Good morning, Chairman Diaz-Balart, Ranking Member Price and members of the subcommittee. And thank you for the opportunity to discuss the Administration’s fiscal year 2016 budget request for the Federal Aviation Administration.
This request of $15.83 billion will support the FAA’s mission to run the safest and most efficient aerospace system in the world while transforming our airspace through NextGen. Our budget reflects a set of principles that the Administration has developed for the FAA’s reauthorization. These principles promote safety, modernization and the alignment of our resources to better match our users’ needs, while maintaining America’s standing as a global leader in aviation.
In the 2016 Operations budget request we are asking for $9.92 billion to operate our nation’s aviation system on a day-to-day basis. This will strengthen our safety and security programs through hiring additional safety inspectors, engineers and others to address the increased demand for certification of aircraft, operators and pilots. It also addresses our increased focus on integrating new users such as unmanned aircraft and commercial space vehicles. Furthermore, we want to enhance our security for personnel and facilities, which we reviewed extensively after an act of sabotage and resulting fire at the Air Route Traffic Control Center near Chicago last fall. Finally, we are actively working to protect the FAA from cyber attacks.
Our Facilities and Equipment request of $2.85 billion will help us continue to bring the benefits of NextGen to users now, while at the same time addressing the backlog of needed repairs and maintenance of our infrastructure. I’d like to take this opportunity to thank the Committee for its continued support of the En Route Automation Modernization program, which we plan to complete at the end of this month. This new automation system will accommodate the technologies of NextGen, and is one of the largest automation changeovers in the history of the FAA. We introduced a great deal of discipline and structure to this ongoing program, and now it’s just a matter of turning off the old system at the last two centers to complete the nationwide transition to ERAM. The new program creates a more powerful air traffic system that can handle the challenges of the coming decades.
We are also upgrading the automation system in our terminal airspace, where we control traffic approaching airports. The Terminal Automation Modernization and Replacement program is well underway at our largest TRACONS. The Committee’s strong support of these foundational NextGen programs will prepare us for continued growth and provide the infrastructure for a healthy economy.
Our 2016 request of $166 million for Research, Engineering & Development allows us to boost funding for research into sustainable jet fuels, as well as research for integrating commercial space transportation and unmanned aircraft into our airspace system. The Committee has significantly bolstered unmanned aircraft research this year with strong financial support.
Finally, in the Airports budget, we are requesting $2.9 billion to ensure the continued safety, capacity, and efficiency of our nation’s airport network. As in years past, the Administration is proposing to eliminate passenger and cargo entitlement funding for large hub airports. In exchange, the budget requests an increase in the Passenger Facility Charge from $4.50 to $8.00, which will provide large hub airports with greater flexibility to generate their own revenue for projects. At the same time it would allow us to restructure the airport grant program to better respond to the needs of smaller airports.
The FAA continues to face many challenges. America’s leadership in aviation is facing competition on a global level with the growth of foreign markets. Domestically, we have had to navigate a constrained and challenging fiscal environment in recent years. In this budget request, we are asking for the flexibility to transfer funds across accounts to be able to prioritize resources, to leverage new technology, and respond nimbly to evolving challenges. The FAA needs to realign today’s airspace system with current demands. We need the flexibility to make investment choices that further the health of our airspace system so everyone can benefit.
Civil aviation contributes $1.5 trillion to our economy and generates nearly 12 million American jobs. The FAA’s fiscal year 2016 budget request will enable us to continue to protect and expand this vital economic engine and to create the right environment for further innovation and global leadership.
Thank you, and that concludes my opening remarks. I would be happy to answer any questions you may have.