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Home » News » Trump Budget: Higher Passenger Fees
amtrakNews

Trump Budget: Higher Passenger Fees

Matthew Klint Posted onMarch 17, 2017November 14, 2023 4 Comments

U.S. President Donald Trump’s first budget proposal includes a number of travel-related items including increased TSA fees, privatizing the air traffic control system, and cutting Amtrak and Essential Air Service funding.

Let’s not forget that Trump said this during the campaign (go to 1:33)–

https://youtu.be/phfEVWaMusc?t=95

and for years before–

While his new budget does not specifically allocate money for the kind of infrastructure projects that would wholly modernize America’s major airports with federal dollars, he is proposing a number of changes that would impact travelers.

1. Higher TSA Fees

The budget calls for a cut in TSA funding to fund the President’s border wall plan, but that would be offset by an increase in passenger fees. Politico reports the White House is floating a $1.00 increase in the security fee, meaning it would rise from $5.50 to $6.50 per one-way journey.

2. Privatized Air Traffic Control System

The budget calls for an “independent, nongovernmental organization” with the goal of creating a system “more efficient and innovative while maintaining safety.” Called NextGen, the system would move the U.S. toward a digital/satelite-based model of ATC rather than the outdated radar system currently in place.

3. Cut to Amtrak Funding

Amtrak’s long-distance train service has lost money for decades and yet somehow managed to survive. The budget calls on Amtrak to abandon longhaul train routes and focus on its profitable Northeast corridor.

4. Elimination of Essential Air Service (EAS)

Essential Air Service brings subsidized commercial air service to smaller airports. This program runs $175 million and has a staggering cost per passenger. Under the new budget, it would be completely cut.

We have yet to see Trump’s infrastructure plan, though the Wall Street Journal offers a preview.

My Thoughts on the Budget

None of these cuts are particularly offensive to me. After a trip on two long-distance Amtrak trains last year, I understand why the service fails to make money. The generous salaries and self-entitled culture of the customer-facing employees was shocking. Couple that with empty trains and Amtrak has no defense upon which to continue its historic longhaul routes.

I view EAS as a huge waste. A couple years ago, I wrote about a 9-seat airliner in California and even with subsidies, it still folded.

I’m not in favor of increasing the TSA fee, but would be okay with it if the diverted federal money would go toward toward airport infrastructure investment rather than a border wall.

Finally, the ATC modernization plan makes a lot of sense, though I am a bit worried that privatization could lead to European-style labor problems. Some air traffic controllers in Spain, for example, take in salaries of nearly $1MN/year and still strike. On the flipside, some may argue that privatization would minimize this risk.

I wrote about transformations at LAX and the general need for investment in transportation infrastructure in the past. When done prudently, airport investments have a ripple effect that greatly benefits the larger economy.

CONCLUSION

My concerns are not so much for the cuts themselves, but how the money will be redirected. Throwing money at everything does not necessarily solve problems, but investing in America’s infrastructure is critical for robust economic growth in years to come.

> Read More: 5 Ways LAX is Becoming America’s Best Airport

> Read More: The Travel Infrastructure Problem in the USA

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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4 Comments

  1. bo Reply
    March 17, 2017 at 8:00 am

    Dude – what’s the deal with your main photo?

  2. Phil Reply
    March 17, 2017 at 10:19 am

    I took a trip across country on Amtrak from NY to LA in summer of 2015 with a lot of trepidation due to cost (very high), time (3 days would I go insane?) and attitude of Amtrak employees (Having taken many Amtraks in NE Corridor I was scared of being a victim of the entitled attacks of Amtrak personnel – having one Amtrak person throw me off the car b/c I got on the wrong one and she was mad at me for getting on the wrong car; despite it being 10 degrees outside and I could have walked through the cars to mine)

    To my utter surprise, the staff was amazing, the train was clean, it arrived ahead of schedule and I was never bored for one moment. I chatted up the staff, they knew me in the morning for breakfast and what I liked and I met so many people in the car with the windows.

    I liked it so much that I decided to return to NY on it versus flying home. And, I did it one more time in January of 2016. Round trip!

    The long haul train stops a lot for communities that have no access to transport. It provides people like me in sleeper cars with great views and company. And, I saw people who literally told me that they would never fly going via train as their only way to get to family.

    I love to fly. Yes, it is much cheaper and faster to go transcon even from JFK to LAX. Ive paid less in Delta One service than I did to Amtrak for one rt. I don’t regret the Amtrak trip. It was AMAZING to see the country go by as I sat there. And, I took the train from LA to San Diego and was totally shocked at the quality and the beauty of that 2 hour ride.

    Europe has a great train service. I’ve taken the train from London to Paris and from Paris to Milan. If I can go from London to Milan why can’t I take a train from NY to LA?

    I think you’re selling our cross country train service short. Flying is exhilarating and fun and I’ve even taken to Wheels Up for short flights.

    But, getting on an Amtrak from NY to LA is amazing. And if you look at the folks using it from say ALB to LA or from Chicago to Kansas – you see that there is a lot of “local” usage

    Lastly, both trips were sold out. One in the summer and one in the dead of winter.

    Maybe Amtrak employees are over paid via their unions – but that shouldn’t be a reason to remove essential transport from those in the middle of the country.

    • Matthew Reply
      March 17, 2017 at 10:24 am

      I actually had a wonderful time on Amtrak and plan to publish the report in the next month. It truly was a lot of fun and I enjoyed the food. Our compartment was also comfortable. And my expectations of the employees going in meant I already knew what I was expecting and thus came along very well with them. You treat them like cousins and they treat you like cousins. It works. I just don’t see how this service can be justified if trains are full and they are still losing money. This is not like RFD or other loss-leading aspects of the postal service that are constitutionally required, thus the issue of profitability is ultimately moot.

  3. Hugh B Reply
    March 17, 2017 at 8:15 pm

    I think that EAS should be removed except where it really is essential i.e. Alaska and removed in places where it is just convenient i.e. Lanchaster PA

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