Grace Napolitano: “I thank Chairman Price for yielding and discussing this issue with me regarding the FAA's recent threat to withhold over…”

“I thank Chairman Price for yielding and discussing this issue with me regarding the FAA's recent threat to withhold over $250 million annually in FAA grants to California's airports and divert over $70 million in voter approved local general sales tax away from their voter approved purpose for transportation, police, fire, and the healthcare of our citizens. Mr. Chairman, on May 17, California and Illinois were sent letters by FAA threatening to withhold Federal aviation funds because FAA believes the States have not followed a 2014 FAA policy change which would require State and local governments across the country--not just California and Illinois--to use general sale taxes collected on aviation fuel for airport purposes. Although FAA sent the first letters to California and Illinois, they have sent letters of inquiry to other States like Georgia, and this issue also has significant effects in Georgia and any State and local government that has aviation fuel as a part of their general sales tax. Mr. Chairman, California sent a letter to the FAA over a year and a half ago on December 8, 2017, explaining their plan of action for compliance with the FAA policy change. FAA did not respond to California's letter until last month when they gave California 30 days to change their compliance plan and seek burdensome tax information from all 58 State counties and over 100 cities in our State.…”