The agreement, reached between budget negotiators, maintains that the Federal Aviation Administration will remain on-budget and ensures trust fund receipts will be spent on aviation programs. The FAA will be funded with total program spending set at $40 billion during the next three years. In addition, the final agreement permits the use of general funds for certain aviation programs.
"This agreement is a long time coming and it's an important step forward," Grassley said. "The increased funding of our nation's airports, such as making structural improvements, is critical in dealing with crowded airports and air traffic congestion."
Today's developments mean that the entire bill, including the slot provision introduced by Senators Grassley and Harkin, can now move forward. The existing 30-year-old slot system, which determines who can land and take off at various airports, give major airlines an enormous advantage over start-up carriers and erodes competition in under-served markets.
"Plain and simple, Iowans are getting the short end of the stick when it comes to cheaper and more convenient air travel, but this could soon change," Grassley said. "The lack of competition has left us with some of the lowest ridership and most bloated airfares in the country. We need increased competition to spur economic development and attract new business."
Funding for the FAA was at the heart of the dispute that had stopped work by the conference committee on the airport improvement bill that has passed both the Senate and the House of Representatives. After the chairman, Grassley is the most senior member of the Senate budget panel.
