Commerce, Justice, Science, and Related Agencies Appropriations Act, 2020

Floor Speech

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Mrs. NAPOLITANO. Mr. Chair, 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.

This is further concerning in the State of California because our general sales taxes are voter approved by two- thirds margin. FAA is trying to undermine the will of our California voters.

Mr. Chairman, I ask that you work with me and my colleagues who are concerned about FAA's action and with Representatives Alan Lowenthal, Jared Huffman, Adam Schiff, Harley Rouda, John Garamendi, Salud Carbajal, David Scott, and John Lewis in addressing this situation regarding FAA's threat of unreasonable enforcement on many States and local governments.

Mr. Chairman, I thank you very much.

Mr. PRICE of North Carolina. Mr. Chair, I thank the gentlewoman and the colleagues she mentioned for bringing up this important issue. It may impose legal and financial challenges to certain States. Certainly it is an important issue for my friend from California and for her State, so I will be happy to work with her and the FAA to find a mutually acceptable solution.

Mr. Chairman, I yield back the balance of my time.

Mr. Chairman, I rise as the designee of Chairwoman Lowey, and I move to strike the last word.

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