Connecting Rural America to the National Airspace System

I call the Committee on Transportation Infrastructure to order. Pursuant to Committee Rule six F and House Rule eleven clause two HF, the Chairman may postpone further proceedings today on any question of approving any measure in matter of adopting an amendment in which the recorded vote of the yeas and nays is ordered. I'd ask unanimous consent that the Chairman be authorized to declare a recess at any time during today's meeting and without objection that is so ordered. All rosters and texts have been distributed electronically and paper copies are also available here in the hearing room. As a reminder, the committee may use an electronic voting system for any requested recorded votes. So today the committee is considering approval of updated subcommittee rosters due to changes on the majority side, the fiscal year twenty twenty seven views and estimates of the committee on transportation and infrastructure, and a general services administration capital investment and leasing program resolution. And finally, unanimous consent for the committee to use an amendments roster for any items under consideration by the committee. And without objection that's so ordered. Our first item for business today is approval of the revised subcommittee roster due to uh membership changes on the majority side. And so I call up the subcommittee rosters for consideration. Without objection the rosters will be considered as read and recognized. I recognize myself uh for a quick statement. Pursuant to House Resolution eleven seventy-six, Congressman Clay Fuller of Georgia and Congressman Kevin Kiley of California were appointed to the Committee on Transportation and Infrastructure. I'm pleased to welcome the newest member of the House of Representatives, Congressman Clay Fuller from Northwest Georgia to the committee. Prior to his election, Congressman Fuller served as an officer in the United States Air Force and Georgia Air National Guard and he also served as a District Attorney for Lookout Mountain Judicial Circuit. He's already had an eventful introduction to the committee as he participated in our surface mark-up just a couple weeks ago. Revised rosters reflect the addition of Congressman Fuller to the subcommittee on Water Resources and Environment Highways and Transit, and Railroads, Pipelines, and Hazardous Materials. Congressman Kiley to the subcommittees on Water Resources and Environment, Highways and Transit, and Economic Development, Public Buildings, and Emergency Management. Congressman Kiley, we are glad uh to have you back on the committee and Congressman Fuller, we look forward to working with you for the rest of uh for the rest of the Congress. Is there anyone else wish to speak on the amendments roster? Seeing none, I'd ask you now on this consent for the approval of revised subcommittee rosters due to membership changes uh on the majority side and without objection that is so ordered the revised subcommittee rosters have been approved. The next item for consideration is the views and estimates of the Committee on Transportation Infrastructure fiscal year twenty twenty seven. And I call up the views and estimates and without objection the first reading is dispensed with. The views and estimates are now considered as read and open for amendment at any point. Recognize myself for a quick statement. The committee has been busy and productive. During the hundred and nineteen Congress, we've held forty-nine hearings and round tables, reported fifty-three bills out of committee and forty-six bills referred to the committee have been approved by the House. Most recently, the committee favorably reported the Build Act two fifty or the Build America two fifty Act a bipartisan surface transportation reauthorization which provides core infrastructure investments to the nation. This bill will advance our highways and railroads and contains the largest investment in bridges in the history of the United States. This critical bill also addresses the highway trust fund fairness issue, strengthens the user fee foundation that it was built upon and provides new funding for the trust funds the first time in over thirty years. I can't stress how important uh it was for the commu- uh that the committee acted to ensure that all users of the nation's uh highways begin paying into the highway trust fund, not just the users who drive gas and diesel powered vehicles. and it provided this new funding mechanism to the Highway Trust Fund. Further, the committee helped deliver reconciliation legislation that provided historic investments to the United States Coast Guard for border and national security, as well as a down payment on the modernization of America's air traffic control system. And it will continue to be busy uh this Congress uh for the committee as we work together on a Water Resources Development Act, advance the committee's reported pipeline safety bill, female reform in aviation safety legislation and more. And I'm proud to say that we've advanced critical legislation in a bipartisan manner and our hard work is paying off for the American people. I appreciate ranking member uh Larson for working with us on all these important um items as well as abusing estimates um that we are considering today and I'd urge my colleagues to support the abusing estimates for fiscal year twenty twenty-seven and now rep recognize Rick.

