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Trump Proposes ATC 'Privatization' & Amtrak Cuts

By Michael B. Baker / March 16, 2017 / Contact Reporter
Business Travel News on X

President Donald Trump's budget blueprint reduces the Department of Transportation's budget by $2.4 billion, or 13 percent.

The budget also supports shifting the FAA's air traffic control function into "an independent, nongovernmental organization," a move proposed last year but shot down during the FAA reauthorization process in the Senate. House Transportation & Infrastructure Committee chairman Bill Shuster, who co-sponsored the ATC bill last year, said he intended to get another bill to President Trump's desk this year. "By removing the ATC function from the FAA, Americans will see a more efficient system, flight times decrease, on-time departures increase, emissions reduced and 21st century technology deployed to guide our planes from gate to gate," Shuster said. "On top of that, the FAA will be able to focus on safety and robust oversight of the new not-for-profit service provider."

In the past, critics of the proposal have said moving ATC out of government could compromise air travel safety.

Proposed Budget Cuts

President Trump's budget proposes reducing Amtrak subsidies to "focus resources on the parts of the passenger rail system that provide meaningful transportation options within regions." That includes ending federal support for long-distance Amtrak train service in favor of a greater focus on the Northeast Corridor line and state-supported, short-distance routes.

The blueprint also calls to eliminate funding for the Essential Air Service program, began about 40 years ago to subsidize commercial air service to rural airports. The budget estimates this will save $175 million. Trump's proposal notes that flights benefiting from the program "are not full and have high subsidy costs per passenger" and that many communities included also are close to major airports.

The blueprint also proposes to eliminate the Transportation Investment Generating Economic Recovery grant program that former President Barack Obama's administration established in its 2009 stimulus package. Cutting the grants, which help fund surface transportation projects, will save an estimated $499 million. The proposal says projects funded by TIGER "are generally eligible for funding under existing surface transportation formula programs," although Sen. Bill Nelson told the publication The Hill that cutting the grants would cause "big-time trouble," as they are "essential to rehabbing our infrastructure."

Regarding Trump's promised $1 trillion investment in infrastructure, the proposal noted that he "has tapped a group of infrastructure experts to evaluate investment options along with commonsense regulatory, administrative, organizational and policy changes to encourage investment and speed project delivery."

The Transportation Security Administration would see cuts under the proposed budget, as well, including $80 million from "unauthorized and underperforming programs." Part of that includes reassigning "behavior-detection officers" to frontline airport security operations, a move TSA already planned as of last summer.

The budget proposes an increase to the Passenger Security Fee, currently $5.60 per one-way trip. The proposal also aims for that fee to cover 75 percent of TSA aviation security operation costs "to ensure that the cost of government services is not subsidized by taxpayers who do not directly benefit from those programs."

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