Aviation: Direct Federal Spending, 1918-1998 (CRS Report for Congress)
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| Release Date |
Feb. 3, 1999 |
| Report Number |
RL30050 |
| Report Type |
Report |
| Authors |
John W. Fischer and Robert S. Kirk, Economics Division |
| Source Agency |
Congressional Research Service |
Summary:
The federal government has played a large role in the development of aviation. In the ten years
prior
to 1918 this role was exclusively military in origin. Beginning in 1918, with the first air mail flights,
commercial aviation became a growing focus of federal attention and assistance. In the intervening
80 years the federal government has spent $155 billion in support of aviation activities.
This report details, and comments on, federal assistance provided directly in support of
commercial aviation. Direct assistance in this view can take several forms; for example, the physical
components of the air traffic control system can be regarded as infrastructure; direct payments to
airlines can be regarded as subsidies, and the operating expenses of the Federal Aviation
Administration (FAA) and its predecessor agencies can be construed as operational support. Indirect
assistance, such as that provided through military research and development (R&D), and by
R&D
provided by agencies other than the Department of Transportation and its predecessor agencies is
not detailed in this report.
In the early years of federal support for aviation most assistance came in the form of designated
subsidies to foster the growth of what has become the commercial aviation industry. This was in
keeping with the aviation sector's embryonic nature. As the industry has matured, the level and
expense of the federal effort has expanded and spending for capital infrastructure and operational
activities have become specific components of annual federal budgets.
The debate today is not so much about whether a federal role in aviation is appropriate. Rather
the debate is about how to pay for federal programs and who should pay for it. In the first half of
this century almost all aviation expenses came from U.S. Treasury general funds. In the trust fund
era this contribution has diminished as designated user fees have provided a majority of direct
aviation-related funding. The general fund contribution, however, remains significant, and
controversial.
