"Connecting Rural America to the National Airspace System"

1[House Hearing, 119 Congress]2[From the U.S. Government Publishing Office]34                    CONNECTING RURAL AMERICA TO THE5                        NATIONAL AIRSPACE SYSTEM6=======================================================================78                                (119-44)910                                HEARING1112                               BEFORE THE1314                            SUBCOMMITTEE ON15                                AVIATION1617                                 OF THE1819                              COMMITTEE ON20                   TRANSPORTATION AND INFRASTRUCTURE21                        HOUSE OF REPRESENTATIVES2223                    ONE HUNDRED NINETEENTH CONGRESS2425                             SECOND SESSION2627                               __________2829                              JUNE 4, 20263031                               __________3233                       Printed for the use of the34             Committee on Transportation and Infrastructure3536[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]3738     Available online at: https://www.govinfo.gov/committee/house-39     transportation?path=/browsecommittee/chamber/house/committee/40                             transportation4142                               __________4344                    U.S. GOVERNMENT PUBLISHING OFFICE4564-295 PDF                 WASHINGTON : 202646=======================================================================4748             COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE4950  Sam Graves, Missouri, Chairman51 Rick Larsen, Washington, Ranking52              Member53Eleanor Holmes Norton,               Eric A. ``Rick'' Crawford,54  District of Columbia               Arkansas,55Jerrold Nadler, New York               Vice Chairman56John Garamendi, California           Daniel Webster, Florida57Henry C. ``Hank'' Johnson, Jr.,      Georgiaomas Massie, Kentucky58Andre Carson, Indiana                Scott Perry, Pennsylvania59Dina Titus, Nevada                   Brian Babin, Texas60Jared Huffman, California            David Rouzer, North Carolina61Julia Brownley, California           Mike Bost, Illinois62Frederica S. Wilson, Florida         Bruce Westerman, Arkansas63Mark DeSaulnier, California          Brian J. Mast, Florida64Salud O. Carbajal, California        Pete Stauber, Minnesota65Greg Stanton, Arizona                Tim Burchett, Tennessee66Sharice Davids, Kansas               Dusty Johnson, South Dakota67Jesus G. ``Chuy'' Garcia, Illinois   Jefferson Van Drew, New Jersey68Chris Pappas, New Hampshire          Troy E. Nehls, Texas69Seth Moulton, Massachusetts          Tracey Mann, Kansas70Marilyn Strickland, Washington       Burgess Owens, Utah71Patrick Ryan, New York               Eric Burlison, Missouri72Val T. Hoyle, Oregon                 Mike Collins, Georgia73Emilia Strong Sykes, Ohio,           Mike Ezell, Mississippi74  Vice Ranking Member                Kevin Kiley, California75Hillary J. Scholten, Michigan        Vince Fong, California76Valerie P. Foushee, North Carolina   Tony Wied, Wisconsin77Christopher R. Deluzio, Pennsylvania Tom Barrett, Michigan78Robert Garcia, California            Nicholas J. Begich III, Alaska79Nellie Pou, New Jersey               Robert P. Bresnahan, Jr.,80Kristen McDonald Rivet, Michigan     Pennsylvania81Laura Friedman, California           Jeff Hurd, Colorado82Laura Gillen, New York               Jefferson Shreve, Indiana83Shomari Figures, Alabama             Addison P. McDowell, North84Maxwell Frost, Florida               Carolina85                                     David J. Taylor, Ohio86                                     Brad Knott, North Carolina87                                     Kimberlyn King-Hinds,88                                       Northern Mariana Islands89                                     Mike Kennedy, Utah90                                     Robert F. Onder, Jr., Missouri91                                     Jimmy Patronis, Florida92                                     Clay Fuller, Georgia9394                        Subcommittee on Aviation9596  Troy E. Nehls, Texas, Chairman97  Andre Carson, Indiana, Ranking98              Member99Sharice Davids, Kansas               Thomas Massie, Kentucky100Hillary J. Scholten, Michigan        Scott Perry, Pennsylvania101Robert Garcia, California            Brian J. Mast, Florida102Henry C. ``Hank'' Johnson, Jr.,      Georgiate Stauber, Minnesota103Julia Brownley, California           Tim Burchett, Tennessee104Frederica S. Wilson, Florida         Dusty Johnson, South Dakota105Mark DeSaulnier, California          Jefferson Van Drew, New Jersey106Valerie P. Foushee, North Carolina   Tracey Mann, Kansas107Christopher R. Deluzio, Pennsylvania Burgess Owens, Utah108Nellie Pou, New Jersey,              Tony Wied, Wisconsin, Vice109  Vice Ranking Member                Chairman110Laura Gillen, New York               Tom Barrett, Michigan111Eleanor Holmes Norton,               Nicholas J. Begich III, Alaska112  District of Columbia               Robert P. Bresnahan, Jr.,113Dina Titus, Nevada                   Pennsylvania114Salud O. Carbajal, California        Jeff Hurd, Colorado115Greg Stanton, Arizona                Jefferson Shreve, Indiana116Jesus G. ``Chuy'' Garcia, Illinois   Addison P. McDowell, North117Val T. Hoyle, Oregon                 Carolina118Rick Larsen, Washington (Ex Officio) Brad Knott, North Carolina119                                     Kimberlyn King-Hinds,120                                       Northern Mariana Islands121                                     Robert F. Onder, Jr., Missouri122                                     Jimmy Patronis, Florida123                                     Sam Graves, Missouri (Ex Officio)124125                                CONTENTS126127                                                                   Page128129Summary of Subject Matter........................................   vii130131                 STATEMENTS OF MEMBERS OF THE COMMITTEE132133Hon. Troy E. Nehls, a Representative in Congress from the State134  of Texas, and Chairman, Subcommittee on Aviation, opening135  statement......................................................     1136    Prepared statement...........................................     2137Hon. Andre Carson, a Representative in Congress from the State of138  Indiana, and Ranking Member, Subcommittee on Aviation, opening139  statement......................................................     3140    Prepared statement...........................................     4141Hon. Sam Graves, a Representative in Congress from the State of142  Missouri, and Chairman, Committee on Transportation and143  Infrastructure, opening statement..............................     5144    Prepared statement...........................................     6145Hon. Rick Larsen, a Representative in Congress from the State of146  Washington, and Ranking Member, Committee on Transportation and147  Infrastructure, opening statement..............................     6148    Prepared statement...........................................     8149150                               WITNESSES151152Faye Malarkey Black, President and Chief Executive Officer,153  Regional Airline Association, oral statement...................    10154    Prepared statement...........................................    12155Shawn Dobberstein, A.A.E., Executive Director, Hector156  International Airport, Fargo, North Dakota, on behalf of the157  American Association of Airport Executives, oral statement.....    23158    Prepared statement...........................................    24159Derrick Collins, Director, Physical Infrastructure, U.S.160  Government Accountability Office, oral statement...............    26161    Prepared statement...........................................    27162Gregory Pecoraro, President and Chief Executive Officer, National163  Association of State Aviation Officials, oral statement........    37164    Prepared statement...........................................    38165166                       SUBMISSIONS FOR THE RECORD167168Submissions for the Record by Hon. Troy E. Nehls:169    Letter of June 4, 2026, to Members of the House Committee on170      Transportation and Infrastructure, Subcommittee on171      Aviation, from Molly Grover, President and Chief Executive172      Officer, Dubuque Area Chamber of Commerce, Dubuque, Iowa...    73173    Letter and Attachment of June 9, 2026, from Jack Waldorf,174      Executive Director, Western Governors' Association, to Hon.175      Troy E. Nehls, Chairman, and Hon. Andre Carson, Ranking176      Member, Subcommittee on Aviation...........................    74177178                                APPENDIX179180Post-Hearing Questions for the Record to Faye Malarkey Black,181  President and Chief Executive Officer, Regional Airline182  Association, from:183    Hon. Sharice Davids..........................................    79184    Hon. Greg Stanton............................................    83185Post-Hearing Questions for the Record to Shawn Dobberstein,186  A.A.E., Executive Director, Hector International Airport,187  Fargo, North Dakota, on behalf of the American Association of188  Airport Executives, from Hon. Greg Stanton.....................    85189190[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]191192                              May 29, 2026193194    SUMMARY OF SUBJECT MATTER195196    TO:      LMembers, Subcommittee on Aviation197    FROM:  LStaff, Subcommittee on Aviation198    RE:      LSubcommittee Hearing on ``Connecting Rural199America to the National Airspace System''200_______________________________________________________________________201202                               I. PURPOSE203204    The Subcommittee on Aviation of the Committee on205Transportation and Infrastructure will meet on Thursday, June2064, 2026, at 10:00 a.m. ET in 2167 Rayburn House Office Building207to receive testimony at a hearing entitled, ``Connecting Rural208America to the National Airspace System.'' The hearing will209examine current trends, opportunities, and challenges facing210small communities and rural commercial service airports. The211hearing will provide Members with the opportunity to discuss212their priorities to ensure their constituents maintain options213for commercial air service. The Subcommittee will receive214testimony from witnesses representing the Regional Airline215Association (RAA), airports, the Government Accountability216Office (GAO), and the National Association of State Aviation217Officials (NASAO).218219                             II. BACKGROUND220221    Each year, hundreds of millions of passengers move through222our Nation's airports, connecting our communities and driving223economic development across major cities and rural towns alike.224In those communities, approximately 46 million Americans,225comprising almost 14 percent of the United States population,226live in rural counties.\1\ Moreover, following a decade of227population decline from 2010 to 2020, rural America is again228experiencing growth as well as a reduction in poverty229levels.\2\ At the same time, the cost of domestic air fare from230most small communities has increased at a faster rate than the231average cost of domestic air fare, adjusted for inflation.\3\232---------------------------------------------------------------------------233    \1\ Tracey Farrigan et al., Rural America at a Glance: 2025234Edition, U.S. Dep't of Agric. Econ. Research Serv., EIB-295 (Jan.2352026), available at https://ers.usda.gov/sites/default/files/236_laserfiche/publications/113657/EIB-295.pdf?v=59682.237    \2\ Id.238    \3\ U.S. Dep't of Transp., Average Domestic Air Fares (last visited239May 29, 2026), available at https://transtats.bts.gov/AIRFARES/.240---------------------------------------------------------------------------241    According to the Federal Aviation Administration (FAA),242there are approximately 14,400 private and 5,000 public-use243airports, heliports, and seaplane bases in the United244States.\4\ Of those, there are 3,247 National Plan of245Integrated Airport Systems (NPIAS) airports, of which 37246percent provide rural areas with access to the National Airport247System (NAS).\5\248---------------------------------------------------------------------------249    \4\ Fed. Aviation Admin., Airport Categories (last updated Dec. 7,2502022), available at https://www.faa.gov/airports/planning_capacity/251categories.252    \5\ Fed. Aviation Admin., Nat'l Plan of Integrated Airport Systems253(NPIAS) 2025-2029 (Sept. 30, 2024) [hereinafter NPIAS 2025-2029],254available at https://www.faa.gov/sites/faa.gov/files/airports/255planning_capacity/npias/current/ARP-NPIAS-2025-2029-Narrative.pdf.256---------------------------------------------------------------------------257    While recent events have forced the United States aviation258industry to largely focus on system safety, modernization259efforts, and manufacturing quality, access to safe aviation260service itself--especially for smaller communities--must not be261overlooked.262263                  III. THE ECONOMIC IMPACT OF AIRPORTS264265    The FAA's NPIAS contains 3,247 airports; only 64 are266classified as large or medium hub airports.\6\ In 2024, there267were 450 small hub, nonhub, and nonprimary commercial service268airports, collectively accounting for over 122 million269enplanements.\7\ According to the latest available data from2702022, commercial service airports reported total airport271revenue of $35.8 billion, with small and nonhub airports272contributing 21 percent.\8\273---------------------------------------------------------------------------274    \6\ Id.275    \7\ Fed. Aviation Admin., CY2024 Enplanements at All Commercial276Service Airports (By Rank) (Sept. 15, 2025), available at https://277www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/278passenger/arp-cy2024-commercial-service-enplanements.pdf.279    \8\ NPIAS 2025-2029, supra note 4.280---------------------------------------------------------------------------281    According to the latest economic study by the Airports282Council International-North America, commercial service283airports in the United States employ over 1.3 million people284and pay over $115 billion in wages annually. These airports285claim a total impact of supporting over 12.8 million jobs, $618286billion in wages, and $1.8 trillion in economic output.287Additionally, for every increase of 1,000 enplanements,288airports generate an additional $677,700 in economic output,289and an additional 5.8 jobs are supported.\9\ Therefore, when290airports and commercial air service grow, so do their local291economies.292---------------------------------------------------------------------------293    \9\ Airports Council Int'l-North America, The Economic Impact of294U.S. Commercial Service Airports in 2024 (Mar. 2025), available at295https://airportscouncil.org/wp-content/uploads/2025/03/ACI-NA-The-296Economic-Impact-of-U.S.-Commercial-Service-Airports-in-2024.pdf.297---------------------------------------------------------------------------298299IV. TRENDS AND ISSUES FACING AIR SERVICE TO SMALL AND RURAL COMMUNITIES300301    Unfortunately, small airports and small communities have302experienced declining scheduled passenger air service for303decades. From 2000 to 2018, departures from small and nonhub304airports fell 32 percent and 47 percent, respectively, compared305to a seven percent decrease in departures from large hub306airports.\10\ From 2018 to 2024, the average daily departures307per route at nonhub airports were down 19 percent, while at308large hubs, they were only down nine percent. During this309timeframe, non-Essential Air Service (EAS) nonhub airports310experienced the greatest decline at 21 percent, while nonhub311airports with EAS-subsidized service experienced a more modest312decrease of five percent.\11\ From 2018 to 2023, the 218313smallest communities with a commercial airport (both small and314nonhub) saw average departures decrease by 14 percent, with 25315experiencing more than 50 percent loss.\12\316---------------------------------------------------------------------------317    \10\ U.S. Gov't Accountability Off., GAO-26-107751, Commercial318Aviation: Certain Nonhub Airports Face Significant Challenges in319Securing and Maintaining Air Service, (Dec. 2025) [hereinafter GAO320Nonhub Airports Report], available at https://www.gao.gov/assets/gao-32126-107751.pdf.322    \11\ Id.323    \12\ U.S. Gov't Accountability Off., GAO-24-106681, Commercial324Aviation: Trends in Air Service to Small Communities (2024)325[hereinafter GAO Small Communities Report], available at https://326www.gao.gov/assets/gao-24-106681.pdf.327---------------------------------------------------------------------------328329INCREASED REGIONAL AIRLINE OPERATING COSTS330331    The rising cost of labor, fuel, and fleet maintenance has332increased the operating costs for all airlines. This has a333disproportional impact on services to small communities and334makes air service to small communities less economically335feasible. Operating costs for all airlines have steadily336increased from an average of 12.8 cents per available seat mile337(CASM) in 2016 to 17.2 cents in 2023.\13\ For regional338airlines, CASM has increased from 12 cents in 2018 to 16 cents339in 2023.\14\ Meanwhile, according to the Bureau of Labor340Statistics inflation calculator, for that timeframe, 12.8 and34112 cents should have only increased to 15.45 and 15 cents342respectively.\15\343---------------------------------------------------------------------------344    \13\ E-mail from Josh Saltzman, Airlines for America, to Senior345Professional Staff, H. Comm. on Transp. & Infrastructure (July 8, 2025,3468:11 AM) (on file with Comm.).347    \14\ GAO Small Communities Report, supra note 10.348    \15\ U.S. Bureau of Labor Statistics, CPI Inflation Calculator349(last visited May 25, 2026), available at https://www.bls.gov/data/350inflation_calculator.htm.351---------------------------------------------------------------------------352353PILOT SUPPLY354355    In 2017, the Working Group on Improving Air Service to356Small Communities identified two areas of need for special357attention. First was a nationwide pilot shortage, and second358was strengthening the EAS Program.\16\ According to a GAO359study, the pilot shortage persisted from 2018 through 2023 (the360timeframe of the study), but was particularly exacerbated by361the COVID-19 pandemic, with a disproportional impact on small362communities served by regional airlines. In response to the363pandemic and the subsequent reduction in demand for air travel,364airlines tried to reduce their costs by, among other things,365offering pilots early retirement. As the industry then366rebounded from the pandemic, larger airlines filled those pilot367vacancies by hiring from regional airlines, thus368disproportionately impacting the small communities regional369airlines tend to serve.\17\ Some stakeholders argue that pilot370supply issues have eased as airlines retire smaller regional371aircraft, shift to larger aircraft, and reduce flight372frequencies. Unfortunately, this reduction in flight373frequencies once again further reduces service to small374communities.\18\375---------------------------------------------------------------------------376    \16\ U.S. Dep't of Transp., Report of the Working Group on377Improving Air Service to Small Communities (May 9, 2017), available at378https://smallcommunityairservice.com/wp-content/uploads/2017/08/dot-379working-group-on-small-community-air-service-report.pdf380    \17\ GAO Small Communities Report, supra note 10.381    \18\ GAO Nonhub Airports Report, supra note 8.382---------------------------------------------------------------------------383384TRAVELERS CHOOSING TO DRIVE385386    According to the GAO, a persistent challenge for small387communities is ``passenger leakage,'' which occurs when388residents near smaller airports choose to drive to their389destination or to a larger airport. This diversion is primarily390driven by competitive market factors, including lower fares391from ultra-low-cost carriers, more nonstop service options,392greater flight frequency, and larger aircraft.\19\393---------------------------------------------------------------------------394    \19\ Id.395---------------------------------------------------------------------------396397                           V. FEDERAL SUPPORT398399ESSENTIAL AIR SERVICE PROGRAM (EAS)400401    EAS was established by the Airline Deregulation Act of 1978402(P.L. 95-504) and provides Federal subsidies to air carriers to403maintain a minimum level of scheduled air service to eligible404communities. Since the establishment of the program, air405carriers have coalesced around a model that uses subsidies to406operate two round-trip flights per day with 30- to 50-seat407twin-engine aircraft, usually to a large or medium hub airport.408To be eligible for the subsidy, communities must meet the409``eligible place'' requirement in statute:410    (a) Lbe an eligible place before October 1, 1988, and411received scheduled service after January 1, 1990,412    (b) Lthey must have had an average of 10 enplanements per413service day during the more recent fiscal year (communities414more than 175 driving miles from a large or medium hub airport415are exempt),416    (c) Lhad a subsidy rate of less than $1,000 per passenger,417and418    (d) Lreceived subsidized service between September 30,4192010, and September 30, 2011.\20\420---------------------------------------------------------------------------421    \20\ 49 U.S.C. Sec.  41731.422423    The latter three requirements do not apply to communities424in Alaska and Hawaii. Currently, 110 communities across 33425states and territories are eligible, excluding Alaska and426Hawaii.\21\ Of those 110 eligible communities, 108 are427receiving subsidies, while 69 communities in Alaska, four428communities in Hawaii, and one in Puerto Rico are receiving429subsidies.\22\ \23\430---------------------------------------------------------------------------431    \21\ U.S. Dep't of Transp., Eligible Essential Air Service (EAS)432Communities (Excluding Alaska and Hawaii) (Dec. 2021), available at433https://www.transportation.gov/sites/dot.gov/files/2022-01/434Current%20list%20of%20EAS-Eligible%20communities%20excl%20AK%20%20HI_435Dec2021_0.pdf.436    \22\ U.S. Dep't of Transp., Subsidized Essential Air Service437Communities (48 Contiguous States, Hawaii, and Puerto Rico), (Oct.4382025), available at https://www.transportation.gov/sites/dot.gov/files/4392025-10/WEBISTE%20Subsidized%20EAS%20report%20for%2048440%20states_HI_PR_Oct2025.pdf.441    \23\ U.S. Dep't of Transp., Essential Air Service, (last updated442Nov. 4, 2024), available at https://www.transportation.gov/policy/443aviation-policy/small-community-rural-air-service/essential-air-444service.445---------------------------------------------------------------------------446    The program is funded through a combination of447appropriations from the Airport and Airway Trust Fund (AATF)448and overflight fees collected by the FAA from foreign aircraft449traveling over United States airspace. In general,450appropriations have been climbing since 2000. In 2024 dollars,451the cost of the program has increased more than fivefold from a452low of under $100 million annually in the 1990s to $598 million453in fiscal year (FY) 2025.\24\ Recognizing the need for reforms,454the FAA Reauthorization Act of 2024 (FAARA24) (P.L. 118-63)455lowered the maximum overall per passenger subsidy cap to $850456starting in FY 2027 and set the per passenger subsidy cap at457$650 for communities that are less than 175 miles from a medium458or large hub airport. Further, it placed a limitation on the459waivers that the Department of Transportation (DOT) can give460communities that don't meet the enplanement requirements.\25\461---------------------------------------------------------------------------462    \24\ GAO Small Communities Report, supra note 12; GAO Nonhub463Airports Report 2025, supra note 8.464    \25\ FAA Reauthorization Act of 2024, Pub. L. No. 118-63, Sec.465561.466---------------------------------------------------------------------------467468ALTERNATE ESSENTIAL AIR SERVICE PROGRAM (AEAS)469470    AEAS was established in 2003 by the Vision 100--Century of471Aviation Reauthorization Act (P.L. 108-176) as a pilot program472to provide greater flexibility in meeting rural air service473needs. Under AEAS, communities may opt out of traditional EAS474in exchange for a grant to tailor transportation solutions to475local needs. This can include subsidizing air carriers476operating smaller aircraft, on-demand air taxi services, or477surface transportation to another airport.\26\ However,478participation has been limited; only 15 communities are479currently enrolled. FAARA24 requires the GAO to study the480effectiveness of AEAS and impediments to community adoption.481---------------------------------------------------------------------------482    \26\ 49 U.S.C. Sec.  41745.483---------------------------------------------------------------------------484485SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM (SCASDP)486487    SCASDP was established in 2000 by the Wendell H. Ford488Aviation Investment and Reform Act for the 21st Century (P.L.489106-181). Unlike EAS, it offers broader eligibility and more490flexible use of funds, allowing applicants the opportunity to491identify their communities' specific air service deficiencies492and propose tailored solutions. Any public entity or consortium493of communities can apply to enhance service to any small hub or494smaller airport, including those without current commercial air495service.\27\ Typically, the DOT has not considered communities496that currently participate in EAS or AEAS as eligible. Grants497can be used to subsidize air carriers, assist airports in498initiating service, or enhance existing services. Eligible uses499include recruiting air carriers, offering revenue guarantees,500conducting economic air service studies, and marketing501commercial air services.502---------------------------------------------------------------------------503    \27\ 49 U.S.C. Sec.  41743.504---------------------------------------------------------------------------505    SCASDP is unique in encouraging local financial506involvement. While not required, applications that include507local cash contributions (including those from local508governments, businesses, or other private organizations) are509considered more favorably.\28\ Demand for SCASDP consistently510exceeds available funding, with less than half of eligible511communities receiving grant awards. From 2018 to 2023, the512number of communities that applied ranged from 40 to 71,513seeking between $31 million to $58 million, with only $12514million to $18 million awarded annually. Simultaneously,515increasing airline operating costs diminishes the effectiveness516of the grants and their revenue guarantees.\29\ FAARA24517increased the program's annual authorization level from $10518million to $15 million, authorized certain ways to amend grant519agreements based on communities' needs, and required DOT to520prioritize applications that restore scheduled passenger521service that has been lost or substantially reduced.\30\522---------------------------------------------------------------------------523    \28\ U.S. Dep't of Transp., Order Soliciting Small Community Grant524Applications, Order 2024-6-8 (June 10, 2024), available at https://525www.transportation.gov/sites/dot.gov/files/2024-06/526FY23CY24.Order%202024-6-8%20FINAL.SCASDP.NOFO_..pdf.527    \29\ GAO Nonhub Airports Report, supra note 8.528    \30\ FAA Reauthorization Act of 2024, Pub. L. No. 118-63, Sec.529562.530---------------------------------------------------------------------------531532AIRPORT IMPROVEMENT PROGRAM (AIP)533534    In general, the AIP provides grants to public agencies for535the planning and development of the public-use airports536identified in the NPIAS.\31\ Funds obligated for the program537are drawn from the AATF, which is supported by user fees, fuel538taxes, and similar revenue sources.\32\ Predominantly, AIP539grants can be used by an airport to enhance airport safety,540capacity, security, and address environmental concerns. Airport541sponsors can also use AIP funds, in most cases, on airfield542capital improvements or repairs and, in some specific543situations, for terminals and hangars.\33\ Additionally,544certain professional services that are required prior to an545airport engaging in construction, such as planning, surveying,546or design, may also be eligible.547---------------------------------------------------------------------------548    \31\ Fed. Aviation Admin., Overview: What is AIP & What is549Eligible, (last updated Aug. 2, 2022), available at https://550www.faa.gov/airports/aip/overview.551    \32\ Id.552    \33\ Id.553---------------------------------------------------------------------------554    Recognizing the need for additional capital and the fact555that the funding levels for AIP had not kept pace with556inflation, FAARA24 authorized AIP at $4 billion \34\ per fiscal557year from 2025 through 2028. In addition to the increased558authorization, added significant new flexibility for the use of559AIP funds and revised apportionment formulas, which increased560annual formula funding levels for both large and small561airports.562---------------------------------------------------------------------------563    \34\ FAA Reauthorization Act of 2024, Pub. L. No. 118-63, tit. IIV.564---------------------------------------------------------------------------565566                             VI. WITNESSES567568     Ms. Faye Malarkey Black, President and CEO,569Regional Airline Association570     LMr. Shawn Dobberstein, Executive Director, Fargo571Hector International Airport, on behalf of American Association572of Airport Executives573     LMr. Derrick Collins, Director, Physical574Infrastructure, United States Government Accountability Office575     LMr. Gregory Pecoraro, President and CEO, National576Association of State Aviation Officials577578        CONNECTING RURAL AMERICA TO THE NATIONAL AIRSPACE SYSTEM579580                              ----------581582                         THURSDAY, JUNE 4, 2026583584                  House of Representatives,585                          Subcommittee on Aviation,586            Committee on Transportation and Infrastructure,587                                                    Washington, DC.588    The subcommittee met, pursuant to call, at 10:24 a.m., in589Room 2167, Rayburn House Office Building, Hon. Troy E. Nehls590(Chairman of the subcommittee) presiding.591    Mr. Nehls. The Subcommittee on Aviation will come to order.592    I ask unanimous consent that the chairman be authorized to593declare a recess at any time during today's hearing.594    Without objection, so ordered.595    I also ask unanimous consent that Members not on the596subcommittee be permitted to sit with the subcommittee at597today's hearing and ask questions.598    Without objection, so ordered.599    And as a reminder, if Members wish to insert a document600into the record, please email it to DocumentsTI@mail.house.gov.601    I now recognize myself for the purpose of an opening602statement.603604  OPENING STATEMENT OF HON. TROY E. NEHLS OF TEXAS, CHAIRMAN,605                    SUBCOMMITTEE ON AVIATION606607    Mr. Nehls. Good morning, and thank you to our panel of608witnesses for being here today. Good to see you. Each of you609brings a unique perspective to this important discussion on the610state of America's small airports and rural communities' access611to the National Airspace System, or the NAS.612    Airports are more than transportation hubs; they are613economic engines supporting Americans' livelihoods, connecting614communities, and enhancing quality of life.615    There are nearly 5,000 public-use airports and heliports616across the United States, and almost 3,300 of these facilities617are on the FAA's National Plan of Integrated Airport Systems.618These numbers are certain to grow as advanced air mobility619technologies emerge and become integrated into the aviation620system. Yet, of all of these facilities, only 64 are large- or621medium-hub airports. Understandably, they get a lot of622attention.623    But there are another 450 airports providing critical624commercial passenger service across the country. While they are625well known within their communities, these airports deserve626greater attention and stronger support from Congress. For the62746 million Americans living in rural communities, these628facilities provide the same critical access to the NAS as629larger airports do for urban Americans.630    All of you are here today to help us better highlight the631value of these facilities, the role they play in their632communities, and the challenges they face in maintaining and633expanding access.634    According to a recent study by the Airports Council635International-North America, commercial airports in the United636States support over 12.8 million jobs, $618 billion in wages,637and $1.8 trillion--with a ``T''--in economic output. Notably,638every additional 1,000 enplanements generate nearly $700,000 in639economic output and supports six additional jobs. We should be640working together to increase enplanements at these airports so641all Americans can share these economic benefits.642    Fortunately, there are strong Federal programs designed to643support communities maintaining existing service, expanding644service, and attracting new carriers, ultimately increasing645enplanements. Essential Air Service is the most well known of646these programs. In the FAA Reauthorization Act of 2024,647Congress strengthened and reformed EAS to improve648accountability, restore fiscal discipline, and better target649limited resources to the communities most in need.650    The Small Community Air Service Development Program grant651also gives communities the opportunity to identify their own652air service needs, recruit carriers, offer revenue guarantees,653conduct studies, and market new service. Importantly, this654program encourages local business investment. This skin-in-the-655game approach incentivizes services that are more likely to656succeed long term without subsidies.657    Lastly, the Airport Improvement Program, or AIP,658distributes resources generated by user fees and fuel taxes by659formula to all new public-use airports in the NPIAS.660    I would be remiss not to recognize the significant progress661the Trump administration has made in modernizing the air662traffic control system. Under Secretary Duffy and Administrator663Bedford's leadership, more than 2,000 air traffic controllers664were hired last year, more than 12,000 applied to become665controllers this year, 612 new radar systems are being666deployed, half of the outdated copper wiring has already been667replaced with modern fiber optics, 17 control towers668transitioned from paper flight strips to electronic systems,669and 54 airports now have surface awareness systems.670    Clearly, the future of American aviation is bright.671    [Mr. Nehls' prepared statement follows:]672673     Prepared Statement of Hon. Troy E. Nehls of Texas, Chairman,674                        Subcommittee on Aviation675    Airports are more than transportation hubs, they are economic676engines supporting Americans' livelihoods, connecting communities, and677enhancing quality of life.678    There are nearly 5,000 public-use airports and heliports across the679United States and almost 3,300 of these facilities are on the FAA's680National Plan of Integrated Airport Systems. These numbers are certain681to grow as advanced air mobility technologies emerge and become682integrated into the aviation system. Yet, of all these facilities, only68364 are large or medium-hub airports. Understandably, they get a lot of684attention.685    But there are another 450 airports providing critical commercial686passenger service across the country. While they are well known within687their communities, these airports deserve greater attention and688stronger support from Congress. For the 46 million Americans living in689rural communities, these facilities provide the same critical access to690the National Airspace System (NAS) as larger airports do for urban691Americans.692    You all are here today to help us better highlight the value of693these facilities, the role they play in their communities, and the694challenges they face in maintaining and expanding access.695    According to a recent study by the Airports Council International-696North America, commercial service airports in the United States support697over 12.8 million jobs, $618 billion in wages, and $1.8 trillion in698economic output. Notably, every additional 1,000 enplanements generate699nearly $700,000 in economic output and support six additional jobs. We700should be working together to increase enplanements at these airports701so all Americans can share these economic benefits.702    Fortunately, there are strong federal programs designed to support703communities maintaining existing service, expanding service, and704attracting new carriers, ultimately increasing enplanements. Essential705Air Service (EAS) is the most well-known of these programs. In the FAA706Reauthorization Act of 2024, Congress strengthened and reformed EAS to707improve accountability, restore fiscal discipline, and better target708limited resources to the communities most in need.709    The Small Community Air Service Development Program also gives710communities the opportunity to identify their own air service needs,711recruit carriers, offer revenue guarantees, conduct studies, and market712new service. Importantly, this program encourages local business713investment. This skin-in-the-game approach incentivizes services that714are more likely to succeed long-term without subsidies.715    Lastly, the Airport Improvement Program (AIP) distributes resources716generated by user fees and fuel taxes by formula to all public-use717airports in the National Plan of Integrated Airport Systems (NPIAS).718    I would be remiss to not recognize the significant progress the719Trump administration has made in modernizing the system that safely720manages America's air traffic.721    Under Secretary Duffy's and Administrator Bedford's leadership,722more than 2,000 air traffic controllers were hired last year, more than72312,000 applied to become controllers this year, 612 new radar systems724are being deployed, half of the outdated copper wiring has already been725replaced with modern fiberoptics, 17 control towers transitioned from726paper flight strips to electronic systems, and 54 airports now have727surface awareness systems. Clearly, the future of American aviation is728bright.729730    Mr. Nehls. And, with that, I again thank our witnesses for731traveling here today, and I look forward to your testimony.732    I will now recognize Ranking Member Carson for a 5-minute733opening statement.734735  OPENING STATEMENT OF HON. ANDRE CARSON OF INDIANA, RANKING736                MEMBER, SUBCOMMITTEE ON AVIATION737738    Mr. Carson. Good morning, and thank you, Chairman Nehls,739Chairman Graves, and Ranking Member Larsen. It is an honor to740be here for our first Aviation Subcommittee hearing this year.741Welcome to our witnesses again for joining today's hearing on742trends, opportunities, and challenges facing small communities743and rural commercial service airports.744    Air service for small and rural communities is important to745many members of this committee. While Indianapolis746International Airport is one of the busiest in the country,747there are four airports in Indiana that have Essential Air748Service determinations for routes that connect through Chicago749O'Hare Airport.750    The 2024 FAA reauthorization is actively creating a751positive economic impact on small and rural communities through752the preservation of EAS programs and raising the per-passenger753subsidy caps, improving the Alternative EAS program, increasing754the Small Community Air Service Development Program annual755authorization level from $10 million to $15 million while756prioritizing applications that restore flights that have been757lost or substantially reduced, and boosting Airport Improvement758Program funding to $4 billion per year and revising the759apportionment formulas which increased annual formula funds for760both large and small airports.761    Finally, we can all agree that airline passengers,762regardless of whether they are flying into a major hub or a763nonhub airport in their small communities, deserve one level of764safety. This means maintaining and improving the similar pilot765training requirements, aircraft certification standards, air766traffic control staffing and technology, safety data tracking,767and other tools that we use to keep the National Airspace768System safe.769    Thank you again to our witnesses. You all play a very770critical role in ensuring continued service to small and rural771communities.772    And I yield back.773    [Mr. Carson's prepared statement follows:]774775  Prepared Statement of Hon. Andre Carson of Indiana, Ranking Member,776                        Subcommittee on Aviation777    Good morning. Chairman Nehls, Chairman Graves, and Ranking Member778Larsen, it's an honor to be here for our first Aviation Subcommittee779hearing this year. Welcome to our witnesses for joining today's hearing780on current trends, opportunities and challenges facing small781communities and rural commercial service airports.782    Air service for small and rural communities is important to many783Members on this Committee. While Indianapolis International Airport is784the 46th busiest airport in the United States, there are four airports785in Indiana that have Essential Air Service (EAS) determinations for786routes that connect through Chicago O'Hare Airport.787    The 2024 FAA Reauthorization is actively creating a positive788economic impact on small and rural communities through:789      the preservation of the EAS Program and raising the per790passenger subsidy caps;791      improving the Alternative EAS program;792      increasing the Small Community Air Service Development793Program (SCASDP) annual authorization level from $10 million to $15794million while prioritizing applications that restore flights that have795been lost or substantially reduced; and796      boosting Airport Improvement Program (AIP) funding to $4797billion per year and revising apportionment formulas which increased798annual formula funds for both large and small airports.799800    Unfortunately, the administration's FY27 budget request guts EAS801funding and proposes changes that have not been fully vetted or802approved by this Committee. Congress appropriated $513.6 million for803EAS in FY26. Yet, the administration's FY27 budget request is just $142804million--that's a $371.2 million cut.805    This is despite the fact that Congress has continued to demonstrate806its bipartisan support for EAS and the critical service it provides to807communities that need it most. For example, the House Appropriations808Committee is currently proposing an increase of almost $25 million to809the EAS program. This is because Congress has listened to these810communities and wants to preserve this critical lifeline that benefits811communities all across this country.812    Today's hearing