CQ TODAY MIDDAY UPDATE
Sept. 19, 2007 – 2:15 p.m.
White House Threatens Veto of FAA Reauthorization Bill
The White House, upset that Congress is refusing to drastically alter the current system of aviation fees and taxes to pay for modernization of the air traffic control system, threatened Wednesday to veto a House reauthorization of the Federal Aviation Administration.
The threat, issued in a statement of administration policy by the Office of Management and Budget, was no surprise. The administration has been pressing lawmakers to tie the FAA’s revenues more directly to the costs imposed on the system by its various users.
The statement said the bill (HR 2881) headed to the House floor Thursday “falls far short of providing critical reforms proposed by the administration. Indeed, it would make the status quo worse by undoing progress achieved in prior Congresses.”
The White House wants to replace the current system of fuel and ticket taxes with new fees that would be more closely tied with actual usage of the air traffic control system, such as per-flight charges based on distance traveled. The administration said such a shift is necessary to fund system upgrades to handle increasing volumes of air traffic.
But House members balked at that approach. On Tuesday, the House Ways and Means Committee approved by voice vote a measure (HR 3539) to raise aviation fuel taxes from 19.3 cents per gallon to 24.1 cents per gallon. The new revenue would be dedicated to air traffic control modernization.
The proposal is expected to be added to the broader FAA reauthorization bill prior to floor consideration.
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