Thank you, Mr. Chair, and thank you for working collaboratively on the We've had a productive session so far, having drafted and passed the bipartisan Alert Act in the House and marking up a bipartisan surface transportation reauthorization bill in this committee. We still have work to do for the remainder of Congress, including working with the Senate to get the Alert Act enacted, getting the Build Act uh, Build America to fifty Act and the FEMA Act to the floor and enacted, and passing a bipartisan Water Resources Development Act or word-out bill. as well as conducting our continued oversight of the administration's air traffic control modernization efforts. These views and estimates, I believe, reflect our desire to continue working in a bipartisan and productive manner, and I urge my colleagues to join me in supporting the FY twenty twenty-seven budget views and estimates. With that, I yield back.

Do any other members wish to be recognized? Seeing no one. Are there any amendments to the views and estimates for fiscal year twenty twenty seven? Hearing none, the question is now on adopting and submitting the views and estimates for fiscal year twenty twenty seven to the house committee on budget. All those in favor, signify by saying aye.

Aye.

All opposed, signify by saying nay. The ayes have it, and the views and estimates for fiscal year twenty s twenty seven are adopted. Pursuant to house rule ten clause four, I'd ask unanimous consent. fiscal year twenty twenty seven views and estimates as adopted by the committee on transportation and infrastructure be submitted to the committee on budget without objection that is so ordered our last item for consideration is a resolution for a project in the general services administration's capital investment and leasing program and i'd ask unanimous consent to call up the resolution it is now considered as read and open for amendment at any point without objection That is so ordered. Recognize myself quickly for a statement. So the GSA resolution that we're considering today is an alter or or alteration project of the GSA's headquarters. Uh, this prospectus will allow GSA and OPM to consolidate into one building. This continues the committee's efforts to shrink the federal footprint, reducing the taxpayers' liability, and ensure that space usage is cons uh consistent. with requirements set in the public buildings reforms that we enacted in the Water Resource and Development Act of twenty twenty four. In fact, GSA has informed the committee that this would boost the building utilization uh r uh rate by over eighty percent. I wanna thank subcommittee chairman Perry for his work on ensuring that this project makes sense uh to the taxpayers. With that, I urge my committee to support the resolution and recognize Rickford's statement.

Thank you, Mr. Chair. I support the GSA's resolution before us today, which provides the um um GSA with the authority to renovate its headquarters building located at eighteen hundred F street northwest in the c in the capital. Eighteen hundred F street was constructed for the Department of Interior in nineteen seventeen and placed on the National Register of Historic Places in nineteen eighty six. Between two thousand nine and two thousand thirteen, GSA used American recovery and reinvestment. Act funding to renovate elevator, mechanical, plumbing, and life sa- safety systems in sixty percent of the building. But the remaining forty percent of the building has been emptied due to poor ventilation. In twenty twenty six, FYI twenty twenty six, that is, GSA submitted the prospectus before us today, which provide GSA with two hundred and thirty-nine million dollars to complete the renovations. GSA plans to keep this building in its inventory and and co-locate the Office of Personnel Management there. According to GSA, once GSA and OPM are in the building, the utilization rate will exceed eighty percent. So I support this resolution and urge my colleagues to do the same, and with that yield back.

Does anyone else wish to be recognized on the GSA resolution? Seeing no further. Speakers, are there any amendments to the GSA resolution? Hearing none, the question is now on the adoption of the GSA resolution. All those in favor, signify by saying aye. All opposed, signify by saying nay. If any of the chair, the ayes have it. And the GSA resolution is agreed to and approved. Thank you everyone for participating today. Pursuant to committee rule six of the rules of the Committee on Transportation Infrastructure, I'd note the presence of a quorum for actions taken on all committee business today. I'd ask unanimous consent that the staff be authorized to make all necessary technical, clarifying and conforming changes to each item adopted today to reflect the actions of the committee. Without objection, that is so ordered. I'll remind members that we're about to transition into an aviation subcommittee hearing please allow staff just a moment to prepare the hearing room for the next, uh, committee activity. And with that, the Committee on Transportation and Infrastructure has completed its administrative and organizational business. For the day, the committee stands adjourned.