will also address the impact of workforce issues on813small and rural communities. To start with, the pilot pipeline is in a814much different place today than it was a few years ago. Regional815airlines, as well as larger airlines, have listened to pilots and816increased pay and benefits leading to better hiring and retention.817Getting hired by airlines is more competitive today as a result.818    Nonetheless, we must not decrease our standards to increase the819supply for this increased demand. Instead, we must address the rising820costs associated with training that have made becoming a qualified821pilot harder. The current commercial pilot training requirements are822critical to aviation safety, which is why I support initiatives to make823it a level playing field and remove cost as a barrier through grants824and reforms to student loan eligibility, and why I oppose the825administration's proposals to limit federal student loans for some of826the programs that produce the most qualified pilots.827    We also have huge gaps in other parts of the aviation workforce828like aircraft mechanics, ground crews and air traffic controllers. In829mid-May, the Federal Aviation Administration (FAA) announced that it is830accepting applications for Aviation Workforce Development Grants for831Aircraft Pilots and Aviation Maintenance Technical Workers--also known832as the Section 625 grants. Congress reauthorized these grants in the8332024 FAA Reauthorization Act, and we are happy to finally see this834Notice of Funding Opportunity--even though it took 18 months too long.835I encourage eligible applicants to apply by the June 22 deadline.836    Finally, we can all agree that all airline passengers--regardless837of whether they are flying into a major hub or a non-hub airport in838their small community--deserve one level of safety. This means839maintaining and improving the similar pilot training requirements,840aircraft certification standards, air traffic control staffing and841technology, safety data tracking and other tools that we use to keep842the National Airspace System safe.843    Thank you again to today's witnesses; you all play an important844role in ensuring continued service to small and rural communities. I845look forward to our discussion, and I yield back.846847    Mr. Nehls. The gentleman yields.848    I now recognize the chairman of the full committee, Mr.849Graves, for 5 minutes.850851  OPENING STATEMENT OF HON. SAM GRAVES OF MISSOURI, CHAIRMAN,852         COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE853854    Mr. Graves. Thank you, Chairman Nehls.855    And I want to thank our witnesses for all being here.856    Last year, Congress passed and the President signed into857law a historic $12\1/2\ billion investment in our Nation's858aviation infrastructure, an accomplishment that I was very859proud to have led in the House. That investment is already860delivering meaningful results, as has been pointed out today:861deploying new radars, replacing communications infrastructure,862deploying airport surveillance systems, and hiring a record863number of air traffic controllers.864    There is more to be done, and additional investments are865needed to complete this modernization effort. I am committed to866working with the administration and my colleagues to identify867the remaining needs and find a vehicle to secure those868resources that are going to be needed to finish the job.869    We must continue to build upon the momentum initiated by870last year's historic investment and expeditiously roll out the871most modern and safest aviation system possible. Whether they872support commercial passenger service or provide publicly873accessible facilities for general aviation pilots, airports are874pillars of our community that drive economic growth and improve875the quality of life in all of our communities.876    Critically, small airports are also the primary training877ground for pilots. We must protect and preserve our freedom to878fly for everyone, whether they are operating a personal879aircraft, or conducting business aviation, or traveling as880passengers on commercial airlines.881    That is why I am proud that this committee worked in a very882bipartisan fashion to pass the FAA Reauthorization Act of 2024,883and we continue to conduct strong oversight of its884implementation. This bipartisan law made important reforms to885the aviation sector by addressing workforce challenges,886improving passenger experience, establishing the first-ever887general aviation title, and increasing financial support for888our airports nationwide.889    And, with that, Mr. Chairman, I yield back.890    [Mr. Graves' prepared statement follows:]891892Prepared Statement of Hon. Sam Graves of Missouri, Chairman, Committee893                  on Transportation and Infrastructure894    Last year, Congress passed and President Trump signed into law a895historic $12.5 billion investment in our nation's aviation896infrastructure--an accomplishment I am proud to have led in the House.897That investment is already delivering meaningful results--deploying new898radars, replacing communications infrastructure, deploying airport899surveillance systems, and hiring record numbers of air traffic900controllers.901    There is more work to be done, and additional investments are902needed to complete this modernization effort. I am committed to working903with the Trump administration and my colleagues to identify the904remaining needs and a vehicle to secure the resources required to905finish the job.906    We must continue to build upon the momentum initiated by last907year's historic investment and expeditiously roll out the most modern908and safest aviation system possible. Whether they support commercial909passenger service or provide publicly accessible facilities for general910aviation pilots, airports are pillars of communities that drive911economic growth and improve quality of life in their communities.912    Critically, small airports are also the primary training ground for913pilots. We must protect and preserve the freedom to fly for everyone--914whether they are operating a personal aircraft, conducting business915aviation, or traveling as passengers on commercial airlines.916    That is why I am proud this committee worked in a bipartisan917fashion to pass the FAA Reauthorization Act of 2024, and we continue to918conduct strong oversight of its implementation.919    This bipartisan law made important reforms across the aviation920sector by addressing workforce challenges, improving passenger921experience, establishing the first ever general aviation title, and922increasing financial support for airports nationwide.923924    Mr. Nehls. The gentleman yields.925    I now recognize the ranking member of the full committee,926Mr. Larsen.927928 OPENING STATEMENT OF HON. RICK LARSEN OF WASHINGTON, RANKING929     MEMBER, COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE930931    Mr. Larsen of Washington. Thank you, Chair Nehls and932Ranking Member Carson, for holding today's hearing,933``Connecting Rural America to the National Airspace System.''934    I want to thank the witnesses for joining us today, and we935have plenty to discuss, so I look forward to your testimony.936    Airports are vital economic engines that power our local937communities, especially in small and rural ones--many of the938ones I represent. They serve as critical transportation hubs to939safely bring people together. This will be important in the940coming weeks as fans travel across the country and from around941the world to watch their favorite teams in the World Cup. We942look forward to welcoming them to the Pacific Northwest, where943Seattle and Vancouver will be hosting 13 of those games.944    Airports also generate good jobs, stimulate local945businesses, and attract financial investment. A 2025 Airports946Council International-North America study found that airports947with commercial service support 12.8 million jobs and produce948$1.8 trillion of annual output.949    In my district, we have a few small airports, ranging from950Arlington Municipal Airport in my hometown, which dates to9511934; Orcas Island Airport; Lopez Island Airport; Friday Harbor952Airport; Skagit Regional Airport--I don't want to forget--953Concrete Airport. There are a few more as well. They are all954going to call me and tell me I forgot to name them.955    Congress recognized the importance of small and rural956airports when we passed the 2024 FAA reauthorization. The law957increases funding for the Airport Improvement Program to $4958billion annually, of which at least $150 million must be spent959on airport climate, noise, or other environmental projects. The960law also improves the lives of neighboring airport communities961by requiring the FAA to develop a plan to transition away from962leaded fuel in general aviation by 2030.963    So, whether connected via regional airlines, charter964flights, or general aviation, these small and rural hubs serve965as alternatives to overburdened metropolitan airports.966    Unfortunately, regional and value airlines face specific967challenges, ranging from workforce issues to surging fuel968prices.969    Many of you mentioned in your testimony that increased970demands on the NAS have also increased demand for a skilled971aviation workforce.972    Mr. Collins, you specifically mentioned the need for more973aviation maintenance technicians, while other witnesses974referenced the increased competition for pilots.975    To meet these needs without decreasing our safety976standards, Congress, the FAA, and stakeholders must expand the977talent pipeline and improve efforts to recruit, train, and978retain a robust U.S. aerospace workforce from every part of our979society.980    To address this, the 2024 reauthorization invests $60981million annually in Aviation Workforce Development Grants to982train the next generation of aviation manufacturing workers,983airport maintenance technicians, and pilots. In the Pacific984Northwest and across this country, aviation means jobs that pay985well and are key to long-term economic growth, and I encourage986the FAA to quickly implement these programs and distribute987these grants in a timely manner.988    Ms. Black, your testimony also touches upon small aircraft989economics and how increased operation costs have led regional990carriers to use larger, more efficient planes.991    Mr. Collins and Mr. Pecoraro, you both explained that a992factor contributing to this trend is the lack of regional jet993manufacturing pipelines. There just aren't as many options for994new fuel-efficient regional jets. It is a challenge that the995Pacific Northwest is up to tackling.996    To help meet these regional aircraft needs, the 2024 bill997directed the FAA to bring on much-needed expertise in its998Aircraft Certification Office. We have to maintain the999certification office's institutional knowledge to meet the1000requirements of the aircraft certification reform law and grow1001the agency's technical expertise to better assess new designs.1002In this way, when new regional aircraft are designed and1003proposed, staff at the FAA are there to support that1004innovation.1005    Finally, we can't talk about the small and rural1006connectivity of airports without discussing how the President's1007actions in Iran have spiked fuel prices, specifically jet fuel.1008    In general, fuel expenses account for a larger share of air1009carrier budgets than most other industries, making them1010particularly vulnerable to price fluctuations. Exacerbating1011this issue, smaller regional and value air carriers have fewer1012resources than their larger counterparts to absorb these rising1013operational costs.1014    Consequently, the drastic increase in jet fuel prices1015places a unique financial burden on regional and value1016airlines, often forcing these carriers to reduce flight1017frequencies, further eliminate routes, or increase ticket1018prices. This directly impacts small and rural communities1019through rising travel costs or a loss of service altogether.1020    We can't allow this to happen, and the President needs to1021resolve this fuel price crisis of his own making.1022    As this committee considers the future of rural aviation1023and small community connectivity, we have to continue investing1024in the airports, in the workforce, and in the innovation that1025keeps our communities connected to the NAS. We can't ignore the1026economic pressures facing regional carriers, including rising1027fuel costs that threaten service to the very communities that1028depend upon it most.1029    So, I look forward to the hearing today and hearing from1030today's witnesses on how we can help strengthen rural1031connectivity, uphold our safety standards, and support American1032aviation and innovation.1033    Thank you.1034    [Mr. Larsen of Washington's prepared statement follows:]10351036 Prepared Statement of Hon. Rick Larsen of Washington, Ranking Member,1037             Committee on Transportation and Infrastructure1038    Thank you, Chairman Nehls and Ranking Member Carson, for holding1039today's hearing on ``Connecting Rural America to the National Airspace1040System.''1041    Thank you to the witnesses for joining us today. We have plenty to1042discuss, and I look forward to your testimony.1043    Airports are vital economic engines that power our local1044communities--especially small and rural ones--and serve as critical1045transportation hubs to safely bring people together.1046    This will be important in the coming weeks as fans travel across1047the country to watch their favorite teams in the World Cup. We look1048forward to welcoming them to the Pacific Northwest, where Seattle and1049Vancouver will be hosting games.1050    Airports also generate good jobs, stimulate local businesses and1051attract financial investment.1052    A 2025 Airports Council International-North America study found1053that airports with commercial service support 12.8 million jobs and1054produce $1.8 trillion of annual output.1055    In my district, we have a few small airports, ranging from1056Arlington Municipal Airport--which dates to 1934--to Orcas Island1057Airport, which serves the communities of San Juan and Island Counties.1058    Congress recognized the importance of small and rural airports when1059we passed the 2024 FAA reauthorization.1060    The law increases funding for the Airport Improvement Program (AIP)1061to $4 billion annually, of which at least $150 million must be spent on1062airport climate, noise and other environmental projects.1063    The law also improves the lives of neighboring airport communities1064by requiring the FAA to develop a plan to transition away from leaded1065fuel in general aviation by 2030.1066    Whether connected via regional airlines, charter flights, or1067general aviation, these small and rural hubs serve as alternatives to1068overburdened metropolitan airports.1069    Unfortunately, regional and value airlines face specific challenges1070ranging from workforce issues to surging fuel prices.1071    Many of you mention in your testimony that increased demands on the1072NAS have also increased demand for a skilled aviation workforce.1073    Mr. Collins, you specifically mention the need for more aviation1074maintenance technicians, while other witnesses reference the increased1075competition for pilots.1076    To meet these needs without decreasing our safety standards,1077Congress, the FAA and stakeholders must expand the talent pipeline and1078improve efforts to recruit, train and retain a robust U.S. aerospace1079workforce from every part of our society.1080    To address this, the 2024 reauthorization invests $60 million1081annually in aviation workforce development grants to train the next1082generation of aviation manufacturing workers, aircraft maintenance1083technicians and pilots.1084    In the Pacific Northwest and across the country, aviation means1085jobs that pay well and are key to long-term economic growth--I1086encourage the FAA to quickly implement these programs and distribute1087these grants in a timely manner.1088    Ms. Black, your testimony also touches upon small aircraft1089economics--and how increased operation costs have led regional carriers1090to use larger more efficient planes.1091    Mr. Collins and Mr. Pecoraro, you both explain that a factor1092contributing to this trend is the lack of a regional jet manufacturing1093pipeline--there just aren't as many options for new fuel-efficient1094regional jets.1095    This is a challenge the Pacific Northwest is up to tackling.1096    To help meet these regional aircraft needs, the 2024 FAA1097Reauthorization directed the FAA to bring on much needed expertise in1098its aircraft certification office.1099    We have to maintain the certification office's institutional1100knowledge to meet the requirements of the aircraft certification reform1101law and grow the agency's technical expertise to better assess new1102designs.1103    This way, when new regional aircraft are designed and proposed,1104staff at the FAA are there to support that innovation.1105    Finally, we can't talk about small and rural connectivity without1106discussing how the President's actions in Iran have spiked fuel1107prices--specifically jet fuel.1108    In general, fuel expenses account for a larger share of air carrier1109budgets than most other industries, making them particularly vulnerable1110to price fluctuations.1111    Exacerbating this issue, smaller regional and value air carriers1112have fewer resources than their larger counterparts to absorb these1113rising operating costs.1114    Consequently, the drastic increase in jet fuel prices places a1115unique financial burden on regional and value airlines, often forcing1116these carriers to reduce flight frequencies, further eliminate routes1117or increase ticket prices.1118    This directly impacts small and rural communities through rising1119travel costs or a loss of service altogether.1120    We can't allow this to happen. The President needs to resolve this1121fuel price crisis of his own making.1122    As this committee considers the future of rural aviation and small1123community connectivity, we must continue investing in the airports,1124workforce and innovation that keep our communities connected to the1125NAS.1126    We also cannot ignore the economic pressures facing regional1127carriers, including the rising fuel costs that threaten service to the1128very communities that depend on it most.1129    I look forward to hearing from today's witnesses about how we can1130help strengthen rural connectivity, uphold our safety standards and1131support American aviation.11321133    Mr. Nehls. The gentleman yields.1134    I will briefly take a moment to explain our lighting1135system--you guys have been here before. Just keep your remarks1136to 5 minutes, okay?1137    I ask unanimous consent that the witnesses' full statements1138be included in the record.1139    Without objection, so ordered.1140    I also ask unanimous consent that the record of today's1141hearing remain open until such time as our witnesses have1142provided answers to any questions that may be submitted to them1143in writing.1144    Without objection, so ordered.1145    I also ask unanimous consent that the record remain open1146for 15 days for any additional comments and information1147submitted by Members or witnesses to be included in the record1148of today's hearing.1149    Without objection, so ordered.1150    And as your written testimony has been made part of the1151record, the subcommittee asks that you limit your oral remarks,1152again, to 5 minutes.1153    With that, Ms. Black, you are recognized.11541155TESTIMONY OF FAYE MALARKEY BLACK, PRESIDENT AND CHIEF EXECUTIVE1156   OFFICER, REGIONAL AIRLINE ASSOCIATION; SHAWN DOBBERSTEIN,1157   A.A.E., EXECUTIVE DIRECTOR, HECTOR INTERNATIONAL AIRPORT,1158 FARGO, NORTH DAKOTA, ON BEHALF OF THE AMERICAN ASSOCIATION OF1159    AIRPORT EXECUTIVES; DERRICK COLLINS, DIRECTOR, PHYSICAL1160  INFRASTRUCTURE, U.S. GOVERNMENT ACCOUNTABILITY OFFICE; AND1161   GREGORY PECORARO, PRESIDENT AND CHIEF EXECUTIVE OFFICER,1162        NATIONAL ASSOCIATION OF STATE AVIATION OFFICIALS11631164TESTIMONY OF FAYE MALARKEY BLACK, PRESIDENT AND CHIEF EXECUTIVE1165             OFFICER, REGIONAL AIRLINE ASSOCIATION11661167    Ms. Malarkey Black. Thank you, Chairman, Ranking Member,1168members of the subcommittee. Thanks for holding this hearing1169today, and thanks for the opportunity to be here.1170    Last year, regional airlines flew one in three departures1171and served almost all U.S. airports. We fly to communities of1172all sizes, but for two-thirds of the Nation's airports, we1173provide the only source of scheduled commercial air service.1174That service connects people to healthcare, colleges, military1175bases, and loved ones. It supports $153 billion in yearly1176economic output and about 1 million jobs.1177    But rural America still doesn't have the air service that1178it needs. A pilot shortage that predated the pandemic worsened1179after it, forcing regional airlines to park about one-quarter1180of the fleet and pushing small community air service into1181crisis.1182    Today, overall service is up, but passengers don't1183experience air service in the aggregate; they experience1184whether their local airport still has the schedules and1185destinations that meet their needs.1186    Today, 193 airports have fewer flights than before the1187pandemic, and the average loss at those airports is 31 percent1188of their flights. Thirty-five have lost more than half their1189flights, 14 airports have gone dark completely, and smaller1190airports are fairing the worst.1191    Several forces are driving this.1192    First, infrastructure. Safety is a foundation of everything1193we do, and air traffic control modernization is foundational to1194safety. I am a member of the Modern Skies Coalition, and I1195support its goals. We cannot leave rural airports behind.1196    The focus on DCA is necessary. The families who lost loved1197ones last year deserve nothing less. That same vigilance1198belongs everywhere.1199    Each day, our members fly into small airports, contract1200towers, and nontowered fields with GA, medical, and military1201flights and without the situational-awareness tools that are1202standard elsewhere.1203    We ask Congress to extend risk-based airport safety1204reviews, equip contract towers with digital tools so1205controllers don't separate traffic solely by looking out the1206window. And we ask Congress to require radio communication at1207nontowered fields, where it is recommended today but not1208required.1209    I thank this committee for embracing ACAS X. It is the1210future of collision-avoidance technology. It depends on ADS-B1211In, which gives pilots a real-time picture of nearby traffic.1212We support both.1213    And we need to be clear-eyed about the timeline. Some1214suggest ADS-B In is ready fleetwide now and that only ACAS X is1215the long-lead technology. That is not accurate. Both need1216aircraft-specific development, certification, installation, and1217supply chains that carriers don't control.1218    That is why we support a right-now safety bridge through1219electronic flight bags that are mounted in the flight deck.1220They can be used on every flight, fixed in the pilot's line of1221sight, and an aircraft cannot dispatch without one. EFBs can1222deliver ADS-B In with traffic awareness and surface awareness1223and visual and audible alerts as in-panel systems mature. We1224should not wait years for safety we can deploy almost now.1225    Second, workforce. Communities can't get air service1226without pilots. Supply is more stable now than before, but the1227underlying shortage remains. Earlier this year, mainline hiring1228again outpaced new pilot certifications, and we haven't yet1229fully rebuilt lost air service. And more than one-quarter of1230the workforce must retire within a decade.1231    The pipeline is not keeping up, and one reason is cost.1232Flight education inherently costs more than other degrees, and1233Federal loans fall about $80,000 short, on average. Students1234without wealth are locked out. Congress can help by aligning1235Federal student aid with the cost of flight training and1236allowing GI benefits to cover private pilot certificates.1237    We also support raising the pilot retirement age. It was1238last raised in 2007 with no safety harm, and pilots already1239undergo frequent, rigorous testing. This won't end the1240shortage, but it will help, and it is the right thing to do.1241    Safety depends on pilots being prepared for commercial1242flight. We are pleased the FAA advanced the congressionally1243directed Enhanced Qualification Program. Its safety value lies1244in the quality, relevance, and rigor of the training, and FAA1245should implement it with clear, standardized guidance.1246    Next, aircraft. Small communities need aircraft size to1247their markets. Oversized aircraft reduce frequency and reduce1248routes. Congress should be aware that scope clauses do restrict1249the size, weight, and number of aircraft regionals can fly.1250    Finally, Federal programs. EAS preserves service to many1251rural communities, and it drove $2.3 billion in economic1252activity per year before the pandemic. We urge full funding,1253stable contracts, and timely transitions. SCASDP is another1254tool to attract and keep air service, and we support it.1255    We appreciate your focus on rural connectivity, and we hope1256you see us as a partner in the work ahead. Thank you for1257holding this hearing and for including me in it. I look forward1258to your questions.1259    [Ms. Malarkey Black's prepared statement follows:]12601261    Prepared Statement of Faye Malarkey Black, President and Chief1262            Executive Officer, Regional Airline Association1263    Mr. Chairman, Ranking Member, and Members of the Subcommittee,1264thank you for the opportunity to testify today on behalf of the1265Regional Airline Association.1266                  The Importance of Rural Air Service1267    Last year, regional airlines operated approximately one in three1268scheduled passenger departures in the United States and served 941269percent of the nation's commercially served airports. By contrast,1270larger, mainline carriers directly served just 36 percent. This means1271that for two-thirds of our nation's airports, regional airlines provide1272the only scheduled, commercial air service available. Without them,1273much of the country would lose access to the national air1274transportation system altogether.1275    Regional aviation is how residents in smaller communities reach1276medical specialists, universities, military installations, customers,1277suppliers, and family members. It is how businesses stay connected to1278markets, how employers recruit, how rural communities remain1279accessible, and how smaller cities participate in the national economy.12801281Figure 1. Regional Airlines and the National Air Service Footprint (481282                           Contiguous States)1283[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]12841285    Regional air service to small communities also generates1286substantial national economic activity. Across hundreds of communities1287nationwide, regional air service supports approximately $152.8 billion1288in annual economic output, 1.1 million jobs, and $41.3 billion in wages1289and earnings.\1\1290---------------------------------------------------------------------------1291    \1\ Lindemuth, Z., Meehan, D., Swelbar, W., & Zhong, A. (2021,1292August). Economic Impact of Small Community Airports [Report].1293---------------------------------------------------------------------------1294    Regional air service also provides value beyond the local market1295itself. Many passengers traveling from smaller communities ultimately1296connect through larger hub airports before continuing elsewhere in the1297network. Those passengers help support the hub-and-spoke system that1298underpins air transportation in the United States. As a result,1299decisions about regional air service are not just local, but relate to1300the flow of passengers throughout the network and the ability of1301airlines to connect smaller communities to the hubs and beyond.1302    Over the past fifteen years, and most acutely after the pandemic,1303regional aviation absorbed a major structural shock. A severe,1304sustained pilot shortage that was present before the pandemic became a1305crisis in its aftermath. Regional airlines are typically the career1306entry point for the pilot workforce, and mainline carriers hired1307aggressively from regional airline ranks when rebuilding their own1308workforce after pandemic exits. Because the pilot pipeline had already1309been straining, regional operators lost pilots faster than the system1310could replace them, leading to multiple bankruptcies, liquidations and1311an enormous fleet contraction.13121313Figure 2. Thirteen Regional Airline Bankruptcies or Liquidations Since1314                                  20091315[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]13161317    As regional airlines parked more than a quarter of the industry's1318fleet without enough pilots available to operate them, departures and1319destinations plunged at individual communities across the nation, most1320pronouncedly at small and rural airports. These communities watched1321their access to the national network erode, even while aggregate1322numbers showed recovery.1323    Much of that lost service has not come back. Sometimes, we hear1324that loss being characterized through a deceptively simple lens: if1325passengers truly valued the service, every traveler would use it, and1326the market would sustain it. That explanation overlooks many of the1327forces that shape air service decisions and connectivity. Passengers1328respond to the network available to them. When departures fall,1329frequency falls. When destination options are eliminated, connectivity1330is weakened. When schedules no longer support convenient connections,1331travel behavior changes. Some trips are never taken, and some1332passengers with the time, means, and flexibility to do so drive farther1333to larger airports. Those outcomes are sometimes mistaken for consumer1334preference, but often the reality is the system lost operational1335capacity first, airports lost meaningful connectivity next, and1336passenger behavior and industry economics evolved in response.1337Unfortunately, long-distance driving is often portrayed as a neutral1338substitute for lost air service, even when it means several hours on1339the road in difficult weather, reduced access for elderly or medically1340vulnerable passengers, economic stagnation for rural communities, and1341substantially weaker connectivity for the Americans who live there.1342    Air service connectivity also has safety implications. When1343communities lose practical access to air service, more travel is1344shifted onto the highway system, where NHTSA data indicates 39,2541345people lost their lives in 2024.\2\ This impact is worse for rural1346citizens. In 2023, the most recent year for which rural breakdowns are1347available, NHTSA found that rural roads carried a fatality rate1348approximately 1.5 times higher than urban roads, and that 41 percent of1349highway fatalities occurred on rural roads despite only 20 percent of1350Americans living in rural areas.\3\ Maintaining air service in smaller1351communities is therefore not only an economic issue; it is also part of1352a safer transportation system.1353---------------------------------------------------------------------------1354    \2\ National total: NHTSA, early/annual traffic fatality data for13552024 (39,254 fatalities; rate 1.19 per 100M VMT).1356    \3\ Rural figures: NHTSA, Rural/Urban Traffic Fatalities: 20231357Data, Report No. DOT HS 813 728.1358---------------------------------------------------------------------------1359                       Summary of Recommendations1360    The following is a summary of RAA's recommendations to ensure air1361service connectivity for rural America, which are outlined in greater1362detail in my written statement:1363Extend Air Traffic Control (ATC) Modernization and Safety Enhancements1364        to Airports of All Sizes1365    Extend risk-based, comprehensive airport safety reviews to all1366airports with a substantial mix of commercial, general aviation,1367business, and military traffic. Close-proximity events have occurred at1368smaller airports that lack radar, Automatic Dependent Surveillance-1369Broadcast-In (ADS-B In), or other situational-awareness tools.1370    Pass H.R. 8597, the Air Traffic Situational Awareness Enhancement1371Act. This would mandate installation of Airborne Position Reference1372Tools (APRT) at contract towers lacking advanced situational-awareness1373systems.1374    Require Common Traffic Advisory Frequency (CTAF) communication near1375mixed-use airports. Such communication is recommended but not required1376today, creating risk at smaller airports.1377    Require use of ADS-B In and authorize the use of Electronic Flight1378Bag (EFB) based ADS-B In as in-panel ADS-B In and Airborne Collision1379Avoidance System X (ACAS-X) are developed and commercialized for all1380commercial aircraft. EFB solutions can deliver safety improvements1381near-term, while in-panel ADS-B In and ACAS-X depend on manufacturing1382and certification timelines outside carrier control.1383Protect Small Community Air Service1384    Fully fund the Essential Air Service (EAS) program. EAS preserves a1385baseline of critical air service connectivity for many communities.1386    Reassess whether Small Community Air Service Development Program1387(SCASDP) funding levels remain adequate. Rising costs have meant grant1388dollars to help communities attract service do not go as far as they1389once did.1390    Examine tools to sustain service aber SCASDP grants end. SCASDP1391helps build the market, but some communities struggle to sustain1392service when margins remain fragile. Expanded funding, stronger1393transition tools, or other targeted connectivity supports could help1394communities maintain service once an initial grant period closes.1395Support Tomorrow's Aviation Workforce1396    Build on the FAA Reauthorization Act's maintenance workforce1397foundation. Maintenance shortages affect aircraft utilization,1398reliability, and small-community service.1399    Align federal student aid with the cost of accredited flight1400training. Flight training costs exceed current federal student loan1401limits by $80,000 on average, blocking capable students without wealth1402or credit from pilot careers.1403    Modernize GI Bill eligibility for pilot training. Current rules1404disallow use of earned benefits for the private pilot certificate--the1405first required certificate.1406                     Regional Airline Partnerships1407    Regional airlines reach communities that larger mainline aircraft1408often cannot economically or operationally serve directly. Most1409regional airline flying in the United States occurs under Capacity1410Purchase Agreements (CPAs), where regional airlines operate flights on1411behalf of larger network carriers. Under CPAs, the major airline1412partner generally controls network planning, ticket pricing,1413scheduling, and fuel purchasing, while the regional carrier provides1414the crews, maintenance, and operational execution using aircraft that1415may be owned or leased by either the major airline partner or the1416regional airline itself. Other regional airlines operate under a pro-1417rate model, where the airline retains ticket revenue directly and bears1418substantially greater exposure to fuel prices, demand fluctuation, and1419rising operating costs.14201421                Figure 3. Regional Airline Partnerships1422[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]14231424                        Small Aircraft Economics1425    The economics of serving smaller communities differ from those of1426larger hub markets. Smaller aircraft have fewer seats over which to1427distribute operating costs, making lower-density routes inherently more1428sensitive to changes in labor, maintenance, airport, financing, fuel,1429and infrastructure costs on a per-passenger basis.1430    The pilot shortage intensified those pressures. Regional airlines1431made substantial increases in pilot compensation to attract qualified1432aviators in an extraordinarily competitive labor market. These1433investments were positive and helped to attract more candidates, but1434also materially increased the cost of operating smaller aircraft1435serving lower-density markets.1436    Fuel costs present another challenge. While the major airline1437partner purchases fuel under CPA flying, prices still influence broader1438network economics and decisions regarding aircraft deployment. Carriers1439operating under prorate arrangements face more direct exposure to fuel1440price volatility. Rising costs do not always result in the complete1441elimination of service, but they can affect the economics of operating1442smaller aircraft in lower-density markets, weakening margins that are1443already thin.1444    When starting or restoring regional air service after a disruption,1445the economics are not limited to the route itself. Airlines must build1446local operations, secure facilities and ground equipment, establish1447fuel and handling arrangements, staff the station, support marketing1448and community awareness, and integrate the service into the broader1449network. These startup and transition costs can be substantial,1450particularly in rural markets served by one or only a few carriers. For1451these same reasons, once service is lost, restoring it is often more1452difficult and more expensive than preserving it in the first place.1453    Decisions about regional deployment are almost always made by the1454network carrier, including where and how flights are scheduled. But1455regional airlines view these communities as far more than just assigned1456destinations. We know that when small communities lose service, it1457disrupts lives, isolates communities, and weakens the well-being of1458working families across the country. When regional air service is1459added, travel opportunities expand for the same population, rural1460economies benefit, and the people who live there become better1461connected with the world around them.1462                           An Uneven Recovery1463    For more than a decade, RAA has tracked changes in small-community1464and rural air service connectivity, and published quarterly updates as1465the pilot shortage deepened, to better understand how individual1466communities were being affected. We tracked a sharp deterioration in1467air service alongside regional airline industry contraction during the1468height of the pilot shortage and post-pandemic recovery period. By14692023, the number of airports receiving scheduled regional airline1470service had fallen to its lowest level in years.14711472         Figure 4. Airports Receiving Scheduled Airline Service1473[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]14741475    More recently, service levels have improved from that nadir,1476although the recovery has been uneven. In May 2026, overall departures1477and seats were up compared with May 2019, yet 193 airports still had1478less service than before the pandemic, down by an average of 311479percent. Ninety airports lost at least a quarter of their service, 351480lost more than half, and 14 lost service entirely. Small hubs as a1481category gained departures, but one in five small hub airports still1482had less service in May 2026 than in May 2019.1483    Nonhub airports as a category are down just 2.5 percent, yet more1484than half of nonhub airports lost service, often significantly. Sixty-1485three nonhub airports lost at least a quarter of their flights, 20 lost1486more than half of their flights, and two lost all air service.1487Nonprimary airports, the smallest commercial category, took the largest1488hit.1489    Down as a category by 14.4 percent, 80 nonprimary airports lost1490service, with an average loss of 48.3 percent of flights.14911492     Figure 5. Recovery Is Underway_But Communities Are Still Down1493                           Meaningful Service1494[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]14951496    Seat counts can mask a subtler form of loss: a community can gain1497seats while losing the frequency and destinations that make air service1498useful. We began tracking this trend in 2009. Since then, seats have1499increased across every airport category, but departures have decreased1500in all of them. Destination options declined at all but the largest1501airports. The losses were sharpest at the smallest airports--nonprimary1502airports lost 32.2 percent of departures and 29.5 percent of their1503routes.15041505       Figure 6. Larger Aircraft Mean Fewer Departures and Routes1506[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]15071508    Ultimately, passengers do not experience air service in the1509aggregate--they experience whether the network still meets their needs.1510By that measure, the nation's air service network does not serve rural1511America nearly as well as it serves our urban centers.1512              Pilot Supply and Small Community Air Service1513    While costs, fleet availability, and network economics all played a1514role, workforce availability was the most significant constraint on1515regional air service during this period. The more closely RAA tracked1516service patterns, the clearer it became that the availability of pilots1517shaped the availability of air service--in both directions. As staffing1518pressures eased and regional airlines returned aircraft and crews to1519service, communities began to recover connectivity. Ultimately,1520communities cannot receive air service that airlines do not have the1521crews to operate.1522    Today's environment continues to be more stable than the peak1523disruption period. But the underlying pilot shortage has not been1524resolved. As of May 2026, there were 128,161 Airline Transport Pilot,1525Airplane Multi-Engine Land (ATP AMEL) pilots with valid first-class1526medicals. More than 13 percent will reach mandatory retirement age1527within five years, and 41 percent within fifteen years.1528    That retirement wave arrives before accounting for growth or even1529full restoration of communities' previously lost service. Current1530mainline hiring moderation has been influenced by temporary conditions,1531including delayed aircraft deliveries and slower fleet growth. Major1532airline hiring dropped 60 percent from 2023 to 2024 and 7 percent from15332024 to 2025. However, in the first months of 2026, major airline1534hiring again began outpacing production of new qualified pilots.1535    Meanwhile, the post-pandemic surge in pilot certification proved1536temporary, as predicted. New ATP AMEL issuances fell two years1537running--2025 produced 19 percent fewer than 2024 and 32 percent fewer1538than the 2023 peak. Early 2026 data points to a modest rebound: a 12-1539month rolling average projects full-year output of roughly 7,984, above15402025 but still below the 2022 pace and well short of the 2023 peak.1541While an influx of displaced Spirit pilots and other conditions may1542continue to ease pressure this year, they do not solve the long-term1543imbalance.15441545   Figure 7. Major Carrier Hiring vs. Qualified Pilot Production \4\1546[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]15471548    New\\ pilot certification numbers also need careful interpretation.1549Since March 2020, 49,671 new ATP AMEL certificates have been issued,1550yet there are just 17,403 more ATP AMEL pilots in today's qualified1551pilot pool. In other words, only one in three new ATP certificates was1552net growth in the pilot pool.1553---------------------------------------------------------------------------1554    \4\ FAA Registry: AFB-730, Federal Aviation Administration; Hiring1555data: fapa.aero/pilot-hiring-history1556---------------------------------------------------------------------------15571558            Figure 8. ATP-Certified Pilot Retirement Outlook1559[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]15601561    Workforce demand has also evolved. Airlines now keep larger reserve1562staffing pools to cover weather, maintenance, illness, or other1563disruptions even when they are not scheduled to fly a particular trip.1564Training duties draw pilots out of revenue service for initial1565training, upgrades, recurrent training, instructor duties, and check1566airman responsibilities. And when aircraft are scheduled less1567intensively, the airline may need more aircraft and crew resources to1568produce the same number of trips due to increased non-productive time.1569Together, these changes mean the industry must produce more pilots just1570to sustain a level of service that once required fewer.1571Fleet modernization is also central to small-community connectivity.1572    While the pilot shortage was the dominant constraint reshaping1573regional aviation over the last decade, the aircraft available to serve1574smaller markets also changed significantly as older regional aircraft1575aged and replacement options became increasingly limited.1576                        Scope Clause Constraints1577    Regional airlines and their major airline partners have operated1578for years within a constrained aircraft environment shaped by scope1579clauses in major airline pilot-union contracts, which cap regional1580aircraft at 50, 70, or 76 seats, with an 86,000-lb takeoff weight1581limit. Today's most advanced, fuel-efficient jets have cleaner-burning,1582more efficient engines, which are heavier. The added weight causes1583modern regional jets to exceed the weight limits of every major airline1584scope clause.1585    This has effectively frozen regional fleets at older propulsion1586technology and has deterred the broader development of next-generation1587regional aircraft outright. Aircraft manufacturers respond rationally1588to the market available to them. The United States is the largest1589regional jet market, and all regional flying operates under scope1590clause restrictions. Saab, Bombardier, British Aerospace, Beech,1591Fairchild-Dornier, and most recently Mitsubishi have all stopped1592investing in new regional aircraft, citing scope as the primary1593reason.