New White House Sets Stage for New Aviation Policy

January is poised to bring changes to aviation policy in Washington, with former President Donald Trump returning to the White House after a four-year absence. However, how far those changes may go—whether it involves tariffs, sustainability funding and/or mandates, or even business aircraft use—remains to be seen. 

The most immediate change will be in personnel running key agencies. Unless he chooses to leave, FAA Administrator Michael Whitaker will remain in place essentially for the duration of the incoming Trump Administration, confirmed to the post for a five-year term just last year. However, other key agency and department officials are more likely to be replaced, beginning with the Secretary of Transportation, a post currently held by Pete Buttigieg.

It is not unheard of for a President to appoint or retain a member of the opposing party to a cabinet position—President Bush’s Transportation Secretary was long-time California Democrat Norman Mineta. However, it is unlikely that Trump would retain Buttigieg, a former presidential candidate.

Changes could go further downstream as Trump seeks to shore up his support within the administration. Shortly before leaving office in his first term, the former president issued a “Schedule F” executive order that essentially stripped policy officials within the federal government of certain civil service protections, meaning they could be fired over different policy views or actions. Estimates have been that Schedule F could apply to up to 50,000 employees. This does not mean they will be fired, but it gives the president more power to exert control over agency actions. While undone by Biden, Trump has indicated plans to reinstate that.

The FAA, and largely the Department of Transportation, tends to remain more bipartisan, so it’s too early to say how vulnerable career agency officials would be.

Another key initiative that Trump had indicated during the election season was a desire to impose 10% to 20% tariffs on imports. If implemented, this might affect business aviation goods, such as business jets, engines, and other components. Most of the primary aircraft manufacturers have some presence in the U.S.—and some with assembly or another form of production—so again, it is unclear how such a proposal would apply. However, if the tariffs did, it would create an obstacle to accessing the world’s largest business aviation market.

Underscoring the complexity of tariffs, Éric Martel, president and CEO of Montreal-based Bombardier, noted that such a move could affect “both sides of the border” depending on how tariffs are imposed—particularly since so much content comes from the U.S., including Bombardier’s own wing plant in Texas. However, he added that he could not speculate on them since details have not yet emerged. But he did emphasize that Bombardier has a global footprint.

Another area under watch is on the sustainability front.  Under the Inflation Reduction Act, key sustainable research programs, including sustainable aviation fuel, have benefited from incentives. However, these kinds of green funding have frequently been a target of conservatives seeking to cut spending.

Other changes could affect the sweeping audits that have begun on the most wealthy and largest corporations. The Biden administration has launched audits in a range of areas—including on business aircraft use—in a quest to close loopholes and make sure companies and individuals are “paying their fair share.”

Immediately after the elections, the markets responded positively, which Martel pointed out is good for business aviation. The markets like stability, he said, noting that the completion of the elections and certainty of outcome provide that, at least in the short term.

While an array of questions are surfacing during the transition, aviation organizations emphasized the importance of working with the new administration.

“Our nation’s greatest achievements—from putting man on the moon to breaking the sound barrier—are the result of the powerful alliance between industry and government,” said Aerospace Industries Association president and CEO Eric Fanning. “As we embark on a new chapter in our history, we look forward to collaborating closely with the new Administration and 119th Congress to enhance this partnership.”

Fanning stressed that this sentiment is particularly important in light of geopolitical turbulence and economic headwinds. “Our priorities remain steadfast: supporting American leadership in aerospace and defense; igniting innovation and job creation; and strengthening our national security,” he continued. “Together, we will reach new heights.”

National Air Transportation Association president and CEO Curt Castagna similarly stated: “NATA looks forward to partnering with the new Administration to advance issues important to both aviation businesses and to our nation, including the deployment of emerging aviation technologies and the modernization of our National Airspace System. “Business aviation has a proven record of providing valuable, safe air transportation and critical public benefits to communities across the country, and President-elect Trump has a unique opportunity to preserve and enhance these vital transportation services provided by NATA's aviation business members.”

Castagna added that the association plans to reach out to the transition team to discuss these and other areas.