H.R. 6086: Aviation Funding Solvency Act

This bill, titled the Aviation Funding Solvency Act, aims to ensure that the Federal Aviation Administration (FAA) can continue its essential functions even in the event of a government shutdown by utilizing funds from the Aviation Insurance Revolving Fund.

Key Provisions

• Temporary Funding Availability: The bill allows the FAA to access covered amounts in the Aviation Insurance Revolving Fund if no appropriation measure is enacted before the beginning of a fiscal year. This means that the FAA could continue programs, projects, and activities related to aviation operations and safety without interruption.
• Funding Rate: Funds made available under this bill would be at a funding rate not greater than the last fiscal year's level for similar programs. This ensures that FAA can continue to operate at previous budget levels until new appropriations are established.
• Period of Availability: The temporary funding would be available from the start of any lapse in appropriations until either a new appropriation bill is enacted or continuing appropriations are established.
• Prioritization of Disbursements: In cases where available funds are insufficient to cover all FAA programs, the bill specifies that employee compensation for the Air Traffic Organization should be prioritized for payment.
• Limits on Use of Funds: The bill outlines specific conditions under which the use of funds would be restricted, including situations where other provisions of law would provide funding for the FAA or if continuing expenditures would drop the balance of the Aviation Insurance Revolving Fund below $1 billion.

Extension of Non-Premium War Risk Insurance

The bill also modifies an existing law regarding non-premium war risk insurance by removing certain subsections, potentially simplifying the provisions under which this insurance operates for aviation-related activities.

Conclusion of Funding Conditions

The provisions of this bill are designed to maintain the operational stability of the FAA during periods when governmental funding is uncertain, which is crucial for the continuity of aviation safety and air traffic management services.

Relevant Companies

• UAL (United Airlines Holdings, Inc.): This airline company may be impacted through the stability and operations facilitated by the FAA, particularly if the agency has uninterrupted funding for its regulatory and safety oversight functions.
• DAL (Delta Air Lines, Inc.): Similarly, Delta could be affected positively by enhanced operational continuity of the FAA during a funding lapse, which could influence flight schedules and safety regulations.
• AAL (American Airlines Group Inc.): American Airlines might benefit from uninterrupted FAA operations, ensuring regulatory compliance and the overall safety of air travel.