\5\ The result is a structural gap in the regional fleet at1594exactly the aircraft size small communities need.1595---------------------------------------------------------------------------1596    \5\ Leeham News, ``The regional market and scope clauses'' (Jan.159718, 2017); Reuters, Mitsubishi Heavy Industries, ``Notice of1598Discontinuation of SpaceJet Development Activities'' (Feb. 7, 2023);1599Bombardier, ``Bombardier Concludes Sale of the CRJ Series Regional Jet1600Program to Mitsubishi Heavy Industries'' (June 1, 2020); Saab, ``Saab1601340B''; Aviation Week, ``BAE Systems Cancels RJX'' (Nov. 28, 2001);1602Forecast International, ``Beech 1900'' (Aug. 2003), ``The Future of1603Regional Jets Dims as Mitsubishi Walks Away'' (Feb. 2016), et al.1604---------------------------------------------------------------------------1605    When airlines cannot access the right aircraft for the mission, the1606system tends to upgauge. That often means less frequency, fewer1607destinations, and reduced practical connectivity for some smaller1608communities. But larger, 76-seat aircraft are not a universal1609substitute for smaller regional aircraft: scope limitations restrict1610how many may be operated, and runway constraints, airport1611infrastructure, market size, and operating economics make them1612unsuitable for some communities, which simply lose air service1613altogether.1614    In fact, many communities would be well-served by aircraft that1615fall between the smallest commercial aircraft and larger regional jets,1616particularly in the 19- to 30-seat range, yet the range of aircraft1617available in that segment has narrowed considerably over time. Emerging1618technologies may help in the future, but communities facing air service1619challenges today need aircraft that are available, certifiable, and1620economically viable now.1621    Scope is a private-sector constraint with public-interest1622consequences. While we recognize that Congress does not dictate private1623contracts, scope clause constraints deserve greater attention in any1624serious discussion of small-community air service. They limit the1625industry's ability to modernize the regional fleet, improve fuel1626efficiency, reduce emissions, and serve small and rural routes with1627right-sized aircraft. Communities feel the consequences when the1628aircraft needed to serve them are no longer being built.1629                   Policy and the Aviation Workforce1630    RAA is grateful for this Committee's leadership on aviation1631workforce development, as well as your support for initiatives designed1632to strengthen aviation career pathways earlier in the education1633process.1634    Pilot training is particularly expensive because flight education1635requires aircraft, fuel, maintenance, insurance, simulators,1636instructors, and FAA-regulated training infrastructure. These are not1637ordinary classroom costs. Flight training alone routinely costs well1638into six figures, and when combined with a degree program can leave1639students facing $200,000 or more in total education and training costs.1640While federal student aid can be used for accredited flight education1641programs, current loan limits were not designed to meet these costs,1642which exceed current federal student loan limits by roughly $80,000 on1643average, even where students are enrolled in accredited training1644programs and even where airlines provide substantial financing support1645and subsidy. Students using student loans will exhaust available1646financing long before completing the certifications and ratings1647necessary to enter the profession. For students without family wealth1648or access to private credit, that gap can be decisive. Capable young1649people are blocked from high-wage, high-demand aviation careers for no1650other reason than they cannot finance their education.1651    Access to a pilot career should be determined by ability,1652discipline, and commitment, not family wealth or private financing.1653Congress has recognized this problem before, and bipartisan lawmakers1654and aviation stakeholders urged the Department of Education, through1655its RISE rulemaking, to make a targeted fix to increase federal loan1656access for flight education. Unfortunately, the Department declined to1657make changes to any program. RAA therefore asks Congress to send a1658clear signal through flight education access legislation aligning1659federal student aid with the real cost of accredited flight training.1660    Veterans also represent an important aviation workforce pathway.1661Yet current GI Bill rules often prevent veterans from using earned1662educational benefits for all phases of training required to become1663professional pilots. RAA supports modernizing GI Bill eligibility so1664veterans can fully utilize earned benefits throughout the professional1665pilot training pathway, including for the private pilot certificate,1666which serves as the entry point to professional pilot training.1667    The aviation maintenance workforce requires sustained attention as1668well. Aircraft maintenance technicians are foundational to aviation1669safety and operational reliability, and workforce shortages in1670maintenance increasingly affect aircraft utilization, operational1671resilience, and smaller-community connectivity.1672    The FAA Reauthorization Act of 2024 took important steps to1673strengthen aviation maintenance workforce development through expanded1674grant eligibility and support for technician pipeline programs.1675Congress should continue building on that foundation through sustained1676funding, expanded testing access, stronger STEM integration, and1677policies that help veterans transition into civilian maintenance1678careers.1679    RAA also supports raising the mandatory pilot retirement age to 67.1680The pilot retirement age was last raised in 2007 to age 65 with no1681negative safety impact. Raising it again would not solve the pilot1682shortage alone, but it would help preserve experienced aviators, soften1683near-term retirement pressure, and give the training pipeline more time1684to catch up. Canada, Australia, Japan, New Zealand, Argentina, the UK,1685and IATA are leading the effort at the International Civil Aviation1686Organization (ICAO). The U.S., one of ICAO's largest members, should1687retake our leadership mantle.1688                       Pilot Training Advancement1689    The industry needs a healthy pilot supply, and even more1690importantly, safety depends on pilots being prepared for the demands of1691modern commercial airline operations. RAA was pleased to see the FAA1692advance the Congressionally directed Enhanced Qualification Program1693(EQP) last month, reflecting the first material update to first officer1694training and qualifications since 2013. We applaud the FAA for moving1695this important safety work forward. As aircraft, technology, and1696operating environments continue to evolve, training and qualification1697pathways must keep pace. Complacency is not compatible with aviation1698safety.1699    Today, many pilots complete highly structured foundational training1700and then spend a year or more accumulating additional aeronautical1701experience before entering airline training. During that period, pilots1702can spend extended time away from the structured, scenario-based, crew-1703oriented training environment. Airlines have responded by expanding1704portions of initial training when pilots arrive with less recency of1705structured training.1706    The EQP builds on these solutions by implementing recommendations1707from the FAA's Air Carrier Training Aviation Rulemaking Committee (ACT1708ARC), an expert ARC charged with evaluating how pilot training can1709better prepare pilots for modern airline operations. As described in1710the FAA's draft Advisory Circular, the EQP is designed for pilots1711seeking a Restricted Airline Transport Pilot certificate and includes1712substantial prerequisites, rigorous pilot assessment, and intensive1713integrated academic and flight training.1714    The safety value of the EQP lies in the quality, relevance, and1715rigor of the training itself. The FAA should implement the program1716through clear, standardized guidance that provides carriers and1717training providers with consistent expectations, including how1718aeronautical experience credit is earned and applied. Consistent1719implementation standards will help ensure safety advancement, while1720ensuring the pathway can be adopted and administered as Congress and1721the FAA intended.1722ATC Modernization and Safety Enhancements for All Airports and Airspace1723    As a proud member of the Modern Skies Coalition, RAA strongly1724supports the historic investments Congress has made in ATC1725modernization this year and urges additional funding to complete the1726job. Replacing aging infrastructure, improving communications1727resiliency, installing modern surface awareness tools, and rebuilding1728the controller workforce are all essential steps toward strengthening1729the national airspace system. Because our members operate at more1730airports and in more categories of airspace than any other commercial1731airline sector, we hold a uniquely comprehensive view of the1732modernization needs in every category of airspace.1733    Recent attention to aviation safety has understandably focused on1734high-profile events near major metropolitan airports. But risk in the1735national airspace system is not confined to large hubs. Every day, our1736members provide air service to mixed-use airports, contract tower1737airports, limited-service airports, and non-towered operational1738environments that still lack situational-awareness tools that are1739standard elsewhere in the system.1740    RAA urges Congress to ensure modernization does not stop at the1741largest hubs. We strongly support a comprehensive approach to1742modernization and small-airport safety enhancement that reaches every1743part of the system serving commercial passengers. That includes1744equipping smaller and rural airports with practical situational-1745awareness tools, modernizing contract towers that currently lack radar1746capability, strengthening communications infrastructure, and improving1747surface-detection and traffic-awareness technologies.1748    RAA specifically supports deployment of Airborne Position Reference1749Tools (APRT) and similar ADS-B-based situational awareness technologies1750at contract towers that currently operate without radar displays. Many1751regional airline operations occur at airports where controllers are1752providing commercial traffic separation without access to the same1753tools available elsewhere in the system. H.R. 8597, the Air Traffic1754Situational Awareness Enhancement Act, is bipartisan legislation1755sponsored by Congressman Nick Begich (R-AK) and Congresswoman Laura1756Gillen (D-NY) that would require the FAA to install APRT at contract1757towers that lack advanced situational awareness systems, establish1758controller training requirements, authorize funding for the technology,1759and reimburse airports that have already invested in APRT systems. RAA1760urges Committee members to support H.R. 8597 and advocate for the1761inclusion of this important safety measure in legislation moving1762forward.1763    RAA also supports improving operational awareness and communication1764standards at non-towered airports serving commercial traffic. Clear1765communication over Common Traffic Advisory Frequency (CTAF) can1766materially improve situational awareness in mixed-traffic environments1767where commercial aircraft, general aviation aircraft, military1768operations, medical flights, and other users may all be operating1769simultaneously. Today, pilots in Class D and E airspace are1770recommended, but not required, to communicate their position when1771operating near or at nontowered, mixed-use airports. This has led to1772close-proximity events requiring evasive maneuvers when pilots have1773failed to communicate their position. RAA supports legislative1774direction to require such CTAF communication.1775    Beyond this specific gap, RAA urges Congress to extend federal1776safety reviews to the airports where mixed-traffic risk is present.1777Many airports with scheduled commercial service handle a substantial1778mix of commercial, general aviation, business, and military traffic.1779Many are non-towered, and some towered airports operate without radar,1780ADS-B In, or other situational-awareness tools.1781    Modernization should also include practical pathways for1782implementing advanced safety technologies across regional fleets,1783including deployment of advanced collision-avoidance technologies1784across the National Airspace System. RAA applauds both the House-passed1785ALERT Act and the Senate-passed ROTOR Act and appreciates the1786leadership of the committees that advanced these important safety1787initiatives. Both bills recognize the value of expanding situational1788awareness and collision-avoidance capabilities following the tragic1789midair collision near Ronald Reagan Washington National Airport. While1790the two bills take different approaches, the House proposal merits1791special recognition for addressing the full range of National1792Transportation Safety Board (NTSB) safety recommendations and charting1793a path toward broader deployment of advanced collision-avoidance1794technology.1795    ADS-B In and ACAS-X serve different but complementary safety1796functions. ADS-B In improves pilot situational awareness by providing1797better information about nearby traffic and airport-surface activity.1798ACAS-X builds on that foundation by providing automated collision-1799avoidance protection. We believe ACAS-X presents the stronger safety1800advantage and represents the future of collision-avoidance protection1801for the commercial fleet.1802    Achieving that objective requires a realistic implementation1803pathway. ACAS-X depends on ADS-B In, and both technologies require1804aircraft-specific product development, certification, integration,1805installation, testing, and training. For the regional fleet, integrated1806ADS-B In solutions are still being developed, just as ACAS-X solutions1807are still being developed. These are not simple software updates. Many1808regional aircraft were not originally designed around these systems,1809and integration, panel space, avionics architecture, aircraft-specific1810engineering, and supply-chain constraints can all affect deployment1811timelines. Those factors are outside carrier control.1812    At the same time, meaningful safety improvements can and should1813begin immediately. Electronic Flight Bag-based ADS-B In solutions can1814provide weather and traffic situational awareness at all altitudes,1815visual and aural conflict alerting, and runway and surface awareness1816almost immediately. EFBs are FAA-approved, proven, and scalable, and1817pilots are trained and proficient on their applications. Aircraft may1818not take off without a fully functional EFB in the flight deck. While1819we believe EFB solutions should not replace integrated tools on a1820permanent basis, deploying them as a time-limited bridge today will1821produce meaningful safety improvement almost immediately while1822aircraft-specific ADS-B In and ACAS-X systems are developed. RAA asks1823that Congress and the FAA require a time-limited means of compliance1824through these near-term capabilities. We additionally ask that Congress1825require all aircraft, including military, business, and general1826aviation, to use this technology at all times, with reasonable, narrow1827exceptions for genuine national security concerns.18281829       Figure 9. Electronic Flight Bag Mounted in CRJ700 Aircraft1830[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]18311832As ROTOR and ALERT move toward conference, it is important that the1833final law delivers both immediate safety benefits and a full1834integration timeline grounded in certification, engineering, and1835supply-chain realities. Those factors are outside carrier control and1836cannot be solved by operator effort alone. An unworkable safety or1837fleet mandate can unintentionally reduce the small-community air1838service Congress is trying to protect. At the same time, the challenge1839of getting the pathway right should not become a reason to delay or1840abandon these safety improvements. Congress can and should conference1841and pass a final collision-avoidance bill that delivers real,1842deployable safety benefits across the system.1843                         Essential Air Service1844    In 1978, Congress established the Essential Air Service (EAS)1845program to preserve scheduled air service to small and isolated1846communities in a deregulated market. Nearly five decades later, that1847need has not disappeared and the program continues to maintain a1848safeguard for many communities that would otherwise lose access to the1849national air transportation system. EAS is also a proven economic force1850multiplier. Before the pandemic, commercial air service at EAS airports1851generated approximately $2.3 billion in economic activity and supported1852more than 17,000 jobs nationwide.\6\1853---------------------------------------------------------------------------1854    \6\ Lindemuth et al., Small Community Airports.1855---------------------------------------------------------------------------1856    We appreciate this Committee's longstanding, bipartisan support for1857the program and note that the House's Fiscal Year 2027 THUD bill again1858fully funds EAS. RAA urges committee members to support final passage1859of a Transportation appropriations bill that maintains full funding for1860the program.1861    The experience of the past several years demonstrates both the1862value and the limits of EAS. The program helped preserve a baseline of1863connectivity for many communities that would have lost scheduled air1864service entirely during a period of intense disruption. But EAS1865communities were not immune to pilot shortages, reliability challenges,1866carrier exits, service gaps, or difficult transitions. That experience1867underscores the importance of protecting, fully funding, and1868administering the program in ways that support stable, reliable1869service.1870    Most EAS contracts are awarded for a fixed term, often two years,1871with the Department of Transportation (DOT) setting a subsidy rate for1872that period. That structure preserves competition and lets communities1873and DOT revisit service options, but short terms can be challenging1874given the substantial startup costs described earlier, which a carrier1875must absorb before service can begin in a smaller market. Longer1876contract terms can help carriers spread those fixed costs over a more1877realistic period and give communities greater continuity. However,1878longer terms work best when contracts account for changing operating1879conditions. Fuel, labor, and other costs can increase significantly1880during the life of a contract. While Congress has previously authorized1881DOT to adjust EAS rates when those increases occur, our understanding1882is that it has not been meaningfully used in practice.1883    Our members have also identified the timing of DOT contract awards1884and carrier transitions as an area where the program could be improved.1885Prolonged bidding timelines create uncertainty for communities and1886carriers, particularly when transitions are anticipated in advance, but1887decisions are delayed. Timely contract awards and well-managed1888transitions help communities and carriers plan effectively and reduce1889the risk of service disruptions.1890    EAS works best when carriers can plan responsibly, communities can1891rely on continuity, and contract structures reflect the real costs of1892providing safe, reliable air service in smaller markets. Continued1893congressional funding remains the foundation of that stability, and RAA1894will continue to be a strong ally in protecting and strengthening the1895program.1896    Not every struggling community can participate in EAS, so we1897believe Congress should continue to explore programs to support1898vulnerable communities that fall outside existing programs.1899            Small Community Air Service Development Program1900    One such tool is the Small Community Air Service Development1901Program (SCASDP), which helps communities, airports, airlines, and1902local stakeholders work together to attract, restore, and strengthen1903air service. Communities have used the program to support route1904development, marketing initiatives, revenue guarantees, and other1905partnerships that improve the viability of local air service. Its1906flexibility allows communities to pursue solutions tailored to their1907geographic, economic, and operational circumstances.1908    The FAA Reauthorization Act of 2024 increased authorized funding1909for SCASDP to $15 million annually and directed DOT to prioritize1910communities that have experienced reductions in air service. That focus1911is well placed. The SCASDP program helps communities and airlines work1912together to prove a market, allowing stakeholders to share risk, build1913demand, and address connectivity challenges.1914    Congress should consider whether additional funding would allow1915more communities to participate in this promising program, and whether1916funding levels have kept pace with rising costs associated with1917initiating new air service. Additionally, Congress might consider1918longer grants that would provide more time to allow markets to mature.1919While SCASDP helps communities prove and build a market, service can1920falter when grants end, if the underlying economics remain fragile.1921Congress should examine whether a brief funding extension, stronger1922transition tools, or other targeted supports could help communities1923sustain service after a grant period ends.1924                   State and Local Partnership Models1925    Several states have experimented with innovative public-private1926partnership models to support air service development. Wyoming and New1927Mexico, for example, have used programs that help communities and1928states share a portion of the financial risk associated with launching1929or rebuilding service. These approaches recognize that establishing1930service in a smaller market often requires time for passenger demand to1931mature. While not every route succeeds, risk-sharing models can help1932communities compete for service and create opportunities for markets to1933demonstrate their long-term viability.1934                            The Path Forward1935    Regional airlines have adapted through repeated periods of1936disruption, and air service has begun to recover in many places. But1937rural America still does not have the connectivity it needs.1938    Regional airlines remain critical to restoring reliable access to1939the national air transportation system, and success in that effort will1940require continued commitment to aviation safety, a strong aviation1941workforce, modern infrastructure, and aircraft suited to smaller1942markets. Congress has an important role in each of these areas and the1943choices you make, as you lay the groundwork for the next FAA1944Reauthorization, will help determine whether small and rural1945communities can regain and sustain meaningful air service in the years1946ahead.1947    RAA appreciates the Committee's focus on rural connectivity and1948hopes you will continue to view us as a committed partner in advocating1949for these communities.1950    Thank you again for the opportunity to testify. I look forward to1951your questions.19521953    Mr. Nehls. Yes. Thank you, Ms. Black. And thank you for1954bringing up the pilot shortage. No question about it, but we--1955we choose--Congress fires people at 65 and can't justify it for1956any reason whatsoever. There is nothing--no reason to justify1957terminating qualified pilots at 65.1958    Anyway, I would like to next recognize Mr. Dobberstein.1959    You are recognized, sir.19601961  TESTIMONY OF SHAWN DOBBERSTEIN, A.A.E., EXECUTIVE DIRECTOR,1962HECTOR INTERNATIONAL AIRPORT, FARGO, NORTH DAKOTA, ON BEHALF OF1963         THE AMERICAN ASSOCIATION OF AIRPORT EXECUTIVES19641965    Mr. Dobberstein. Chairman Nehls, Ranking Member Carson, and1966members of the subcommittee, thank you for the opportunity to1967testify today.1968    My name is Shawn Dobberstein, and I serve as the executive1969director of Hector International Airport in Fargo, North1970Dakota, and as vice chair of the American Association of1971Airport Executives' Air Service Committee.1972    I am here on behalf of airports that depend on reliable1973rural air service to connect their communities to the national1974economy, healthcare, education, and commerce.1975    Thank you for the committee's dedication to addressing1976important aviation matters, especially your contributions to1977the 2024 FAA reauthorization law. This hearing is another1978example of this committee's commitment to improving aviation in1979communities both large and small. Thank you for your continued1980efforts.1981    Rural air service remains under pressure. Recovery at many1982small communities lagged after the pandemic, and pilot1983shortages, higher operating costs, including fuel and airline1984fleet changes, have all made service harder to sustain.1985    In many markets, airlines are using larger aircraft and1986offering fewer departures, which means fewer connection1987options, less schedule flexibility, and greater disruption when1988flights are delayed or canceled.1989    At the same time, rural airports face a major1990infrastructure challenge. The Infrastructure Investment and1991Jobs Act provided historic airport funding, but that support1992ends after fiscal year 2026. Without follow-on investment,1993airports will face a sharp funding drop just as they are trying1994to modernize facilities, improve safety, and prepare for future1995demand, including new technologies and new entrants into the1996airspace.1997    Congress took important steps in the FAA Reauthorization1998Act of 2024 to support small community air service and the1999modernization of the National Airspace System. The next step is2000to make sure rural airports and the communities they serve are2001not left behind as the system evolves.2002    To address these challenges and to protect rural2003connectivity, I would urge Congress to focus on six priorities.2004    The first: Fully fund Essential Air Service. EAS remains2005the core Federal program providing access for communities that2006would otherwise lose commercial service.2007    Second, strengthen the Small Community Air Service2008Development Program. SCASDP helps communities attract and2009retain service, but demand continues to outpace available2010funding.2011    Third, provide stable airport infrastructure funding.2012Congress should protect AIP and extend IIJA-style airport2013investments so smaller airports can address safety, terminal,2014runway, and tower needs without facing a funding cliff after2015fiscal year 2026.2016    Fourth, support contract towers. Contract towers improve2017safety and access to smaller airports.2018    Fifth, support aviation workforce programs. Continued2019investment in pilots, technicians, and controllers is essential2020to sustaining and growing service.2021    Sixth, accelerate modernization of the air traffic control2022system. A safer, more efficient system benefits the entire2023country but is especially important for smaller communities,2024which are often the first to lose service when the system is2025constrained.2026    In conclusion, rural aviation is not a local issue alone;2027it is a national connectivity issue. If we want a strong and2028resilient aviation system, we must ensure rural communities2029remain connected to it.2030    Thank you for your time and your attention to rural2031aviation issues. I look forward to your questions.2032    [Mr. Dobberstein's prepared statement follows:]20332034 Prepared Statement of Shawn Dobberstein, A.A.E., Executive Director,2035  Hector International Airport, Fargo, North Dakota, on behalf of the2036               American Association of Airport Executives2037    Chairman, Ranking Member, and Members of the Subcommittee: Thank2038you for the opportunity to appear before you today. My name is Shawn2039Dobberstein. I am the Executive Director of Hector International2040Airport located in Fargo, North Dakota. I also serve as vice chair of2041the American Association of Airport Executives' Air Service Committee.2042I am here to represent a vital and often overlooked segment of our2043nation's aviation system: rural air service. America's aviation system2044is the gold standard of the world. However, that standard must apply to2045every American, regardless of their zip code. Connecting rural2046communities to the National Airspace System (NAS) ensures that small-2047town America is not left behind in our modern, global economy.2048                The Economic Lifeline of Rural Airports2049    For rural and isolated communities, commercial air service is not2050merely a convenience. It is an economic driver that creates local jobs,2051attracts businesses, and provides residents with essential access to2052specialized medical care and larger economic hubs. When small community2053airports are linked to the national network, they bridge the economic2054disparity that can exist between urban and rural regions. Without them,2055regional isolation deepens, and local economies inevitably suffer.2056                    Challenges Facing Rural Aviation2057    Currently, rural air service faces a number of significant2058headwinds. Small community air service recovery from COVID lagged2059compared to larger airports and was further impacted by the acute pilot2060shortage coming out of the pandemic. The aviation industry is still2061navigating localized pilot shortages and shifting carrier economics,2062including the reduction of smaller regional aircraft in favor of larger2063aircraft. This may result in reduced frequencies for some communities.2064Reduced frequency means fewer backup options when flights are delayed2065or canceled. Additionally, limited service can create scheduling2066challenges as poorly scheduled flights can make connections unworkable.2067Finally, the current threat of high jet fuel prices hits small2068communities hardest as airlines reduce flights or end service2069altogether.2070    A further challenge for small and rural communities is the pending2071expiration of the Infrastructure Investment and Jobs Act (IIJA) funding2072at the end of fiscal year 2026. Without an extension, $4 billion in2073annual airport funding--half of airport infrastructure funding over the2074last five years--will evaporate. Airports continue to have significant2075infrastructure needs and while we may face some air service headwinds2076today, it takes years to build the infrastructure needed to support2077anticipated growth in demand and operations in the coming decades.2078Without adequate funding--particularly for smaller airports that have2079less access to capital--runways, gates and terminals will not be2080adequate to support future growth, including new entrants. A lack of2081appropriate infrastructure may also further constrain the system.2082    We appreciate the work of this committee in the FAA Reauthorization2083Act of 2024 to wisely reauthorize crucial programs that support small2084and rural community air service. Without these programs, many airlines2085would be forced to abandon smaller markets. Furthermore, as the Federal2086Aviation Administration modernizes the NAS--transitioning to new2087technologies that improve safety and efficiency and integrate unmanned2088aircraft--we must ensure rural airports are not left behind in this2089technological leap. Infrastructure modernization funding must reach2090non-hub and general aviation airports so they can safely manage all2091operations, including new entrants in the airspace.2092               Protecting and Enhancing Critical Programs2093    To maintain this critical connectivity, Congress must prioritize2094six actionable pillars:20952096    1.  Fully Fund the Essential Air Service (EAS) Program: The EAS2097program is the bedrock of rural air connectivity, ensuring that remote2098communities maintain a baseline of scheduled air service. Proposals to2099drastically cut EAS funding threaten to sever the lifelines of dozens2100of rural communities. While we are open to considering improvements to2101the program, we appreciate the strong support for EAS by this committee2102and the Congress.21032104    2.  Expand the Small Community Air Service Development Program2105(SCASD): SCASD grants provide small communities with essential support2106to address air service and airfare challenges and to attract new2107carriers. We appreciate the continued support for this program by the2108committee and the Congress as well. Even with that support, demand for2109these grants consistently exceeds available funding. Increasing funding2110for this program would enable rural airports to develop new service2111opportunities and strengthen their long-term sustainability.21122113    3.  Invest in Rural Aviation Infrastructure: The Airport2114Improvement Program provides critical funding to rural and regional2115airports, and Congress must continue to provide stable funding for this2116program. Thank you again to this committee for increasing the funding2117for AIP to $4 billion annually. Additionally, we also urge Congress to2118extend the IIJA aviation funding programs beyond fiscal year 2026 to2119avoid a $4 billion annual funding cliff and to support critical airport2120infrastructure needs including safety projects, terminal upgrades, and2121air traffic control tower improvements.21222123    4.  Support the Contract Tower Program: The FAA Contract Tower2124Program provides 266 smaller airports in 46 states with cost-effective2125ATC services that enhance aviation safety and help connect smaller2126airports and rural communities with our national air transportation2127system. Without this program, many small airports would not have tower2128operations that enhance aviation safety. We urge Congress to provide2129funding for this critical program at existing and prospective2130locations.21312132    5.  Workforce Programs and Controller Staffing: While the pilot and2133technician shortage may not be as acute as it has been in recent years2134and while the administration is focused on increasing controller2135staffing, it is critical that we continue to invest in recruitment,2136education and training of aviation professionals across the workforce.2137Existing programs like Aviation Workforce Development Grants, potential2138changes to student loan programs for pilots and expansion of the2139Enhanced Collegiate Training Initiative (ECTI) will help to ensure we2140have the workforce ready for the future, supporting service to2141communities large and small.21422143    6.  Modernization of the ATC System: The aviation industry strongly2144supports modernizing the ATC system. Small communities know all too2145well the impact that restrictions on the system can have on operations.2146Chicago, Newark, and San Francisco are all currently experiencing2147constrained operations due to limitations of the ATC system. These2148constraints impact smaller communities as they are likely the first2149markets to be cut when capacity is limited. Ensuring we have a modern,2150safe ATC system will also enable efficiency and future growth,2151improving connectivity into smaller, rural communities.2152                               Conclusion2153    Our national aviation system is only as strong as its weakest link.2154Connecting rural America to the broader system isn't just a matter of2155equity; it is an investment in the geographic and economic resilience2156of our entire country.2157    Thank you for your time, your leadership, and your continued2158commitment to rural aviation and air service. I look forward to your2159questions.21602161    Mr. Nehls. Thank you.2162    Mr. Collins, you are recognized.21632164       TESTIMONY OF DERRICK COLLINS, DIRECTOR, PHYSICAL2165     INFRASTRUCTURE, U.S. GOVERNMENT ACCOUNTABILITY OFFICE21662167    Mr. Collins. Chairman Nehls, Ranking Member Carson, and2168members of the subcommittee, thank you for the opportunity to2169discuss GAO's work related to air service to small communities2170in the United States.2171    Communities of all sizes seek access to air service as a2172driver for attracting investment, generating employment, and2173providing mobility for citizens. However, the economics of the2174airline industry has traditionally made it difficult to2175establish or sustain viable air service in some smaller2176communities.2177    My remarks will highlight recent trends in air service to2178small communities, market factors that have contributed to2179changes in air service to small communities and their effects2180on Federal air service programs, and suggestions from2181stakeholders and recent studies to improve air service to small2182communities.2183    In general, small communities continue to face declining2184passenger air service. From 2018 to 2023, on average, small2185communities had fewer total departures annually and fewer daily2186departures per route. Over the same time period, small2187communities' connectivity--a measure of a passenger's degree of2188access to the national aviation system--also decreased.2189    These trends are more acute at nonhub airports that do not2190receive Essential Air Service program support. For example,2191from 2018 to 2024, over 70 percent of these airports2192experienced a decline in the average daily departures per2193route.2194    Several market factors have affected air service to small2195communities. First, consumers have shown that they are willing2196to drive for cheaper flights or better service.2197    In addition, stakeholders reported that increased airline2198operating costs made air service to small communities less2199economically feasible, contributing to reductions in the air2200service. These costs have also affected Federal air service2201programs targeted at small communities.2202    From 2018 through 2023, increased airline operating costs2203contributed to a 31-percent increase in total EAS subsidies for2204communities in the lower 48 States. These costs have also2205affected the Small Community Air Service Development Program by2206limiting the impact of the grants that communities use to jump-2207start new air service.2208    Options that selected stakeholders and recent studies2209identified to improve air service to small communities include2210increasing the aviation workforce supply and supporting other2211transportation modes, such as bus service, or new technologies,2212such as electric aircraft.2213    In addition, stakeholders identified a range of options to2214change the Essential Air Service program, such as focusing2215assistance on more remote communities or expanding the program2216to better ensure small airports do not lose air service.2217    Stakeholders also identified options to modify the Small2218Community Air Service Development Program, including allocating2219funding to fewer communities per cycle or shifting the focus of2220the program away from revenue guarantees.2221    In conclusion, given limited resources, airlines may2222allocate those resources for the highest return. Because of the2223unique circumstances of each small community airport and market2224factors, a combination of creative approaches will be needed to2225ensure connectivity for small communities.2226    This concludes my statement. I will be happy to answer any2227questions.2228    [Mr. Collins' prepared statement follows:]22292230       Prepared Statement of Derrick Collins, Director, Physical2231         Infrastructure, U.S. Government Accountability Office2232         Commercial Aviation: Air Service to Small Communities2233                      Continues to Face Challenges2234                             GAO-26-1091822235                             GAO Highlights2236What GAO Found2237    In general, small communities continue to face declining scheduled2238passenger air service, especially at nonhub airports--airports that2239have more than 10,000 annual commercial passenger boardings but less2240than 0.05 percent of the annual total of U.S. commercial passenger2241boardings. At these airports, the average number of daily departures2242per route in 2024 was 19 percent lower than the 2018 level. Over 702243percent of nonhub airports that were not receiving federal support from2244the Essential Air Service (EAS) program experienced a decline in2245average daily departures per route from 2018 to 2024.2246    According to GAO's prior work, stakeholders have cited pilot and2247maintenance workforce supply challenges, increased airline operating2248costs, and heightened airline expectations for revenue guarantees as2249among the market factors contributing to changes in air service to2250small communities in recent years. Some of these factors also2251contributed to higher EAS subsidy costs, which increased about 312252percent from 2018 to 2023. Higher airline operating costs also limited2253the effect of Small Community Air Service Development Program (SCASDP)2254grants that communities used to incentivize airlines to initiate air2255service.2256    As GAO has previously reported, selected stakeholders and recent2257studies have identified options to improve air service to small2258communities. These include increasing aviation workforce supply and2259supporting other transportation modes, such as bus service, or new2260technologies, such as electric aircraft, that could lower airline2261operating costs. Stakeholders also identified options to change EAS--2262such as focusing EAS assistance on more remote communities or expanding2263EAS to better ensure small airports do not lose air service--and to2264modify SCASDP in response to rising airline operating costs.2265Why GAO Did This Study2266    Communities of all sizes seek access to air transportation2267services. However, the economics of the airline industry have2268traditionally made it difficult to establish or sustain viable air2269service in small communities.2270    Small communities are generally served by small airports, which for2271scheduled passenger air service typically include small hub, nonhub,2272and non-primary nonhub airports. The Department of Transportation2273administers federal programs that provide subsidies and grants to help2274eligible small communities retain a link to the national aviation2275system.2276    This testimony discusses (1) changes in scheduled passenger air2277service to small communities in recent years; (2) market factors2278affecting air service to small communities and related federal2279programs; and (3) options that aviation stakeholders and recent studies2280identified to improve air service to small communities. It draws from2281GAO's September 2024 report on air service to small communities (GAO-228224-106681), December 2025 report on nonhub airports (GAO-26-107751),2283and April 2026 report on regional airline pilots (GAO-26-107856).2284Details about the scope and methodology for each report are included in2285those reports.2286What GAO Recommends2287    In April 2026, GAO made two recommendations that could help2288strengthen pilot supply. Specifically, GAO recommended that FAA2289establish and publicly communicate timelines for finalizing two pilot2290training initiatives that were provided for in statute. DOT agreed with2291the recommendations.2292                               __________2293    Chairman Nehls, Ranking Member Carson, and Members of the2294Subcommittee:2295    I appreciate the opportunity to testify before you today on the2296issues affecting air service to small communities in the United States.2297Communities of all sizes seek access to air transportation services as2298a driver for attracting investment, generating employment, and2299providing mobility for citizens. However, the economics of the airline2300industry have traditionally made it difficult to establish or sustain2301viable air service in some smaller communities.2302    The Airline Deregulation Act of 1978 phased out the government's2303control over fares and service and allowed market forces to determine2304the price and level of domestic airline service in the United2305States.