The subcommittee on aviation will come to order. I ask you and ask consent that the chairman be authorized to declare recess at any time during today's hearing. Without objection so ordered, I also ask you and ask sent it to members on, not on the subcommittee, be permitted to sit with the subcommittee at today's hearing and ask questions. Without objection so ordered, and as a reminder, if members wish to insert a document into the record, please email it to documents TI at mail dot house dot gov. I now recognize myself for the purpose of an opening statement. Good morning and thank you to our panel of witnesses for being here today. Good to see you. Each of you brings a unique perspective to this important discussion on the state of America's small airports and rural communities' access to the national airspace or the NAS. Airports are more than transportation hubs. They are economic engines supporting Americans' livelihoods, connecting communities, and enhancing quality of life. There are nearly five thousand public use airports and helipads, heliports across the United States, and almost thirty-three hundred of these facilities are on the FAA's national plan of integrated airport systems. These numbers are certain to grow as advanced air mobility technologies emerge and become integrated into the aviation system. Yet, all of these facilities, only sixty-four are large or medium hub airports. Understandably, they get a lot of attention. But there are another four hundred and fifty airports providing critical commercial passenger service across the country. While they are well known within their communities, the air these airports deserve greater attention and stronger support from Congress. For the forty-six million Americans living in rural communities, these facilities provide the same critical access to the NAS as larger airports do for urban Americans. All of you are here today to help us better highlight the value of these facilities, the role they play in their communities, and the challenges they face in maintaining and expanding access. According to a recent study by the Airports Council International North America, commercial airports in the United States support over twelve point eight million jobs, six hundred and eighteen billion in wages, and one point eight trillion with a T in economic output. Notably, every additional one thousand in plain in payments generate nearly seven hundred thousand in economic output and supports six additional jobs. We should be working together to increase employments at these airports, so all Americans can share these economic benefits. Fortunately, there are strong federal programs designed to support communities, maintaining existing service, expanding service, and attracting new carriers, ultimately increasing employments. Essential Air Service is the most well-known of these programs. In the FAA Reauthorization Act of twenty twenty four, Congress strengthened and reformed EAS, to improve accountability, restore fiscal discipline, and better target limited resources to the communities most in need. The Small Community Air Service Development Program also grant also gives communities the opportunity to identify their own air service needs, recruit carriers, offer revenue guarantees, conduct studies, and market new service. Importantly, this program encourages local business investment, the skin in the game approach incentivize services that are more likely to succeed long term without subsidies. Lastly, the Airport Improvement Program, or AIP, distributes resources generated by user fees and fuel taxes by formula to all new public use airports in the NPIAS. I would be remiss not to recognize the significant progress the Trump administration has made in modernizing uh the air track control system. Under secretary Duffer and administrator Bedford's leadership, more than two thousand air traffic controllers, they were hired last year. More than twelve thousand applied to become controllers this year. Six hundred and twelve new radar systems are being deployed. Half of the outdated copper wiring has already been replaced with modern fiber optics. Seventeen control towers transitioned from paper flight strips to electronic systems, and fifty-four airports now have surface awareness systems. Clearly, the future of American aviation is bright. And with that, I again thank our witnesses for traveling here today, and I look forward to your testimony. I will now recognize Ranking Member Carson for five minute opening statement.

Good morning. Thank you, Chairman Nils, uh Chairman Graves, and Ranking Member Larson. Uh it is an honor to be here for our first aviation subcommittee hearing this year. Welcome to our witnesses again for joining today's hearing on trends, opportunities and challenges facing small communities and rural commercial service airports. Air service for small and rural communities is important to many members of this committee. While Indianapolis International Airport is one of the busiest in the country, there are four airports in Indiana that have essential air service, determinations for routes that connect through Chicago O'Hare Airport. The twenty twenty four FAA reauthorization is actively creating a positive economic impact on small and rural communities through the preservation of EAS programs and raising the per-passenger subsidy caps, improving the alternative EAS program, increasing the small community air service development program, annual authorization level from ten million dollars to fifteen million dollars, and while prioritizing applications that restore flights that have been lost or substantially reduced, and boosting airport improvement programs, uh funding to four billion dollars per year and revising apportionment which increased annual formula funds for both large and small airports. Uh, finally, we can all agree that airline passengers, regardless of whether they're flying into a major hub or a non-hub airport in their small communities deserve one level of safety. This means maintaining and improving the similar pilot training requirements, aircraft certification standards, air traffic control staffing, and technology. safety data tracking, and other tools that we use to keep the national airspace system safe. Thank you again to our witnesses. You all play a very critical role in ensuring continued service to small and rural communities in our yield back.

The gentlemen yields I now recognize the Chairman of the full committee, Mister Graves, for five.

