Payments for Essential Air Services

The Department of Transportation funds subsidies to air carriers serving congressionally designated eligible communities under the Essential Air Services program (CFDA 20.901), with the most recent grant awards made in July 2007.

This program has not disbursed grants in nearly two decades. The portfolio reflects 154 Project Grants totaling $254.6 million in federal dollars obligated between 2000 and July 2007, with peak activity in 2003 and 2007 (31 and 37 awards respectively). The Department of Transportation was the sole funder across all awards. Typical award magnitudes in the final funding cycle ranged from under $15 thousand to approximately $4.3 million, with many awards clustering in the $1.4 million to $2.5 million range. Representative recent awards from mid-2007 include a $2.5 million subsidy to an air carrier (Project Grant 2007519SVC, June 4, 2007) and a $3 million subsidy (Project Grant 2007310UIN, March 16, 2007). All awards were structured as Project Grants.

Eligible recipients are air carriers selected by the Department to serve designated communities. The subsidy amount is calculated to cover the difference between the cost of operating a route and estimated passenger revenue. Air carriers must maintain financial and operational records for seven years from the service date of the Department's subsidy order and are subject to audits of financial fitness, operational fitness, and monthly billings. The program was established following the 1978 Airline Deregulation Act to maintain air service connectivity for communities that lost carrier service after deregulation.

No current grant opportunities are open. The source contains no record of recent solicitations or active funding announcements. Organizations should verify directly with the Department whether this program remains active before investing in a pursuit strategy.