Payments for Essential Air Services

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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)

$690M FY2026

$547.5M

FY24

$643.9M

FY25

$690M

FY26*

* estimated

Funded Projects

Examples of what this program has supported.

FY2026 The EAS program has been a vital resource for remote Alaskan communities and their tribal organizations in achieving the true goal of EAS which is connecting people to the national transportation system who would otherwise not have scheduled air service or any alternate form of transportation. This year, the program was responsive in providing relief to the unexpected dissolution of a major air carrier in Alaska which left communities like St. Mary’s, St. Paul, Unalakleet, and Valdez without scheduled air service. The team also responded to new service needs at Chenega and Diomede.

Program Objective

The program provides subsidies to air carriers to serve eligible communities as designated by Congress .

Eligibility

Eligible Applicants

Municipality/Township Government

The list of eligible municipalities are established by statue and. An air carrier selected to serve these municipalities must be found fit and be selected by the Department to perform the subsidized service.

How to Apply

Award Procedure

Evaluation of applications according to factors established in 49 U.S.C. 41731, et seq., and any Department-established factors.

Decision Timeline

Appeal: From 15 to 30 days

From 2 to 4 months.

Program details & compliance

Description

The EAS program was created after the Airline Deregulation Act in 1978. After deregulation, air carriers were not required to fly to any given community. The goal of the EAS program was to keep communities that had lost service connected to the national transportation system. This is accomplished by providing a subsidy to interested air carriers which makes the route at an ELIGIBLE community viable/profitable. The subsidy is intended to cover the difference between the cost of operating the route and the estimated passenger revenue.

Mission Categories

Primary: Air Transportation

Other categories:
Economic DevelopmentCommercial FisheriesRural Community DevelopmentGeneral Health and Medical

Use of Funds

Allowed Uses

When necessary subsidy payments are made to air carriers providing air services at certain points. Subsidy is paid to cover the carrier's prospective operating loss, plus a profit element.

Restrictions

The funds are awarded for a very specific and narrow use which is to cover the air carrier's prospective operating loss while providing scheduled service to an eligible community. The only prohibited costs are those associated with running the route.

Required Documentation

Financial statements and detailed operating statistics.

Reporting & Compliance

Audit Required

Yes — Random

Records Retention

3 years

Applicable 2 CFR 200 Subparts

Subpart B — General Provisions
Subpart C — Pre-Federal Award Requirements
Subpart D — Post-Federal Award Requirements
Subpart F — Audit Requirements