Thank you, Chairman Niles, and I want to thank our witnesses for uh uh for all being here. Last year Congress passed and the President has signed into law an historic, twelve and a half billion dollar in our nation's aviation infrastructure, uh accomplishment that uh I was very proud to have led in the uh uh in the House. That investment is already delivering meaningful results, as has been dem or pointed out today already. Deploying new radars, replacing communications infrastructure, uh deploying airport surveillance systems, and hiring record number uh of air traffic controllers. There's more to be done and additional investments are needed to complete this modernization and I'm committed to working with the administration and my colleagues to identify the remaining needs and find a vehicle to secure those resources that uh are gonna be needed to finish the job. We must continue to build upon the momentum initiated by last year's historic investment and expeditiously roll out the most modern and safest aviation system possible. Whether they support commercial, passenger service or provide public accessibility facilities for general aviation pilots, Airports are pillars of our community and drive economic uh growth and improve the quality of life of all of our communities. Critically small airports are also the primary training ground for pilots. We must protect and preserve our freedom to fly for everyone, whether they are operating a personal aircraft or conducting uh business aviation or traveling as passengers on commercial airlines. That's why I'm proud that this committee worked in a very bipartisan uh fashion to pass the FAA reauthorization act of twenty twenty four and we continue to construct conduct strong oversight uh of its uh implementation. This bipartisan law made important reforms to the aviation sector by addressing workforce challenges improving passenger experience establishing the first ever general aviation title and increasing financial supports for airports nationwide and with that, Mister uh Chairman, I yield back.

gentlemen yields. I now recognize the ranking member of the full committee, Mister Larson.

Thank you, Chair Nels and Ranking Member Carson, for holding today's hearing on connecting rural America to the national aerospace system. I thank the witnesses for joining us today, and we have plenty to discuss. I look forward to your testimony. Airports are vital economic engines that power our local communities, especially in small and rural ones, and many of the ones I represent. They serve as critical transportation hubs to safely bring people together.

Yes, sir.

This will be important in the coming weeks as fans travel across the country and from around the world to watch their favorite teams in the World Cup.

True.

And we look forward to welcoming them to the Pacific Northwest, where Seattle and Vancouver will be hosting thirteen of those games. Airports also generate good jobs, simulate local businesses, and attract financial investment. A twenty twenty five Airports Council International North America study found that airports with commercial service support twelve point eight million jobs and produce one point eight trillion dollars of annual output. In my district we have a few small airports. Reigning from Arlington Municipal Airport, my hometown, which dates to nineteen thirty four, uh, Orcas Island Airport, Lopez Airport, Friday Harbor Airport, Skagit County Regional Airport, uh, I don't wanna forget, concrete airport, um, there's a few more as well. They're all gonna call me and tell me I forgot to name them. But Congress recognized the importance of small and rural airports when we passed the twenty twenty-four FAA reauthorization. The law increases funding for airport the airport improvement program to four billion dollars annually of a we of a of which at least one hundred and fifty million must be spent on airport climate noise or other environmental projects. The law also provides uh improves the lives of neighboring airport communities by requiring the FAA to develop a plan to transition away from leaded fuel in general aviation by twenty thirty. So whether connected via regional airlines, uh charter flights, or general aviation, these small and rural hubs serve as alternatives to overburden most metropolitan airports. Unfortunately, regional and value airlines sp uh face specific challenges ranging from workforce uh issues to surging fuel prices. Many of you mentioned in your testimony uh the increased demands on the NASS have inc also increased demand for skilled aviation workforce. Mister Collins, you specifically mentioned the need for more aviation maintenance technicians while other witnesses referenced the increased competition for pilots. To meet these needs without decreasing our safety standards, Congress, the FAA, and stakeholders must expand the talent pipeline and improve efforts to recruit, train, and retain a robust U. S. aerospace uh workforce from every part of our society. To address this, the twenty twenty-four reauthorization invests sixty million dollars annually in aviation workforce development grants to train the next generation of aviation manufacturing workers, airport maintenance technicians, and pilots. in the Northwest and across this country, aviation means jobs that pay well and are key to long-term economic growth, and I encourage the FAA to quickly implement these programs and distribute these grants in a timely manner. Ms. Black, your testimony also touches upon small aircraft economics and how increased operation costs have led regional carriers to use larger, more efficient planes. Mr. Collins and Mr. Pecoraro, you both explained that a factor contributing to this trend is the lack of regional jet manufacturing pipelines, just as there aren't many options for new fuel-efficient regional jets. It's a challenge that uh the Pacific Northwest is up to tackling. To help meet these regional aircraft needs, the twenty twenty-four bill directed the FAA to bring on a much needed expertise in its aircraft certification office. We have to maintain the certification office's institutional knowledge to meet the requirements of the aircraft certification reform law and grow the agency's technical expertise to better assess new designs. In this way, when new regional aircraft are designed and proposed, staff at the FAA are there to support that innovation. Finally, we can't talk about the small and rural connectivity uh of airports without discussing how the president's actions in Iran have spiked fuel prices, specifically jet fuel. In general, fuel expenses account for a larger share of air carrier budgets than most other industries making them particularly vulnerable to price fluctuations. Exacerbating this issue, smaller regional and value air carriers have fewer resources than their larger counterpart parts to absorb these rising operational costs. Consequently, the drastic increase in jet fuel prices places a unique burden, financial burden, on regional and value airlines, often forcing these carriers to reduce flight frequencies, further eliminate routes, or increase ticket prices. This directly impacts small and rural communities through rising travel costs or loss of service altogether. We can't allow this to happen. The president needs to resolve this fuel price crisis of his own making. As this committee considers the future of rural aviation and small community connectivity, we have to continue investing in the airports, in workforce, and in the innovation that keeps our communities connected to the NAS. We can't ignore the economic pressures facing regional carriers, including rising fuel costs that threaten service to the very communities that depend upon it most. So I look forward to uh to the hearing today. uh in hearing from today's witnesses on how we can help strengthen rural connectivity, uphold our safety standards, and support American in aviation and innovation. Thank you.

