Aviation Funding Stability Act 2025 Protects FAA During Shutdowns

Introduction

The stability and reliability of the United States aviation system are critical not only for air travelers but also for the broader economy and national security. Over the past decade, the aviation sector has faced significant challenges during federal government shutdowns, which have exposed vulnerabilities in the funding and operation of the Federal Aviation Administration (FAA). These shutdowns have resulted in operational delays, financial losses, and severe stress on essential personnel such as air traffic controllers and safety inspectors.

In response to these recurring disruptions, lawmakers have introduced the Aviation Funding Stability Act of 2025. This proposed legislation is designed to insulate FAA programs and personnel from the effects of a government shutdown by authorizing the agency to draw from the Airport and Airway Trust Fund for a limited period. The measure aims to ensure that critical aviation functions continue uninterrupted, safeguarding both the safety of the national airspace and the economic interests tied to aviation.

Understanding the context, implications, and potential impact of this Act is essential for stakeholders across the aviation industry, policymakers, and the traveling public. This article explores the historical background, legislative evolution, financial framework, workforce issues, industry impacts, and future outlook associated with the Aviation Funding Stability Act.

Historical Context: Government Shutdowns and Aviation Disruptions

Shutdown Impacts on Aviation Operations

Government shutdowns have repeatedly demonstrated their disruptive effects on the aviation sector. The 35-day shutdown from December 2018 to January 2019 stands as the longest in U.S. history, offering a stark illustration of the risks involved. During this period, critical FAA functions such as air traffic control and safety oversight continued only because these roles were deemed essential. However, many FAA employees, including air traffic controllers and Transportation Security Administration (TSA) officers, were forced to work without pay, leading to increased absenteeism and operational stress.

At the peak of the 2018-2019 shutdown, TSA officer call-outs rose by 200-300% at major airports, with national absence rates among screeners reaching 10%, compared to a normal 3%. LaGuardia Airport in New York even delayed flights due to staffing shortages. Airlines reported significant financial losses, with Delta Air Lines and Southwest Airlines estimating losses of $25 million and $15 million, respectively, during the shutdown.

Beyond immediate operational impacts, shutdowns have led to the suspension of activities such as issuing pilot certificates, approving exemptions for unmanned aircraft operations, and advancing modernization efforts like NextGen technologies. The U.S. Travel Association estimated that the travel sector lost approximately $140 million per day during shutdowns, highlighting the far-reaching consequences for the economy.

“The United States has the safest and most efficient aviation system in the entire world. We can’t allow for everything to be thrown into chaos in the event of a federal government shutdown.” , Rep. Peter DeFazio

Previous Legislative Efforts

Recognizing the need to shield aviation operations from political gridlock, Congress has considered similar legislation in the past. The first version of the Aviation Funding Stability Act was introduced in 2019 but did not advance to a House vote, despite bipartisan support. The concept was revived in 2021, again reflecting persistent concerns over the vulnerability of the FAA to government shutdowns.

Each version of the bill has sought to allow the FAA to access the Airport and Airway Trust Fund during funding lapses. The Trust Fund, which is financed by aviation excise taxes, has historically provided the majority of the FAA’s budget. Legislative refinements over time have included imposing specific time limits, currently 30 days, on the authority to draw from the Trust Fund during a shutdown, balancing operational needs with fiscal oversight.

These legislative efforts have consistently garnered support from both industry groups and professional associations, including the National Business Aviation Association and the Aircraft Owners and Pilots Association, who recognize the critical importance of uninterrupted FAA operations.

Financial Framework: FAA Budget and the Airport and Airway Trust Fund

FAA Budget Overview

The FAA manages one of the largest budgets among U.S. transportation agencies, reflecting its responsibility for the world’s most complex airspace system. For fiscal year 2025, the President’s Budget requested $21.8 billion for the FAA, with an additional $5 billion from the Bipartisan Infrastructure Law, totaling $26.8 billion. The majority of these funds support operations, air traffic control, facilities and equipment, research, and airport development.

The Operations account alone is set at $13.6 billion for 2025, funding the administration and maintenance of the National Airspace System and critical safety oversight. The Facilities and Equipment account, at $4 billion, supports infrastructure improvements and modernization initiatives such as NextGen air traffic control systems. The Grants-in-Aid for Airports account enables airport development nationwide.

Congressional appropriations for the FAA have remained robust, with the House Appropriations Committee approving $23.3 billion for fiscal year 2026 and the Senate proposing $22.4 billion. These figures reflect bipartisan recognition of the FAA’s essential role in national infrastructure.

“The Trust Fund provided approximately 87% of FAA’s budget in fiscal year 2023 and 94% in fiscal year 2024.” , FAA Budget Documentation

The Airport and Airway Trust Fund

The Airport and Airway Trust Fund is the financial backbone for much of the FAA’s budget. It is funded by excise taxes on passenger tickets, flight segments, international travel, cargo, and aviation fuel. As of the end of fiscal year 2024, the Trust Fund had a cash balance of $18.14 billion, providing a substantial buffer to support operations during funding gaps.

In fiscal year 2025, the Trust Fund is projected to generate $20.2 billion in revenue. This solid financial position allows the FAA to maintain continuity in operations, even if Congress is unable to pass a timely budget. During the COVID-19 pandemic, the Trust Fund’s contribution temporarily declined due to reduced travel, but it has since rebounded.