\1\ Since then, airlines have largely been free to decide where2306in the United States they want to operate, how often they want to fly2307there, the type of aircraft they want to fly to or from a community,2308and how much they want to charge passengers. The act also created the2309Essential Air Service (EAS) program, to help eligible smaller2310communities retain a link to the national aviation system through2311subsidies paid to airlines. In 2000, the Small Community Air Service2312Development Program (SCASDP) was established to help eligible2313communities with insufficient air carrier service or unreasonably high2314airfares improve their air service through discretionary grants. Both2315programs are administered by the U.S. Department of Transportation2316(DOT). Although subsidies and grants from these programs can assist2317eligible smaller communities in retaining a link to the national2318aviation system, the COVID-19 pandemic contributed to a significant2319reduction in passenger traffic and financial losses for a variety of2320aviation businesses and airports, especially in small communities. As2321we reported in December 2025, the smaller airports impacted by declines2322in air service included certain nonhub airports that had not regained2323pre-pandemic service levels by 2024.\2\2324---------------------------------------------------------------------------2325    \1\ Pub. L. No. 95-504, 92 Stat. 1705.2326    \2\ GAO, Commercial Aviation: Certain Nonhub Airports Face2327Significant Challenges in Securing and Maintaining Air Service, GAO-26-2328107751 (Washington, D.C.: Dec. 17, 2025). Nonhub airports are defined2329in statute as those that have less than 0.05 percent of annual U.S.2330commercial enplanements (i.e., passenger boardings) but have more than233110,000 annual enplanements.2332---------------------------------------------------------------------------2333    This testimony discusses (1) changes in scheduled passenger air2334service to small communities in recent years; (2) market factors2335affecting air service to small communities and related federal2336programs; and (3) options that aviation stakeholders and recent studies2337have identified to improve air service to small communities. This2338statement is drawn from several GAO reports issued since 2024.\3\ The2339reports cited in this statement contain more detailed explanations of2340the methods used to conduct our work. DOT reviewed a draft of this2341statement and provided technical comments, which we incorporated where2342appropriate.2343---------------------------------------------------------------------------2344    \3\ See GAO, Commercial Aviation: Trends in Air Service to Small2345Communities, GAO-24-106681 (Washington, D.C.: Sept. 25, 2024;2346Commercial Aviation: Certain Nonhub Airports Face Significant2347Challenges in Securing and Maintaining Air Service, GAO-26-1077512348(Washington, D.C.: Dec. 17, 2025); and Aviation Workforce: FAA Could2349Strengthen Regional Pilot Pipeline by Establishing Timelines for2350Training Initiatives, GAO-26-107856 (Washington, D.C.: April 30, 2026).2351---------------------------------------------------------------------------2352    The work upon which this testimony is based was conducted in2353accordance with generally accepted government auditing standards. Those2354standards require that we plan and perform the audit to obtain2355sufficient, appropriate evidence to provide a reasonable basis for our2356findings and conclusions based on our audit objectives. We believe that2357the evidence obtained provides a reasonable basis for our findings and2358conclusions based on our audit objectives.2359                               Background2360Air Service to Small Communities2361    Although there is no common definition of ``small community'' in2362the context of aviation, we have previously reported that small2363communities are generally served by small airports, which for scheduled2364passenger air service typically include small hub, nonhub, and non-2365primary nonhub airports. These airports by definition serve2366comparatively fewer passengers than medium and large hub airports.2367Federal law divides commercial service airports into various categories2368based on the annual number of passenger boardings (i.e., enplanements);2369categories range from large hub airports to non-primary nonhub airports2370(see fig. 1).23712372Figure 1: Commercial Service Airport Categories for U.S. Airports Based2373               on Calendar Year 2024 Passenger Boardings23742375  Source: GAO analysis of Federal Aviation Administration enplanement2376                          data. GAO-26-10918223772378Federal Programs that Support Air Service to Small Communities2379    Two federal programs administered by DOT support air service to2380small communities.\4\2381---------------------------------------------------------------------------2382    \4\ The Federal Aviation Administration's (FAA) Airport Improvement2383Program (AIP) also provides funding to airports, including those2384serving small communities. AIP generally focuses on capital and2385infrastructure projects and does not provide funding directly for air2386service.2387---------------------------------------------------------------------------2388    Essential Air Service (EAS). EAS was established by the Airline2389Deregulation Act of 1978 and provides federal subsidies to air carriers2390to serve certain eligible communities.\5\ The program is funded through2391a combination of appropriations from the Airport and Airway Trust Fund2392and overflight fees collected by FAA from foreign aircraft traveling2393over U.S. airspace. According to DOT, in November 2025 EAS supported2394air service at 108 airports in eligible communities within the2395contiguous United States. EAS also served 70 communities in Alaska,2396four communities in Hawaii, and one community in Puerto Rico.2397---------------------------------------------------------------------------2398    \5\ To be eligible for EAS (in communities other than in Hawaii and2399Alaska), a community must require a subsidy per passenger of less than2400$650 during the most recent fiscal year, unless the community is 1752401miles or more from the nearest large or medium hub airport or DOT2402issues a waiver; have had a subsidy per passenger of less than $1,0002403during the most recent fiscal year regardless of the distance from a2404large or medium hub airport (lowered to $850 effective October 2026);2405have had an average of 10 or more enplanements per service day during2406the most recent fiscal year, unless the community is more than 1752407driving miles from the nearest medium or large hub airport or unless2408DOT is satisfied that any decrease below 10 enplanements is due to a2409temporary decline in demand and issues a waiver; and have received2410subsidized EAS, or received a 90-day notice of intent to terminate2411essential air service and the Secretary required the air carrier to2412continue to provide such service to the community, at any time during2413the period between September 30, 2010, and September 30, 2011.2414Beginning in 2022, annual appropriations laws have waived certain EAS2415eligibility criteria, including the enplanements minimum and per-2416passenger subsidy cap. Communities in Alaska and Hawaii have different2417eligibility requirements than those in the contiguous U.S.2418---------------------------------------------------------------------------2419    Small Community Air Service Development Program. SCASDP was2420established in 2000 to, among other things, provide federal2421discretionary grants to fund strategies to improve air service and2422address issues at eligible communities that DOT determines have2423insufficient air carrier service or unreasonably high airfares, among2424other factors. Communities that receive EAS-subsidized service are not2425eligible for SCASDP funds. DOT is authorized to award up to 40 SCASDP2426grants per fiscal year to communities (not more than four per state)2427with underserved airports that seek to obtain airline service or to2428implement other measures to lower the cost and improve availability of2429air service.\6\ Grantees often use the award for marketing or to fund a2430minimum revenue guarantee (revenue guarantee).\7\ SCASDP offers some2431flexibilities that DOT may use to amend grants in response to changing2432industry conditions, which include modifications to limit a grant scope2433to only the grant funded-elements or elements achieved if DOT2434determines that the amendment is reasonably consistent with the2435original purpose of the project or the community's current air service2436needs. According to DOT, this flexibility may increase future project2437eligibility or support grant modification to address new hub2438destination opportunities.\8\ These flexibilities were expanded in the2439FAA Reauthorization Act of 2024. SCASDP grants are time-limited, and2440once a grant has ended, communities must find other means of support2441for air service.\9\2442---------------------------------------------------------------------------2443    \6\ Pursuant to statute and FAA policy, airports that receive2444federal funding are not able to use airport revenue to provide revenue2445guarantees. See 49 U.S.C. Sec. Sec.  47107(b)(1), 47133; FAA Policy2446Regarding Air Carrier Incentive Program, 88 Fed. Reg. 85,344 (Dec. 7,24472023) (stating that airport revenues must be used for the capital and2448operating costs of the airport or local airport system, and air carrier2449operations are not a capital or operating cost).2450    \7\ Revenue guarantees are designed to limit an airline's risk in2451initiating air service by guaranteeing that the airline will generate a2452specified amount of revenue from the ticket sales associated with new2453service over a specified time frame. When offering a revenue guarantee,2454the community agrees to pay the airline the difference between ticket2455sales and the guaranteed minimum if ticket sales do not meet the2456guaranteed minimum amount.2457    \8\ No community may participate in SCASDP in support of the same2458project more than once in a 5-year period, but any community may apply2459to participate in the program in support of a different project at any2460time.2461    \9\ For example, SCASDP grants can provide funding for revenue2462guarantees to subsidize service for a period of no more than 3 years.2463---------------------------------------------------------------------------2464  Small Communities Lost Departing Flights but Gained More Seats per2465                    Departing Flight in Recent Years2466    In September 2024 and December 2025, we reported on the following2467changes in air service to small communities in recent years:2468    Departures. We found that, on average, small communities had fewer2469total departures annually and fewer daily departures per route from24702018 to 2023 (see fig. 2).\10\2471---------------------------------------------------------------------------2472    \10\ GAO-24-106681.2473---------------------------------------------------------------------------24742475  Figure 2: Mean Total Departures from Communities of All Sizes, 20182476                                  20232477[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]24782479   Source: GAO analysis of Department of Transportation data. GAO-26-2480                                 10918224812482   Note: We assigned communities into five size groups (small, medium-2483small, medium, medium-large, and large) based on their population, such2484that each size group represents roughly 20 percent of the population of2485                          the contiguous U.S.24862487    For nonhub airports specifically, the average number of daily2488departures per route in 2024 was 19 percent lower than the 2018 level,2489and over 70 percent (123 of 170) of non-EAS nonhub airports experienced2490a decline in average daily departures per route (see fig. 3).\11\2491---------------------------------------------------------------------------2492    \11\ GAO-26-107751. Our analysis of nonhub airports excludes non-2493primary nonhub airports.2494---------------------------------------------------------------------------24952496    Figure 3: Percentage Change from 2018 to 2024 in Average Daily2497   Departures per Route for Nonhub Airports Not Receiving Subsidized2498                         Essential Air Service2499[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]25002501  Source: GAO analysis of Department of Transportation data. Base map2502                      from MapInfo. GAO-26-10918225032504   Note: Our analysis includes average daily departures per route for2505  nonhub primary airports not receiving subsidized service under the2506  Essential Air Service (EAS) program. We conducted our analysis for2507 calendar years 2018-2024. Nonhub primary airports have less than 0.052508   percent of annual U.S. commercial enplanements but have more than2509  10,000 annual enplanements. We used Federal Aviation Administration2510          enplanement data for 2018 to determine airport size.25112512    Seats. Flights from small communities generally had more seats, an2513indication that airlines were using larger aircraft (see fig. 4).25142515 Figure 4: Mean Number of Seats on Departures from Small Communities,2516                               2018	20232517[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]25182519   Source: GAO analysis of Department of Transportation data. GAO-26-2520                                 10918225212522   Note: We assigned communities into five size groups (small, medium-2523small, medium, medium-large, and large) based on their population, such2524that each size group represents roughly 20 percent of the population of2525                          the contiguous U.S.25262527    Connectivity. On average, small communities' connectivity, a2528measure of a passenger's degree of access to the national aviation2529system, decreased slightly from 2018 to 2023.\12\2530---------------------------------------------------------------------------2531    \12\ We analyzed the connectivity index introduced by Wittman and2532Swelbar. The connectivity index is a function of the frequency of2533available scheduled flights, the quantity and quality of nonstop2534destinations serviced, and the quantity and quality of connecting2535destinations. Michael Wittman and William Swelbar, ``Modeling Changes2536in Connectivity at U.S. Airports: A Small Community Perspective,''2537Report No. ICAT-2013-05 (June 2013).2538---------------------------------------------------------------------------2539    Non-EAS versus EAS. Air service trends varied by airport size and2540by whether the airport received support through EAS. We found that from25412018 to 2024, non-EAS nonhub airports generally experienced a greater2542decrease in average daily departures per route (falling 21 percent)2543than EAS nonhub airports (falling 5 percent). Similarly, during this2544period, the mean connectivity index score of non-EAS nonhub airports2545declined 8.9 percent, while the mean connectivity index score of EAS2546nonhub airports declined 2.6 percent.2547 Market Factors Affected Air Service to Small Communities and Federal2548                          Air Service Programs2549    In interviews we conducted for our prior work, aviation2550stakeholders identified a range of market factors that have affected2551air service to small communities in recent years.2552Market Factors2553    Pilot supply. We have previously reported on aviation industry2554concerns that there is an insufficient supply of qualified pilots to2555support current and future demand from U.S. regional and mainline2556airlines. In our 2024 work, aviation stakeholders identified a shortage2557of pilots as a factor affecting air service to small communities in2558recent years at the time, as larger airlines rebounded from the COVID-255919 pandemic by filling pilot vacancies with pilots hired from regional2560airlines. This hiring exacerbated regional airlines' pre-pandemic pilot2561shortages. However, in April 2026 we reported that pilot supply had2562been rebounding in more recent years, as regional airlines have2563significantly increased pilot pay and pilot certifications have grown.2564    Aviation maintenance worker supply. Airlines have also faced2565shortages of aviation maintenance workers, including aircraft mechanics2566and aviation maintenance technicians, according to stakeholders we2567interviewed for our September 2024 report. Representatives from one2568airline told us shortages among these workers have affected the2569airline's ability to operate its fleet of aircraft. FAA administers2570Aviation Workforce Development Grants to projects that aim to generate2571and increase interest in aviation maintenance careers and to prepare2572students for aviation maintenance programs. FAA is accepting2573applications for the current grant cycle through June 22, 2026. We have2574ongoing work examining high school aviation maintenance programs, which2575have the potential to bolster the pipeline of individuals interested in2576aviation maintenance careers.2577    Increased airline operating costs and switch to larger planes.2578Rising costs of labor, fuel, and fleet maintenance have increased2579airline operating costs and made air service to small communities less2580economically feasible, contributing to reductions in air service,2581according to stakeholders we have interviewed. Recent increases in jet2582fuel prices have also affected airline operating costs, according to2583the trade association Airlines for America. Our 2025 report on nonhub2584airports noted that airlines have sought to lower costs by replacing2585smaller planes across their fleet with larger planes and reducing2586frequency of flights at smaller airports (i.e., upgauging). Our2587analysis of aircraft seats per departure reflected this shift, as2588flights from small communities generally had more seats in 2023,2589compared to 2018, an indication that airlines were using larger2590aircraft.2591    Travelers choosing to drive. Another long-standing challenge for2592small community air service is when residents that live close to a2593smaller airport either drive to their destination instead of flying or2594drive to a larger airport. Residents of small communities are often2595willing to drive or take a bus to a larger airport to take advantage of2596the fares offered by low-cost or ultra-low-cost carriers and for2597nonstop service, according to our 2025 report on nonhub airports.2598    Heightened airline expectation for revenue guarantees. As airlines2599seek to increase revenue and reduce costs, many smaller communities not2600receiving service through EAS find themselves in a ``pay-to-play''2601environment for air service, according to our 2025 report on nonhub2602airports. According to DOT, in 2024 airline expectations for minimum2603revenue guarantees ranged from $1.5 to 2 million for a year of service,2604up from $500,000 to $800,000 before the COVID-19 pandemic. In response,2605communities may have to leverage various sources of funding, including2606state or local funding and SCASDP grants, to secure or maintain air2607service. For example, in 2023, Wenatchee, WA used public funding from2608the local regional port authority and contributions from entities2609including local municipalities and businesses to pay a 1-year, $500,0002610revenue guarantee to Alaska Airlines for a second daily flight to2611Seattle. A second example is Wyoming's capacity purchase agreement with2612SkyWest Airlines to serve some airports in the state, including the2613airport in Rock Springs. Communities that have received funding for a2614revenue guarantee through a SCASDP grant may need to find other means2615to support air service once the grant has ended. Dubuque, IA lost2616commercial air service entirely in early 2026 when the community's2617revenue guarantee--that had been partially funded with a SCASDP grant--2618was expended.2619Effects on Federal Air Service Programs2620    In turn, some of these market factors affected federal air service2621programs.2622    EAS. From 2018 through 2023, increased airline operating costs2623contributed to a 31 percent increase in total EAS subsidies for2624communities in the lower 48 states in real 2023 dollars. As we2625previously reported, according to DOT, factors contributing to the2626increase in EAS subsidies included higher aviation labor and fuel2627costs, inflation, and an increase in the use of regional jets, which2628consume more fuel than smaller turboprop aircraft, to serve2629communities.\13\ We have ongoing work examining EAS costs in response2630to a provision in the FAA Reauthorization Act of 2024.\14\2631---------------------------------------------------------------------------2632    \13\ GAO-24-106681.2633    \14\ See FAA Reauthorization Act of 2024, Pub. L. No. 118-63, Sec.2634567, 138 Stat. 1025, 1219.2635---------------------------------------------------------------------------2636    The way airlines serve EAS communities has also changed in recent2637years. For example, the number of EAS communities served by a Part 1352638public charter operator more than doubled (8 to 20) from 2018 to 2023.2639In our 2024 work, representatives from Contour Airlines, the public2640charter operator serving those 20 communities, told us operating under2641Part 135 enables them to hire from a larger pool of pilots than under2642Part 121.\15\2643---------------------------------------------------------------------------2644    \15\ Under Part 121, captains and first officers must hold an2645airline transport pilot (ATP) certificate, which requires a minimum of26461,500 hours of flight time. In contrast, under Part 135, captains must2647hold an ATP certificate, but first officers do not have to meet the26481,500-hour requirement.2649---------------------------------------------------------------------------2650    Additionally, over this time period, more EAS communities2651participated in the Alternate EAS program (which allows them to forego2652subsidized air service for a period of time in exchange for a grant)2653and all of them used the grant to receive public charter service.\16\2654DOT told us that participation in Alternate EAS has grown as2655communities have been dissatisfied with airline proposals under2656traditional EAS, as well as communities' desire for air service from2657regional jets versus smaller turboprop aircraft.\17\2658---------------------------------------------------------------------------2659    \16\ As of October 2025, 12 communities were participating in the2660Alternate EAS program. Alternate EAS allows communities to forego their2661EAS in exchange for receiving a grant to spend in a variety of ways2662that might better suit their individual needs. These options are2663spelled out in statute and include more frequent service with smaller2664aircraft, on-demand air taxi service, scheduled or on-demand surface2665transportation, or regionalized air service. 49 U.S.C. Sec.  41745.2666    \17\ The FAA Reauthorization Act of 2024 includes a provision for2667GAO to conduct a study on effectiveness of the Alternate EAS program.2668Pub. L. No. 118-63, Sec.  563.2669---------------------------------------------------------------------------2670    SCASDP. Higher airline operating costs have also affected SCASDP by2671limiting the effect of the grants that communities use for revenue2672guarantees, according to airport and airline representatives we2673interviewed in our September 2024 report. Representatives from airlines2674told us that SCASDP grants intended to fund revenue guarantees cover2675less of the cost of serving small communities than in the past.2676Additionally, our recent work on nonhub airports found that2677applications for grant assistance continue to exceed the support SCASDP2678offers. For the most recent grant opportunity, for example, 402679communities applied for more than $30 million to support air service at2680their local airports for fiscal year 2023, and DOT awarded SCASDP2681grants totaling nearly $12 million to 14 communities (see table 1).\18\2682DOT has announced that it awarded up to $12 million in grants for2683fiscal year 2024.\19\2684---------------------------------------------------------------------------2685    \18\ In fiscal year 2023, DOT received $10 million in2686appropriations for the program and awarded nearly $12 million in2687grants. According to DOT officials, the amount of funds available in a2688given fiscal year has at times exceeded the appropriated amount for2689that year. For example, in certain years, funds recovered from prior2690grant awards became available and supplemented the appropriated2691funding.2692    \19\ In March 2026, DOT issued an order soliciting applications2693from communities or consortia of communities for fiscal year 20242694SCASDP grants (utilizing FY 2024 and a portion of FY 2025 funding);2695applications were to be submitted by May 4, 2026.26962697  Table 1: Small Community Air Service Development Program (SCASDP) Grant Applications and Awards, Fiscal Years2698                                                    2018-20232699----------------------------------------------------------------------------------------------------------------2700                                                 Number of2701                                                 eligible2702          Award cycle (fiscal year)             communities     Total amount     Number of awards   Total amount2703                                                 (of total     requested \a\                           granted2704                                               applications)2705----------------------------------------------------------------------------------------------------------------27062018........................................      54 (of 57)    > $37 million                   18   $12,242,00027072019........................................      71 (of 78)    > $58 million                   22   $17,972,11127082020........................................                                     No grants awarded2709                                                                                               \b\27102021........................................      45 (of 48)    > $33 million                   25   $16,931,00027112022........................................      45 (of 48)    > $34 million                   20   $14,815,00027122023........................................      40 (of 46)    > $31 million                   14   $11,955,0002713                                                                          \c\2714----------------------------------------------------------------------------------------------------------------2715Source: GAO analysis of Department of Transportation data. GAO-26-10918227162717\a\ In its SCASDP award announcements, Department of Transportation (DOT) provides the minimum amount requested.2718\b\ DOT did not award SCASDP grants for fiscal year 2020. According to agency officials, DOT instead combined no-2719  year funds provided by Congress in fiscal year 2020 for grant awards in fiscal year 2021.2720\c\ Fiscal year 2023 total amount requested is based on eligible communities; requests for other years are based2721  on applicant communities.27222723Selected Stakeholders and Recent Studies Identified Various Options to2724                Improve Air Service to Small Communities2725    Aviation stakeholders we interviewed and recent studies we reviewed2726in our prior work identified a number of options to improve air service2727to small communities.\20\2728---------------------------------------------------------------------------2729    \20\ For a detailed discussion of the various stakeholder views on2730each of these options, see GAO-24-106681 and GAO-26-107751.2731---------------------------------------------------------------------------2732    Modifying EAS. Aviation stakeholders we interviewed for our2733September 2024 report identified options for modifying the EAS program.2734These options were identified before the FAA Reauthorization Act of27352024 was enacted, and, for the most part, were not included in the FAA2736Reauthorization Act of 2024. For many of these options, statutory2737amendments would be required, should Congress choose to adopt them. To2738focus assistance on more remote communities, stakeholders suggested 1)2739eliminating the waivers DOT may allow for communities that do not2740maintain certain eligibility requirements; 2) requiring communities to2741provide a local match to the EAS subsidy; or 3) providing funding to2742the states for distribution, rather than direct subsidies to the2743airlines.\21\ Stakeholders also suggested that DOT be required to2744consider the cost of the subsidy when awarding airline contracts--a2745requirement that was included in the FAA Reauthorization Act of27462024.\22\ Stakeholders noted that Congress could also expand EAS by2747loosening requirements, such as by raising the per-passenger subsidy2748caps, or allowing previously eligible communities to regain2749eligibility.\23\2750---------------------------------------------------------------------------2751    \21\ The FAA Reauthorization Act of 2024 limited the circumstances2752under which DOT may waive certain EAS eligibility requirements.2753Beginning in fiscal year 2027, DOT may not provide a waiver of the2754minimum enplanements or certain per passenger subsidy cap requirements2755to any location in more than two consecutive fiscal years or in more2756than five fiscal years within 25 consecutive years. However, beginning2757in 2022, annual appropriations laws have waived certain EAS eligibility2758criteria, including the enplanements minimum and per-passenger subsidy2759caps. For suggestions (2) and (3), the FAA Reauthorization Act of 20242760did not include a cost-sharing requirement for EAS communities or2761provide EAS funding to the states.2762    \22\ According to information provided by DOT, although DOT was not2763previously required to consider cost, DOT has considered the relative2764subsidy requirements of the various options when selecting an EAS2765carrier since the inception of the program. Furthermore, prior to the2766FAA Reauthorization Act of 2024, DOT was authorized by Congress to2767consider the relative subsidy requirements of applicant air carriers.2768    \23\ Prior to the FAA Reauthorization Act of 2024, the per-2769passenger subsidy cap was $200, unless the community was more than 2102770miles from the nearest large or medium hub airport or unless DOT issued2771a waiver. The FAA Reauthorization Act of 2024 raised the per-passenger2772subsidy cap to $650 for locations that are less than 175 miles from the2773nearest large or medium hub airport, unless DOT waives the requirement2774based on a temporary decline in demand. The FAA Reauthorization Act of27752024 did not modify the program to allow ineligible communities not in2776Alaska to re-enter.2777---------------------------------------------------------------------------2778    Modifying SCASDP. We and others have found that SCASDP grants have2779a mixed record of success in attracting air service.\24\ In interviews2780for our 2024 report, aviation stakeholders identified a range of2781options for modifying SCASDP in response to rising airline operating2782costs. These options were identified before the FAA Reauthorization Act2783of 2024 was enacted. Some of these options Congress might consider2784would require statutory amendments, such as increasing total funding2785for the program or allowing more flexibility in how grants may be used2786when a community's circumstances change.\25\ Stakeholders also2787suggested allocating funding to fewer communities per cycle or shifting2788the focus of the program away from revenue guarantees.2789---------------------------------------------------------------------------2790    \24\ In 2019, we reported that half of the 66 grantees that2791received awards for fiscal years 2010 through 2014 were successful in2792achieving their goals during the award period, and that just over a2793third sustained their results for at least 24 months after the award2794period had ended. Additionally, a 2014 article calculated that of the2795115 grantees from 2006 through 2011 that requested funds to attract new2796service or achieve other outcomes, fewer than half were ultimately2797successful in meeting the goals of their proposal within 28 months of2798accepting the grant. See GAO, Small Community Air Service Development:2799Process for Awarding Grants Could Be Improved, GAO-19-172 (Washington,2800D.C.: Mar. 26, 2019) and Michael D. Wittman, ``Public Funding of2801Airport Incentives in the United States: The Efficacy of the Small2802Community Air Service Development Grant Program,'' Transport Policy,2803vol. 35 (September 2014).2804    \25\ The FAA Reauthorization Act of 2024 increased the2805authorization of funding for SCASDP to $15 million annually. The FAA2806Reauthorization Act of 2024 gave DOT the authority to amend the scope2807of a grant agreement at the request of the community or consortium and2808any participating air carrier, and limit the scope of a grant agreement2809to only the elements using grant assistance or to only the elements2810achieved, if the Secretary determines that the amendment is reasonably2811consistent with the community's current air service needs.2812---------------------------------------------------------------------------2813    Increasing pilot supply. Aviation stakeholders we interviewed for2814our September 2024 report identified a number of options that Congress2815could consider to increase pilot supply. These include, for Part 1212816pilots, 1) revising the statutory requirement that captains and first2817officers have 1,500 hours of flight time to hold an Airline Transport2818Pilot certificate; and 2) raising the statutory mandatory retirement2819age from 65 to 67.\26\ To help strengthen the pilot pipeline, the FAA2820Reauthorization Act of 2024 required FAA to take action on two pilot2821training initiatives by November 2024.2822---------------------------------------------------------------------------2823    \26\ The FAA Reauthorization Act of 2024 did not amend the 1,5002824flight-hour training requirement for Part 121 pilots or raise the2825retirement age for Part 121 U.S. airline pilots.2826---------------------------------------------------------------------------2827      Enhanced Qualification Program. Requires FAA to establish2828requirements so that qualified air carriers, among others, may provide2829enhanced training to eligible pilots seeking a restricted-privileges2830airline transport pilot certificate.\27\ This enhanced training2831includes instruction on fundamental aviation subjects as well as2832airline operations and procedures.2833---------------------------------------------------------------------------2834    \27\ FAA allows pilots with fewer than 1,500 hours of total time as2835a pilot to obtain a restricted-privileges airline transport pilot (R-2836ATP) certificate when they meet certain requirements. The R-ATP2837certificate allows pilots to serve as first officers in certain2838operations until they obtain the necessary 1,500 hours of total time as2839a pilot needed for an ATP certificate.2840---------------------------------------------------------------------------2841      Nationwide office for Designated Pilot Examiners.2842Requires FAA to establish a nationwide office for oversight of2843Designated Pilot Examiners--experienced pilots designated by the FAA to2844conduct tests with student pilots. The act also requires FAA to submit2845reports to congressional committees evaluating the use of Designated2846Pilot Examiners.28472848    In April 2026, we recommended that FAA establish and publicly2849communicate timelines for issuing 1) the Enhanced Qualification Program2850requirements and 2) the first required report to Congress on the2851Designated Pilot Examiner's national office. DOT concurred with the2852recommendations. We are continuing to monitor FAA's efforts to address2853the recommendations.2854    Using alternative transportation modes or technologies. Aviation2855stakeholders we interviewed and recent studies we reviewed in our prior2856work also identified options to address higher airline operating2857costs--namely, the use of bus service and electric aircraft. We have2858previously reported that a multimodal approach, including bus service2859to larger airports, is an alternative to providing scheduled passenger2860service to small communities. For example, the Landline Company2861currently provides short-haul bus service from certain smaller airports2862to large hub airports in a manner that substitutes for a connecting2863flight offered by a regional airline. Stakeholders we previously2864interviewed have had mixed views on bus service as a feasible2865alternative. While some were supportive, others cited obstacles like2866the length of time of bus trips and airport resistance because bus2867passengers do not count toward the minimum 10,000 annual passenger2868enplanements that airports must maintain to qualify for Airport2869Improvement Program funding.2870    Additionally, aircraft with electric propulsion technologies may2871have the potential to lower operating costs for airlines, according to2872publications we reviewed for our September 2024 report. We previously2873reported that regional air mobility--an application of advanced air2874mobility--could use electric or hybrid-electric aircraft to carry2875passengers to adjoining regions and cities, and could open up new2876regional corridors.