Shutdown Chaos Looms: GOP-Led Bill Races to Rescue Air Travel

Paul Riverbank, 11/19/2025Congress eyes unused insurance fund to shield air traffic, FAA pay from future government shutdowns.

Fast forward to this week, and a rare sense of optimism bubbles up in Washington. Lawmakers from across the aisle have managed, somehow, to produce a bill aimed at insulating air traffic controllers — and by extension, everyone in a boarding line — from the fallout of future shutdowns. The solution they’re floating isn’t a raid on taxpayer wallets or a complicated new tax, but a plan to tap into an almost forgotten pot of money: a government insurance fund cobbled together in the aftermath of September 11.

Let’s rewind to 2001 for a moment. With panic in the airline industry and insurance companies suddenly averse to covering “acts of war or terror,” Congress intervened. Airlines paid into this government-run insurance pool — essentially a fund designed for catastrophic scenarios, not for routine payroll relief. Over time, as commercial insurance markets slowly recovered, the fund’s reason for being faded out. By 2014, Congress officially shut it down, but not before it had accumulated a hefty $2.6 billion — a sum apparently too awkward to simply return or reappropriate. Since then, it’s idled away in government ledgers, earning interest and making the odd payment (the last after the U.S. withdrawal from Afghanistan, if anyone noticed).

Now, Rep. Sam Graves from Missouri — a Republican whose stature as Transportation Committee chair brings some weight — along with Democratic colleagues like Rick Larsen and Andre Carson, sees opportunity in the idle account. “We all saw that the system can be vulnerable when Congress can’t get its job done,” Graves remarked during a Tuesday press conference, his voice echoing through a huddle of reporters hungrier for soundbites than policy nuance. His coalition’s fix is surprisingly straightforward: Use the insurance fund as a financial life raft for air traffic controllers and FAA staff if there’s another government shutdown.

Of course, it’s not a blank check. The plan lets the FAA draw on the insurance fund during funding gaps, but only down to a threshold of $1 billion. That floor — essentially a built-in governor to ward off overzealous spending — would halt payouts before the fund gets too depleted to respond to true crises. According to staffers familiar with the proposal, this safety net could buoy FAA salaries for about a month, perhaps six weeks at best, presumably buying Congress time to break its usual impasse.

Memories of the last shutdown remain sharp among lawmakers and airport workers alike. Staffing was already thin on the control tower floors, and just a handful of sick calls led to bottlenecks that prompted the government to order airlines to trim schedules at dozens of busy airports — a move so drastic the FAA called it “unprecedented.” The aftershocks of that chaos took days to dissipate; productivity and public confidence both took a hit.

For years, various proposals have wended their way through committee hearings, most of them stalling out. Earlier versions sought to tap the Airport and Airway Trust Fund, but those ran afoul of budget hawks wary of draining accounts meant for infrastructure. None of those plans has made it to the president’s desk. The new pitch, using a fund that’s been gathering dust, might finally have the right mix of practicality and cost-free appeal to get through both houses — at least, so its supporters hope.

With another funding deadline lurking just past the holidays, lawmakers are aware they’re racing not only the legislative clock but also the unpredictability of congressional negotiations. The promise of keeping paychecks coming for essential workers, without fresh tax hikes or spending increases, gives the bill a fighting chance. Still, it’s impossible to predict whether lawmakers can overcome their usual gridlock before the next storm hits. For now, hearings are scheduled, debate is on the horizon, and the entire country waits to see if Congress has found a parachute sturdy enough to keep the nation’s air traffic moving, no matter what shape its budget is in.

It was the kind of scenario most travelers dread — the last government shutdown brought airport terminals around the U.S. to a virtual standstill. Baggage claim screens blinked with “delayed” and “canceled” notices, terminal announcements sounded a little more frantic, and air traffic controllers, forced to work without pay, sometimes spoke sotto voce about picking up “side gigs” to make ends meet. The flying public didn’t just feel the delays; they felt the pressure radiating from those who normally keep the skies orderly and safe.Fast forward to this week, and a rare sense of optimism bubbles up in Washington. Lawmakers from across the aisle have managed, somehow, to produce a bill aimed at insulating air traffic controllers — and by extension, everyone in a boarding line — from the fallout of future shutdowns. The solution they’re floating isn’t a raid on taxpayer wallets or a complicated new tax, but a plan to tap into an almost forgotten pot of money: a government insurance fund cobbled together in the aftermath of September 11.Let’s rewind to 2001 for a moment. With panic in the airline industry and insurance companies suddenly averse to covering “acts of war or terror,” Congress intervened. Airlines paid into this government-run insurance pool — essentially a fund designed for catastrophic scenarios, not for routine payroll relief. Over time, as commercial insurance markets slowly recovered, the fund’s reason for being faded out. By 2014, Congress officially shut it down, but not before it had accumulated a hefty $2.6 billion — a sum apparently too awkward to simply return or reappropriate. Since then, it’s idled away in government ledgers, earning interest and making the odd payment (the last after the U.S. withdrawal from Afghanistan, if anyone noticed).Now, Rep. Sam Graves from Missouri — a Republican whose stature as Transportation Committee chair brings some weight — along with Democratic colleagues like Rick Larsen and Andre Carson, sees opportunity in the idle account. “We all saw that the system can be vulnerable when Congress can’t get its job done,” Graves remarked during a Tuesday press conference, his voice echoing through a huddle of reporters hungrier for soundbites than policy nuance. His coalition’s fix is surprisingly straightforward: Use the insurance fund as a financial life raft for air traffic controllers and FAA staff if there’s another government shutdown.Of course, it’s not a blank check. The plan lets the FAA draw on the insurance fund during funding gaps, but only down to a threshold of $1 billion. That floor — essentially a built-in governor to ward off overzealous spending — would halt payouts before the fund gets too depleted to respond to true crises. According to staffers familiar with the proposal, this safety net could buoy FAA salaries for about a month, perhaps six weeks at best, presumably buying Congress time to break its usual impasse.Memories of the last shutdown remain sharp among lawmakers and airport workers alike. Staffing was already thin on the control tower floors, and just a handful of sick calls led to bottlenecks that prompted the government to order airlines to trim schedules at dozens of busy airports — a move so drastic the FAA called it “unprecedented.” The aftershocks of that chaos took days to dissipate; productivity and public confidence both took a hit.For years, various proposals have wended their way through committee hearings, most of them stalling out. Earlier versions sought to tap the Airport and Airway Trust Fund, but those ran afoul of budget hawks wary of draining accounts meant for infrastructure. None of those plans has made it to the president’s desk. The new pitch, using a fund that’s been gathering dust, might finally have the right mix of practicality and cost-free appeal to get through both houses — at least, so its supporters hope.With another funding deadline lurking just past the holidays, lawmakers are aware they’re racing not only the legislative clock but also the unpredictability of congressional negotiations. The promise of keeping paychecks coming for essential workers, without fresh tax hikes or spending increases, gives the bill a fighting chance. Still, it’s impossible to predict whether lawmakers can overcome their usual gridlock before the next storm hits. For now, hearings are scheduled, debate is on the horizon, and the entire country waits to see if Congress has found a parachute sturdy enough to keep the nation’s air traffic moving, no matter what shape its budget is in.