POSTED: Tuesday, February 15, 2011 - 10:08am
UPDATED: Wednesday, February 16, 2011 - 11:54am
WASHINGTON-- President Obama's newly-released budget plan would have airline travelers pay more to help finance airport projects.
The president is proposing an increase in the passenger facility charge, from $4.50 to $7 per flight. Airports use the charge for safety and expansion projects approved by the Federal Aviation Administration.
This is all after a $1.1 billion cut to airport grants. And although the president is pushing for it, that doesn't mean it'll go through. Airlines are fighting the proposal, saying it amounts to a $2 billion tax increase on travelers. Airline executives also argue it could discourage more people from flying.
The passenger charge is included in the president's $3.73 trillion budget for the fiscal year that begins October 1.