\28\ In interviews for our December 2025 report on2877nonhub airports, stakeholders also told us that electric or hybrid-2878electric aircraft--which include short-range aircraft in development2879that would accommodate nine, 30, or 100 passengers--may be more2880suitable for some smaller communities than the larger jets that2881airlines currently use. However, some aviation stakeholders we2882interviewed were skeptical of electric aircraft as a viable near-term2883option for air service to small communities due to the cost and2884feasibility of installing charging infrastructure and the need for FAA2885regulatory approval of such aircraft, among other things.2886---------------------------------------------------------------------------2887    \28\ The FAA Reauthorization Act of 2024 defines advanced air2888mobility as a transportation system that comprises urban air mobility2889and regional mobility. Both of these mobilities involve the use of2890advanced technologies such as fully electric and hybrid-electric2891aircraft for passenger transport, cargo transport, and emergency2892services, inside and outside of cities. According to DOT officials,2893fully electric aircraft have utility over shorter distances, such as2894trips up to 40 miles, and hybrid-electric aircraft can fly up to 3002895miles before charging. For more information, see GAO-24-106681.2896---------------------------------------------------------------------------2897    Planning at the state level. Based on interviews with officials2898from certain state DOTs for our December 2025 report, we identified2899examples of state-level air service development and planning. For2900example, two of the selected nonhub airports we reviewed--in Rock2901Springs, Wyoming and Traverse City, Michigan--are located in states2902that provided funding for air service through their state aviation2903programs. In addition, while not directly funding air service2904development, Washington State DOT was part of a regional effort funded2905through SCASDP to assist smaller airports--like the one in Wenatchee--2906with local air service issues in Oregon and Washington. In interviews2907for our December 2025 report, officials from the state DOTs in2908Michigan, Washington, and Wyoming told us that state or regional2909support for air service development can be limited by funding and other2910constraints. Our prior analysis of SCASDP grants found several other2911examples of SCASDP funding being used to support state or regional2912planning efforts, although such uses were infrequent. While the statute2913enables--and according to agency officials, DOT encourages--2914applications by groups of communities, DOT most frequently receives2915individual applications for SCASDP funding, rather than applications2916that are part of a more holistic assessment of state or regional needs.2917    Chairman Nehls, Ranking Member Carson, and Members of the2918Subcommittee, this completes my prepared statement. I would be pleased2919to respond to any questions that you may have at this time.29202921    Mr. Nehls. Thank you, sir.2922    I now recognize Mr. Pecoraro for 5 minutes.29232924 TESTIMONY OF GREGORY PECORARO, PRESIDENT AND CHIEF EXECUTIVE2925   OFFICER, NATIONAL ASSOCIATION OF STATE AVIATION OFFICIALS29262927    Mr. Pecoraro. Thank you, Chairman Nehls, Ranking Member2928Carson, and Ranking Member Larsen, members of the subcommittee.2929Thank you for the opportunity to appear before you on behalf of2930the National Association of State Aviation Officials. I2931appreciate your continued commitment to small community air2932service, and from your opening statements, it is clear that2933this committee gets it.2934    State agencies directly support small and rural air service2935in many ways, including financially. Several States provide2936incentive programs to help communities attract and retain2937scheduled passenger service. These efforts complement Federal2938programs, providing locally responsive support shaped by each2939community's needs.2940    The challenges facing small community air service are2941bigger than any one Federal program. The Nation needs a2942coordinated strategy. Small and rural communities face2943longstanding pressures: aging infrastructure, airline2944economics, security requirements, limited workforce, and the2945shrinking availability of appropriately sized aircraft. Unless2946these are addressed together, communities will continue to lose2947service.2948    We need Congress to direct the U.S. DOT and the FAA, in2949coordination with other agencies and State and local2950governments, to develop and implement a national strategy for2951small community air service. That effort should review existing2952Federal programs, identify actionable recommendations, and2953define clear responsibilities across Government.2954    Continued Federal support is indispensable. The EAS program2955is an important lifeline for many communities, but it has not2956kept pace with changes in the airline industry and the broader2957economy.2958    Communities that successfully exited EAS before the2959pandemic are now unable to sustain service under current2960conditions, yet existing law makes it extremely difficult for2961them to reenter.2962    Congress should preserve full funding for both EAS and the2963Small Community Air Service Development Program and update2964eligibility rules so communities who have lost service have a2965realistic path back.2966    Infrastructure needs are equally pressing. Many small2967community terminals are aging, undersized, and unable to meet2968current needs. General aviation airports face similar funding2969challenges even though they may provide some of the most2970practical near-term platforms for emerging aviation2971technologies and future service opportunities.2972    Congress should continue robust Airport Improvement Program2973funding at the full authorized level and examine long-term2974changes to better support nonprimary entitlements and general2975aviation infrastructure.2976    The regional aircraft fleet, vital to many small2977communities, is in decline. Airlines are moving to fewer,2978larger aircraft with more favorable economics, while many 50-2979seat regional jets are reaching the end of their useful lives.2980    When right-sized aircraft disappear, access disappears with2981them. It becomes harder for smaller markets to maintain2982frequency, affordability, and reliable connectivity to the2983national system. We must identify and repair and fix the2984barriers preventing new regional aircraft from entering the2985market.2986    Finally, workforce shortages continue to affect the entire2987aviation ecosystem, especially pilot recruitment and retention.2988NASAO encourages Congress to continue to support pathways that2989improve the pilot pipeline.2990    In closing, the challenges facing small community air2991service are structural, compounding, and urgent--but not beyond2992solving. With a strategic national approach, continued Federal2993assistance, sustained infrastructure investment, support for2994right-sized aircraft manufacturing, and expanded workforce2995development, Congress could help ensure that small communities2996remain connected to the national aviation system.2997    NASAO and the States stand ready to work with you to ensure2998that small and rural communities have access to the NAS.2999    Thank you again for your leadership and your continued3000attention to this important issue. I would be pleased to answer3001any questions you may have.3002    [Mr. Pecoraro's prepared statement follows:]30033004 Prepared Statement of Gregory Pecoraro, President and Chief Executive3005       Officer, National Association of State Aviation Officials3006    Chairman Nehls, Ranking Member Carson, and Members of the3007Subcommittee on Aviation, thank you for the opportunity to appear3008before you today. On behalf of the National Association of State3009Aviation Officials (NASAO), we greatly appreciate your continued3010commitment to small community air service and the strong legislative3011framework established by the FAA Reauthorization Act of 2024 (P.L. 118-301263), which guides today's conversation.3013    NASAO represents state government aviation agencies in all 503014states, Guam, and Puerto Rico. These agencies oversee aviation systems3015at the state level, including planning, development, safety, and3016regulation of airports and aviation activities. In communities large3017and small, NASAO's members provide financial and technical support to3018airports, conduct safety inspections, and advocate for the needs of3019airports that are essential to local mobility, economic opportunity,3020and public service. Together, state government aviation agencies help3021oversee and support thousands of public-use airports that are the3022nation's small community air service network.3023    State government aviation agencies play a direct, though varying,3024role in supporting air service in small and rural communities, shaped3025by each state's statutory authority, resources, and priorities. They3026provide financial support and technical expertise to small and general3027aviation airports that often lack the staffing and expertise available3028to large airports. In addition, eight states have initiated targeted3029incentive programs to help airports attract and retain scheduled3030passenger air service. These efforts complement federal programs by3031offering flexible, locally responsive support tailored to the needs of3032individual communities.3033    State government aviation agencies are on the front lines of the3034infrastructure and service challenges facing small community airports,3035and NASAO's perspective reflects the direct experience of those3036agencies working every day to support aviation access in communities3037across the country.3038 Continued Support Needed for Federal Programs for Small Community Air3039                                Service3040    Small community air service is under growing strain, and continued3041federal support is critical. The Essential Air Service (EAS) program3042remains an important resource for many communities, but it has not3043evolved in step with changes in the economy and airline industry.3044Aircraft economics, airport connectivity, airline cost structures, and3045infrastructure realities have changed substantially since the program3046was designed. As a result, some communities that once successfully3047exited EAS prior to the COVID-19 pandemic and its disruption of air3048travel, now find themselves unable to maintain commercial air service3049under current market conditions yet they face major barriers to3050reentering the program.3051    The FAA Modernization and Reform Act of 2012 (P.L. 112-95) locked3052many of these communities out of EAS, leaving them with no path back3053when air service is reduced, suspended, or lost. In effect, communities3054that did the right thing and grew beyond the need for EAS can now be3055penalized for that success when market conditions shift against them.3056    When EAS works as intended, the results are significant. Jackson3057Regional Airport in Tennessee is a clear example. Prior to EAS-3058supported service, the airport struggled with unreliable service that3059pushed business travelers, healthcare professionals, and residents to3060drive to larger airports rather than depend on local flights. Through3061EAS, dependable air service has since allowed local businesses to3062expand into new markets, improved physician recruitment for the3063regional healthcare system, and given residents reliable access to the3064national air transportation network. In its first full year of service,3065the airport recorded over 10,000 enplanements, a 224 percent increase3066over the prior year, and is on pace to reach nearly 16,000 in 2026. The3067airport is now looking at terminal and infrastructure expansions to3068meet continued growth.3069    At the same time, the Small Community Air Service Development3070(SCASD) program remains a valuable complement to EAS because many3071communities do not have the local resources needed to proactively3072attract or retain service on their own. Elko, Nevada, demonstrates3073precisely why the SCASD program is essential for communities that fall3074outside the EAS program's eligibility criteria but still need federal3075support to sustain meaningful air service. SCASD enabled the Elko3076Regional Airport to restore its midday flight, which had been3077eliminated during the COVID-19 pandemic due to reduced demand and the3078broader disruptions that reshaped air service across small markets.3079Without SCASD, Elko would not be able to sustain its current twice-3080daily schedule. The SCASD program continues to provide grants to help3081communities address air service and airfare challenges. However, the3082U.S. Government Accountability Office recently found that small3083communities generally experienced fewer departing flights between 20183084and 2023 even as average seats per departure increased, underscoring3085the pressure these markets continue to face.\1\3086---------------------------------------------------------------------------3087    \1\ U.S. Government Accountability Office, Commercial Aviation:3088Certain Nonhub Airports Face Significant Challenges in Securing and3089Maintaining Air Service, GAO-26-107751, December 20253090---------------------------------------------------------------------------3091    For these reasons, Congress should continue funding both EAS and3092SCASD at no less than their full authorized levels in the FAA3093Reauthorization Act of 2024 (P.L. 118-63). Congress should also amend3094the EAS eligibility provisions in the FAA Modernization and Reform Act3095of 2012 (P. L. 112-95) so that communities that exited the program, but3096later lost service have a reasonable path to reenter. Any reentry3097framework should reflect today's airline industry and market3098environment rather than assumptions that existed when a community first3099left the program.3100 Continued Support for Federal Airports to Address Infrastructure Gaps3101    Infrastructure is another major obstacle. At many small community3102airports, commercial terminals are aging, undersized, and increasingly3103unable to accommodate larger aircraft or meet current Transportation3104Security Administration (TSA) security requirements. Modernization3105costs are substantial, and unlike at large commercial airports,3106airlines serving small regional airports rarely share significantly in3107those capital costs. Meanwhile, airlines have increasingly moved toward3108larger aircraft and less frequent service.3109    That trend creates real challenges for passengers and communities.3110Replacing smaller, more frequent flights with larger, less frequent3111flights can make service less useful for business travelers, reduce3112schedule flexibility, and leave passengers with fewer options when3113delays or cancellations occur. Small communities are often stuck in a3114chicken-and-egg dilemma: growth in passenger demand is needed to3115justify larger aircraft, but the infrastructure needed to support those3116aircraft must already be in place before that growth can happen. At the3117same time, the aging regional jet fleet is becoming less reliable,3118making it harder to sustain consistent service and eroding confidence3119in smaller markets.3120    General aviation airports face parallel infrastructure challenges.3121These airports are among the most underutilized and underfunded assets3122in the national aviation system, yet they may be the most practical3123near-term platforms for early advanced air mobility (AAM) deployment,3124which, when integrated into the broader transportation system, could3125expand access for people in communities that have long been3126underserved. Realizing that potential, however, will require3127investment.3128    State government aviation agencies collectively invest in planning,3129operations, infrastructure development, maintenance, and navigational3130aids at approximately 5,000 airports across the country, illustrating3131the scale of the system that depends on sustained support. The3132Nonprimary Entitlement (NPE) program currently provides eligible3133general aviation, reliever, and nonprimary commercial service airports3134up to $150,000 annually to airports in the National Plan of Integrated3135Airport Systems (NPIAS). In practice, that amount falls far short of3136the cost of most pavement, safety, and utility projects, which can3137easily begin at $1 million or more. As a result, many airports must3138carry over multiple years of funds just to address a single need,3139delaying safety improvements and limiting their ability to plan for3140future technologies.3141    Preparing these airports for electric and hybrid-electric aircraft3142will require even more investment. Electrical capacity upgrades, new3143communications systems, and updated navigational aids will all be3144necessary. Current funding levels are insufficient to meet today's3145needs, let alone future demands.3146    For these reasons, NASAO urges Congress to continue supporting3147robust Airport Improvement Program funding at the full $4 billion3148authorized level under the FAA Reauthorization Act of 2024 (P.L. 118-314963). This funding is essential, but long-term sustainability will also3150require updates to the NPE program. NASAO encourages Congress to raise3151the maximum annual NPE apportionment above the current $150,000 cap. At3152the same time, we must not rely solely on annual appropriations to3153address these infrastructure challenges. It will be critical for3154Congress, the Administration, and state, tribal, local, and territorial3155governments to work together to create a sustainable, long-term funding3156model for general aviation airport infrastructure.3157    Integrating Advanced Air Mobility as Part of the Broader Rural3158                        Transportation Solution3159    Advanced Air Mobility (AAM) presents a significant long-term3160opportunity for small and rural communities to connect to the broader3161transportation network. AAM should be viewed as a mobility tool that3162can be combined with both traditional aviation and surface3163transportation systems. Electric battery, hydrogen-fueled, and hybrid3164aircraft may eventually provide a replacement for aging 50-to-70-seat3165regional aircraft and reshape air service options for smaller markets,3166but realizing the potential will require coordinated planning across3167agencies and modes.3168    Small airports are not currently positioned to support AAM3169operations. Charging and fueling infrastructure, upgraded power3170systems, and new navigational aids will all be required before these3171aircraft can operate at scale. These investments present an opportunity3172to align Federal Aviation Administration (FAA) and Federal Transit3173Administration (FTA) programs, and other U.S. Department of3174Transportation programs to support more integrated cost-effective rural3175mobility solutions.3176    While AAM is not a near-term solution to current small community3177air service challenges, the planning and infrastructure decisions made3178today will determine whether small and rural communities can benefit3179from it when the technology matures. Communities that do not begin3180preparing now risk being left behind as deployment concentrates in3181better-funded and better-prepared areas.3182    That is why Congress should ensure full and timely implementation3183of AAM-related provisions in the FAA Reauthorization Act of 2024 (P.L.3184118-63), including support for electric, hydrogen, and hybrid aircraft3185infrastructure. Congress should also fully fund the AAM Infrastructure3186Pilot Program (Sec. 101 of division Q of P.L. 117-328), which provides3187planning support for state, tribal, and local governments preparing for3188AAM infrastructure needs. Early planning is critical to ensure these3189communities are positioned to fully leverage emerging AAM technologies.3190The House Appropriations Committee included funding for this program in3191the FY 2027 Transportation, Housing and Urban Development, and Related3192Agencies appropriations bill, and NASAO urges Congress to support that3193funding in a final spending bill.3194  Rebuilding the Regional Aircraft Pipeline for Long-Term Connectivity3195    Another structural challenge that deserves much greater attention3196is the decline of the regional aircraft fleet that underpins service to3197many small communities. Without a viable next-generation aircraft in3198the 19-to-76-seat range, long-term connectivity for many communities is3199at serious risk, regardless of how well federal programs are funded.3200Larger aircraft generally offer lower seat-mile costs, making them more3201attractive to airlines. At the same time, the 50-seat regional jet3202fleet is aging toward the end of its useful life, and there is no true3203replacement currently in production ready to fill that gap. Meanwhile,3204labor and gate constraints at hub airports are reinforcing this trend,3205further encouraging airlines to operate fewer, larger aircraft instead3206of maintaining more frequent, small-aircraft service. Together, these3207issues are systematically narrowing the pathway for small and rural3208communities to maintain reliable air service. If left unaddressed, this3209shift will accelerate the loss of connectivity in rural and smaller3210regions.3211    Congress and the Administration should engage aerospace3212manufacturers to identify the specific barriers preventing new regional3213aircraft from entering the market. While some next-generation concepts3214are under development, including aircraft that incorporate some aspects3215of AAM technologies, progress has been slow and uncertain. A targeted3216federal effort is needed to assess certification hurdles, production3217challenges, and market disincentives.3218    That assessment should lead to a focused review of regulatory and3219policy options that could reduce barriers to entry or provide3220meaningful incentives for manufacturers, including certification3221support, regulatory reform, and other targeted actions. A coordinated3222effort across the U.S. Department of Transportation, the FAA, and3223industry stakeholders is necessary if we are serious about preserving3224connectivity for small communities over the long term.3225                     Addressing the Pilot Shortage3226    Recruitment of commercial pilots has remained a challenge across3227the industry. Regional airlines had already been facing a pilot3228shortage for several years before the COVID-19 pandemic, but the3229pandemic fueled a wave of pilot retirements that caused the shortage to3230become an acute problem.3231    As air travel demand rebounded, major airlines began hiring pilots3232quickly, many of whom came from regional airlines. This acute pilot3233shortage severely limited regional airlines' ability to serve small3234communities, leading to small markets losing a portion or all their3235service.3236    NASAO urges Congress to continue its oversight of the FAA3237Reauthorization of 2024 (P.L. 118-63) to ensure the timely3238implementation of key provisions, including Section 372, which requires3239the FAA to establish requirements for the Enhanced Qualification3240Program (EQP) under which air carriers are certified to provide3241enhanced training for pilots seeking to obtain restricted airline3242transport certificates. NASAO also urges Congress to support increased3243opportunities for pilot training, including making pilot training3244eligible for federal loan programs.3245    A National Strategy is Needed to Fully Address These Challenges3246    At the same time, these individual issues point to a broader truth:3247the nation needs a coordinated strategy for small community air3248service. Many of the challenges facing small and rural communities have3249persisted for years because they are structural. Manufacturing3250limitations, infrastructure shortfalls, funding constraints, security3251requirements, and workforce shortages all interact with one another. No3252single program can solve them in isolation. Addressing these challenges3253requires a whole-of-government approach that aligns policy and funding3254across agencies. State government aviation agencies must have a3255meaningful seat at the table because they are essential implementation3256partners.3257    Congress should direct the U.S. Department of Transportation and3258the FAA, working with TSA and other relevant agencies, to develop and3259implement a coordinated national strategy for small community air3260service. This effort should include a review of existing federal3261programs, identify actionable recommendations, and define clear roles3262for each federal entity. It should also be informed by input from state3263and local governments and private-sector stakeholders who understand3264these operational realities firsthand. This is a process that worked3265well leading up to the U.S. Department of Transportation's recent3266promulgation of the AAM National Strategy. A similar level of focus and3267cross-agency coordination is now urgently needed to ensure that small3268and rural communities are not left behind in the nation's aviation3269system.3270    In closing, the challenges facing small community air service are3271structural, compounding, and urgent, but they are not beyond solving.3272With the right mix of near-term investment, policy reform, and long-3273term strategy, Congress can help ensure that smaller communities remain3274connected to the national aviation system. NASAO is committed to3275working with Congress and the FAA to advance these priorities on behalf3276of state government aviation agencies and the communities they serve.3277    Thank you again for your leadership and your continued focus on the3278needs of small communities in our national aviation system. I would be3279happy to answer any questions and discuss further any of the issues3280raised in this testimony.32813282    Mr. Nehls. Thank you, sir.3283    Thank you all for your testimony.3284    We will now turn to questions from the panel. I will3285recognize myself.3286    I think, just for awareness--I think, Ms. Black, you3287brought it up--but the FAA Administrator, Bryan Bedford,3288testified last week at the Senate Commerce hearing that any new3289integrated system--ACAS X or ADS-B In--is 10 years away. Ten3290years.3291    The electronic flight bag option that you mentioned, Faye,3292can be deployed--it can be done immediately.3293    So I just wanted to bring that point up.3294    Ms. Black, too, in addition to guaranteeing a safely3295operated national airspace, we have a responsibility to ensure3296that rural Americans have an accessible national airspace. The3297necessity of access for regional aircraft is indisputable.3298    Can you describe any obstacles on the horizon for your3299carriers? And how can Congress hurt--we can hurt--or help?3300    Ms. Malarkey Black. Thank you for the question.3301    I think that the obstacles on the horizon are related to3302workforce--certainly we need to have pilots to operate the3303flights--and aircraft-related. We need to have the aircraft to3304operate the flights as well.3305    The risks to each: Workforce, obviously, is that we don't3306have enough. We see that pipeline is thinning. There are things3307that we can do to fix it, including right-sizing student loans3308so more people from working-class backgrounds can get into this3309career.3310    And with respect to the fleet, it is important that, as we3311advance safety, that we bring it to communities of every size,3312but we do it in a way that works with the fleet and not against3313the fleet or in a way that could ground the fleet.3314    So, to your point of the electronic flight bag, that is a3315way for us, right now, to create that level of safety while we3316pursue integrated systems that the supply chain may not keep up3317with.3318    Those are the biggest, I think, risks right now.3319    Mr. Nehls. Fair enough.3320    Do you have an estimate on how many pilots the regionals3321will lose to the major carriers over the next 12 months?3322    Ms. Malarkey Black. The next 12 months, did you say?3323    I think I actually saw estimates from 7,500 to 8,500 or so.3324And to put that into context, the pipeline actually produced3325about that amount last year--a little bit less, actually--and,3326using a 12-month rolling average, it looks to produce about33278,000 or 8,300. So we are already behind.3328    Mr. Nehls. Sure. So what that really means is that--the3329regionals serve 94 percent of our commercial airports--943330percent.3331    Ms. Malarkey Black. Correct.3332    Mr. Nehls. The mainline carriers serve just 36 percent. So3333that means regionals serve two-thirds. They are the only mode3334of transportation, two-thirds of our Nation's airports. But yet3335you are going to lose all these pilots. And we could see that3336even--we are going to lose more service to more smaller3337airports as a result of the pilot shortage. It must be3338addressed this year. It has to be addressed.3339    Mr. Dobberstein, Fargo--haven't been there, haven't been3340there--has received a few SCASDP grant awards. The program is3341appealing because it incentivizes local support of new air3342services that have the potential to continue unsubsidized.3343    How have you been successful, and how has the local economy3344benefited? And do you have any suggestions to strengthen the3345program?3346    Mr. Dobberstein. Thank you for the question.3347    Yes, we have been the recipient of four SCASDP grants,3348dating back to 2005.3349    The first grant was awarded to us when Delta Airlines3350implemented service to Salt Lake City. That was done in 2006.3351But unfortunately, the service was suspended in 2008 as Delta3352reallocated aircraft to Seattle and Los Angeles for other3353competitive reasons.3354    Our second grant was awarded for service to Dallas back in33552011. And that service is thriving today. It is doing3356extremely, extremely well.3357    Our third grant was for Seattle service, working with3358Alaska Airlines. Fargo had a large population of Microsoft3359employees in our community that were traveling back and forth3360to Seattle. Unfortunately, the pandemic resulted in more3361virtual use of their time and less air travel, so we terminated3362that grant.3363    And, currently, today, we have a grant on the table right3364now for implementing service to Charlotte, and we are working3365with American Airlines on that.3366    My suggestions would be to increase the amount of funding3367for the SCASDP program, maybe reduce the number of recipients3368to increase the amount of money each recipient would receive3369due to the higher costs that are in place today with workforce,3370fuel, and other things.3371    Mr. Nehls. Thank you.3372    Mr. Collins, we are aware of the ballooning cost of EAS. We3373have lowered the subsidy cap in the FAA reauthorization. It3374will help.3375    You have talked about the successes of SCASDP, where3376projects with a local match are more competitive.3377    Two questions: Would the solvency of EAS benefit from the3378same sort of small, local investment? And what else can be done3379to reduce costs and increase our return on investment in the3380EAS?3381    Mr. Collins. So, with respect to EAS costs, we do have3382ongoing work related to looking at ideas that stakeholders have3383for reducing those costs.3384    Mr. Nehls. I will now recognize Mr. Carson for 5.3385    Mr. Carson. Thank you, Chairman.3386    I am curious--I opposed the administration's proposal to3387limit the Federal student loans for some of the programs that3388produce the most qualified pilots.3389    Can you talk about the financial costs to becoming a3390commercial pilot and how updating Federal student loan3391eligibility could level the playing field and attract more3392diverse talent?3393    Ms. Malarkey Black. Thank you for the question and for the3394interest.3395    The first step to becoming a professional pilot is a3396private pilot license. So one thing we can do, which is3397actually outside the student loan program, is allow the GI bill3398to fund that. Today, the rules exclude that. So that is just a3399commonsense fix that we can make, to allow the GI bill, those3400earned benefits, to cover the full spectrum of pilot training.3401    With respect to student loans, right now, it can cost3402almost $200,000 or so. And flight training is inherently3403expensive. If you think about it, you have aircraft, insurance,3404fuel, specialized instructors. So these are not ordinary3405college costs, and the Federal student loan apparatus was just3406not designed to support those costs.3407    These are great money, good opportunities; they are3408transformational careers, but you have to be able to get there.3409The gulf that exists between the caps of student loans and the3410actual cost is upwards of $80,000. And so, with families3411without access to wealth or private capital, that gap is3412decisive.3413    Mr. Carson. What are the biggest infrastructure needs3414small-hub and small airports have? Do small airport3415infrastructure needs evolve because of changes in airline3416services, i.e., airlines upgauging from smaller planes to3417larger planes?3418    Ms. Malarkey Black. Sorry. The question was to me about the3419economics of small aircraft?3420    Mr. Carson. Everyone.3421    Ms. Malarkey Black. Yes.3422    I think this is--this is a complex, cyclical kind of3423conversation. Sometimes we hear that the reason that these3424smaller aircraft are not in the market anymore is that the3425economics don't support it. In reality, we had a pilot shortage3426that absolutely collapsed capacity, and, as a result, the3427economics changed on those smaller markets.3428    You have different pilot compensation costs--and, by the3429way, I think that was a good and valuable investment, but it3430did change the economics. And you also have network carriers3431that are trying to parse a limited supply. And so they do that3432by upgauging, by seeking to move more passengers at once.3433    The problem is, when you upgauge because you have to,3434because you are trying to fill a need, not because the demand3435requires it, you lose destination options and you lose3436frequency. And then even fewer passengers use that route,3437because if they have the option to drive, they might. Of3438course, not everybody can drive. But those are the ways that3439something starting with a pilot shortage can weaken those3440economics and undermine the market.3441    Mr. Carson. And, lastly, I authored Federal requirements3442for secondary barriers--controversial at first--in commercial3443passenger aircraft. Airlines and aircraft manufacturers have3444been making progress, but, in the last few weeks, there have3445been multiple attempts by unruly passengers to try to gain3446access to the cockpit or other doors.3447    Where are your member airlines in installing secondary3448barriers? Is it still controversial? Has it been more embraced3449over the years?3450    Ms. Malarkey Black. I think there is no controversy about3451the requirement. We understand the rule, and we intend to3452comply.3453    What you may be referencing is the fact that--and, again,3454this speaks to the supply chain--in the timeline that was3455provided to comply with this, our manufacturer came up with a3456solution, but the facts are, regional aircraft don't look like3457mainline aircraft. We have a different forward lav, different3458setup. And so installing a door works on a narrow body or a3459wide body, but you can't install a door on a regional.3460    So, when that actually came to market and was installed, we3461did find some safety and some occupational issues that had to3462be worked through. And so that is why you see some of these3463requests for an additional period of time to comply.3464    But the goal is to get those secondary barriers installed3465and complete and trained.3466    Mr. Carson. Thank you, ma'am. I yield back.3467    Mr. Nehls. The gentleman yields.3468    I now recognize Mr. Larsen.3469    Mr. Larsen of Washington. Thank you, Mr. Chair.3470    Mr.--just a moment. I thought I had a little more time.3471    Yes. Mr. Pecoraro, I would like to ask you the same3472question that was just asked of Ms. Black about the cost-3473efficiency, fuel-efficiency of a 50- to 100-seater and whether3474or not you think that helps to solve the issues.3475    Is that a beneficial option for regional airports, the3476smaller airports?3477    Mr. Pecoraro. Yes. Thank you, Mr. Larsen.3478    I think when we look at the economics of air travel, I3479think it is pretty clear that if you have larger aircraft going3480into a community less frequently, what that does is it drives3481people who wanted to travel on a Tuesday but the aircraft3482doesn't leave until Wednesday to make the choice to drive 6 or34838 hours or whatever it is to the next commercial airport that3484they need to get to.3485    That is going to result in fewer people actually taking3486that aircraft, so instead of having reasonably full 50-seat3487aircraft, you are going to have maybe a one-third-full larger3488aircraft. The airlines are going to find that less sustainable,3489and it creates a cycle where people are going to make the3490choice that they are going to find other ways to get places.3491    What that does to the community is it decreases their3492access to air service, it decreases their access to business3493opportunities, economic development, healthcare delivery3494services, other professional services, tourism. And so it3495creates a vicious cycle, and so, it is self-defeating in a3496larger sense.3497    So that is why I think that if aircraft were available and3498the market could choose the right-sized aircraft that were3499available to fit different communities, we would see much more3500robust activity in these communities.3501    Mr. Larsen of Washington. Yes. Thanks.3502    Mr. Collins, I noted in your testimony that you have3503started or you are studying the high school programs that3504support aviation maintenance technicians. And, thinking about3505the workforce, do you have a timeline for when you expect to3506finish that?3507    Mr. Collins. We hope to have that work completed in 2027. I3508can reach out to your staff and give you a more direct3509timeframe.3510    Mr. Larsen of Washington. All right.3511    And related, then: Have we asked you to look at the3512Aviation Workforce Development Grant Program? I noted that the3513administration has come out with a NOFO on it. I am a little3514disappointed with the NOFO. But have you looked at the grant3515program that we first created in 2018, those section 6253516grants?3517    Mr. Collins. I will need to get back with your staff to see3518if we have had any prior work and then to see if that grant3519program will be a part of any upcoming work.3520    Mr. Larsen of Washington. Yes. Great. Thanks. I appreciate3521that very much.3522    Ms. Black, please explain how this unexpected fuel shock3523has impacted carriers.3524    Ms. Malarkey Black. Absolutely.3525    So there are two business models that govern regional3526airlines--the way that we bring passengers to larger airlines3527and through the system. One is capacity purchase agreement.3528That is where, essentially, we operate the flight with our3529aircraft and our crews and maintenance but the major airline3530sets the fare and pays the fuel.3531    So we are not necessarily directly impacted under those3532business relationships, but the market dynamics are. And on a3533smaller flight, again, with fewer seats over which to absorb3534costs, in a thin market that is already fragile in terms of3535margins, those economics can get upside-down pretty quickly.3536And that is why, even though we don't necessarily write the3537checks for the fuel, it can impact the communities that we3538serve.3539    Mr. Larsen of Washington. Great.3540    And, Mr. Dobberstein, have you seen the impact of that3541experience in the last 12 to 13 weeks, on the fuel prices?3542    Mr. Dobberstein. Definitely. Certainly, increased cost to3543our passengers in our region has had an impact on their3544financial ability and so forth. But, yes, we definitely have3545seen an impact on that as well.3546    Mr. Larsen of Washington. Has that meant fewer enplanements3547out of Fargo?3548    Mr. Dobberstein. Not necessarily. We have been fortunate to3549have record enplanements so far since January of this year. But3550we do expect----3551    Mr. Larsen of Washington [interrupting]. Just more----3552    Mr. Dobberstein [continuing]. It going forward.3553    Mr. Larsen of Washington. Just more complaints.3554    Mr. Dobberstein. More complaints. Yes, that is correct,3555sir.3556    Mr. Larsen of Washington. Yes. Sure. Thank you.3557    So, when we increased the--sorry. I will be quick here.3558    When we increased the AIP to $4 billion annually, a large3559portion of the increase went to smaller airports. Have you been3560able to take advantage of that particular set of dollars?3561    Mr. Dobberstein. Yes, sir. We are in the middle of a major3562terminal expansion project in Fargo. It is about $110 million.3563And we have been working with our congressional delegation and3564the FAA to obtain those funds, yes.3565    Mr. Larsen of Washington. That's great. I appreciate it.3566Thank you very much.3567    Mr. Dobberstein. Thank you.3568    Mr. Nehls. The gentleman yields.3569    I now recognize Mr. Perry.3570    Mr. Perry. Thanks, Mr. Chairman.3571    And I thank the witnesses for being here.3572    The purpose of this hearing is to highlight some of the3573issues hindering air service to small communities and look at3574the Federal programs intended to support those services.3575    Unfortunately, I think--I would just like to have a3576discussion about this--we keep on throwing money after what3577seems to be economically unfeasible routes. And these market3578interventions have, in turn, created additional problems that3579we want to address, but the answer always seems to be ``throw3580more money at it.'' And I am not sure that is the best answer,3581and certainly I don't believe that is the sustainable answer.3582    It is the inevitable result of a program like EAS--and I3583know each one of you, I think, has supported it and said that3584we should actually do more of it. But it does allow the3585Government to choose winners and losers based on what are3586oftentimes political calculations as opposed to actual service3587needs.3588    The program was created by the Airline Deregulation Act of35891978 as a temporary--I will remind everybody--a temporary3590program as the industry was deregulated. It is the perfect3591example of no Government program really being temporary. It is3592nearly 50 years later, and the program remains in place,3593receiving $687.5 million in fiscal year 2026.3594    In recent years, the program costs have skyrocketed,3595increasing 31 percent from 2018 to 2024. And there seems to be3596little incentive to maximize productivity, because the3597Government just pays for it.3598    The subsidy does pick winners and losers among airports and3599communities, as neighboring airports compete against those that3600are subsidized by taxpayers at the Federal Government level for3601essentially the same market, in many cases. Making matters3602worse, the DOT has approved subsidies for EAS-funded leisure3603routes, creating even more Government-funded competition for3604non-EAS airports.3605    Moreover, the EAS program as well as the SCASDP program3606have created perverse incentives for airlines that damage the3607ability of non-EAS airports to compete with their subsidized3608neighbor airports, as they are forced into a pay-to-play3609revenue-guarantee scheme just to attract the service.3610    Now, Congress has acknowledged the unfairness of these3611subsidies for neighboring airports when creating the program,3612and it structured it to alleviate the most obvious economic3613harm created by the issue, which is banning access to EAS3614subsidies within 70 miles of medium- and large-hub airports and3615placing reasonable restrictions within 175 miles.3616    Those restrictions have not applied to small-hub airports,3617however. And those are the ones that have far more limited3618financial resources to withstand the competition, and they3619could actually benefit from additional enplanement.3620    As a result, we end up with absurd outcomes like you have3621in the district that I am honored to represent, where3622Harrisburg International Airport is forced to compete with an3623EAS-subsidized airport 32 miles away.3624    And I am not trying to punish that airport. I mean, I am3625happy for those folks, and I have landed at that airport. We3626are happy that it is there. But I have to defend the airport3627and the airport system that I represent.3628    This is to Mr. Collins: Do you think applying the3629preexisting restrictions to small-hub airports would help3630foster a more fair environment that doesn't force airports to3631compete with neighbors that are funded by their own tax3632dollars?3633    Mr. Collins. So we have not taken a position on that3634particular issue. Ultimately, those are----3635    Mr. Perry [interrupting]. Yes, but I have to take a3636position on that issue. So we are here to discuss that, and it3637would be great if the experts, so to speak, would weigh in with3638something other than, ``Yes, the