The gentlemen yield. Briefly take a moment to explain our lighting. You guys have been here before. We just keep your remarks to five minutes, okay? Uh, I ask you in ask consent that the witnesses' full statements be included in the record without objection so ordered. I also ask you in ask consent that the record of today's hearing remain open until such time as our witnesses have provided answers to any questions that may be submitted to them in writing, without objection so ordered. I also ask you now to the extent that the record remain open for fifteen days for any additional comments and information submitted by members or witnesses to be included in the record of today's hearing without objection so ordered. And as your written testimony has been made part of the record, the subcommittee asks that you limit your oral marks again five minutes. With that, Miss Black, you're recognized.

Thank you, Chairman, Ranking Member, members of the subcommittee. Thanks for holding this hearing today, and thanks for the opportunity to be here. Last year, Regional Airlines flew one in three departure, and served almost all US airports. We fly to communities of all sizes, but for two thirds of the nation's airports, we provide the only source of scheduled commercial air service. That service connects people to health care, colleges, military bases, and loved ones. It supports a hundred and fifty-three billion dollars in yearly economic But rural America still doesn't have the air service that it needs. A pilot shortage that predated the pandemic worsened after it, forcing regional airlines to park about a quarter of the fleet, and pushing small community air service into crisis. Today, overall service is up, but passengers don't experience air service in the aggregate. They experience whether their local airport still has the schedules and destinations that meet their needs. Today, a hundred and ninety-three airports have fewer flights than before the pandemic, and the average loss at those airports is thirty-one percent of their flights. Thirty-five have lost more than half their flights, fourteen airports have gone dark completely, and smaller smaller airports are faring the worst. Several forces are driving this. First, infrastructure. Safety is the foundation of everything we do, and air traffic control modernization is foundational to safety. I'm a member of the Modern Skies coalition and I support its goals. We cannot leave rural airports behind. The focus on DCA is necessary. The families who lost loved ones last year deserve nothing less. That same vigilance belongs everywhere. Each day our members fly into small airports, contract towers, and non-towered fields with GA, medical and military flights, and without the situational awareness tools that are standard elsewhere. We asked Congress to extend risk-based airport safety reviews, equip contract towers with digital tools so controllers don't separate traffic solely by looking out the window, and we re- uh asked Congress to require radio communication at non-towered fields, where it's recommended today, but not required. I thank this committee for embracing AKSX. It's the future of collision avoidance technology. It depends on ADS BN, which gives pilots a real-time picture of nearby traffic. We support both. And we need to be clear-eyed about the timeline. Some suggest ADSBN is ready, fleet-wide, now, and that only ACAS-X is the long-lead technology. That's not accurate. Both need aircraft-specific development, certification, installation, and supply chains that carriers don't control. That's why we support a right-now safety bridge through electronic flight bags that are mounted in the flight deck. They can be used on every flight, fixed in the pilot's line of sight. and an aircraft cannot dispatch without one. EFBs can deliver ADSBN with traffic awareness and surface awareness and visual and audible alerts as in-panel systems mature. We should not wait years for safety we can deploy almost now. Second, workforce. Communities can't get air service without pilots. Supply is more stable now than before, but the underlying shortage remains. Earlier this year, mainline hiring again outpaced new pilot certifications. and we haven't yet fully rebuilt lost air service. And more than a quarter of the workforce must retire within a decade. The pipeline is not keeping up, and one reason is cost. Flight education inherently costs more than other degrees, and federal loans fall about eighty thousand dollars short on average. Students without wealth are locked out. Congress can help by aligning federal student aid with the cost of flight training and allowing GI benefits to cover private pilot certificates. We also support raising the pilot retirement age. It was last raised in two thousand and seven with no safety harm, and pilots already undergo frequent, rigorous testing. This won't end the shortage, but it will help, and it's the right thing to do. Safety depends on pilots being prepared for commercial flight. We're pleased the FAA advanced the congressionally directed enhanced qualification program its safety value lies in the quality, relevance, and rigor. of the training and FAA should implement it with clear standardized guidance. Next, aircraft. Small communities need aircraft size to their markets. Oversized aircraft reduce frequency and reduce routes. Congress should be aware that scope clauses do restrict the size, weight, and number of aircraft regionals can fly. Finally, federal programs. EAS preserves service to many rural communities, and it drove two point three billion dollars in economic activity per year before the pandemic. We urge full funding, stable contracts, and timely transitions. SCASD is another tool to attract and keep air service, and we support it. We appreciate your focus on rural connectivity, and we hope you see us as a partner in the work ahead. Thank you for holding this hearing and for including me in it. I look forward to your questions.

