Money Would Be Used To Fund Infrastructure Improvements At Airports

The federal cap on Passenger Facilities Charges could be raised under a proposal passed by the Senate Appropriations Transportation Subcommittee last month.

The fee has not been increased in 17 years, according to Senator Susan Collins (R-ME), chair of the subcommittee, who said that the monies collected would go towards addressing a backlog of infrastructure projects at airports.

The Hill reports that supporters of the fee increase say it is perfectly aligned with President Donald Trump's goals concerning the country's infrastructure, but many conservative groups have labeled potential changes as a tax increase on airline passengers.

Under the proposal, the PFC would be nearly doubled, from $4.50 to $8.50 per ticket. Airports have been pressing Congress for years to increase the cap, or remove it entirely, to help them attract more private investors to fund airport repairs and improvements.

Kevin Burke, president and CEO of Airports Council International-North America, said he met earlier this year with Transportation Secretary Elaine Chao, who seemed open to the idea of raising the cap. Chao said "all funding options are on the table" during the meeting, Burke told The Hill.

While ACI-NA supports the idea, other industry groups, such as Airlines for America, are opposed. A4A president and CEO Nicholas Calio said in a statement that airline passengers "already pay over $20 billion a year in taxes for the tickets they purchase. Adding another $3.2 billion tax hike on American travelers simply cannot be justified.”

(Image from file)

FMI: www.appropriations.senate.gov