situation sucks, but we don't3639have an answer, so you all figure it out.'' That is why we are3640having the discussion--like, that is essentially what we are3641saying here, right?3642    So can you--you are saying you don't take--does anybody3643take----3644    Mr. Collins [interrupting]. So what I can say is, in our3645discussions with stakeholders, some have noted that perhaps,3646with EAS, it should be targeted to those communities that are,3647quote/unquote, ``truly remote,'' which, again, is a decision3648for Congress to make.3649    But, to your point, there are voices that understand that3650the subsidies can create distortions in the market. And3651ultimately, again, it is up to you all to decide which----3652    Mr. Perry [interrupting]. Well, it would be good to have,3653like, some information from you folks that live this day-in and3654day-out.3655    Look, I am a fan of airports. I used to fly and land at3656them. We are not building any new ones, so we want to retain3657the ones that we have. We all get that.3658    But what market-based reforms do you think could be made to3659help these airports grow, without throwing more tax dollars to3660make them compete against the very money that they earned3661against their competitors just a few miles away?3662    And, like I said, we are not mad at their competitors. We3663want them to remain, too. But there has to be some market-based3664approaches, because the Government has sought to fix this3665problem, they haven't fixed the problem, and the answer is to3666throw more money at it, which tends to make either the problem3667worse for the airport that is not participating or create a3668whole new problem which we are not addressing.3669    Mr. Nehls. The gentleman has run out of time. You may have3670to send him an email.3671    I now recognize Ms. Scholten for 5 minutes.3672    Ms. Scholten. Thank you so much, Chair Nehls and Ranking3673Member Carson, for holding this really important hearing.3674    The Essential Air Service program is truly a lifeline in my3675district and throughout other portions of rural America.3676    Muskegon County Airport is a key connector to west3677Michigan, and since changing EAS providers, the airport and3678surrounding region has seen incredible growth. In just 1 year,3679MKG has seen a 55-percent increase in passenger activity.3680Through support from the EAS program, enplanement at the3681airport has increased by nearly 200 percent, putting it on a3682clear path to return to primary airport status.3683    Additionally, the airport has made measurable progress in3684reducing its EAS support, from $484 per passenger in 2025 to an3685expected $300 or less in 2026. This is significant progress,3686and it is why I am so concerned about proposed statutory3687changes to the EAS program outlined in the President's fiscal3688year 2027 budget.3689    The proposed changes would eliminate EAS budget eligibility3690for communities within 75 miles of small-, medium-, or large-3691hub airports. Additionally, the language would eliminate3692program eligibility for communities whose per-passenger subsidy3693exceeds $350 in the most recent fiscal year, regardless of3694distance from the hub.3695    If the President's proposals were enacted, rural3696communities, including Muskegon, would be cut off from critical3697aviation and, effectively, the rest of the country.3698    The demands for these services are real and will not simply3699disappear. Costs will be displaced onto residents and3700businesses looking to grow their workforce.3701    Mr. Pecoraro, can you please speak to the economic impacts3702associated with successful use of the EAS program, as well as3703how limiting access to the program would hurt local job growth3704and tourism?3705    Mr. Pecoraro. Thank you, Ms. Scholten.3706    First, let me thank you for mentioning Muskegon County3707Airport. It is a great success story in Michigan, and we are3708very pleased at how well they are doing there.3709    I would note that, in Michigan, in addition to that,3710Michigan DOT's Office of Aeronautics operates a commercial air3711service development program providing annual grants to3712commercial service airports across four areas: capital3713improvements to the equipment, air carrier recruitment and3714retention, airport marketing, aircraft rescue/firefighting3715training.3716    State engagement in these opportunities is critical for3717airports. And I think that in Michigan, we are seeing great3718examples of how that works. And we love to see it when State3719aviation agencies have the resources to be able to support3720those types of programs.3721    And I think that that is a great example of what is3722necessary, to the point of your question, is that we need a3723holistic approach to solving this problem. It is bigger than3724any one airport, any one Federal program, any one State. There3725needs to be a larger approach to this to really try and get to3726this whole range of problems in order to make an airport3727ecosystem healthy.3728    And so that is what we are encouraging, and that is what we3729support today.3730    Ms. Scholten. It is absolutely what we are seeing on the3731ground as well. So thank you for that.3732    Keeping on with the economic development, families across3733the Nation are feeling the pain at the gas pump as the3734President continues unauthorized military action in Iran. And3735we are so proud of the War Powers Resolution that we got passed3736in the House of Representatives yesterday to give the people3737their voice over this issue.3738    In the aviation sector, fuel is a major operating expense,3739so increased prices could drive up costs. While higher fuel3740prices may not always result in a complete loss of service,3741they can absolutely make it more difficult to operate smaller3742aircraft on routes that already have really thin margins.3743    You know I am coming to you, Ms. Black. You are already3744nodding.3745    In your written testimony, you touch on the threat of jet3746fuel prices to small communities. Can you describe how fuel3747costs influence decisions about route frequency, aircraft3748deployment, and service to smaller communities?3749    Ms. Malarkey Black. I am going to start with the mechanics3750of the cost, because that is the part that we control.3751    And when you deploy a small aircraft, whether that is 50 or375276 seats, you don't amortize the costs, whether it is labor or3753fuel, the same way that you do over 135, 150, 300 seats, right?3754So the math is just very different.3755    And when you are going into small communities, they have3756fewer passengers traveling, so these are already fragile3757markets. And, in that way, it can become unprofitable very3758quickly. So it is not just a matter of our costs are lower3759here, but we are actually in the red.3760    Where those actual deployment decisions lie are with our3761major airline partners. But we can tell you that, when capacity3762is extracted from the system, it is typically regional3763capacity, and it is typically the smaller communities that are3764impacted first, in part because that inconveniences the fewest3765amount of travelers. But, unfortunately, for those in rural3766communities, it can be very painful.3767    Ms. Scholten. Okay. Thank you.3768    I am over my time, so I will yield back. Thanks for the3769response.3770    Mr. Nehls. Mr. Stauber, you are recognized.3771    Mr. Stauber. Chairman Nehls, Ranking Member Carson, let's3772get some spice into this meeting. We are talking about rural3773America, rural airports--Fargo, Duluth, Hibbing, Bemidji,3774Brainerd, International Falls. They matter. Our rural3775communities matter.3776    I am so proud of each and every one of you talking about3777rural America and rural aviation. Our communities need it. And3778this is a bipartisan issue. The vast majority of us support3779rural America, rural aviation, the connection therefore. We are3780not taking a back seat. None of you at that dais are taking a3781back seat, and I am so proud of you.3782    Mr. Dobberstein, $100 million in Fargo--that is3783spectacular. We have a $20 million investment in the third3784oldest control tower in America, the Duluth air traffic control3785tower. We are getting a brandnew one, 21st century.3786    I am excited about these programs, and I am excited to3787invest in rural America. We have taken a back seat long enough.3788    I know each and every one of you are proud of your rural3789airports--in Michigan. They matter to those communities. We3790shouldn't have to drive 6 or 8 hours. We shouldn't have the3791airline saying, ``We are going to bring bigger aircraft, 300-3792seat aircraft, and we are not filling them, so we are only3793going to come every third day.'' We need everyday service in3794our rural communities.3795    And one of the questions that was asked was the 50-seat3796passenger aircraft. Maybe we should talk to the aircraft3797manufacturers and work on getting more, because our rural3798airports serve the metro, the major ones.3799    The value that rural aviation brings to our economies and3800to the United States of America is incredible. You folks are3801the best spokespersons for that, and I am proud of you.3802    Mr. Dobberstein, how do Federal investments in rural and3803regional airport infrastructures, like the Duluth air traffic3804control tower, help grow surrounding communities and ensure the3805viability of regional flights for the foreseeable future?3806    Mr. Dobberstein. Thank you, Congressman, for the question.3807    Well, it is imperative. My mantra has always been that it3808takes three entities to support infrastructure investment in3809rural airports. It is the Federal Government. It is the State3810government, as well as the local community. Without those three3811working together, it would be impossible to fund airport3812infrastructure projects of the magnitude that we are doing in3813Fargo and other small rural communities around the country.3814    Mr. Stauber. Yes. It is that partnership that you see in3815local, State, and Federal. That is exactly what we did in3816Duluth's ATC.3817    Mr. Pecoraro, in what ways can programs like the Essential3818Air Service and the Small Community Air Service Development3819Program adapt to meet the needs of the community, the specific3820issues within the communities?3821    Mr. Pecoraro. Thank you, Mr. Stauber. That is an important3822question. I think that the way that we would like to see both3823EAS and Small Community Air Service Development Program work3824together is to look at the larger needs of these communities3825and figure out in the many years since these programs have been3826created, how has the industry changed? And I think that is a3827critical point to make. The way that the airline industry3828operated 40 years ago or more when these programs were created3829is very different than it is today.3830    And so the way we are going to serve these communities and3831support them is going to be very different than it was back3832then. So that is what is necessary, is to bring together all3833the stakeholders, including State and local governments, to sit3834down with Federal agencies to figure out exactly what we need3835to do to retool these programs to make them more cost-3836efficient, to make sure that there is local support for them3837because we don't expect the Federal Government to do it all by3838itself, and to make sure that we are able to provide the type3839of service that all these communities need.3840    Mr. Stauber. I appreciate that answer. I like the ability3841for our local community regional airports to make some of the3842decisions themselves, not be tied so tight to demands. I think3843you would agree. Allow our local communities to have some3844flexibility in their design or passenger experience. Would you3845agree with that?3846    Mr. Pecoraro. Yes, sir. And we also think that, looking to3847the future, that general aviation airports also have an3848important role to play, particularly as emerging aeronautical3849technologies provide some new opportunities for people to3850access the aviation system.3851    Mr. Stauber. Yes. Well, listen. I am so excited. I couldn't3852wait for this hearing because you are all proponents of what we3853believe in, rural aviation. We are not going to take a back3854seat, okay? We are going to be loud and proud, supporting our3855small rural communities, because we matter. Those of us who3856live in rural America matter, and you guys are in the fight3857with us, and I know that the chairman and ranking member are as3858well. I yield back.3859    Mr. Nehls. Love the passion, Pete. I love it.3860    Ms. Gillen, you are recognized.3861    Ms. Gillen. Thank you, Mr. Chairman, and thank you, Ranking3862Member.3863    And thank you to our witnesses for being here today.3864    I am proud to represent New York's Fourth Congressional3865District on the South Shore of Long Island, which is the home3866to TRACON N90, which manages the most complex and congested3867airspace in our country. As I saw firsthand when I visited,3868this facility relies on outdated technology, posing serious3869safety risk for the region and for our skies across the3870country. We must do more to invest in the safety of our3871airspace and give our controllers the resources that they need.3872    It is equally important that we invest resources in our3873airport towers, large and small. My district abuts to the most3874busy hubs in the country, JFK and LaGuardia Airport, but also3875smaller airports on the East End of Long Island. And I believe3876all of these airports deserve our support.3877    The smaller airports participate in the FAA's Contract3878Tower Program, which allows the airports to contract out3879operation of their towers to save these systems money and3880enhance safety. Unfortunately, many of these contract towers3881lack access to real-time situational awareness tools that are3882now the standard at the larger airports and that enhance the3883controller's visibility of aircraft operations.3884    Last month, my colleague Congressman Begich and I worked3885together to introduce the bipartisan Air Traffic Situational3886Awareness Enhancement Act, which would help close this gap by3887requiring the FAA to acquire and install these tools at3888contract towers and establish a training program to ensure3889controllers can effectively integrate and use them. I3890appreciated Ms. Black mentioning this important initiative in3891her testimony.3892    So, Ms. Black, I would like to give you a chance to speak a3893little bit about this important issue and how critical it is3894that we address the safety gap and move our legislation through3895Congress.3896    Ms. Malarkey Black. Thank you, Congressman, and thank you3897very much for your bill.3898    When we talk about air traffic control modernization at3899smaller communities, sometimes that just means doing the3900basics. And, as you recognized, some of the towers don't have3901radar. They don't have ADS-B In in the tower. They don't have3902that advanced digital situational awareness. And so they are3903looking out the window to separate aircraft visually. That is3904risk in the system, and it is something that we can mitigate3905right now. Your bill would do it. We are strong supporters. And3906count on us to help you advance it, because it should be3907passed.3908    Ms. Gillen. Well, thank you. I appreciate that.3909    And, as I mentioned, TRACON N90, the air traffic control3910facility for managing the New York airspace, is located in my3911district, and N90 controllers are responsible for managing air3912traffic in and out of two of the busiest airports in the world,3913JFK and LaGuardia, in addition to the smaller regional airports3914in the region like Republic Airport in Farmingdale and3915MacArthur Airport in Islip.3916    Despite their role managing the busiest airspace in the3917country, the N90 facility is among the most outdated and3918understaffed. While our aerospace industry continues to3919innovate and evolve, our controllers at N90 still work with3920floppy disks and paper strips. Mr. Dobberstein, in your3921testimony, you mentioned the impact of air traffic control3922constraints on smaller communities like yours. Can you3923elaborate more on the problems that these smaller communities3924face today because of our lack of investment?3925    Mr. Dobberstein. Well, one example would be the reduction3926in our frequencies to Chicago. Earlier this year, one of our3927carriers announced that they were going to add service to3928Chicago, additional capacity opportunities for our passengers.3929And then, as the cap came in place between the FAA at Chicago3930O'Hare, those flights were taken out. So our community is going3931to miss out on that additional frequencies and opportunities3932for our traveling public in our region.3933    Ms. Gillen. Thank you.3934    Mr. Pecoraro, you spoke in your testimony about the3935potential of advanced air mobility to transform how people and3936goods are moved. I have met with AAM companies and am excited3937by the opportunities that their aircraft present to reduce3938airplane noise and traffic congestion in my community on Long3939Island and across our country. Can you briefly talk about the3940potential for these new aircraft and the barriers that smaller3941airports like Republic and MacArthur may face in supporting3942their operations?3943    Mr. Pecoraro. Sure. Thank you, Ms. Gillen. Yes.3944    Briefly, I will just say that we think that, while AAM is3945not a short-term solution, certainly it has tremendous3946potential in the longer term to provide a great deal of3947additional access for people in a cleaner and quieter fashion.3948And we think that is certainly going to be important,3949particularly in districts like yours where that is a concern of3950many residents.3951    We think that one of the most exciting parts in the shorter3952term of providing this type of access is for fixed-wing hybrid3953aircraft to be able to provide regional aircraft--as we are3954talking about access to smaller communities--to maybe support3955or replace some of the aircraft that we were talking about3956earlier that are phasing out of their life cycle.3957    Ms. Gillen. Thank you. I look forward to working with you3958on this going forward.3959    Mr. Nehls. The gentlelady yields. I now recognize Mr.3960Owens.3961    Mr. Owens. Thank you. Thank you, Mr. Chairman and Ranking3962Member. I appreciate today's hearing on connecting rural3963America to the National Airspace System and the chance to look3964hard at whether our policies actually deliver for small3965communities. We rightly tout the safest, most advanced airspace3966in the world. But for too many of our rural families, the more3967basic question is whether they can access it at all.3968    When smalltown airports lose meaningful service, the only3969option becomes hours on the road to reach a hub. It means lost3970jobs, missed medical appointments, and young people simply stay3971home instead of chasing opportunity. And small businesses and3972local economies that depend on these flights feel it3973immediately.3974    In the 2024 FAA reauthorization, Congress and President3975Trump laid out a roadmap for rural aviation strengthening3976Essential Air Service and increasing airport improvement3977funding for airports that keep rural America connected. The FAA3978now has more authority and resources to support small3979communities than it has had in years, and I appreciate the3980professionals that are there who are trying to put these tools3981to work.3982    Folks back home assess by what they see on the departure3983board, not by what is written in statute. They see flights3984disappearing from small and nonhub airports. They see fares3985that climb faster in smaller markets than big hubs. And they3986see airlines consolidating services into a handful of major3987airports. The message we hear is simple: If Federal support and3988subsidies are on the table, we need to translate it to real3989opportunities for rural travelers, not just good intentions. I3990look forward to hearing from our witnesses today what target3991steps this subcommittee and the Trump administration should3992take next to make sure rural Americans get more than just a few3993promises on paper.3994    With that, I move on to my questions.3995    Ms. Black, in rural States like Utah, many small airports3996may never see a regional jet again, but they could receive3997supportive advanced air mobility, port-to-port connectivity3998that underserved communities need. With companies like BETA3999Technologies already active in Utah, ahead of Olympics and DOT4000leadership, publicly highlighting these opportunities, what4001does the regional airport industry need to see from Congress to4002ensure small airports are not left behind as AAM scales, and4003are we putting the right infrastructure and certification4004framework in place to make that happen?4005    Ms. Malarkey Black. Thank you for the question.4006    We are very excited about AAM technology. Unlike a lot of4007investments, this is coming to market on the smaller side and4008capacity, on the regional side. So we are excited about it.4009    At the same time, some of these developments are 5, 104010years away. So we do still need to have investment in the fleet4011to conserve markets right now.4012    In terms of helping airports prepare for bringing this4013technology online, I think some of the support may be4014financial. They need to be able to meet the needs of the new4015aircraft, having charging infrastructure, change the way that4016we are dealing with propulsion and the maintenance. And so, I4017think continuing to look at that would be really important. At4018the FAA, it is important that they have the ability to certify4019these new technologies as they come online and help to4020integrate them into the system safely.4021    Mr. Owens. Mr. Collins, GAO has been tracking small4022community air service for years. When you look strictly at the4023data since the 2024 FAA reauthorization, including new subsidy4024caps, SCASDP increases, and AIP changes, do you see any early4025signs that these reforms are stabilizing the service at small4026and nonhub airports, or are we still on the same downward4027trajectory in terms of departure and connectivity?4028    Mr. Collins. Our work has shown that we are still on the4029same downward trajectory. I think one of the challenges with4030the SCASDP grants is they are facing cost pressures and can't4031always provide the minimum revenue guarantees that airlines are4032demanding. And that makes it difficult for them to attract and4033then, once they attract, continue service.4034    Mr. Owens. Okay.4035    Mr. Pecoraro, setting Federal policy aside for a moment,4036what is the most effective thing State aviation agencies can do4037right now with the tools already in hand to strengthen rural4038air service, whether it's targeted State grant programs,4039coordinated marketing, or smarter system planning, what does a4040gold standard State playbook look like, in your view?4041    Mr. Pecoraro. Thank you, Mr. Owens.4042    Certainly, system planning is always critical. To be able4043to look ahead and understand what the changing needs of the4044community are going to be so that we can help those local4045airports plan for that service is always critical.4046    The second most important thing, I think, is the4047partnership that State aviation agencies have with the FAA.4048State agencies who work closely with the FAA from the4049headquarters to the regional offices to the airport district4050offices to make sure that the right funds are flowing to4051airports in accordance with that system plan so that we can try4052and meet the infrastructure needs of those airports. And that4053is a great deal of what State agencies are concerned with, is4054trying to make sure that the infrastructure is right.4055    Beyond that, and I would say, looking to the future, we4056have got to look to how we want to develop the airports of the4057future. And so we appreciate this committee in the4058reauthorization bill creating planning grants so that airports4059and State aviation agencies are going to be looking at those4060issues in the near term so that we will be prepared for the4061future.4062    Mr. Owens. Thank you. And I yield back.4063    Mr. Nehls. The gentleman yields. I now recognize Ms. Titus.4064    Ms. Titus. Thank you, Mr. Chairman.4065    I represent the First Congressional District in Nevada.4066That is the heart of southern Nevada, including Las Vegas. But4067you also have the Henderson Airport and the Boulder City4068Airport, and traffic is increasing to both of those general4069aviation as people come in to Las Vegas for all these big4070events that we are anticipating. We have got 40 million4071visitors a year, and travel and tourism contribute $86 billion4072to our economy. So this is the key to our success and survival.4073    As a member of this committee, I have always had a priority4074to be sure that everybody has access. We want people to come4075from everywhere to Las Vegas. So small town, rural, big city,4076we want them to have that kind of access that is convenient and4077affordable. And we know that their experience in Las Vegas4078begins the minute they get to the airport or get on the plane.4079It doesn't start once they get to the Strip.4080    So Federal assistance like the Small Community Air4081Service--let me get this right--Small Community Air Service4082Development Program has helped people from all kinds of4083different regions. I think a couple of years ago, both Salem,4084Oregon, and Corpus Christi, Texas, received some of this4085funding that supported marketing and revenue sharing for Las4086Vegas routes.4087    So can I ask you, Ms. Black, how would you speak to the4088contribution of regional airlines to supporting travel and4089tourism? How does travel and tourism impact your members'4090decisions of what routes to add, and are there any emerging4091markets that you all are looking at or changing up, like4092southern Nevada?4093    Ms. Malarkey Black. Thank you for the question.4094    Regional air service to the smallest communities alone, I4095will start with the big one, is the economic impact. It drives4096$153 billion in yearly economic activity. And that's probably a4097conservative estimate, because we weren't able to capture all4098of the downstream that you are talking about that really does4099generate.4100    But the part that is missing from that equation is quality4101of life and the ability to connect to places like Las Vegas4102from wherever you are. Sometimes we treat driving and flying4103like it's neutral exchange, and it's not. It's actually--there4104is a safety benefit as well, because last year, almost 40,0004105people lost their lives on the highways. Flying is much safer.4106So air transportation is part of a safer transportation system.4107    When it comes to the programs that support it, EAS4108similarly is a force multiplier. It drove $2.3 billion of4109economic activity before the pandemic, supported 17,000 jobs.4110These are just some of the ways that air service is extremely4111valuable. We should continue to keep supporting it.4112    Ms. Titus. Thank you.4113    Part of this access, too, is affordability. And so I ask4114you, Mr. Collins, we have seen the domestic airfare for most of4115the small communities has increased at a higher rate than from4116the major carriers. Is there a reason for that domestically and4117something we need to be doing to address it to help with that4118situation?4119    Mr. Collins. So we have not done specific work looking at4120the changes in airfares. What I can say is that generally, the4121increased operating cost is having an effect for all routes4122within the country.4123    Ms. Titus. I know that's true, but I think there are some4124statistics that show it has increased more for these small4125regional airlines than for the bigger ones, and I thought maybe4126there is a reason for that.4127    Mr. Collins. Yes. We have not done any work to----4128    Ms. Titus [interrupting]. Economies of scale, maybe.4129    Okay. Well, domestic travel is more important than ever4130right now because international tourism is down. We certainly4131see it from Canada and Mexico in Las Vegas. And all across the4132country people aren't coming here. It is more expensive. The4133gas is higher. The rhetoric is negative. The visa process is4134lengthy and complicated. We are adding fees to national parks.4135That is not helping with tourism. Adding requirements for4136looking at your social media to get a visa, that is not helpful4137for tourism. So the more you all can do internally, the better.4138    I would just mention real briefly getting the TIFIA4139eligibility in the recent moved 250 bill seems to be something4140that will perhaps help you with the infrastructure of your4141airports. Are you all involved in that or aware of that or----4142    Mr. Pecoraro [interrupting]. Yes, ma'am. That's certainly a4143valuable tool that many airports use.4144    Ms. Titus. Okay.4145    Mr. Pecoraro. And I would just say, if I could, Elko4146Airport in Nevada, I am not sure if that is in your district--4147--4148    Ms. Titus [interrupting]. No, it's not, but I am aware of4149it.4150    Mr. Pecoraro. That has been one of the real success stories4151using the Small Community Air Service Development Program to4152restore midday service to the airport.4153    Ms. Titus. Great. And I have to drive all that way on the4154loneliest highway to get from Elko to Reno. It's a long way.4155    Mr. Pecoraro. Yes, ma'am.4156    Ms. Titus. Thank you very much. I yield back.4157    Mr. Nehls. The gentlelady yields. I now recognize Mr.4158Barrett.4159    Mr. Barrett. Thank you, Mr. Chairman.4160    Thank you all for your testimony. And I think, as we look4161at the nature of what we are discussing today, too often we4162talk about rural communities--like the area that I serve or4163other small towns and medium-sized communities across our4164country, especially in the Midwest--we call those flyover4165country. Well, those aren't flyover country. They are areas4166where people take off and land and go about their business that4167they need to connect to the national airspace and get to their4168destination.4169    I take the flight from Lansing here to Washington, DC,4170right, from my district close to home and can arrive here4171safely and in time for the responsibilities and the business of4172the day that I have here as a Member of Congress. And that is4173an important thing that I appreciate. And other people are on4174that flight; they are connecting to somewhere else at4175Washington, DC, or whether they have business here, connecting4176our State capital with our Nation's Capital is an important4177piece. But that is true of every regional airport we have4178throughout our country, that it connects people to the places4179they need to go or to the next stop in their travel, ultimately4180to their final destination.4181    Mr. Pecoraro, right? Did I say that correctly? I know you4182were talking to my colleague, Ms. Scholten, about some of the4183synergy between the State of Michigan and our aviation office4184there and some of the Federal programs and everything. I was4185curious, one of the things we are proud of in Michigan, in4186Lansing in particular, is there is the shared collaboration4187with Lansing Community College around their maintenance program4188they have through Lansing Community College at a municipal4189airport outside of Lansing that they train students on for4190aircraft maintenance. That can be a tremendous career and can4191help kind of break through some of that shortage that we have4192now. I was curious if you had any thoughts on that or any of4193the work that is being done through, kind of, an innovative way4194that we have seen in my district.4195    Mr. Pecoraro. Sure. Thank you, Mr. Barrett.4196    I don't know the specifics of that particular relationship,4197but I do know that, as I have traveled around the country4198visiting with State aviation agencies and talking with them,4199that is not an uncommon relationship. And you find frequently4200that State aviation agencies, local airports, local educational4201facilities, particularly those who are providing that type of4202aeronautical training, have developed really valuable4203partnerships, because nowhere more so than in aviation do4204people appreciate the tremendous importance of building that4205pipeline for the workforce early on in trying to bring young4206people into the industry and bring them into these really good-4207paying jobs----4208    Mr. Barrett [interposing]. Yes.4209    Mr. Pecoraro [continuing]. And keep them in the community4210doing those jobs.4211    Mr. Barrett. Yes. Great careers that they can do at an4212affordable tuition rate, close to home. Maybe they can still4213live at home while they are completing this program.4214    Mr. Pecoraro. Absolutely.4215    Mr. Barrett. It is ranked currently as the best in the4216Midwest. That is something we are very proud of and would4217encourage any time you would like to come visit. We would love4218to have you see it.4219    Mr. Pecoraro. Thank you. I would love that.4220    Mr. Barrett. And appreciate that.4221    Ms. Black, I had a question for you. I know you mentioned4222earlier in your testimony about the Montgomery GI bill and some4223of the limitations around flight training there. I know that we4224do have an ability right now to use the GI bill for flight4225training, but there are annual caps around that. I happen to4226also serve on the VA Committee, which, of course, is not the4227subject directly of jurisdiction, but just last month, we4228reported a bill favorably out of committee that would increase4229that cap to where it is not running on an annual basis. It4230would be a cap for the entirety of the benefit. With that, it4231would be a $100,000 lifetime cap, more or less, that you could4232take at your own pace to achieve the flight training that you4233need. Obviously there are limitations on that. We want4234accredited programs so that people are getting real benefit out4235of that. Would that help resolve the issue that you have4236described?4237    Ms. Malarkey Black. Yes, it does help. Anything that starts4238to right-size the ability to finance the education for the4239actual cost of the education is very helpful. One of the most4240important things that can be helpful there, though, is allowing4241that GI bill to be used for the first phase of certification,4242which is a private pilot certificate. Right now, the rules4243preclude using for that, and that is the gateway, and that can4244cost $20,000 or more. So it is a prohibitive expense for people4245to cover out of pocket just to get in. So that is something4246that would be very effective.4247    And, if I may, no flyover country. We have built our4248business around landing at the places where other people fly4249over. So thank you for saying that.4250    Mr. Barrett. Yes. Thank you.4251    Last question with the time I have left. I know you4252mentioned some of the issues with ADS-B and other things. We4253have taken on a considerable amount of effort here after the4254tragedy that we had here over Washington, DC's airport about a4255year and a half ago. Yesterday, I had a meeting with some4256airline pilots who are from my district who said that ACAS4257technology could be a considerable number of years away,4258whereas we seem to be taking testimony that it is far closer4259than that, maybe within the next year. Do you have any thoughts4260on where that stands? If it is a technology gap, if it is a4261hardware gap, or if it is something that we can integrate more4262quickly.4263    Ms. Malarkey Black. I would start with saying ACAS X is the4264end goal. We support it. We thought that the committee looked4265at the advanced technology. There is a misconception out there4266that only ACAS X is the long-lead technology. In fact, for a4267lot of the fleet, including almost all of the regional airline4268fleet, there is not right now certified product for ADS-B In4269for regional, so we support that. But what we suggest is a4270bridge that allows us to get right now those safety4271improvements rather than waiting until 2031 or, in reality,4272likely after that, because the supply chain is not positioned4273to get us there by 2031; to use the electronic flight bags is4274an interim measure that will immediately start providing a4275safety increase and enormously increase situational awareness4276compared to where it is now.4277    Mr. Barrett. Thank you, Mr. Chairman. Apologies for running4278late.4279    Mr. Nehls. The gentleman yields.4280    I now recognized Ms. Norton.4281    Ms. Norton. Thank you.4282    I have been working for years to combat aviation noise in4283the District of Columbia. The 2024 Federal Aviation4284Administration reauthorization law included my provision4285requiring the Government Accountability Office to conduct a4286study of helicopter noise in the National Capital region. The4287study, which was published in March of this year, recommended4288that the Army, Navy, Air Force, and the Department of Homeland4289Security develop and implement awareness and outreach programs4290for communities affected by helicopter noise in the National4291Capital region.4292    Mr. Collins, what progress have these agencies made in4293implementing this recommendation?4294    Mr. Collins. So, DoD agreed with our recommendations, and4295they are planning to provide us with a corrective action plan4296later this month. And that plan will outline the steps that4297each service will take to implement the recommendations. And so4298we can keep you and your staff apprised once we receive the4299plan.4300    Ms. Norton. Thank you. I yield back.4301    Mr. Nehls. The gentlelady yields.4302    I now recognize Mr. Bresnahan.4303    Mr. Bresnahan. Thank you, Mr. Chairman.4304    This hearing hits home for Pennsylvania's Eighth4305Congressional District. Northeastern Pennsylvania is home to4306the Wilkes-Barre/Scranton International Airport, as well as4307smaller general aviation hubs like Hazleton Regional, Mount4308Pocono, Cherry Ridge, Flying Dollar, and Wyoming Valley.4309Nonairport hubs, like AVP, don't always make it into national4310conversations but are just as critical to the region's4311connectivity and economic vitality.4312    Northeastern Pennsylvania interstate rail service--not4313yet--has limited intercity bus options, which means aviation4314isn't just a convenience for my constituents. It is a lifeline.4315    I am glad the subcommittee has taken the time today to4316focus on the challenges facing small and rural communities and4317make sure they are not left behind.4318    One of the most pressing issues facing AVP--Wilkes-Barre/4319Scranton International Airport--is the FAA has proposed the4320decommissioning of the MALSR approach lighting system on4321popular runway 4. Ms. Black, regional carriers like Piedmont4322are the ones actually flying into airports like Wilkes-Barre/4323Scranton. AVP has shared concerns that the decommissioning of4324these MALSRs will lead to higher approach minimums, reduce4325capacity, more cancellations, and ultimately lost service. From4326your perspective, how does degraded approach infrastructure or4327safety infrastructure in general factor into an airline's4328decision to maintain or reduce service at nonhub airports? And4329is this a pattern that you are seeing at other small community4330airports across the country?4331    Ms. Malarkey Black. Mr. Bresnahan, thank you for the4332question.4333    I am going to avoid commenting on the specifics of that4334because I am not very well aware of it. But I will talk4335generally. Having that infrastructure at small airports is4336critical. And ensuring that we bring--not just decommissioning4337but we actually bring modernization to airports of all sizes,4338it is very important. Small airports that have limited runway4339size, that impacts the kind of aircraft that you can attract to4340the airports. So we want to make sure that we are moving in the4341right direction and making investments in our small community4342airports.4343    Mr. Bresnahan. Are you seeing any other airports that any4344of your membership companies operate out of that have seen4345disruptions because of inadequate upgrades to a specific4346facility?4347    Ms. Malarkey Black. I will give you an example of a public-4348private partnership that developed in response to exactly that4349kind of a disruption in Coeur d'Alene, which I believe just has4350cargo. And this specific airport needed to have a tower. And,4351for years, they petitioned to get the tower, and then they took4352matters into their own hands. And the airline and the community4353came together, and they actually constructed a tower. So the4354answer is yes, and there are some examples that show it.4355    Mr. Bresnahan. I appreciate it. And I know we were all4356excited about the massive downpayment this committee has made4357in ATC modernization. Billions of dollars are currently being4358invested to, and we have seen real capacity and efficiency4359gains where these upgrades have been made.4360    Mr. Dobberstein, from your perspective as an airport4361operator, are nonhub airports getting their fair share of those4362investments?4363    Mr. Dobberstein. Thank you for the question, Congressman.4364    I don't believe so. I think there is more that can be done4365for the nonhub and small-hub airports around the country to4366invest in that infrastructure, Fargo being one of them. We are4367coming up on an aging air traffic control facility in our4368community and are looking for ways to make improvements or4369replace that control tower, just as they are in Duluth,4370Minnesota, right now.4371    Mr. Bresnahan. What does the modernization picture look4372like on the ground at smaller airports? And where do you see4373the biggest gaps? And what do you think Congress, and4374specifically this committee, could be doing a better job to4375help those small community airports?4376    Mr. Dobberstein. In terms of technology, just making4377certain that the most up-to-date technology is available in4378terms of radar coverage; the equipment that is in the control4379towers that the controllers are working with is up to date and4380the most efficient that can be available for them; that the4381training for those controllers is efficient for the size4382airport that they are working and the airspace that they are4383responsible for.4384    And, in terms of things on the ground, we are looking at4385VMAT as well, the transponders for our vehicles, for aircraft4386and our tower. We are working with suppliers right now on4387trying to implement that yet this summer so that we can become4388more safe as well. So anything to improve safety. This4389committee has done a lot of work to improve safety, both the4390House and the Senate, and we certainly appreciate that4391investment and look forward to more investment in those4392technologies that can improve safety, whether it is at the4393tower or on the ground, that protect my employees as well as4394those that are on the aircraft patronizing our airport.4395    Mr. Bresnahan. Well, I appreciate the feedback. And, to all4396the witnesses, thank you for being here.4397    With that, Mr. Chairman, I yield.4398    Mr. Nehls. The gentleman yields.4399    I now recognize Mr. Hurd.4400    