Yeah. Uh, uh, thank you, Miss Black, and thank you for bringing up the pilot shortage. No question about it. But we, we choose Congress fires people at sixty-five and can't justify it for any reason whatsoever. There's nothing, no reason to justify. terminating qualified pilots to testify. Anyway, uh I'd like to uh next uh recognize Mister Doberstein, your recognizer.

Chairman Nils, Ranking Member Carson, and members of the subcommittee, thank you for the opportunity to testify to today. My name is Sean Doberstein, and I serve as the Executive Director of Hector International Airport in Fargo, North Dakota, and as Vice Chair of the American Association of Airport Executives Air Service Committee. I'm here on behalf of airports that depend on reliable Rural Air Service to connect their communities to the national economy, health care, education and commerce. Thank you for the committee's dedication to addressing important aviation matters, especially your contributions to the twenty twenty-four FAA authorization law. This hearing is another example of this committee's commitment to improving aviation in communities, both large and small. Thank you for your continued efforts. Rural Air Service remains under pressure. Recovery at many small communities lagged after the pandemic. And pilot shortages, higher operating costs, including fuel and airline fleet changes, have all made service harder to sustain. In many markets, airlines are using larger aircraft and offering fewer departures, which means fewer connection options, less schedule flexibility, and greater disruption when flights are delayed or canceled. At the same time, rural airports face a major infrastructure challenge. The Infrastructure Investment and Jobs Act provided historic airport funding, But that support ends after fiscal year twenty twenty six. Without follow-on investment, airports will face a sharp funding drop, just as they are trying to modernize facilities, improve safety, and prepare for future demand, including new technologies and new entrance into the airspace. Congress took important steps in the FAA Reauthorization Act of twenty twenty four to support small community air service and the modernization of the national airspace system. The next step is to make sure rural airports and the communities they serve are not left behind as the system evolves. To address these challenges, and to protect rural connectivity, I would urge Congress to focus on six priorities. The first, fully fund essential air service. EAS remains the core federal program providing access for communities that would otherwise lose commercial service. Second, strengthen the small community air service development program. SCASD helps communities attract and retain service, but demand continues to outpace available funding. Third, provide stable airport infrastructure funding. Congress should protect AIP and extend IIJA style airport investments, so smaller airports can address safety, terminal, runway and tower needs without facing a funding cliff after fiscal year twenty twenty six. Fourth, Support contract towers. Contract towers improve safety and access to smaller airports. Fifth, support aviation workforce programs. Continued investment in pilots, technicians and controllers is essential to sustaining and growing service. Sixth, accelerate modernization of the air traffic control system. A safer, more efficient system benefits the entire country, but is especially important for smaller communities. which are often the first to lose service when the system is constrained. In conclusion, rural aviation is not a local issue alone, it is a national connectivity issue. If we want a strong and resilient aviation system, we must ensure rural communities remain connected to it. Thank you for your time and your attention to rural aviation issues. I look forward to your questions.

Uh thank you. Uh, Mister Collins, you're recognized.

