Air-Traffic Fee

Obama renewed a proposal to create a Federal Aviation Administration air-traffic control fee of $100 per flight to help pay for airports and aviation oversight. The plan, which would apply to both commercial and private jets, has been stymied by congressional and industry opposition.

The administration is recycling a request to increase the $2.50-per-flight-segment fee, which it says covers less than 30 percent of aviation security costs. The budget plan calls for a new $5 minimum fee per one-way trip, which would increase to $7.50 in 2019. That would collect $9 billion in additional revenue over five years and $25.9 billion over 10 years, the administration said.

The $2.50 fee is projected to bring in $2.25 billion this year, compared with $5.22 billion in aviation security costs. The fee increase has been previously rejected by Congress.

The budget plan would raise about $2.5 billion for the Treasury over the next decade through increases in royalty fees on oil, gas, coal and other mineral production on federal lands, and fees meant to prod companies into producing on lands for which they hold leases, according to the Interior Department’s budget document. The U.S. received more than $9 billion in 2012 from fees, royalties and other payments related to oil and gas development on federal lands and waters.

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