Mr. Hurd of Colorado. Thank you, Mr. Chairman.4401    I want to circle back on something that my colleague from4402Nevada had mentioned about airport infrastructure financing. I4403represent Colorado's Third District. It is about half of the4404State's geographic footprint. It is quite large, and airports4405are a critical part not just for transportation, but also they4406are economic lifelines in western and southern Colorado.4407    We have heard discussion about the $175 billion4408infrastructure gap at airports across the country in large4409cities as well as in communities like those that I represent.4410And I worked with my colleague Mr. Garamendi across the aisle4411on the Airport TIFIA Financing Certainty Act. I am pleased that4412that was a part of the Build America 250 Act that we passed out4413of this committee just a few weeks ago.4414    Mr. Dobberstein, can you talk a little bit about rural4415airports taking advantage of financing tools such as TIFIA? How4416important is this to ensure that important projects go from4417ideas to reality?4418    Mr. Dobberstein. Congressman, thank you for the question.4419    First of all, thank you and the committee for including4420TIFIA in the highway bill. That is very important. I believe4421and AAA believes that the program needs to be extended. It is a4422critical tool for airports to have at their disposal as they4423look to finance important and critical infrastructure projects4424at their airport, to improve safety and capacity and enhance4425the experience for our traveling public. I also do believe that4426possibly more education needs to be provided to airports so4427that they understand the TIFIA program and what is available to4428them as this is a tool in their tool kit to finance important4429projects.4430    Mr. Hurd of Colorado. All right. Not everyone is aware of4431it or aware of how it might be used.4432    Mr. Dobberstein. Correct.4433    Mr. Hurd of Colorado. Okay. Great. We can definitely do a4434better job in that regard.4435    Mr. Pecoraro, next question for you. Workforce development4436and retention are one of the most critical issues in aviation,4437and rural communities like those that I represent feel that the4438hardest. Oftentimes, pilot workforce shortages are forcing4439communities to see reduced service as a result. They also have4440challenges keeping key staff beyond pilots. Air traffic4441controllers, specialists, TSA security specialists, aircraft4442maintenance is another issue, gate agents and so on. Having a4443strong workforce pipeline is key to ensuring that we have the4444strong supply of employees needed to support expanded4445opportunities for passenger service.4446    I wanted to ask you specifically about a particular4447technology that is of interest to us in the West, which is--and4448it could be promising on the air traffic control front--which4449is remote towers, which allow air traffic control officials to4450remotely direct traffic to nontowered rural airports. In my4451mind, this allows for the extra layer of security and certainty4452that ATC provides, but also gives some flexibility to rural4453airports to meet their individual needs.4454    How can Congress leverage innovative technologies like4455remote air traffic control to better serve small and rural4456airports like those in western and southern Colorado?4457    Mr. Pecoraro. Thank you very much for that question, Mr.4458Hurd.4459    We at NASAO think that those types of towers are a critical4460part of the future and are going to be very important to4461aviation safety going forward. As you know, Colorado is a4462leader in this area, and we were very disappointed when the4463earlier round of research into these towers didn't work out4464with the FAA. There was a great facility in Colorado where they4465were working on it, as well as one in Leesburg, Virginia. Both4466showed tremendous potential. We are glad that it is in the4467reauthorization bill that you all passed. We are glad that the4468FAA is moving forward again on relaunching that effort. And we4469think that there is a tremendous potential for creating safety4470at a lot of airports that can't afford a regular tower or a4471contract tower, that this can provide avenues for aviation4472safety and for people to understand what's happening on the4473ground at these airports.4474    Mr. Hurd of Colorado. Amen, and agreed. We need to keep4475pushing. Thank you very much for that.4476    Ms. Malarkey Black, as I mentioned earlier, airports are a4477gateway to jobs. They are an economic lifeline, healthcare,4478education, tourism, business opportunities, all those things.4479They are not only home to regional airline services but also4480business: aviation operators, air ambulances, agricultural4481aviation, flight schools, and other users as well. From your4482perspective, how does the loss of regional airline service4483affect the long-term viability of these smaller airports and4484their economic outlook?4485    Ms. Malarkey Black. Thank you for the question.4486    If you look at the headlines from when regional airlines4487had to park one-quarter of our fleet and capacity dropped out,4488it was ``Communities Are in Crisis,'' and you saw airport4489directors that were talking to the press, talking about what a4490calamity it was. This is not just an economic impact, but it is4491a real decisive change to the quality of life of the people who4492live there. So I think it is very harmful when there is a4493problem with the regional service and with the air service at4494the airport.4495    Mr. Hurd of Colorado. Thank you very much for that. And,4496Mr. Chairman, I see my time has expired.4497    Mr. Nehls. Yes, sir.4498    Mr. Knott, you are recognized.4499    Mr. Knott. Thank you so much, Mr. Chairman. It is great to4500be here. This is an important topic.4501    I represent, sort of, the Triangle Region of North Carolina4502and east, which is a fertile ground for rural airports. And I4503have an interesting story. My grandfather, a number of years4504ago, actually came back from World War II and sent a request to4505Mr. Cessna about how to construct an airport. He had put4506together various parcels of land, and Mr. Cessna wrote him back4507with a ``how to'' manual. So my grandfather contracted all of4508the necessary components. He graded the airfield. And that4509airport is still in existence today in eastern Wake County,4510North Carolina. And it sort of hits on what I want to talk to4511you all about.4512    There are obviously a lot of headwinds for the rural4513aviation industry. Cost is certainly a component, but it is not4514necessarily the cost of material and labor. It is the4515regulatory cost that comes with the delays, the permitting, the4516frivolous lawsuits. And it is a tragedy whenever a decades-old4517or even older airport will close because they cannot maintain4518compliance because of the bureaucratic overhangs or the4519regulatory cost imposed with that.4520    So, Mr. Dobberstein, I want to talk to you first. What are4521ways that we in Congress can streamline and can make it more4522economical to maintain existence as a rural airport? I am4523talking about small rural airports.4524    Mr. Dobberstein. Certainly efficiencies in the4525environmental process would be very beneficial. Working with4526our State agencies, the department of health in our State, our4527local engineers who are experts in those environmental4528concerns----4529    Mr. Knott [interposing]. Right.4530    Mr. Dobberstein [continuing]. We all want to be safe in the4531environment and everything that we do. But, certainly, trying4532to expedite the environmental reviews for these important4533infrastructure projects that we are trying to complete in our4534airport and other airports across the State and country would4535be vital for us.4536    Mr. Knott. And, in regards to the--I would say, the4537challenges that you face currently to maintain your economic4538vitality, how would you order those in terms of the top three4539that Congress can help you with? What are the biggest4540challenges that you have?4541    Mr. Dobberstein. Certainly funding is one, to have4542available funding. And, as I said before, that is a Federal,4543State, and local community partnership.4544    Relief with those environmental regulations and policies4545that we are trying to fight through with the FAA and other4546Federal agencies would be of benefit.4547    And then also just trying to provide the extra funds for4548safety improvements at our airports and airports across the4549country to make it safe not only for my employees that are out4550in the airfield, but for those that are arriving/departing on4551aircraft.4552    Mr. Knott. And is the funding that you are talking about,4553is it primarily from Washington? Or are you talking about4554private funding as well?4555    Mr. Dobberstein. It could be a combination of both, but4556certainly at the Federal level----4557    Mr. Knott [interposing]. Yes.4558    Mr. Dobberstein [continuing]. I think it most critical. And4559our State has been very generous at our airports in North4560Dakota. We are very fortunate in that regard in their4561investment through the legislature and Aeronautics Commission4562and also with the local community.4563    Mr. Knott. Sure.4564    Mr. Collins, I want to talk to you briefly. I see that your4565group has recommended an increase in the mandatory retirement4566age from 65 to 67. Do you know how that calculus was arrived4567at, to go up to 67 as opposed to, let's say, 70, 72?4568    Mr. Collins. I am not aware of us making that4569recommendation.4570    Mr. Knott. Are you aware of the statutory requirement----4571    Mr. Collins [interrupting]. I am aware of the requirement--4572--4573    Mr. Knott [interrupting]. Yes. Let me ask you, then, this4574angle: What are your thoughts about that requirement?4575    Mr. Collins. So, to this point, there hasn't been a safety4576assessment behind the requirement. So it might make sense to4577have an assessment to see if there are any safety effects of4578having the age range.4579    Mr. Knott. Do you think that private businesses, States, or4580other bodies are incapable of determining who can be a safe4581operator of an airplane? I am not trying to be hostile. I am4582just curious. The 65 age requirement just seems entirely4583arbitrary to me. I know pilots who have been forced to retire4584that are perfectly able to continue their career, and it is4585something that, again--it is just a question at the top of my4586mind.4587    Mr. Collins. Yes. I think it is worth researching whether4588or not it makes sense and if there are any safety4589considerations behind that.4590    Mr. Knott. Okay. Mr. Pecoraro, do you have any thoughts4591about that?4592    Mr. Pecoraro. No, sir. I am sorry. We don't have a position4593on that.4594    Mr. Knott. Okay.4595    In regards to the remote towers, I do want to continue that4596conversation. There are numerous airports in my district that4597are waiting for tower approvals and to get the FAA on board4598with expanding their footprint, and the tower piece is their4599last component. How can we expedite the use of these remote4600towers to the more up and coming airports?4601    Mr. Pecoraro. I think lighting a fire under the FAA to move4602forward with these is the best way to do that. The technology4603is proven.4604    Mr. Knott. Yes.4605    Mr. Pecoraro. I saw it in Leesburg where it worked great. I4606know that they have got other contracts that are looking at4607working with right now, who are different from the ones who4608were doing it before. But the technology worked 6 years ago4609when I saw it. It can only have improved since then.4610    Mr. Knott. The situation that I have is a county called4611Johnston County, and they have one of the busiest airports in4612the State. The only thing they need is increased tower4613functionality. And they have the funding----4614    Mr. Pecoraro [interrupting]. For a fraction of the cost of4615a regular tower.4616    Mr. Knott. Exactly. They just can't get the approval.4617    Thank you so much. Mr. Chairman, I am over. I appreciate4618it.4619    Mr. Nehls. All right. I now recognize Mr. Stanton.4620    Mr. Stanton. Thank you very much, Mr. Chairman. Thank you4621to our witnesses for being here for this important hearing.4622    For rural communities, reliable air service isn't a4623convenience. It is essential infrastructure in Arizona. Small4624airports support our robust tourism industry as well as4625connecting residents to healthcare, education, and the broader4626national economy. Take, for example, Flagstaff Pulliam Airport,4627the primary gateway for nearly half a million people in4628northern Arizona, a key gateway for visitors traveling to the4629Grand Canyon.4630    Yet despite strong demand, Flagstaff ranks among the most4631expensive airports in the contiguous United States. Passengers4632face fewer flight options, higher fares. They can't just choose4633a different airport. The next closest commercial airport is4634more than 90 miles away, an hour and a half in a car.4635    Flagstaff is seeking relief through the Small Community Air4636Service Development Program, applying for grants to expand4637connectivity to hubs like Denver and Salt Lake City.4638    Mr. Pecoraro, are there specific changes to the Small4639Community Air Service Development Program that we should be4640considering to improve air service in these communities,4641particularly those like Flagstaff, which have challenges in4642generating local financial support to be competitive for4643Federal funding?4644    Mr. Pecoraro. I don't have any specific recommendations4645today. What I would say, and as I said earlier, is that I think4646that what is critical is these programs have been in existence4647for a long time. Market conditions have changed. Economics have4648changed. Conditions on the ground have changed. What we need to4649do is for the U.S. DOT and FAA to sit down and develop a4650national strategy on how we are going to retool all of this,4651working with all the stakeholders, as they did recently with4652the National Strategy on Advanced Air Mobility, which is a4653terrific effort, and it is going to yield real results. And we4654think an approach like that would really help benefit these4655types of programs.4656    Mr. Stanton. Thank you very much.4657    Families in Arizona, as they plan their summer travel,4658unfortunately the war in Iran and the closure of the Strait of4659Hormuz has sent jet fuel prices through the roof, doubling4660since the conflict began. That is showing up in ticket prices4661for travelers in Metro Phoenix and everywhere. And, for many in4662rural communities, limited air service and fewer competitive4663options make those costs especially difficult to avoid.4664    Ms. Malarkey Black, if higher fuel costs persist, do you4665anticipate airlines reducing service in certain markets and, if4666so, are smaller rural communities likely to feel those impacts4667more acutely than larger metropolitan areas?4668    Ms. Malarkey Black. The economics of small community roots4669make them uniquely vulnerable to cost increases, whether it is4670labor or fuel, simply because of the math. We have got smaller4671aircraft and fewer passengers traveling. So, while we don't set4672the fares and we don't set the schedules, we would expect to4673see those kinds of consequences coming from our mainline4674partners.4675    Mr. Stanton. Thank you very much. Those are all my4676questions. So I yield back, Mr. Chairman.4677    Mr. Nehls. The gentleman yields. I now recognize Mr.4678Johnson.4679    Mr. Johnson of Georgia. Thank you, Mr. Chairman and Ranking4680Member, for organizing this important hearing. And thank you to4681the witnesses for your time and your testimony today.4682    In a lot of small communities, missing a flight doesn't4683just change travel plans. It changes what people can reach and4684what opportunities reach them. That is because when the nearest4685major airport is hours away, air service becomes part of the4686community's lifeline. And, right now, too many of these4687communities are watching that lifeline fray, not because they4688don't matter, but because the economics of aviation don't4689always treat them like they do.4690    That is exactly why Congress stepped in with the bipartisan46912024 FAA reauthorization law. We protected the Essential Air4692Service program, the Small Community Air Service Development4693Program, and Airport Improvement Program funding because safety4694and infrastructure shouldn't depend on the size of your tax4695base.4696    But a program on paper doesn't mean much if people can't4697feel it in their daily lives. If flights keep disappearing, if4698prices keep rising, if workforce shortages keep pushing service4699away, then we still have work to do.4700    My hope is today that we make sure these programs are doing4701what Congress intended: keeping small and rural communities4702connected to opportunity, not cut off from it. Whether you live4703in a rural community or in a growing suburb of Metro Atlanta,4704you deserve to be connected. People just want a fair shot, and4705that is what they deserve.4706    And that is really what this comes down to, making sure4707that folks in smaller communities aren't treated like an4708afterthought. These programs exist because Congress made a4709commitment. And commitments must mean something. I am looking4710forward to hearing more from you all in response to my4711questions. I only have a limited amount of time, however.4712    Mr. Pecoraro, I would characterize some goals of any small4713community as growing their demand, investing in their airport,4714and showing they can sustain reliable service. Most folks would4715look at that and say, ``That is success.'' But, in your4716testimony, you said some communities end up penalized for that4717success when market conditions shift against them.4718    Mr. Pecoraro, can you further explain what it looks like4719when those market conditions turn, and does that kind of shift4720end up undoing the progress the communities work so hard to4721build?4722    Mr. Pecoraro. It certainly can. A great example of that is4723what happened to a lot of communities during and after the4724pandemic, when conditions shifted. People worked from home.4725People traveled less. They weren't able to travel. Demand4726dropped significantly. Airlines shut down service. Pilot4727shortage was exacerbated. And we saw a lot of communities lose4728service.4729    And, under the current rules of the EAS program, it is very4730difficult to get back in and use that program to rebuild4731successful service that you once had prior to the pandemic. So4732one of the things we are encouraging Congress to do is to look4733at some kind of a path for some of those communities to get4734back in and be able to rebuild that service.4735    I also note along those lines that the Georgia DOT recently4736completed--it used a SCASDP grant very successfully. Focused on4737small community air service development to fund marketing,4738social media campaigns, advertising to try and build that type4739of service across a wide number of airports in Georgia. There4740was also increased community awareness of local airports, and4741we saw a measurable rise in ticketed passengers in each of the4742participating airports. So these programs do work when they are4743applied properly.4744    Mr. Johnson of Georgia. Thank you.4745    Ms. Black, you have made it clear in your testimony that4746what looks like low demand is often really the result of the4747system pulling back first with fewer departures, fewer4748destinations, and schedules that no longer work for people. Ms.4749Black, where should we begin to stop this pattern of the system4750pulling back first?4751    Ms. Malarkey Black. I think we have to start with two4752things at once. First is the fleet. Making sure that we have4753the right-sized aircraft to serve smaller communities. And,4754equally important, the workforce. We need to have the people to4755operate the fleets, to connect these smaller communities to the4756hubs and through them and beyond.4757    Mr. Johnson of Georgia. Thank you. I am surprised I have4758got time to yield back, but I shall do so. Thank you.4759    Mr. Nehls. Very well, Hank.4760    I now recognize Mr. McDowell.4761    Mr. McDowell. Thank you, Chairman, and thank you to the4762witnesses for being here to testify before our subcommittee4763today.4764    Mr. Pecoraro, what would you say are the top two or three4765challenges that threaten small community air service?4766    Mr. Pecoraro. Pilot shortage, the aging out of regional4767aircraft that are appropriately sized for those communities,4768and the rising cost of travel.4769    Mr. McDowell. So you would say that the Essential Air4770Service program is vital to rural air connectivity, correct?4771    Mr. Pecoraro. Absolutely.4772    Mr. McDowell. So, prior to the Airline Deregulation Act of47731978, the U.S. Government managed the aviation industry, and4774the deregulation changed all that and introduced an aviation4775based on the free market. I guess my question for you is, why4776do you disagree with the criticisms of the EAS program?4777    Mr. Pecoraro. I don't know that it's so much that I4778disagree with the criticism of the program. It's just that I4779think that the program, in the 40, almost 50 years since it was4780created, hasn't really been updated, and the airline industry4781has changed dramatically from what Congress thought it was4782going to be when it was deregulated. And I think that that is4783why we need to take a hard look at what the program is4784accomplishing right now and think about ways to reform it.4785    I am not saying--I think support continues to be important.4786What that support looks like certainly can change. I think it's4787foolish to think that everything remains the same, and you4788don't need to change things and modify them. But I think that's4789where we are today, that we have allowed a certain complacency4790to exist when we haven't made those difficult changes.4791    Mr. McDowell. Ms. Black, how did the airlines' struggle to4792find pilots impact regional aviation more than the rest of the4793industry?4794    Ms. Malarkey Black. Regional airlines are the career entry4795point. That's normal. We hire the pilots that are coming from4796the pipeline. We were in an existing pilot shortage before the4797pandemic. And, after the pandemic, when demand sprang back so4798much faster than anybody anticipated, our major airline4799partners hired voraciously, and they find the best and4800brightest working for us.4801    So, as a result, we parked about one-quarter of our fleet.4802We didn't have the pilots to fly them. More specifically, we4803didn't have the captains to fly them, because when a major4804airline hires, they take a captain, and then we can pull a4805first officer from the pipeline. Not only were there not enough4806first officers, but we obviously needed to have captains.4807    So, as a result, one-quarter of the fleet was parked, and4808small communities went into crisis. I mean, the amount of air4809service that small communities lost was stunning and4810devastating.4811    Mr. McDowell. To that point, how does the loss of air4812connectivity materially hurt rural areas and economies?4813    Ms. Malarkey Black. Well, if you think about it from a4814business perspective, you need to be able to get in and out4815reasonably. I go and visit small communities as part of my job.4816I speak at small community air service associations in States4817with smaller service, and it takes a long time to get there.4818    I go there because it's my job. But, if you are a4819recruiter, if you are somebody that's trying to get parts, if4820you are trying to see a sick loved one, you need to have4821schedules and departures and routes that meet your needs. And,4822when we lose the frequency and we lose the destination options,4823then suddenly that's not as workable.4824    Mr. McDowell. So you argue that declining departures from4825regional airports can be an imperfect measure of consumer4826preference. Why is that?4827    Ms. Malarkey Black. Specifically, the decline in seats. You4828can have an increase in seats, meaning you are actually able to4829carry more passengers, but departures and the destination4830options are shrinking because you are moving to bigger4831airplanes. They take more passengers at once. But they4832necessarily have to go to fewer places and less often because4833of the way they are doing it.4834    Mr. McDowell. Mr. Collins, based on your work at the GAO,4835do you agree with the other witnesses' statements on the value4836of the Essential Air Service program?4837    Mr. Collins. The Essential Air Service program does provide4838a valuable service in that it gives a floor of service to that4839community.4840    Mr. McDowell. So yes.4841    Mr. Collins. Correct.4842    Mr. McDowell. All right. Mr. Chairman, I yield back.4843    Mr. Nehls. The gentleman yields.4844    I thank you so much. Any further questions from any members4845of the subcommittee who have not been recognized? I don't see4846any.4847    Listen. I appreciate you all being here. This will conclude4848our hearing today. I thought you all did a hell of a job. Great4849job.4850    All right. We will get my dentist friend out of Jersey--all4851right. Do you need 30 seconds to prepare, Mr. Van Drew? Are you4852set? He is set.4853    Mr. Van Drew, you are recognized.4854    Dr. Van Drew. Chairman, I am sorry. I was running around in4855between committees, and I apologize to all of you, but I am4856glad I made it. Thank you, Mr. Chairman, for recognizing me.4857    As we discuss the future of our rural and small community4858air service, I wanted to highlight a provision in the Build4859America 250 Act that will provide a real boost to regional4860airports and rural airports. I was happy to work with4861Representatives Rob Bresnahan and Chris Deluzio on the4862Motorcoach Enplanement Pilot Program. You might be familiar4863with it. It ensures passengers who begin their trip on an4864airline-operated motorcoach connection count as enplanements4865for an airport funding purposes. For example, in my airport,4866Atlantic City International, if you get on a bus there and you4867go to Philadelphia Airport, that counts for Atlantic City,4868especially with critical funding.4869    For many small regional airports, passenger boarding4870numbers are critical. They help determine eligibility for4871Federal funding and support the infrastructure investments4872needed to maintain service. For airports facing service4873reductions or airline withdrawals, which we just went through4874recently, as you saw with Spirit Airlines--we have got good4875news, though. We just met with Breeze, and they are going to4876fill in the gaps. Motorcoach enplanements will help preserve4877access to the national aviation system. In my district,4878Atlantic City International Airport has faced significant4879challenges following the closure and reduction of service4880associated, as I mentioned, with Spirit.4881    Airports across the country are experiencing similar4882pressures as airlines consolidate service and focus operations4883on larger hubs. The Motorcoach Enplanement Pilot Program will4884help ensure that smaller communities remain connected, which is4885so important. And you saw Pete just speak about that a little4886while ago, and it is important for him--Pete Stauber--it is4887important for all of us that are in the regional areas, smaller4888areas, rural areas, for economic opportunity, for healthcare,4889for education, for tourism, and the broader transportation4890network, as you all know. And I thank you for your work.4891    Ms. Black, thank you for being here today. Regional4892airlines continue to face pilot supply constraints and rising4893operating costs. To what extent are those pressures still4894driving service reductions at smaller airports, like all of4895ours, and what policy changes would be most effective to4896restoring service to underserved communities? Thank you.4897    Ms. Malarkey Black. Thank you for the question.4898    Right now, what we are seeing is that we are seeing a4899slight increase in departures nationwide. But it's mixed. And4900you can--it just shows that you can have good national numbers4901while the individual communities like Lansing and many, many4902others are still far, far behind. So it's not so much a4903question of if we are still cutting. We have moved up from the4904nadir of the pilot shortage in 2023, and we are starting to4905rebuild. But that recovery has not reached communities4906everywhere, and we still have a long way to go before it does.4907    Our nonhubs and our nonprimary airports that serve the4908smallest rural communities are still down by an enormous4909amount. We have a lot of work to do to make sure that the pilot4910pipeline can catch up and the fleet is there so we can continue4911to reconnect those communities.4912    Dr. Van Drew. Yes. It is a big issue. We are going to fight4913with you shoulder to shoulder to do everything----4914    Ms. Malarkey Black [interposing]. Thank you.4915    Dr. Van Drew [continuing]. We can to connect these4916communities, because it's a big deal. And it is a big chunk of4917America. Not everybody lives in Philly, New York City--I know I4918don't have to go through--or Atlanta.4919    Mr. Dobberstein, thank you for being here today as well.4920How will programs that better integrate airports with air4921carrier-operated ground transportation help smaller airports4922retain relevance and maintain passenger volumes?4923    Mr. Dobberstein. It is critically important. We were the4924recipient of Landline service from Fargo to Minneapolis-St.4925Paul, which is about a 4-hour bus ride. It was extremely4926successful, but then Landline took our bus and moved it to4927Philadelphia for other opportunities there, I think, through4928American Airlines. But it worked extremely well for us. The4929traveling public embraced it. But I think the ground4930transportation is an opportunity for other rural communities to4931connect to the national air transportation system.4932    Dr. Van Drew. I think it is, too. I think it really can4933help, and it makes a difference and is relatively convenient.4934It is still easier--again, I will just give my own parochial4935example. If you have to go to Philly Airport--I would much4936rather go out of Atlantic City--but if you have to, certainly,4937you just jump on the bus. Everything is prepared, baggage4938check, all that, and you go to Philly and you are done. But it4939is a much quicker and easier way to do it. And that is4940throughout the country for these smaller airports.4941    Mr. Collins, last question. GAO has documented passenger4942leakage from smaller airports to larger hubs. In your view,4943have motorcoach enplanements shown promise in helping smaller4944communities compete and retain travelers? I know you know the4945answer. I know the answer, but I want to hear it.4946    Mr. Collins. That is a definite yes. In our work,4947stakeholders have told us that bus service is a great4948opportunity to make sure that rural communities are connected4949to the NAS. It may not fit every rural community, but it is an4950option for many.4951    Dr. Van Drew. Thank you. And, to the great chairman, who I4952am going to miss a lot when he leaves us in the House of4953Representatives, I yield back.4954    Mr. Nehls. Thank you.4955    Dr. Van Drew. Thank you, Chairman. We appreciate you.4956    Mr. Nehls. Thank you, sir.4957    I now recognize Mr. Shreve. Good to see you.4958    Dr. Van Drew. Mr. Shreve should be happy that I showed up,4959or he would have been done for.4960    Mr. Nehls. That's correct.4961    Mr. Shreve. Well, I thank you. Thank you, Chairman.4962    And Ranking Member Carson and I are fellow Hoosiers. I4963represent a part of Indianapolis that the airport, IND, is4964located in. Mr. Carson has a portion of it, too. I think I have4965got the better portion of IND, it includes the FedEx air cargo4966operations. The second largest FedEx air hub in the world.4967    And Indiana is the home of Republic Airways. It is4968headquartered there in the metro. And, of course, folks here,4969but some of my colleagues may not know that Administrator Bryan4970was the very recent former CEO of Republic Airways, and so he4971brings that subject matter expertise in the regional feeder4972system to the table at both large airports, and, of course,4973midsize and smaller ones that are so important to the passenger4974infrastructure that we have got in this country.4975    I appreciate the opportunity to parachute back in. This is4976my third time in the room, and I appreciate our four witnesses'4977testimony and what you shared with all of us today. I don't4978want to retrace ground that may well have been covered by my4979colleagues, but maybe tie it off, if I could, with just a4980couple of closing questions for consideration that any of the4981four of you might have.4982    If we stay the course from a funding standpoint, if we do4983nothing different over the next few years, what is Essential4984Air Service into many of the smaller communities that folks4985like I represent in Indiana--and I have dozens of public access4986airport communities, like Mr. Stauber passionately spoke to--if4987we stay the course, funding level and otherwise, what does the4988future look like from your four perspectives, your agency4989perspectives, in particular, Ms. Black or Mr. Pecoraro?4990    Ms. Malarkey Black. Thank you for the question. I think our4991environment is not static, and our response to the environment4992can't be either. And, whether that's air traffic control4993modernization, bringing that to all airports of all sizes,4994including the digital situational awareness tools they need;4995the workforce. You mentioned Republic, they have got Lyft, that4996is an incredible investment that the private sector is making4997in the future of our workforce. But making sure that more4998people from working class backgrounds can afford it through4999accessible student loans that cover the full cost of flight5000training, making sure that we encourage manufacturing of the5001fleet that serve these smaller communities, that is a big one;5002and, making sure when we bring safety to airports of all sizes,5003that we do it in a way that works with the fleet so that we can5004comply, and we can continue to preserve those airports.5005    Mr. Pecoraro. If we do nothing but leave the funding at the5006current levels, which is much appreciated, of course, I think5007that you will see communities continue to see a decline in5008service, because we won't be attacking the fundamental problems5009that they face right now. So that is why we are here to urge5010Congress to encourage the U.S. DOT and the FAA to develop a5011strategy that can do a better job of providing access to the5012national system.5013    Mr. Shreve. Is the migration away from the smaller regional5014jets, the 135s, 145s, primarily a function of insufficient5015numbers of pilots, that more than anything else?5016    Ms. Malarkey Black. Let me make sure I understand your5017question. Are you saying the migration away from 135 airports--5018or, excuse me, 135 airlines at airports service?5019    Mr. Shreve. Yes. Ms. Black, I think, in your earlier5020testimony, you noted that there were fewer 50-seat passenger5021jets in service. And I am not sure if that was from you. But is5022that a function of not enough trained crews? And so, where you5023have got pilots, you need to put them behind the stick or the5024oak of larger regional jets. Is that what is driving that? At5025Purdue Airport, they just landed, flagged as United Service,5026and they are operating those 50-seat aircraft. So they are5027still out there, but there are fewer and fewer of them.5028    Ms. Malarkey Black. There are fewer. It is a math question.5029When you have a limited supply of pilots, the network carriers5030try to serve as many passengers at once, and that typically5031means deploying larger aircraft, whether that is larger5032regionals or, in some cases, mainline. But, of course, not all5033communities can support a 76-seat jet, let alone a narrow-body5034jet. So we still need that 50-seat fleet.5035    Unfortunately, that is the exact gap right now. We have got5036some scope clause constraints that are labor union contracts5037with the major airlines that actually limit the manufacturing5038of new regional jets because they limit what kind of jets we5039can deploy, including the weight. So it's a complicated issue5040for us. But, yes, those are some of the many constraints that5041are facing the 50-seat market.5042    And I will say, with respect to part 135 carriers, they do5043have pilot issues because they are a source of great experience5044for pilots to come in, but they attrit very quickly to larger5045regionals, and then move on through the system.5046    Mr. Shreve. I appreciate that. My time has expired. But I5047just want to clarify: I was referring to the Embraer 135, not5048the part 135, with respect to smaller aircraft.5049    I appreciate the witnesses' testimony, and, Mr. Chairman, I5050appreciate the indulgence with the time. Thank you, everyone.5051    Mr. Nehls. Yes, sir. The gentleman yields. Are there any5052further questions from the members of the subcommittee?5053    Seeing none, this concludes our hearing today. Again, I5054want to thank each and every one of you for being here. This5055subcommittee stands adjourned.5056    [Whereupon, at 12:34 p.m., the subcommittee was adjourned.]50575058                       Submissions for the Record50595060                              ----------50615062     Letter of June 4, 2026, to Members of the House Committee on5063Transportation and Infrastructure, Subcommittee on Aviation, from Molly5064Grover, President and Chief Executive Officer, Dubuque Area Chamber of5065Commerce, Dubuque, Iowa, Submitted for the Record by Hon. Troy E. Nehls5066                                                      June 4, 2026.5067The Honorable Members of the Aviation Subcommittee50685069Re: Challenges Facing Rural Commercial Air Service50705071    Dear Chair and Members of the Subcommittee:5072    On behalf of the Dubuque Area Chamber of Commerce and working with5073partners Dubuque Air (a public/private partnership representing the5074City of Dubuque, Iowa, Dubuque Regional Airport, Dubuque County,5075Greater Dubuque Development Corporation, Travel Dubuque, the Chamber5076and the Dubuque Racing Association), we appreciate the opportunity to5077provide comments regarding the challenges facing rural commercial air5078service and the importance of maintaining reliable air transportation5079connections for small and mid-sized communities across the United5080States.5081    Commercial air service is an essential component of the economic5082vitality, competitiveness, and quality of life of rural America. For5083communities such as Dubuque, dependable air service connects residents5084to business opportunities, tourism, healthcare, education, and family5085networks. It also enables local employers to recruit and retain talent5086and provides critical access to national and international markets.5087    Like many rural airports, Dubuque Regional Airport has experienced5088significant challenges in recent years. Industry-wide pilot shortages,5089workforce constraints, regional fleet changes, shifting airline network5090strategies, and most critically, exponentially rising operating costs5091that have reduced service options and increased uncertainty for rural5092communities. These challenges have disproportionately affected smaller5093markets that rely on regional air service to connect with larger hub5094airports.5095    The consequences extend beyond inconvenience. Limited air service5096can hinder economic development efforts, discourage business5097investment, and reduce a community's ability to compete in an5098increasingly connected economy. Companies evaluating expansion5099opportunities routinely consider transportation accessibility when5100making location decisions. Reliable air service is therefore not simply5101a transportation issue--it is an economic development imperative.5102    We respectfully urge Congress and federal aviation policymakers to5103consider several priorities:51045105    1.  Recognize the Economic Impact of Rural Airports and Need for5106Alternate Support to Establish Sustainable Air Service. Federal5107transportation policy should acknowledge the significant role rural5108airports play in supporting regional economies, tourism, manufacturing,5109healthcare access, and workforce mobility. Investment in air service is5110recognized at every community level from rural to major metropolitan5111areas, and should be recognized as the same at a federal level--an5112investment rather than a subsidy that will deliver direct economic5113returns.51145115    2.  Encourage Airline Service Options and Competition. Policies5116that foster sustainable regional airline operations and strengthen5117connections between rural communities and hub airports will help5118preserve access for travelers and businesses alike.51195120       Currently, EAS supported airports are creating an untenable5121playing field for non-supported rural airports. EAS funding skews the5122advantage for airline resources to those supported communities and5123helps set the cost baseline at an unreachable and unsustainable level5124for the self-funded. The rising costs of air service operations5125combined with the above create an unsustainable business model for non-5126supported communities.51275128    3.  