Chairman Nels, Ranking Member Carson, and members of the subcommittee. Thank you for the opportunity to discuss GAO's work related to air service to small communities in the United States. Communities of all sizes seek access to air service as a driver for attracting investment, generating employment, and providing mobility for citizens. However, the economics of the airline industry has traditionally made it difficult to establish or sustain viable air service in some smaller communities. My remarks will highlight recent trends in air service to small communities, market factors that have contributed to changes in air service to small communities and their effects on federal air service programs, and suggestions from stakeholders and recent studies to improve air service to small communities. In general, small communities continue to face declining passenger air service. From twenty eighteen to twenty twenty-three on average, small communities had fewer total departures annually, and fewer daily departures per route. Over the same time period, small communities' connectivity, a measure of a passenger's degree of access to the national aviation system, also decreased. These trends are more acute at non-hub airports that do not receive essential air service program support. For example, from twenty eighteen to twenty twenty four, over seventy percent of these airports experienced a decline in average daily departures per room. Several market factors have affected air service to small communities. First, consumers have shown that they are willing to drive for cheaper flights or better service. In addition, stakeholders reported that increased airline operating costs made air service to small communities less economically feasible contributing to reductions in air service. These costs have also affected federal air service programs targeted at small communities. From twenty eighteen through twenty twenty three, increased airline operating costs contributed to a thirty-one percent increase in total EAS subsidies for communities in the lower forty-eight states. These costs have also affected the small community air service development program by limiting the impact of the grants that communities use to jumpstart new air service. Options that selected stakeholders in recent studies identified to improve air service to small communities include increasing the aviation workforce supply, and supporting other transportation modes, such as bus service or new technologies such as electric aircraft. In addition, stakeholders identified a range of options to change the essential air service program such as focusing assistance on more remote communities, or expanding the program to better ensure small airports do not lose air service. Stakeholders also identified options to modify the small community air service development program, including allocating funding to fewer communities per cycle or shifting the focus of the program away from revenue guarantees. In conclusion, given limited resources, airlines may allocate those resources for the high highest return. Because of the unique circumstances of each small community airport and market factors, a combination of creative approaches will be needed to ensure connectivity for small communities. This concludes my statement. I'll be happy to answer any questions.

Uh, thank you, sir. I now recognize Mister Pecario. Five minutes.

Thank you, Chairman Nels, ranking member Carson, uh and ranking member Larson, members of the subcommittee. Thank you for the opportunity to appear before you on behalf of the National Association of State Aviation Officials. I appreciate your continued commitment to the small to small community air service, and from your opening statements it's clear that this committee gets it. State agencies directly support small and rural s- air service in many ways, including financially. Several states uh provide incentive programs to help communities attract and retain scheduled passenger service. These efforts complement federal programs providing locally responsive support shaped by each community's needs. The challenges facing small community air service are bigger than any one federal program. The nation needs a coordinated strategy. Small and rural communities face long-standing pressures. Aging infrastructure, airline economics, security requirements, limited workforce, and the shrinking availability of appropriately sized aircraft. Unless these are addressed together, communities will continue to lose service. We need Congress to direct the U. S. D. O. T. and the FAA, in coordination with other agencies and state and local governments, to develop and implement a national strategy for small community air service. That effort should review existing federal programs, identify actionable recommendations, and define clear responsibilities across government. Continued federal support is indispensable. The EAS program is an important lifeline for many communities, but it has not kept pace with changes in the airline industry and the broader economy. Communities that successfully exited EAS before the pandemic are now unable to sustain service under current conditions. Yet existing law makes it extremely difficult for them to re-enter. Congress should preserve full funding for both EAS and the small community air service development program, and update eligibility rules so communi- communities who have lost service have a realistic path back. Infrastructure needs are equally pressing. Many small community terminals are aging, undersized, and un- unable to meet current needs. General aviation airports face similar funding challenges, even though they may provide some of the most practical near-term platforms for emerging aviation technologies and future service opportunities. Congress should continue robust Air Improve Airport Improvement Program funding at the full authorized level and examine long-term changes to better support non-primary entitlements and general aviation infrastructure. The regional aircraft fleet, vital to many small communities, is in decline. Airlines are moving to fewer, larger aircraft with more favorable economics, while many fifty-seat regional jets are reaching the end of their useful lives. When right-sized aircraft disappear, access disappears with them. It becomes harder for smaller markets to maintain frequency, affordability, and reliable connectivity to the national system. We must identify and repair and fix the barriers preventing new regional aircraft from entering the market. Finally, workforce shortages continue to affect the entire aviation ecosystem, especially pilot recruitment and retention. NSEO encourages Congress to continue to support pathways that improve the pilot pipeline. In closing, the challenges facing small community air service are structural, compounding, and urgent, but not beyond solving. With a strategic national approach, continued federal assistance, sustained infrastructure investment, support for right-sized aircraft manufacturing, and expanded workforce development, Congress can help ensure that small communities remain connected to the national aviation system. NSEO and the States stand ready to work with you to ensure that small and rural communities have access to the NASS. Thank you again for your leadership and your continued attention to this important issue. I'd be pleased to answer any questions you may have.

