Washington – The bipartisan leadership of the House Transportation and Infrastructure Committee today warned colleagues of a well-orchestrated disinformation campaign being waged against the Committee’s Federal Aviation Administration reauthorization bill known as the Aviation Investment and Reform Act for the 21^st Century (AIR 21).

In a letter to their colleagues, Chairman Bud Shuster (R-PA), and Reps. Jim Duncan (R-TN) Jim Oberstar (D-MN) and Bill Lipinski (D-MN) warned that opponents of the bill are wrongly stating that AIR 21 will require additional cuts in other federal programs.

"This is absolutely false," the Committee leadership wrote. "AIR 21 provides about $14 billion in increased spending over baseline levels during the period from FY 2001 to FY 2004 in order to make our nation’s skies and airports as safe, competitive, and congestion free as they can be.

"Every penny of this increase would be paid for by the $14 billion in unspent aviation taxes that, under historic funding patterns, would be collected but not spent during this same period. Under the Budget Resolution, these surplus aviation taxes would be used to finance general tax cuts. It is wrong to use aviation taxes to finance a general tax cut. Aviation taxes deposited into the Aviation Trust Fund should be used for aviation purposes – and that is what AIR 21 does.

"Since AIR 21 takes the Aviation Trust Fund off budget, the increased spending – which is fully paid for by reducing the proposed $778 billion tax cut by about $14 billion – will take place outside the discretionary caps. Therefore, no cuts will be required in other federal programs to pay for AIR 21," the Committee leadership wrote.

(Copy of letter is attached)

Dear Colleague:
 
 

Certain persons are spreading inaccurate information on the Aviation Investment and Reform Act for the 21^st Century (AIR 21). They are claiming that AIR 21 will require additional cuts in other Federal programs.

This is absolutely false. In fact, just the opposite is true – AIR 21 will actually relieve pressure on discretionary spending. Let us explain why.

AIR 21 provides about $14 billion in increased spending over baseline levels during the period from FY 2001 to FY 2004 in order to make our Nation’s skies and airports as safe, competitive, and congestion-free as they can be.

Every penny of this increase would be paid for by the $14 billion in unspent aviation taxes that, under historic funding patterns, would be collected but not spent during this same period. Under the Budget Resolution these surplus aviation taxes would be used to finance general tax cuts. It is wrong to use aviation taxes to finance a general tax cut. Aviation taxes deposited into the Aviation Trust Fund should be used for aviation purposes – and that is what AIR 21 does.

Since AIR 21 takes the Aviation Trust Fund off-budget, the increased spending – which is fully paid for by reducing the proposed $778 billion tax cut by about $14 billion – will take place outside the discretionary caps. Therefore, no cuts will be required in other Federal programs to pay for AIR 21.

The general fund portion of aviation spending will be frozen at the FY 1998 enacted level and will continue to be subject to the discretionary caps. Again, since all of the increased spending within AIR 21 is paid for by aviation taxes, there will not be any increase in general funding for the program. Hence, the Committee’s proposal will not squeeze spending for other programs beneath the discretionary budget cap.

The Committee proposal will actually benefit other discretionary programs that remain under the cap. The overall FAA budget has grown over recent years and is expected to continue growing in the future. In the absence of AIR 21, this future growth will occur under the caps and will squeeze spending for other programs.

However, this will not be the case if AIR 21 is enacted. Under AIR 21, all increased aviation spending above the current baseline will be paid for by a reduction in the tax cut and will occur outside the caps. This will take some pressure off of spending under the caps because the normal growth in FAA spending will not have to be accommodated under the caps.

While people are entitled to different opinions, they are not entitled to different facts. We urge you to read AIR 21 and decide for yourself.

We are confident that you will conclude that not only will AIR 21 not require cuts in other Federal programs, but in fact it will reduce the pressure on spending under the caps.
 
 

BUD SHUSTER JAMES L. OBERSTAR

Chairman Ranking Democratic Member
 
 

JOHN J. DUNCAN, JR. WILLIAM O. LIPINSKI

Chairman Ranking Democratic Member

Subcommittee on Aviation Subcommittee on Aviation