H.R. 3632 would amend the criteria that the Department of Transportation (DOT) must consider when processing permit applications for foreign air carriers to provide foreign air transportation in the United States. Specifically, the bill would prohibit DOT from issuing new permits to foreign air carriers unless the carrier adheres to labor standards reflected in the guidelines to the United States-European Union Air Transport Agreement of April 2007 (as amended). Active permits would not be affected.
H.R. 3632 would increase DOT’s administrative costs related to processing and reviewing permits. The bill also could affect DOT’s collections of permit filing fees if the legislation caused certain foreign air carriers to not apply for permits. However, most filing fees, which are treated as discretionary offsetting collections, are waived under current law as part of international agreements with approximately 80 countries. Using information from DOT, CBO estimates that implementing H.R. 3632 would cost about $1 million over the 2020-2024 period; any spending would be subject to the availability of appropriated funds.