Uh, thank you, sir. Uh, thank you all for your testimony. We will now uh turn to questions from the panel. I'll recognize myself. I think uh just for uh awareness that I think Miss uh Black you brought it up, but the FAA Administrator Brian Bedford testified last week at the Senate Commerce hearing that any new integrated system ACAS X or ADS be in is ten years away, ten years. The electronic flight bag option that you mentioned, Faye, uh can be deployed, it can be done immediately, so just I just wanted to bring that point up. Uh, Miss Black, to the uh in addition to guaranteeing a safely operated national airspace, we have a responsibility to ensure that rural Americans have an accessible national airspace. The necessity of access for regional aircraft is indisputable. Can you describe any obstacles on the horizon for your carriers, and how can Congress hurt, we can hurt, or help?

Thank you for the question. Um, I think that the obstacles on the horizon are related to workforce. Uh certainly we need to have pilots to operate the flights and aircraft related, we need to have the aircraft to operate the flights as well. Um the risks to each workforce obviously is that is that we don't have enough, we see that that pipeline is thinning, there are things that we can do to fix it, uh including right sizing student loans so more people from working class backgrounds can get into this career. And with respect to the fleet, it's important that as we advance safety that we bring it communities of every size but we do it in a way that works with the fleet and not against the fleet or in a way that could ground the fleet so to your point of the electronic flight bag that's a way for us right now to create that level of safety um while we pursue integrated systems that the supply chain may not keep up with. Those are the the biggest uh I think risks right now.

OK. Fair enough. Do you have an estimate on how many pilots the regionals will lose to the major carriers over the next twelve months?

the next twelve months did you say uh i think i actually saw estimates from seven thousand five hundred to eight thousand five hundred or so and to put that into context the pipeline actually produced about uh about that amount last year a little bit less actually and using a twelve month rolling average it looks to

sure

produce about eight thousand or eighty three hundred so we're already behind

sure so so what that really means is that the regionals serve ninety four percent of our our commercial airports Ninety four percent.

Correct.

The main line carriers serve just thirty six percent. So that means regional serve two thirds. They're the only mode of transportation, two thirds of our nation's airports. But yet you're gonna lose all these pilots and we could see that even, we're gonna lose more service to more smaller airports as a result of the pilot shortage it must be addressed this year it's gotta be addressed. Mister Doberstein, Fargo, haven't been there, haven't been there, has received a few uh SCASDAP grant awards. The program is appealing because it incentivizes local of new air services that have the potential to uh continue unsubsidized. How have you been successful and how has the local economy benefited and you have any suggestions to strengthen the program?

Thank you for the question. Um, yeah, we've been the recipient of four SCASTI grants uh dating back to two thousand five. The first grant uh was awarded to us and Delta Airlines implemented service to Salt Lake City. That was done in two thousand six, but unfortunately the service was suspended in two thousand eight, Delta reallocated aircraft to Seattle and Los Angeles for other competitive reasons. Our second grant uh was awarded um for service to Dallas back in two thousand eleven, and that service is thriving today, it's doing extremely, extremely well. Our third grant uh was for Seattle service, working with Alaska Airlines. Fargo had a large population of Microsoft employees in our community that were traveling back and forth to Seattle. Unfortunately, the the pandemic resulted in more virtual use of their time and uh less air travel, so we terminated that grant. And currently today we have a grant uh on the table right now for implementing service to Charlotte and we're working with American Airlines on that. Uh my suggestions would be to uh increase the amount of funding for the SCASD program,

Mm-hmm.

maybe reduce the number of recipients, to increase the amount of money each recipient would receive due to the higher costs that are in place today with workforce, fuel and other things.

Thank you. Mister Collins, we're aware of the ballooning cost to EAS. We've lowered the subsidy cap in the FAA reauthorization. It will help. You have talked about the successes of SCASdap, where projects with a local match are more competitive. Two questions. Uh, would the solvency of EAS benefit from the from the small sort of small local investment? And what else can be done to reduce costs and increase our return on investment in the EAS?