Airport and Airway Trust Fund (AATF)

The Airport and Airway Trust Fund (AATF), created by the Airport and Airway Revenue Act of 1970, provides funding for the federal commitment to the nation’s aviation system through several aviation-related excise taxes (MS Excel). Funding currently comes from collections related to passenger tickets, passenger flight segments, international arrivals/departures, cargo waybills, aviation fuels, and frequent flyer mile awards from non-airline sources like credit cards.

Reauthorization Information

• FAA Background Paper (PDF) (February 2006)
• Revised Air Traffic Organization Data Package (PDF) (November 2005)
• Revised Supporting Data Detail (MS Excel) (November 2005)
• Summary of Changes to ATO Data Package (PDF) (November 2005)
• Questions for Stakeholders (PDF)
• Original Air Traffic Organization Data Package (PDF) (September 2005)
• Technical Background (PDF)
• Original Supporting Data Detail (MS Excel) (September 2005)
• Airports Data Package (PDF)
• Aviation Safety Data Package (PDF)
• International Aviation Models (PDF)
• Summary of Major Principles from Trust Fund Forum (PDF) (April 2005)

Background

• Current Aviation Excise Tax Structure and Rates (MS Excel)
• Historical Passenger Ticket Tax, International Departure/Arrival Tax and Cargo Tax Rates (MS Excel), 1970-present
• AATF Receipts by Tax Type
  • 1998-2005 (MS Excel)
  • 1971-1997 (MS Excel)
• Explanation of Tax Certifications versus Income Statements (PDF)

Status of AATF (from FAA’s Budget in Brief)

• 2007 Budget (PDF) (2005 Actual — page 18)
• 2006 Budget (MS Excel) (2004 Actual)
• 2005 Budget (MS Excel) (2003 Actual)
• 2004 Budget (MS Excel) (2002 Actual)
• 2003 Budget (MS Excel) (2001 Actual)
• 2002 Budget (PDF) (2000 Actual—pages 25-26)
• 2001 Budget (PDF) (1999 Actual—pages 32-33)
• 2000 Budget (PDF) (1998 Actual—pages 32-33)
• 1999 Budget (PDF) (1997 Actual—pages 30-31)
• 1998 Budget (PDF) (1996 Actual—pages 32-33)

Legislative History

• Vision 100 – Century of Aviation Reauthorization Act (PDF) (Public Law 108-176, 2003)
• Wendell H. Ford Aviation Investment and Reform Act for the 21 st Century (PDF) (AIR-21, P.L. 106-181, 2000)
• Taxpayer Relief Act of 1997 (PDF) (P.L. 105-34, 1997)
• Federal Aviation Reauthorization Act of 1996 (PDF) (P.L. 104-264, 1996)

Government Accountability Office Reports and Testimony

• AATF Excise Tax Procedures and Results (PDF) (GAO Review of Underlying Records; November 4, 2005)
• AATF: Preliminary Observations on Past, Present and Future (PDF) (May 4, 2005)
• AATF Excise Tax Procedures and Results (PDF) (GAO Review of Underlying Records; November 4, 2004)
• Summary Analysis of Federal Commercial Aviation Taxes and Fees (PDF) (March 12, 2004)
• AATF: Financial Outlook is Positive, but the Trust Fund’s Balance Would Be Affected if Taxes Were Suspended (PDF) (September 2003)
• Excise Tax Management Report (PDF) (July 23, 2003)
• FAA Reauthorization Provides Opportunities to Address Key Agency Challenges (PDF) (April 10, 2003)
• Federal Trust and Other Earmarked Funds: Answers to Frequently Asked Questions (PDF) (January 2001)
• Trust Funds in the Budget (PDF) (March 9, 1999)
• Whether the AATF Was Created Solely to Finance Aviation Infrastructure (PDF) (letter to Rep. Frank R. Wolf, February 12, 1999)
• Issues Related to Determining How Best to Finance FAA (PDF) (February 5, 1997)
• Issues Raised by Proposal to Replace the Airline Ticket Tax (PDF) (December 1996)
• Effects of the Trust Fund Taxes’ Lapsing on FAA’s Budget (PDF) (April 1996)
• Information on AATF Revenues and Outlays by States and Large Airports (PDF) (report to Sen. Lawton Chiles, September 30, 1985)

Other Reports, Articles and Testimony

• FAA Administrator Testimony on Financial Health of Trust Fund (May 4, 2005)
• DOT IG Testimony: Perspectives on the AATF and Financing the FAA (PDF) (May 4, 2005)
• Financial Condition of the AATF: Are Reforms Needed? (Summary and All Testimony from House Aviation Subcommittee Hearing) (May 4, 2005)
• Excise Taxes and the AATF, 1970-2002, Internal Revenue Service (PDF) (April 2004)
• Transportation Trust Funds: Budgetary Treatment, Congressional Research Service (April 6, 1998)
• A Consensus for Change, Final Report of the National Civil Aviation Review Commission (December 1997)
  • Executive Summary of “A Consensus for Change”
• Hearing on Solvency of the Airport and Airway Trust Fund, House of Representatives Committee on Ways and Means (February 5, 1997)
• Present Law and Background Information on Federal Transportation Excise Taxes and Trust Fund Expenditure Programs, Joint Committee on Taxation (PDF) (November 14, 1996)
• The Status of the AATF, Congressional Budget Office (PDF) (December 1988)

Useful Links

• Office of Management and Budget (Budget of the United States Government)
  • Income, Outgo and Balances of Major Trust Funds (PDF) (Table 22-4)
• Congressional Budget Office
• Internal Revenue Service (Aviation Market Segment)

For more AATF information or questions, contact the Office of Aviation Policy and Plans.