Airport and Airway Trust Fund:
Effects of the Trust Fund Taxes' Lapsing on FAA's Budget
RCED-96-130: Published: Apr 15, 1996. Publicly Released: Apr 22, 1996.
- Full Report:
Pursuant to congressional request, GAO reviewed the Federal Aviation Administration's (FAA) Airport and Airway Trust Fund, focusing on the FAA budget implications of reinstating the taxes that support the fund.
GAO found that: (1) between fiscal year (FY) 1990 and FY 1996, the Fund has financed all of FAA Grants-in-Aid for the Airport Improvement Program, Facilities and Equipment, and Research, Engineering, and Development accounts and half of the FAA Operations account; (2) the Fund can meet its $5.7 billion FAA FY 1996 budget responsibility; (3) if Congress approves the President's FY 1997 FAA budget of $8.1 billion, the Fund would be able to finance only a portion of the budget because the taxes that support the Fund no longer exist; (4) if the taxes that support the Fund are reinstated by December 1996, it could meet its $6.1-billion FY 1997 budget responsibility; and (5) if the taxes that support the Fund are not reinstated by December 1996, it will incur monthly deficits of $550 million through FY 1997.