Tuesday, July 30, 2013 7:46 pm
House rejects $250 cap on rural air subsidies
By ANDREW TAYLORAssociated Press
The current permissible subsidy is $1,000 per ticket. That's forced just a handful of communities to lose service.
New reforms in a transportation funding bill being debated by the House cut those subsidies to $500 a ticket or $1,000 per round trip to airports subsidized by the $200 billion-plus Essential Air Service program.
Democratic congressman Alan Grayson of Florida sought the tighter limit but was on the losing end of the 224-191 vote rejecting it. He won support from tea party Republicans but not enough Democrats.
Grayson says it would be cheaper to hire limousines to shuttle passengers to larger airports.