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Cuts could delay FAA NextGen program 10 years

A Federal Aviation Administration program that would transform air traffic control and contribute billions of dollars to contractors’ coffers could be scaled down and delayed a decade if $1.2 trillion in automatic federal cuts occur as scheduled on Jan. 2, according to a new report.

One of two scenarios would occur if Congress doesn’t find some alternative to sequestration, according to a new report conducted by Philadelphia-based economic research company Econsult Corp., and commissioned by the Aerospace Industries Association. Both scenarios would hit the Next Generation Air Transportation System — or NextGen — in varying degrees.

Budget reductions will either be distributed proportionally in the agency’s overall budget, two-thirds of which supports current operations and one-third of which supports NextGen development, or they will primarily be applied to research and development, with the biggest impact felt by the NextGen program, the report states.

The second scenario would obviously be more damaging to NextGen, which received $11 billion in funding through 2015 under the FAA reauthorization legislation President Barack Obama signed in February 2012. Cuts that focus on nonoperating portions of the FAA budget — including research and development, capital equipment and facilities — would translate into a 10-year delay in implementing a modified, less upgraded air transportation system by 2035. The current timetable estimates full implementation would be achieved by 2025.

The cost of lost benefits realized by NextGen include reduced aircraft operating expenditures and improved system performance, totaling more than $200 billion by the end of 2035.

Additionally, the program cuts would hurt companies that already hold NextGen contracts.

The Boeing Co., General Dynamics Corp. and Exelis Inc., for example, each won 10-year engineering contracts in May 2010 worth up to $1 billion each to demonstrate NextGen capabilities.

Also potentially affected would be Fairfax-based SRA International Inc., Chantilly-based TASC Inc. and Human Solutions Inc. in D.C. , which each won contracts to compete for up to about $400 million in task orders to provide engineering and program management services. The contracts, which have a base period of three years and two two-year options, are just one sliver of what the FAA has planned as it transforms air traffic control through its NextGen program.

The first scenario that directly hits current operations would lead to the closure of 246 airport control towers, the layoff of 1,200 air traffic controllers and 10,600 airport screeners and inspection officers. NextGen would be affected to a much lesser degree.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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