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Senate committee hears proposals to redirect aircraft fuel taxes as FAA pushes Washington to comply
Summary
WSDOT staff told the Senate Ways and Means Committee that FAA scrutiny has left roughly $210 million in aviation fuel tax revenue unaccounted for and exposed the state to as much as $1.2 billion in potential federal grant withholding; three bills would redirect portions of aircraft-fuel-related taxes to an Aeronautics Account and create a mitigation fund for airport-impacted communities.
WASHINGTON — WSDOT aviation staff told the Senate Ways and Means Committee on Jan. 26 that federal scrutiny of how Washington spends aircraft fuel–related tax revenue has left the state at risk of significant enforcement by the U.S. Department of Transportation.
Richard, who represents the WSDOT Aviation Division, told senators the FAA’s guidance dates back to a policy that treats aviation fuel taxes enacted after Dec. 30, 1987 as subject to federal restrictions. He said the state submitted a compliance action plan in 2017 that FAA approved in 2022, but an FAA audit in 2024 flagged projects the state listed as offsets and asked for more information. The state received a 60‑day extension from the FAA to respond, to Feb. 18, 2026.
Richard said roughly $210 million of aircraft-fuel-related tax revenue collected since 2017 has not been documented as spent on aviation programs the FAA would accept. Under federal law that noncompliance could trigger withholding of federal DOT grants; the director’s estimate cited in the…
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