After a few weeks of political wrangling the tax revenue holiday the airlines experienced is close to an end. Political leaders reached an agreement to resume funding of the Federal Aviation Administration. If the piece of legislation can be approved today, President Barrack Obama is expected to sign it over the weekend.
The end of the stalemate was a result of both parties agreeing to end $16.5 million in subsidies to 13 rural airports, but the transportation secretary could resume funding if he deems it necessary. However, the agreement would only run through the middle of September, which means the chance for the mess to be repeated is a possibility.
Perhaps more so than the government losing out on $200 million in tax money every week, the thousands of FAA workers that were put out of work due to the partial shutdown would be poised to return to their jobs on Monday. Plus, the tens of thousands of construction workers that were employed by contractors in jobs at airports will also be able to return to work once the money starts flowing again.
Because the partial shutdown resulted in airlines not having to collect certain federal taxes on ticket sales, the move could have resulted in some travel bargains for consumers. Unfortunately, many airlines raised fares by the amount of the potential tax free discount, which resulted in a windfall for those airlines. Therefore, travelers hardly noticed anything was actually going on; especially considering air traffic controllers remained on the job as their positions are critical to the operation of airports.
Even though the Senate has adjourned for a summer break, lawmakers are keen to get some legislation in place in order for the lost tax revenue not to approach the billion dollar mark. Of course, keeping tens of thousands of workers from the ranks of the unemployed was also likely a priority.
So while the agreement will result in another round of political maneuvering come September, the FAA will likely be able to resume normal operations as early as Monday. Still, the entire situation is subject to change barring any roadblocks to getting a vote completed and getting the bill to President Obama.
Jason Gallagher is a former travel professional and long-time Pennsylvania resident. These experiences give him a first-hand look at developing situations in the state and everything included in the travel industry from technology to trends.
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