Strengthen Federal Support for Rural Air Service. Programs that5129support connectivity for small communities remain essential. Continued5130investment and modernization of federal programs that help sustain5131rural air service provide greater stability for communities facing5132limited airline options.51335134       As the costs and investment required to build sustainable air5135service have risen sharply, we encourage the exploration of additional5136support mechanisms to help the rural communities caught in between full5137federal subsidy and complete self-funding. The current skewed5138competitive playing field and unsustainable business model outlined5139above are prohibiting the successful establishment of service in many5140communities. A scaling of the SCASD program by 10x, or a new program5141recently proposed using international travel fees, could help create5142this added or new level of support to build lasting air service for5143these economic regions.51445145    Dubuque and communities like ours are resilient, innovative, and5146growing. However, our continued success depends on reliable access to5147the national transportation system. Rural airports serve as critical5148gateways that connect local economies to broader opportunities. Federal5149policies that strengthen rural air service will help ensure that5150residents and businesses in communities of all sizes can participate5151fully in the nation's economic future.5152    Thank you for your leadership on this important issue and for your5153consideration of the challenges facing rural commercial air service. We5154welcome the opportunity to work with Congress, the Federal Aviation5155Administration, and industry partners to develop solutions that5156preserve and enhance air connectivity for rural America.5157            Sincerely,5158                                              Molly Grover,5159               President and CEO, Dubuque Area Chamber of Commerce.51605161  Letter and Attachment of June 9, 2026, from Jack Waldorf, Executive5162   Director, Western Governors' Association, to Hon. Troy E. Nehls,5163   Chairman, and Hon. Andre Carson, Ranking Member, Subcommittee on5164        Aviation, Submitted for the Record by Hon. Troy E. Nehls5165                                                      June 9, 2026.5166The Honorable Troy Nehls,5167Chairman,5168Subcommittee on Aviation, Committee on Transportation and5169        Infrastructure, House of Representatives, 2251 Rayburn House5170        Office Building, Washington, DC 20515.5171The Honorable Andre Carson,5172Ranking Member,5173Subcommittee on Aviation, Committee on Transportation and5174        Infrastructure, House of Representatives, 2164 Rayburn House5175        Office Building, Washington, DC 20515.5176    Dear Chairman Nehls and Ranking Member Carson:5177    In light of the Subcommittee's June 4 hearing, ``Connecting Rural5178America to the National Airspace System,'' attached please find Western5179Governors' Association Policy Resolution 2024-06, Transportation5180Infrastructure in the Western United States.5181    Reliable air service is essential infrastructure for many remote5182communities. Western Governors support legislative actions to secure5183and maintain the longevity of the Essential Air Service and Small5184Community Air Service Development Programs.5185    I request that you include this document in the permanent record of5186the hearing, as it articulates Western Governors' collective and5187bipartisan policy recommendations on this important issue.5188    Thank you for your consideration of this request. Please contact me5189if you have any questions or require further information.5190            Sincerely,5191                                              Jack Waldorf,5192                Executive Director, Western Governors' Association.51935194Attachment5195                               __________51965197                                                         Attachment5198                     Western Governors' Association5199                       Policy Resolution 2024-065200       Transportation Infrastructure in the Western United States5201A. BACKGROUND5202    Jobs, the economy, and quality of life in the West depend on high-5203quality transportation infrastructure that efficiently, effectively,5204and safely moves goods and people. Western states' national highways,5205ports, and railways are essential gateways for our nation's exports5206while small and medium airports serve as economic engines and essential5207connections for rural western communities.5208    The infrastructure in the region is under strain from both5209increased movement of goods and people and from underinvestment in5210preservation, repair, and new infrastructure. Additionally, increasing5211fuel efficiency coupled with a commensurate decrease in gas tax revenue5212has led to a decrease in the Highway Trust Fund (HTF). Electric5213vehicles are simultaneously increasing throughout the West, spurring5214new investments in transportation charging, grid enhancement, and other5215infrastructure.5216B. GOVERNORS' POLICY STATEMENT5217    1.  Western Governors believe there is a strong federal role, in5218partnership with states and local governments, for continued investment5219in our surface transportation network. This is particularly important5220for federal routes and for multimodal transportation networks that are5221critical to interstate commerce and a growing economy throughout the5222West. These routes and networks traverse hundreds of miles without5223traffic densities sufficient to either make public-private partnerships5224feasible or allow state and local governments to raise capital beyond5225the historic cost share. Many western states also feature vast expanses5226of federal lands, which cannot be directly taxed to generate dollars5227for transportation improvements.52285229    2.  Western Governors believe the current project decision-making5230role of state and local governments, with meaningful participation from5231affected communities, particularly tribes and other historically5232underserved communities, in investment decisions should continue.5233Western Governors desire additional flexibility to determine how and5234where to deploy investment to maximize the use of scarce resources.52355236    3.  Western Governors believe that a viable, long-term funding5237mechanism is critical to the maintenance and upgrade of our surface5238transportation network and encourage Congress to work together to5239identify a workable solution that adequately funds the unique needs of5240the West.52415242    4.  Western Governors believe in enhancing the ability to leverage5243scarce resources by supplementing traditional base funding by creating5244and enhancing financing mechanisms and tools that are appropriate for5245all areas of the United States, including those with low traffic5246densities where tolling and public-private partnerships are not5247feasible. Western Governors urge agencies to consider strategies to5248streamline and clarify Notices of Funding Opportunity (NOFO) to reduce5249confusion for small communities. Western Governors also support5250reducing barriers to application, specifically for small communities.52515252    5.  Western Governors believe using the historic formula-based5253approach for the distribution of funds would ensure that both rural and5254urban states participate in any infrastructure initiative, and it would5255deliver the benefits of an infrastructure initiative to the public5256promptly. Alongside supporting robust block grant funding, Western5257Governors urge Congress and the United States Department of5258Transportation (USDOT) to consider additional ways to provide flexible5259funding for states to allow them to quickly address their most pressing5260needs.52615262    6.  Western Governors believe the Highway Trust Fund (HTF) and the5263programs it supports are critically important to the success of efforts5264to maintain and improve America's surface transportation5265infrastructure. Currently, the HTF is not able to support federal5266surface transportation program levels and will not meet the future5267needs of the growing country. Congress must be prepared to address5268these deficiencies and identify new, non-traditional transportation5269revenue streams that can provide consistent and increasing funding5270levels for the core transportation infrastructure that keeps this5271nation on the move. Congress must provide a long-term solution to5272ensure HTF solvency and provide for increased, sustainable federal5273transportation investment through the HTF. Western Governors urge5274Congress and USDOT to identify and dedicate diverse revenue sources to5275fund the HTF.52765277    7.  Western Governors believe modern port infrastructure, including5278inland ports, is essential to strong national and western economies and5279urge Congress to fully fund the Harbor Maintenance Trust Fund and to5280reform the Harbor Maintenance Tax distribution to ensure western ports5281remain competitive.52825283    8.  Furthermore, Western Governors believe the federal government5284must work collaboratively with states, along with ports, local5285governments, and key private sector transportation providers like the5286railroads, to ensure the necessary public and private investments to5287move imports and exports efficiently through the intermodal system, as5288well as community organizers and the Environmental Protection Agency's5289National Environmental Justice Advisory Council, to effectively5290mitigate environmental and public health impacts to port communities.52915292    9.  As new sources of transportation investment revenues are5293considered, Congress is encouraged to limit narrowly defined5294discretionary programs in favor of providing flexibility for states to5295direct federal resources to meet their unique needs.52965297    10.  Western Governors recognize the benefit of and appreciate the5298renewed focus on incorporating American-made products into5299transportation projects. However, the availability of American-made5300materials and manufactured goods continues to lag behind demand that5301has resulted. Western Governors urge Congress and the USDOT to maintain5302a robust process for the thoughtful consideration of Buy America5303waivers until the resurgence of American production is fully complete.53045305    11.  Western Governors have made great strides in the last 20 years5306in improving air and water quality as well as preserving resources. In5307the case of environmental regulatory issues, the need to exercise care5308in protecting the environment is inherent in all public works, and5309accountability is held by the citizenry. Congress is encouraged to5310consider how best to streamline the deployment of transportation5311improvements while accounting for environmental impacts.53125313    12.  Efficient and streamlined permitting processes are essential5314to ensuring robust transportation systems. Refer to WGA policy5315regarding the Governors' collective policy on permitting, including5316Policy Resolution 2023-10, Infrastructure Permitting.53175318    13.  Western Governors support a flexible federal transportation5319program that affords the opportunity to invest in urban and rural5320transportation needs including safety, congestion relief, mobility5321options, connectivity, and new or innovative transportation solutions5322including passenger rail.53235324    14.  Western Governors emphasize western states' collaborative5325efforts to improve the planning and siting of electric vehicle (EV)5326charging infrastructure to promote equitable access, particularly along5327highway corridors, freight corridors and hubs, rural areas, underserved5328communities, or anywhere that users do not have the ability to charge5329at home. We encourage Congress and the Administration to rely on the5330on-the-ground knowledge of the states when designing federal programs5331and allocating surface transportation and infrastructure funds focused5332on EV infrastructure. Coordinating with these multi-state groups would5333help promote targeted investments and partnerships that expand5334cohesive, regional EV charging networks.53355336    15.  Reliable air service is essential infrastructure for many5337remote communities. Air service is critical not only for recreation and5338tourism, but also for many remote communities, it provides the only5339efficient way to bring in critical personnel, such as doctors or5340emergency services. Western Governors encourage the executive branch to5341include full funding for the Essential Air Service (EAS) and Small5342Community Air Service Development Program (SCASDP) programs in the5343President's annual budget request. Western Governors also support5344legislative actions to secure and maintain the longevity of these5345programs.5346C. GOVERNORS' MANAGEMENT DIRECTIVE5347    1.  The Governors direct WGA staff to work with Congressional5348committees of jurisdiction, the Executive Branch, and other entities,5349where appropriate, to achieve the objectives of this resolution.53505351    2.  Furthermore, the Governors direct WGA staff to consult with the5352Staff Advisory Council regarding its efforts to realize the objectives5353of this resolution and to keep the Governors apprised of its progress5354in this regard.53555356This resolution will expire in June 2027. Western Governors enact new5357policy resolutions and amend existing resolutions on a semiannual5358basis. Please consult http://www.westgov.org/resolutions for the most5359current copy of a resolution and a list of all current WGA policy5360resolutions.53615362                                Appendix53635364                              ----------53655366Post-Hearing Questions for the Record to Faye Malarkey Black, President5367 and Chief Executive Officer, Regional Airline Association, from Hon.5368                             Sharice Davids53695370    Question 1. Ms. Black, we have seen numerous proposed presidential5371budgets that either significantly reduce funding for EAS or flat out5372scrap the program. Can you walk us through how reducing funding or5373eliminating the entire EAS program could negatively impact not just5374rural communities but suburban and exurban communities, as well?5375    Answer. When a community loses its EAS service, the air traffic it5376used to send into the network is also reduced. This impacts its5377surroundings in multiple ways. First, the loss disconnects communities5378directly. Loss of air service can sharply curtail residents' ability to5379travel to medical specialists, universities, military installations,5380customers, suppliers, and family members, and businesses lose the5381ability to recruit talent and stay connected to markets. These effects5382extend into the surrounding suburban and exurban economies.5383    In Kansas, regional airlines provide roughly 75 percent of the5384state's scheduled departures, and five Kansas communities depend on5385EAS--Dodge City, Garden City, Hays, Liberal, and Salina. Without5386regional airlines, these communities would almost certainly lose their5387connection to the national air service network. Essential Air Service5388flights feed passengers into the medium and large hubs that suburban5389and exurban travelers use every day.5390    The loss of these EAS passengers also weakens the hubs that they5391once connected through. For example, in 2024, four of Kansas' five EAS5392routes connected through Denver International Airport (DEN), which is a5393significant hub for EAS routes across the Western United States, at5394which regional airlines operate more than 20 percent of the total5395departures. EAS service in one state supports connectivity locally, as5396well as elsewhere in the state or even in other states.53975398 Figure 1. RAA 2025 Annual Report Air Service Snapshot of Colorado and5399                                 Kansas5400[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]54015402    There is also a safety cost. When air service disappears, many5403passengers travel by road instead. NHTSA recorded 39,254 fatalities in54042024, and communities along the rural community-to-airport driving5405route are exposed to elevated risk, as rural roads carry a fatality5406rate 1.5 times higher than urban roads.5407    Additionally, Essential Air Service is a powerful force multiplier,5408with a return on investment far exceeding program costs. Before the5409pandemic, commercial service at EAS airports alone generated5410approximately $2.3 billion in economic impact and more than 17,0005411jobs. Small community air service overall generated $152.8 billion in5412annual economic impact, $41.3 billion in payroll, and 1.1 million jobs5413nationwide. In Kansas, small community air service in 2019 generated5414$1.3 billion in economic impact, $300 million in payroll, and 10,4005415jobs.\1\5416---------------------------------------------------------------------------5417    \1\ Zoe Lindemuth, Deborah Meehan, William Swelbar, and Albert5418Zhong, Economic Impact of Small Community Airports (Regional Airline5419Association, 2021).5420---------------------------------------------------------------------------5421    During the 2025 shutdown, EAS subsidies were funded only weeks at a5422time. While our members reassured communities of their continued5423commitment despite possible funding lapses, funding uncertainty can5424affect passenger confidence in the routes and undermine markets. We're5425grateful Congress has consistently protected EAS, and we're encouraged5426the House FY27 THUD bill continues that commitment. We urge lawmakers5427to avoid future shutdowns that can harm the program.54285429    Question 2. What are RAA's policy recommendations to help5430communities attract air service?5431    Answer:5432Fix the pilot pipeline5433    The single most important thing Congress can do to help communities5434attract air service is to rebuild the pilot pipeline. A community can5435do everything right and still fail to attract air service if there are5436not enough pilots to fly the routes. More than 40% of the qualified5437pilot workforce faces mandatory retirement within fifteen years, and5438major-airline hiring will resume as aircraft deliveries catch up. The5439specific steps to strengthen the pilot pipeline are in my answer to5440Question 4.5441Support the tools communities use to compete5442    In the cases where a regional airline decides where it flies, a5443strong community partnership behind the route usually supports success.5444Local leaders, airports, and elected officials work with carriers,5445sometimes backing routes with revenue guarantees or incentive funds5446while the market matures.5447    The Small Community Air Service Development Program (SCASDP) helps5448communities build these packages. The FAA Reauthorization Act of 20245449raised authorized SCASDP funding to $15 million a year and directed the5450Department of Transportation (DOT) to prioritize communities that have5451lost service. Congress should consider whether additional funding,5452longer grant terms, or stronger transition tools would help communities5453sustain service after a grant period ends.5454    Additionally, certain airports in Wyoming and New Mexico use5455successful public-private models to share the risk of launching or5456rebuilding service. Congress should consider if similar models might5457help support other states, keeping in mind that not every community has5458the same resources to pay into these models.5459Protect Essential Air Service5460    For the smallest communities, EAS is what makes service possible at5461all. Full funding is a precondition for those communities to hold the5462service they have and to attract carriers willing to serve them.5463Encourage production of modern, right-sized fleet5464    Meanwhile, as expenses rise for all airlines, they carry a5465disproportionate impact on aircraft with fewer seats to absorb them,5466which makes small-community flying harder to sustain.5467    The regional jets and other aircraft that serve small communities5468are aging, and the industry has limited options to replace them with5469more efficient and sustainable modern aircraft. Scope clause limits5470have discouraged investment in modern regional aircraft.5471    Congress does not write private labor contracts, but it can examine5472the public impact when those limits shape which aircraft are available5473to serve small communities. The communities have no seat at that table,5474but they feel the result when the aircraft they need are not built or5475deployed. Without aircraft scaled to smaller markets, service5476concentrates at larger airports and the smallest communities lose5477service. We believe examining the constraints that discourage5478investment in new right-sized aircraft with enhanced efficiency is part5479of keeping small-community routes viable.5480Enhance safety and modernize ATC tools at smaller airports5481    Safety should also reach airports of all sizes: situational-5482awareness tools for contract towers, stronger communications, and5483required position communication on the Common Traffic Advisory5484Frequency (CTAF) at non-towered airports. RAA supports H.R. 8597.5485    While making these enhancements, Congress should ensure required5486integration is designed for all fleet types, and does not inadvertently5487exclude the only aircraft serving smaller communities. Regional5488airlines strongly support improved collision-avoidance safety. We5489believe ACAS-X is the strongest long-term solution. Timelines for in-5490panel installation should reflect the certification, integration,5491installation, and supply-chain work each fleet requires, much of which5492is outside carrier control, but that should not stop Congress from5493requiring improvements far more rapidly. We recommend an interim bridge5494to deploy Electronic Flight Bag (EFB) based ADS-B In and improve safety5495on a rapid timeline.54965497    Question 3. Can you walk the Committee through your perception of5498the current state of the workforce in regional aviation--from5499technicians to pilots to attendants, where are we doing well and where5500do you perceive challenges?5501    Answer:5502Pilots5503    As of June 2026, 128,733 pilots held an Airline Transport Pilot,5504Airplane Multi-Engine Land (ATP AMEL) certificate with a valid first-5505class medical. These are the pilots qualified to fly, and they are5506aging. Within five years, 13 percent of those qualified pilots will5507face mandatory retirement. Within fifteen years, 40.7 percent must5508retire.5509    The pilot supply pipeline has improved compared to the height of5510the pandemic-era shortage, which drove thirteen regional airline5511bankruptcies or liquidations and forced airlines to park more than a5512quarter of the industry's fleet without pilots. Last year, attrition5513temporarily slowed in response to delayed aircraft deliveries and a5514related, temporary pause in major airline hiring. The underlying5515problem has not been solved.5516    New ATP AMEL issuances fell 19 percent in 2025 compared with 20245517and fell 32 percent vs the peak we saw in 2023. The pipeline is ticking5518up modestly in 2026, projected to produce roughly 8,169 new pilots5519(using a 12-month rolling average). New certificates also do not5520translate into new available pilots. Roughly two out of every three do5521not become net growth in the qualified pilot pool.5522    Meanwhile, the pipeline, while improved, cannot sustain a return to5523normal hiring. The largest major airlines alone hired an average of55248,668 pilots per year since 2022, a span that includes post-pandemic5525hiring surges as well as the recent suppressed hiring era due to5526aircraft delivery delays. Charted against 2026's production pace of5527roughly 8,169, normal-era pilot hiring already exceeds current5528production, before any growth or service recovery is accounted for.5529    Before the liquidation of Spirit Airlines and fuel price surges,5530major airline hiring was exceeding new pilot production each month. On5531May 2, 2026, Spirit Airlines liquidated, releasing more than 2,0005532qualified pilots into the pool. Even so, the largest major airlines5533have now hired a number equivalent to 79 percent of this year's newly5534qualified pilots. Our biggest workforce challenge is that the pilot5535pipeline is not keeping up with retirements, let alone the additional5536pilots needed to meet airline growth and customer demand. Airlines must5537also hire more pilots compared with before, to staff larger reserve5538pools for reliability. Intensive hiring years also require pilots to5539devote more pilot time to training duties than in the past.5540    One thing our nation is doing well is reflected in the growth of5541structured training pathways. In the first half of 2026, 34.2 percent5542of original ATP AMEL issuances carried restricted privileges, meaning5543roughly one in three new ATP pilots now comes through a Restricted Air5544Transport Pilot (R-ATP) pathway. These are the pilots who use5545structured training combined with flight hours to achieve their first5546officer qualifications. That share has grown from near zero when the5547pathway was created in 2013 and has held steady in recent years. The5548Pilot Source Studies found that pilots who come through structured,5549accredited training programs perform better in airline training than5550those who accumulate hours through less structured routes, and that5551matches what our members see. We can increase the pilots using these5552training pathways by addressing the financial, geographic, and access5553barriers that continue to limit who can reach them.5554Maintenance technicians5555    The maintenance technician shortage is an increasing threat to air5556service. Industry forecasts project a North American shortfall of more5557than 24,000 technicians, peaking around 2027. Maintenance is the5558foundation of safety--no aircraft flies until a technician has found it5559airworthy. This is another area where shortages will hit the regional5560airlines first, as we are generally the career entry point for5561maintenance technicians, and not only do we lose technicians to5562attrition by larger airlines but also due to competition from well-5563resourced industries outside aviation.5564    This challenge continues to need Congress's attention, and our full5565recommendations are outlined in my response to Question 4.5566Additional workforce5567    While other sectors have been comparatively stable, we do see pain5568points. For example, while the flight attendant pipeline remains strong5569for most carriers, some have reported increased attrition and highlight5570concerns that while many interested candidates present to flight5571attendant recruiters, a much smaller subset complete the steps for5572successful onboarding. Regional airlines compete for talent with larger5573airlines with larger aircraft and longer routes, with vastly higher5574revenue to support higher pay. Regionals are investing to narrow this5575gap within the realities of smaller aircraft and dramatically lower5576revenues. Regionals are also reinforcing a positive airline culture,5577communicating with candidates, and refining recruiting processes to5578increase successful recruiting to onboarding throughput. Pilots and5579technicians are our focus for Congress because the challenges5580associated with these workforce sectors present high air service risk.55815582    Question 4. To that end, what are the most important steps in your5583estimation Congress can take to address workforce shortages in the5584airline industry?5585    Answer. The steps below strengthen the pilot pipeline and the5586maintenance workforce.5587Pilots5588      Open the career path by expanding financial access. Pilot5589training adds roughly $100,000 on top of the cost of a college5590education, and unlike students headed into medicine or law, students in5591accredited professional pilot programs cannot access adequate federal5592lending. That barrier keeps qualified people out of the profession for5593reasons that have nothing to do with ability. Congress should raise the5594federal student loan cap for accredited flight training, paired with5595accountability standards for program quality. One way of doing this is5596by recognizing eligible professional pilot programs as professional5597degree programs, better reflecting the cost of the education, training,5598and licensure required for hire. The Wings Act, introduced yesterday by5599Representative Joyce Beatty (D-Ohio), would do just this and RAA5600strongly supports this legislation.56015602      Expand GI Bill coverage for flight training. Today a5603veteran must already hold a private pilot license before GI Bill5604benefits apply to flight training, and coverage gaps leave high out-of-5605pocket costs that stop veterans from using benefits they earned through5606service. Congress should amend the GI Bill to cover the private pilot5607license and all elements of flight training and should reject efforts5608to cap veterans' benefits for this purpose.56095610      Retake U.S. leadership on pilot retirement age. The5611mandatory pilot retirement age was raised to 65 in 2007, with no5612negative safety impact. Other key aviation nations are leading on this5613issue at ICAO, and the United States, as one of ICAO's largest members,5614should be a leader on this work. Congress should direct DOT and FAA5615leadership to press the issue at ICAO. Raising the age will not solve5616the shortage alone, but would help preserve experienced aviators while5617allowing the training pipeline more time to catch up.56185619      Oversee FAA's Implementation of the Enhanced5620Qualifications Program (EQP). This is first and foremost a safety5621measure. Section 372 of the FAA Reauthorization Act of 2024 directs the5622FAA to establish an EQP with scenario-based training, a structured5623curriculum, and modern simulator technology. The EQP gives pilots more5624structured, scenario-based, crew-oriented training while reducing the5625gap between completion of structured training and airline hiring, where5626skills can soften. The program must be rigorous and standardized, and5627the FAA should implement it with urgency and consistency. Congress5628should also ensure that pilots receive structured training credit on5629successful completion, consistent with existing R-ATP pathways.5630Maintenance workforce5631      Sustain and build on the FAA Reauthorization Act of 2024.5632That law quadrupled the aviation maintenance workforce development5633grant program and directed the FAA to maintain modern Airman5634Certification Standards through industry collaboration. That foundation5635needs to be maintained and finished before the shortage peaks around56362027.56375638      Build on the FAA Reauthorization Act of 2024's5639maintenance workforce development grant program through sustained5640funding. Support the creation of more Designated Mechanic Examiners5641(DMEs)--expanded access to mechanic certification testing will ensure5642that qualified candidates are not held back by testing bottlenecks.56435644      Help veterans transition into civilian maintenance5645careers, where their skills are badly needed, by encouraging the FAA to5646finish the military competency test pathway required in the FAA5647Reauthorization Act of 2024.56485649      We urge recognition of aviation maintenance as a STEM5650career pathway, so young people find it earlier.56515652    Taken together, the above steps address the two workforces that5653face the biggest structural challenge--pilots and technicians--by5654building quality and access into the pipeline rather than lowering the5655bar. In an industry where safety comes first, that is the right way to5656solve a workforce problem.56575658Post-Hearing Questions for the Record to Faye Malarkey Black, President5659 and Chief Executive Officer, Regional Airline Association, from Hon.5660                              Greg Stanton56615662    Question 1. In your assessment, what happens to a community's5663economic development prospects when reliable air service is reduced or5664eliminated?5665    Answer. Regional air service is a substantial driver of local and5666national economic activity. Prior to the pandemic, across hundreds of5667communities nationwide, air service to the smallest communities (small,5668non-hub and nonprimary airports with commercial service) alone drove5669more than $152 billion in annual economic output, 1.1 million jobs, and5670$41.3 billion in wages and earnings. In Arizona, that air service5671generated $4.2 billion in economic impact, $1.2 billion in payroll, and567234,100 jobs.\1\ When reliable air service is reduced or eliminated, a5673community loses practical access to medical specialists, universities,5674military installations, customers, suppliers, and family members, and5675local businesses lose the ability to recruit talent and stay connected5676to markets.5677---------------------------------------------------------------------------5678    \1\ Zoe Lindemuth, Deborah Meehan, William Swelbar, and Albert5679Zhong, Economic Impact of Small Community Airports (Regional Airline5680Association, 2021).5681---------------------------------------------------------------------------5682    Passengers respond to the network available to them, so reduced5683frequency and eliminated destinations change travel behavior; some5684trips are never taken, and other travelers with the time and means to5685do so drive to more distant airports instead. Both outcomes represent5686lost economic activity for the local community, even when it is5687sometimes mistaken for a simple lack of demand. Additionally, a5688community can lose connectivity even if it still retains air service.5689Flagstaff is a useful illustration. The airport lost its Denver service5690at the peak of the pilot shortage in 2022, even though its flights had5691respectable load factors. The community continues to have air service,5692but the connectivity has been reduced by fewer destination options and5693less frequency.5694    Given the substantial fixed costs airlines must absorb to start or5695restore service in a smaller market, that lost connectivity is often5696more difficult and expensive to recover than it would have been to5697preserve in the first place, meaning the economic damage from lost air5698service can compound and persist well beyond the initial service5699reduction.5700    The effects also reach beyond the community itself. Arizona's EAS5701communities connect to the national network through Phoenix Sky Harbor,5702where regional airlines operate roughly 20 percent of departures.5703Service in one part of the state supports the health of hubs in another5704part of the state.57055706    Question 2. Given that the regional aircraft fleet is aging, what5707is the long-term outlook for maintaining adequate service to smaller5708markets?5709    Answer. The long-term outlook is concerning, largely because of5710scope clause policy. Scope clause caps are provisions in major airline5711pilot-union contracts, which cap regional aircraft at 50, 70, or 765712seats with an 86,000-pound takeoff weight limit. For years, regional5713airlines and their major airline partners have operated within a5714constrained aircraft environment driven by these limitations.5715    Today's most advanced, fuel-efficient jet engines burn cleaner but5716are heavier, and that added weight causes modern regional jets to5717exceed the weight limits of every major airline scope clause. This has5718effectively frozen regional fleets at older propulsion technology and5719deterred manufacturers from developing next-generation regional5720aircraft. Saab, Bombardier, British Aerospace, Beech, Fairchild-5721Dornier, and most recently Mitsubishi have all stopped investing in new5722regional aircraft, and each has cited scope clause limitations as the5723primary reason. The result is a structural gap in the regional fleet at5724exactly the aircraft size many small communities need.5725    Congress does not write private labor contracts, but it can examine5726the public impact when those limits shape which aircraft are available5727to serve small communities. The communities have no seat at that table,5728but they feel the result when the aircraft they need are not built or5729deployed.5730    Larger, 76-seat aircraft are not a universal substitute. Scope5731limitations restrict how many can be operated, and runway constraints,5732airport infrastructure, market size, and operating economics make them5733unsuitable for some communities, which lose air service altogether5734rather than receive larger aircraft. Emerging aircraft technologies may5735help in the future, but communities facing air service challenges today5736need aircraft that are available, certifiable, and economically viable5737now.57385739    Question 3. What are the specific factors that make smaller5740community air service economically challenging to sustain under the5741current model?5742    Answer:5743Pilot supply:5744    The constrained pilot pipeline is the largest pressure on small-5745community service. A community can do everything right and still lose5746service. During the worst stages of the pilot shortage, nearly every5747major and regional airline CEO discussed, in published reports and in5748regulated quarterly earnings calls, how deep air service losses to5749otherwise profitable smaller communities were the direct result of the5750pilot shortage. Without enough pilots to fly every route, aircraft that5751can be crewed are deployed on routes where they can carry more5752passengers at once. This consolidates capacity in larger markets and5753leaves the thinnest routes most exposed, because they do not have5754sufficient passengers to support air service by larger aircraft. When5755airlines attempt to deploy oversized aircraft to thin markets, loss of5756frequency and destination options can further erode passenger use as5757discussed above. This vicious cycle damages the underlying economics of5758the route and puts it at even higher risk.5759Cost distribution:5760    Smaller aircraft have fewer seats over which to distribute5761operating costs, making lower-density routes inherently more sensitive5762to changes in labor, maintenance, airport, financing, fuel, and5763infrastructure costs on a per-passenger basis.5764Pilot compensation:5765    The pilot shortage led airlines to substantially increase pilot5766compensation to attract qualified aviators in an extraordinarily5767competitive labor market. These investments helped attract candidates5768but also materially increased the cost of operating smaller aircraft on5769lower-density routes.5770Fuel price exposure:5771    While major airline partners typically purchase fuel under Capacity5772Purchase Agreements, prices still influence broader network economics;5773carriers operating under pro-rate arrangements, where the regional5774airline retains ticket revenue and bears more direct cost exposure,5775face even greater volatility risk.5776Startup and transition costs:5777    Starting or restoring service after a disruption requires building5778local operations, securing facilities and ground equipment,5779establishing fuel and handling arrangements, staffing the station,5780supporting marketing and community awareness, and integrating the5781service into the broader network. These costs can be substantial,5782particularly in rural markets served by one or only a few carriers and5783must be recovered over a relatively small passenger base.5784Aircraft availability:5785    Scope clause limits on aircraft size and, especially, weight have5786narrowed the range of aircraft that manufacturers are willing to build5787for the regional segment, particularly smaller aircraft that are the5788best fit for small communities.5789Community economics:5790    During the hearing, you used Flagstaff as an example of a community5791that struggles to generate the local financial support to compete for5792Small Community Air Service Development Program (SCASDP) grants, and5793that is a reality.5794    In my written statement, I explained that some very small5795communities, including those in Wyoming and New Mexico, use public-5796private models that share the risk of launching or rebuilding service.5797While there are other ways to partner with carriers than doing so5798financially, the reality is that airports that can keep their own costs5799down, and communities that can help set revenue guarantees or otherwise5800contribute tend to attract more air service because they help to5801instill market certainty. Under SCASDP, US Department of Transportation5802prioritizes those programs.5803    At the same time, not every community can partner in the same way.5804This is a reality that our organization has discussed for decades,5805including in our opposition to a local share requirement for the EAS5806program. We believe a community that can't raise local funds shouldn't5807be shut out of the chance to compete for federal help for that reason5808alone.5809    Congress might examine SCASDP to see if there is a way to give some5810relief to communities that genuinely can't pay in, so that a5811community's need for air service, and perhaps its creativity in counts5812alongside what it can contribute. Beyond that, we'd recommend5813strengthening SCASDP with adequate funding, longer grant terms, and5814better tools to help communities hold onto service after the grant5815period ends.58165817  Post-Hearing Questions for the Record to Shawn Dobberstein, A.A.E.,5818Executive Director, Hector International Airport, Fargo, North Dakota,5819on behalf of the American Association of Airport Executives, from Hon.5820                              Greg Stanton58215822    Question 1. In your assessment, what happens to a community's5823economic development prospects when reliable air service is reduced or5824eliminated?5825    Answer. Reliable air service is one of the key pieces of economic5826infrastructure that allows small and rural communities to compete. When5827that service is reduced or eliminated, the effects go beyond passenger5828inconvenience. It becomes harder for communities to attract and retain5829employers, support tourism, connect local businesses to customers and5830suppliers, recruit professionals, and provide residents with access to5831other economic centers. Communities without reliable air service can5832become less competitive for investment because businesses often look5833for dependable connectivity when deciding where to locate or expand.5834Reduced service can also create a downward spiral: fewer flights and5835poorer schedules push travelers to drive to larger airports, that5836passenger leakage weakens the local market, and airlines then have even5837less incentive to maintain service.58385839    Question 2. Given that the regional aircraft fleet is aging, what5840is the long-term outlook for maintaining adequate service to smaller5841markets?5842    Answer. The long-term outlook for air service to smaller markets is5843impacted by the shrinking regional aircraft fleet. Many smaller5844communities historically depended on smaller regional aircraft that5845could support multiple daily frequencies with right-sized capacity. As5846those aircraft age and are retired, airlines are increasingly shifting5847to larger, more efficient aircraft. While that may make sense from an5848airline cost perspective, it can leave smaller markets with fewer5849frequencies, less convenient schedules, or no viable service at all5850because those markets may not be able to consistently fill larger5851aircraft. Long term, service to smaller communities will likely require5852new aircraft types and business models that can economically connect5853smaller communities, as well as continued investment in aviation5854workforce programs, and support for tools like EAS and SCASDP.58555856    Question 3. What are the specific factors that make smaller5857community air service economically challenging to sustain under the5858current model?5859    Answer. Smaller community air service is challenging because the5860economics are thin and the risks are high. These markets often have5861lower passenger volumes, fewer daily flights, and limited ability to5862absorb disruptions. Airlines are facing higher operating costs,5863including fuel, labor, maintenance, and aircraft costs, while also5864managing pilot, mechanic, ground workforce, and air traffic control5865staffing constraints. At the same time, the reduction of smaller5866regional aircraft and the shift to larger aircraft can reduce frequency5867or make service uneconomic in markets that cannot support larger5868planes. Smaller communities also face passenger leakage when travelers5869drive to larger airports for lower fares, more nonstop options, or5870better schedules. Capacity constraints at major connecting hubs can5871make the problem worse, because smaller markets may be the first to5872lose service when airlines have to make choices about how to use scarce5873aircraft, crews, and slots. That is why AAAE believes Congress should5874fully fund EAS, expand SCASDP, extend infrastructure investments,5875support the Contract Tower Program, continue aviation workforce5876development, and modernize the air traffic control system.58775878                                [all]