Senate Funding Bill Would Ban ATC Privatization Efforts

The U.S. Senate Appropriations Committee agreed to scale up the FAA’s budget to nearly $17 billion next year in a comprehensive funding bill that also clearly outlines the committee’s objections to proposals to create an independent air traffic control organization.

The committee approved the fiscal 2018 Transportation, Housing and Urban Development and related agencies bill on July 27, calling for a $16.97 billion budget for the FAA. This funding would mark more than a $500 million increase over this year’s levels and an $800 million boost over the White House request. The bill also would provide $300 million more than the House version.

In addition, the bill would outright ban the use of funding “to plan, design, or implement the privatization of the air traffic organization functions.” In report language accompanying the bill, the committee rejected the proposal to create an independent ATC organization. “The rigorous and yearly oversight of the budget and programs of the FAA is necessary to ensure the transparency and integrity of the public’s investment in the air traffic control system,” the appropriators said. “The proposed shift does not serve the public interest and would only create a new bureaucracy that is unaccountable to the public and the communities surrounding our network of airports.”

They questioned the need for the change, noting that the FAA is continuing to upgrade the system and noted airspace improvements have already provided $2.7 billion in savings, a number that is projected to increase to $160 billion, at a cost of $35 billion. “Further, programs such as data communications are well ahead of schedule,” they said, adding, “The budget request, with its privatization proposal, will only serve to delay the progress that has already been made.”

The committee also expressed concern about the “seamless collaboration” with the FAA’s safety duties and the potential harm to small communities. “The committee is not convinced that the proposed governing board or the so-called ‘protections on access’ will protect the universal access that has been the hallmark of our large and diverse aviation system,” the report added.

Rather than providing funding for a transition to a new organization, the committee is increasing the FAA’s transfer authority and providing multi-year flexibility to transfer funds for air traffic operations.

The appropriations bill would also boost funding for FAA operations by $160 million, including higher levels for the air traffic organization and aviation safety. It assumes about a $1.2 billion contribution from the general fund to cover FAA operations.

The committee called for full funding of the contract tower program, underscored its importance and directed the FAA to add new airports to the program where practical. Other measures would direct the FAA to fully use its organization designation authorization program and work closely with international counterparts to streamline validations. The bill would boost funding for the transition to unleaded aviation gasoline to $7 million and includes funding to help study and facilitate the transition of advanced materials and additive manufacturing.

In addition to FAA’s operations, all of the agency's accounts—facilities and equipment, research, engineering and development and the Airport Improvement Program—would see increases under the Senate bill.

As in past years, the bill also retains similar measures that include the continuing the weight limitation at Teterboro Airport in New Jersey and the directive to the FAA to protect the privacy, at the request of operators, from real-time flight tracking data programs. During consideration, the committee approved an amendment that directs the FAA and the National Transportation Safety Board to work with industry to identify ways to better measure safety data and trends within the varying segments of the air charter industry.

The measure, the ATC language and the bill itself drew praise from the National Air Transportation Association. “The committee-approved legislation continues to demonstrate the lack of necessity for ATC privatization, giving the FAA nearly $900 million more than the Trump Administration requested, including over a billion dollars to support the FAA’s ongoing NextGen modernization program,” noted NATA president Martin Hiller.

“The Senate Appropriations Committee showed strong support for our industry in its unanimous vote for this comprehensive and ambitious bill,” added General Aviation Manufacturers Association president and CEO Pete Bunce. “They addressed our key certification priorities and they clearly conveyed they do not support the Administration’s request to privatize America's air traffic control system, which we firmly believe would harm general aviation and small and rural communities.”

NBAA president and CEO Ed Bolen added that the Senate appropriations leaders “recognize that ATC privatization is a risky scheme that would be harmful to communities and towns across the U.S. We look forward to working with the committee, and other congressional leaders, to ensure the full passage of this important legislation.”

But in addition to rejecting the airline-supported proposal for ATC reorganization, the bill also generated controversy with airline groups, and strong support from airport groups, by enabling an increase in the passenger facility charge up to $8.50.