, Congress even deadlocked on a short-term measure, resulting in the lapse of the FAA law.
The potential effects of a government shutdown combined with a lapse in the FAA law would be much greater this time. The agency would furlough over 17,000 workers, with essential safety positions remaining unpaid but required to work. The FAA would also stop collecting some taxes, and airport construction projects would be at risk.
Transportation Secretary Pete Buttigieg highlighted the significant disruption that would occur if the agency had to halt training for newly hired air traffic controllers. The FAA is currently hiring extensively and trying to increase staffing levels at control towers and other facilities.
Aviation industry groups sent a letter to lawmakers urging them to extend the FAA law, emphasizing the agency’s importance to the traveling public and the business community. They warned that any interruption to the FAA’s programs, even for a few hours or days, would undermine public confidence and interrupt critical initiatives for safety, efficiency, innovation, and airport infrastructure.
The U.S. Travel Association estimated that a government shutdown could result in daily economic losses of up to $140 million in the U.S. travel economy.
If the ticket taxes were to lapse, airlines could potentially pass on savings to customers. However, in the past, most airlines held ticket prices steady while keeping the difference when the taxes were restored. Travelers may not necessarily benefit from any savings.
As the deadline approaches, Southwest Airlines declined to specify its course of action if the taxes were to expire, expressing expectations that Congress will pass an FAA bill. Other airlines did not respond to requests for comment.
While the Transportation Security Administration (TSA) has stated that most of its employees would continue working in the event of a shutdown, TSA Administrator David Pekoske warned that an extended shutdown could result in longer screening times at airports. He cited the previous funding lapse, which led to growing numbers of TSA officers unable to report to work and increased screening times. Pekoske cautioned that a similar scenario could unfold if the shutdown continues for an extended period.
The potential double government shutdown poses significant challenges for the FAA, its employees, and the aviation industry as a whole. Congress is under pressure to find a resolution that ensures the continuous operation of the FAA and prevents a disruption to air travel and related services.