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House of Representatives passes landmark bill to unlock the aviation trust fund

June 16 — The U.S. House of Representatives on June 15 passed AIR-21, a landmark aviation bill that would unlock the Airport and Airway Trust Fund and permit all taxes collected from aviation users to be spent promptly on aviation needs.

“AIR-21 restores faith with the aviation taxpayer,” said AOPA President Phil Boyer. “By unlocking the aviation trust fund, we can finally put our taxes to good use. We can provide desperately needed funds for airports and air traffic control modernization, and we can put a stop, once and for all, to the Administration’s push for user fees.”

The Aircraft Owners and Pilots Association has been working for over a decade to unlock the surplus in the aviation trust fund. AOPA was a strong supporter of AIR-21. It rallied its 350,000 members to contact their representatives, and AOPA President Boyer personally visited members of Congress to urge their support.

The House passed AIR-21 (the Aviation Investment and Reform Act for the 21st Century, also known as H.R. 1000) by a vote of 316 to 110. [See also the vote tally.]

“We applaud every member of the House of Representatives who voted for this historic legislation and congratulate its chief sponsors, Transportation & Infrastructure Committee Chairman Bud Shuster and the Committee ranking Democrat, James Oberstar,” said Boyer.

“We also thank all AOPA members who told Congress how important this bill is to General Aviation’s future.”

But Boyer also cautioned that the battle is far from over. There is opposition to unlocking the trust fund in the U.S. Senate. Moreover, President Clinton has threatened to veto AIR-21 if it passes the Senate in its present form.

AIR-21 takes trust fund “off-budget,” retains general fund contribution

AIR-21 is a comprehensive 5-year reauthorization of the Federal Aviation Administration and the Airport Improvement Program.

The bill would take the aviation trust fund “off budget,” allowing spending to match income. The trust fund is currently building a huge surplus expected to reach $9.5 billion by 2000. (General Aviation pilots pay into the trust fund “at the pump” through a special federal tax on fuel, while airline passengers contribute through an excise tax on airline tickets.)

AIR-21 would allocate over $4 billion a year to Airport Improvement Program (AIP) grants to airports over four years beginning in 2001, compared to $1.95 billion this year. AIR-21 would more than double AIP grant funds available for General Aviation airports.

The bill would boost spending for FAA facilities and equipment as well as for the agency’s annual operations.

The bill would also retain the general fund contribution to support a portion of FAA’s budget. That general taxpayer contribution represents “payment” for the cost of FAA services to military and government aircraft, whose operators do not pay the aviation excise taxes. General taxpayer support also recognizes the benefits of a safe and well-regulated aviation system to society as a whole.

The pivotal vote on the bill turned on an amendment to AIR-21 offered by Budget Committee Chairman John Kasich. That amendment would have removed trust fund off-budget provisions and eliminated the general fund contribution, essentially gutting AIR-21. AOPA actively opposed the amendment, which was rejected by a vote of 179 to 248. That set the stage for final passage of AIR-21.

User fee threat reduced

Most important for GA pilots, passage of AIR-21 would reduce the threat of user fees. Since 1996, the Administration has been claiming that FAA is facing a budget “shortfall” that only user fees can solve.

“By taking the trust fund off-budget and preserving the general fund contribution, AIR-21 eliminates the rationale for aviation user fees,” said Boyer.

In addition, AIR-21 would:

  • Require the FAA to provide to Congress an annual list of airports that are not in compliance with grant assurances, the promises airports make to properly use airport land in exchange for federal grants or land grants. Just one week before the AIR-21 vote, AOPA’s Boyer had told the House aviation subcommittee about “outrageous abuses” of land use requirements by some airports. “I’m pleased the subcommittee acted so quickly on this problem by addressing it in AIR-21,” said Boyer.
  • Prohibit locating landfills within 6 miles of GA airports. Boyer had told the House subcommittee about threats to aviation safety caused by birds attracted to landfills near airports.
  • Require that Loran-C ground-based navigation facilities be maintained throughout the transition to the satellite-based GPS/WAAS system.
  • Establish protections for pilots against FAA’s inappropriate use of its emergency authority to revoke an airman’s certificate.
“Chairman Shuster said last year that 1999 would be the ‘Year of Aviation,’” said Boyer. “We now need to redouble our efforts with the Senate and the President to ensure that that vision comes true.”

The Aircraft Owners and Pilots Association, based outside Washington, D.C., represents more than 350,000 pilots. AOPA’s large membership gives the association a powerful voice with Congress, particularly since AOPA members are more active in the political process than the average citizen.

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