The Aviation Funding Stability Act proposes leveraging this robust Trust Fund to ensure that all FAA programs and personnel remain funded for up to 30 days during a government shutdown, thereby preventing disruptions in critical aviation services.

Workforce and Operational Challenges

Air Traffic Controllers: Essential Personnel

Air traffic controllers are among the most highly trained and essential federal employees, responsible for managing approximately 45,000 flights and nearly 3 million passengers daily. As of 2024, the FAA employed 14,264 controllers, with ongoing hiring efforts to address staffing shortages and attrition.

Shutdowns place significant strain on these professionals, who are required to work without pay. This financial uncertainty can lead to increased absenteeism, reduced morale, and even accelerated retirements, all of which can compromise the safety and efficiency of the airspace system. The 2018-2019 shutdown saw notable delays and operational challenges, including a temporary halt to flights at major airports due to staffing shortages.

Both the House and Senate have recognized these challenges, including provisions in recent appropriations bills to hire 2,500 new controllers and support workforce development. The Aviation Funding Stability Act would ensure that controllers are paid during shutdowns, addressing a key vulnerability in the system.

“Enabling the FAA to draw from the Airport and Airway Trust Fund during a funding lapse ensures essential personnel continue to get paid, and the airspace system remains safe and functional.” , Rep. Rick Larsen

Broader Operational and Economic Impacts

The aviation industry’s economic footprint is substantial. General aviation alone supports 1.3 million jobs and contributes $339 billion to the U.S. economy. Disruptions to FAA operations can have ripple effects across airlines, airports, manufacturers, and the broader travel sector.

During the 2018-2019 shutdown, air passenger activity declined by 1.2% and rail activity by 2.8%, according to Tourism Economics. These disruptions resulted in lost air trips, delayed business operations, and significant financial-results for airlines and airports.

Industry groups have consistently advocated for measures like the Aviation Funding Stability Act. The National Business Aviation Association and the Aircraft Owners and Pilots Association have emphasized the need for uninterrupted FAA services to maintain the U.S.’s leadership in global aviation and to support the diverse needs of commercial, business, and general aviation operators.

Legislative Outlook and Future Implications

Current Status and Prospects

The Aviation Funding Stability Act of 2025 was introduced in the Senate on March 13, 2025, and referred to the Senate Finance Committee. While previous versions attracted strong bipartisan support, the current legislative environment is more polarized, potentially complicating the bill’s path forward.

Nonetheless, the bill’s focus on operational continuity, workforce stability, and economic protection aligns with the priorities of both industry stakeholders and many lawmakers. Its timing coincides with record federal investment in aviation infrastructure and workforce development, increasing its relevance and urgency.

Implementation would require coordination among federal agencies to ensure that Trust Fund expenditures are managed responsibly during shutdowns. The 30-day limitation in the current proposal reflects a balance between ensuring continuity and maintaining congressional oversight.

Technological Modernization and Global Leadership

The FAA is in the midst of a major technological transformation, with initiatives such as NextGen air traffic control and the integration of unmanned aircraft systems. These efforts require uninterrupted oversight and regulatory activity, which can be jeopardized by government shutdowns.

Shutdowns not only delay technological progress but also risk undermining the U.S.’s competitive position in global aviation. Certification bottlenecks can affect aircraft manufacturers and international airlines, while lapses in oversight may impact commercial space operations.

By ensuring funding stability, the proposed Act would help maintain the U.S.’s reputation for safety, innovation, and leadership in the aviation sector, supporting both current operations and future advancements.

Conclusion

The Aviation Funding Stability Act of 2025 addresses a critical vulnerability in the governance of U.S. aviation infrastructure. By authorizing the FAA to draw from the Airport and Airway Trust Fund during government shutdowns, the bill aims to protect both safety and economic interests from the collateral damage of political budget impasses.

With strong industry support, robust financial resources in the Trust Fund, and bipartisan recognition of the FAA’s critical role, the Act represents a practical solution to a recurring problem. Its passage and implementation would help ensure that the United States continues to operate the world’s safest, most efficient, and most innovative aviation system, even in times of political uncertainty.

FAQ

What is the Aviation Funding Stability Act?
The Aviation Funding Stability Act is proposed legislation that would allow the Federal Aviation Administration to use the Airport and Airway Trust Fund to continue operations and pay employees for up to 30 days during a federal government shutdown.

Why is this Act important for aviation safety?
The Act ensures that critical FAA functions, such as air traffic control and safety oversight, remain fully operational during government shutdowns, thereby maintaining the safety and efficiency of the national airspace.

How is the FAA currently funded?
The FAA is primarily funded through the Airport and Airway Trust Fund, which is supported by aviation-related excise taxes, and through annual appropriations from Congress.

What are the economic impacts of government shutdowns on aviation?
Shutdowns can result in operational delays, financial losses for airlines and airports, and broader economic disruptions, with estimates of up to $140 million in daily losses for the travel sector.

What is the legislative status of the Act?
As of March 2025, the Act has been introduced in the Senate and referred to the Senate Finance Committee. Its future depends on legislative negotiations and support from both chambers of Congress.

Sources: Cohen Congress Press Release