H.R. 4762 would reauthorize the Non-premium War Risk Insurance Program of the Federal Aviation Administration (FAA) through 2025. That program, currently scheduled to expire on September 30, 2023, provides free insurance to certain air carriers engaged in operations that are deemed essential to U.S. foreign policy or national security. The Department of Defense indemnifies the FAA against all losses covered under the insurance.
In general, amounts in the Aviation Insurance Revolving Fund are available without further appropriation to support the program; any associated spending is classified as mandatory. That fund currently has about $2.4 billion in unobligated balances. In recent years, program claims and administrative costs have averaged about $2 million annually. On that basis, CBO estimates that enacting H.R. 4762 would increase direct spending by $2 million per year through 2025, or $4 million over the 2023‑2033 period.
