	Introduction

The funding authorization for the Federal Aviation Administration (FAA), included in the FAA Modernization and Reform Act of 2012 ( P.L. 112-95 ), expires on September 30, 2015. 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 that are likely to arise as the 114 th Congress debates reauthorization. It does not attempt to be comprehensive. Many issues debated prior to passage of the FAA Modernization and Reform Act of 2012 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. The trust fund balance is projected to grow in the near term, as AATF revenue continues to rise and airport capital needs are projected to decline over the next five years. 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. Changes in airline business practices pose a risk to the AATF revenue structure. Trust fund revenue is largely dependent on airlines' ticket sales, and the spread of low-cost air carrier models has held down ticket prices and therefore AATF receipts. In addition, airlines increasingly impose fees for a variety of options and amenities, such as checked bags and onboard meals, rather than including them in the base ticket price. Participation in the APPP has been limited. 112-95 ) increased the number of airports that may participate from 5 to 10. 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. One is funding. In November 2014, the ruling was reversed by the full NTSB. 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. The bill would have allowed airlines' advertisements and websites to give greatest prominence to "base airfare," as long as they "clearly and separately" disclose government taxes and fees and the total cost of air transportation. The Senate did not act on the legislation.
The funding authorization for the Federal Aviation Administration (FAA), included in the FAA Modernization and Reform Act of 2012 (P.L. 112-95), expires on September 30, 2015. 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 that are likely to arise as the 114th Congress debates reauthorization.
Most FAA programs are financed through the Airport and Airway Trust Fund (AATF), sometimes referred to as the Aviation Trust Fund. The financial health of the AATF, which is funded by a variety of taxes and fees on air transportation, has been a growing concern. Although the trust fund balance is projected to grow in the near term—as AATF revenue continues to rise and airport capital needs are projected to decline—reductions in general fund appropriations to FAA have increased the proportion of FAA funding that is derived from the trust fund. In addition, changes in airline business practices pose a risk to the AATF revenue structure: trust fund revenue is largely dependent on airlines' ticket sales, and airlines' increasing use of fees charged for options that may once have been included in the base ticket price, such as checked bags and onboard meals, has reduced the amount of money flowing into the fund.
Other major issues likely to arise during the reauthorization debate include the following:
Unmanned aerial vehicles. FAA has failed to issue rules for commercial and government use of drone aircraft within the time directed by the 2012 law, frustrating potential commercial operators. Meanwhile, large numbers of drones have come into use, and there have been numerous reports of near-collisions between drones and manned aircraft. 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. Essential Airline Service (EAS). In 2012, Congress 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. These efforts were largely unsuccessful. Airfare disclosure. The House of Representatives approved a bill in 2014 that would reverse an FAA regulation requiring airlines and website operators to give greater prominence to the final price, including fees and taxes, than to the "base airfare" charged by the carrier. The Senate did not approve this legislation, but the issue is likely to reappear in the context of FAA reauthorization.
This report does not attempt to be comprehensive. Many issues debated prior to passage of the FAA Modernization and Reform Act of 2012 are not discussed unless further congressional consideration appears probable. Additional issues, not discussed in this report, may arise as Congress moves forward with reauthorization.