HARRISBURG – Sen. Dan Laughlin (R-49) has introduced Senate Bill 1365, the Pennsylvania AIR Act, aimed at modernizing aviation funding and providing long-term support for airports across the commonwealth.
The bill creates a dedicated Aviation Trust Fund to provide stable, predictable funding for airport improvements, workforce development, air service expansion and emerging aviation technologies.
Funding for the trust fund includes:
- A portion of state sales and use tax revenue
- Increased aviation fuel taxes (1.5¢ → 24¢ per gallon) and jet fuel taxes (1.1¢ → 8¢ per gallon)
- Taxes on emerging aviation fuels, including hydrogen and electricity used for aircraft propulsion
- Updated aircraft registration fees
- Modernized licensing and inspection fees for certain aviation facilities
- Federal aviation funding and related revenues
The legislation expands support for airport development projects, public airport property tax reimbursement, workforce training and aviation-related economic development initiatives.
Laughlin said the goal is to ensure Pennsylvania’s airports remain competitive and well-supported.
“Airports are economic engines for communities across Pennsylvania,” Laughlin said. “This legislation is about making sure they have the resources needed to grow, compete and serve the public for generations to come.”
Airport leadership in Erie emphasized the broader competitive challenge facing Pennsylvania airports.
“The AIR Act is landmark legislation that will take the commonwealth into a new era, competing against West Virginia, Ohio and New York,” said Derek Martin, executive director, Erie International Airport.
Regional business leaders pointed to the importance of sustained investment in air service and economic development.
“Air service is an economic Imperative for communities across the commonwealth,” said Erie Regional Chamber and Growth Partnership CEO Brandon Mendoza. “In Erie, our business community has rallied to support our airport, and we’ve seen a resurgence in flight access. But to secure long-term sustainability, a true public-private partnership is needed. The commonwealth needs to help Pennsylvania airports level the playing field with neighboring states.”
Statewide aviation advocates highlighted the long-term policy impact.
“The AIR Act is a transformational investment that modernizes how Pennsylvania supports aviation and the communities that depend on it,” said BJ Teichman, president, Aviation Council of Pennsylvania. “This legislation strengthens aviation safety, infrastructure, workforce development, economic development and emerging aviation technology while ensuring aviation-generated dollars are reinvested back into aviation. The AIR Act positions Pennsylvania to remain competitive and prepared for the future of flight.”
The legislation has been introduced in the Senate and awaits consideration in the Transportation Committee.
CONTACT: Chris Carroll | Phone: 814-453-2515