	Introduction

The funding authorization for the Federal Aviation Administration (FAA), included in the FAA Extension, Safety, and Security Act of 2016 ( P.L. 115-63 ), is now set to expire on March 31, 2018. In addition to setting spending levels, FAA authorization acts typically set policy on a wide range of issues related to civil aviation. This report considers topics likely to arise as the 115 th Congress continues to debate FAA reauthorization. It does not attempt to be comprehensive. Many issues debated prior to passage of the FAA Extension, Safety, and Security Act of 2016 are not discussed unless further congressional consideration appears probable. Additional issues, not discussed in this report, may arise as Congress moves forward. Aviation Funding

Most FAA programs are financed through the Airport and Airway Trust Fund (AATF), sometimes referred to as the Aviation Trust Fund. These overflight fees partially fund the Essential Air Service (EAS) program. In the longer term, however, the vitality of the AATF remains a concern, as reductions in general fund appropriations to FAA have increased the proportion of FAA funding that is derived from the trust fund. Participation in the APPP has been limited. Subsequently, Congress has limited the local share to not more than 20% of a tower's costs. During the 114 th Congress, the FAA reauthorization measure ( H.R. 2997 , S. 1405 ). The many proposals and bills on this subject put forth over the years have distinguished two main alternatives to continued operation of the air traffic control system by a federal agency:
corporatization , which, in this context, generally refers to establishing air traffic services as a wholly owned government corporation or quasi-governmental entity; and privatization , which would entail creating some form of private ownership and control of an air traffic services corporation. 4441 ) that would have transferred FAA's air traffic operations to a government-chartered private corporation. To further address safety concerns, P.L. Although a number of steps have been taken to implement these recommendations, an independent assessment of the progress made or the effectiveness of revised certification practices has not been made. 114-190 authorized FAA to enter in agreements to cover FAA official travel for circumstances where such travel is made to expedite the acceptance or validation of a relevant aircraft or parts certification or approval by the FAA of a foreign authority certificate or design approval and the travel is conducted at the request of and is approved by the entity seeking FAA approval and is paid in advance. 4441 also would have established a process for resolving technical issues at defined stages of the certification process in a timely manner. This raised the concern that communities with relatively low passenger levels would lose service as carriers shifted their operations to serve larger and often more profitable markets. Currently, large air carriers are subject to a maximum civil penalty of $27,500 per violation, under 49 U.S.C. One controversy involves some U.S. network airlines' and labor unions' opposition to the expansion of three fast-growing airlines based in the Persian Gulf region—Emirates Airline, Etihad Airways, and Qatar Airways. The other controversy concerns Norwegian Air International (NAI), an airline that is registered in Ireland. On December 2, 2016, DOT granted approval of NAI's application for a foreign air carrier permit to operate transatlantic flights to U.S. destinations.
Funding authorization for the Federal Aviation Administration (FAA), included in the FAA Extension, Safety, and Security Act of 2016 (P.L. 114-190), expired at the end of FY2017. A subsequent six-month extension (P.L. 115-63) is set to expire at the end of March 2018. Long-term FAA reauthorization measures (H.R. 2997 and S. 1405) are currently under consideration. In addition to setting spending levels, FAA authorization acts typically set policy on a wide range of issues related to civil aviation. This report considers prominent topics in the 115th Congress reauthorization debate.
Most FAA programs are financed through the Airport and Airway Trust Fund (AATF), which is funded by a variety of taxes and fees on air transportation. The financial health of the AATF is generally good. However, airlines' unbundling of ancillary fees from airfares is adversely affecting AATF revenue, as only base airfares are subject to the ticket tax that is the largest source of revenue for the trust fund. Reductions in AATF revenue would leave FAA more reliant on appropriations from the general fund. Other major issues likely to arise during the reauthorization debate include the following:
Air traffic control privatization. Many commissions over the years have recommended moving responsibility for air traffic control from FAA, a government agency, to either an independent government-owned corporation or a private entity controlled by aviation stakeholders. Delays in implementing the satellite-based NextGen air traffic control system have renewed interest in this possibility, although Congress chose not to enact such proposals in 2016. Unmanned aerial vehicles. Large numbers of drones have come into use, and the numerous reports of near-collisions between drones and manned aircraft raise safety concerns. Additionally, Congress has not addressed privacy concerns related to government-operated, commercial, and recreational drones. Essential Airline Service (EAS). Congress has repeatedly attempted to limit the number of localities eligible to participate in this program to subsidize flights to communities that would otherwise lose all commercial airline service, as well as to limit the amount of subsidies per passenger. Few communities have been dropped from the program, and costs continue to rise. Foreign airlines. Some U.S. airlines and airline labor unions seek reconsideration of the recent U.S. approval of a foreign carrier permit for Norwegian Air International, an Ireland-based discount air carrier, to fly across the Atlantic. Some U.S. carriers also have called for renegotiation of U.S. air service agreements with Persian Gulf states amid claims that three fast-growing airlines based in that region are posing unfair competition to U.S. air carriers. Certification reform. FAA relies heavily on aircraft and aircraft parts manufacturers to provide technical expertise in the certification process. FAA oversight has been found to be inconsistent, raising questions regarding safety and efficiency. Equipment manufacturers have raised concerns that FAA's certification process makes it difficult to bring new products to market in a timely fashion and threatens their international competitiveness.
This report does not attempt to be comprehensive. Many issues debated prior to passage of the FAA Extension, Safety, and Security Act of 2016 are not discussed unless further congressional consideration appears probable. Additional issues, not discussed in this report, may arise as Congress moves forward with reauthorization.