A provision added to President Donald Trump’s “big, beautiful bill” would require Washington, D.C., airports to renegotiate their leases, potentially increasing costs for airlines and passengers alike.

The Senate Commerce Committee’s version of the budget reconciliation bill directs the federal government to renegotiate its operating leases with the Metropolitan Washington Airports Authority (MWAA) for Reagan National and Dulles airports.

Recommended Stories

• Three takeaways from Biden health 'cover-up' hearing where GOP floated criminal charges
• Hawley demands Biden release autopen consent records or face subpoena
• Senate confirms Rodney Scott as Trump's border agency head

Since 1987, MWAA has operated Reagan National and Dulles under a lease with the federal government. Although the two parties recently signed an agreement extending through 2100, the new legislation would override it, requiring lease renegotiations every ten years.

MWAA currently pays about $7.5 million a year to operate the federally owned Reagan National and Dulles airports. While that figure is set to rise gradually, a new congressional proposal would double the amount to $15 million starting in 2027. The bill states it would require the Transportation Secretary to “update that lease agreement… in 2027, to ensure that MWAA is paying not less than $15 million per year” and to renegotiate the lease “every 10 years thereafter.”

Sen. Mark Warner (D-VA) criticized the move, warning it would drive up costs at the airports and arguing the rate hikes are intended to offset deficits created elsewhere in the bill.

“That number in cost savings would mean that the airports authority would have to eat those costs that would simply be then passed on to the airlines, that would then be passed on to the passengers,” Warner said in an interview with WTOP this week.

MWAA told the Washington Examiner that it does not make a profit from running the airports and reinvests any extra revenue to keep airline costs low. It would be up to the airlines to decide how to handle any increased costs.

“Instead of taking profits, the Airports Authority allocates Net Remaining Revenue to keep airline operating costs competitive, as well as reinvesting in airport maintenance and infrastructure projects. It would be up to the airlines to decide how to account for any increase to their airport operating costs,” said Emily McGee, spokeswoman for MWAA, in a statement.  

Airlines typically pass rising operating costs on to passengers through added taxes and fees at booking. One such fee, a facilities charge, usually amounts to a few dollars, though the exact total depends on the airline and airport, and isn’t among the most expensive charges travelers face.

During a meeting of the Metropolitan Washington Council of Governments, Warner last week placed the blame on Commerce Committee Chairman Ted Cruz (R-TX) for the provision.

TRUMP ONCE CHAMPIONED FAA PRIVATIZATION. NOW THE IDEA APPEARS TO BE OFF THE TABLE

“There’s an effort by Senator Cruz to have a renegotiation of the 100-year leases that were just signed with National and Dulles last August,” Warner said. “This would add enormous additional costs back. It would really hit MWAA in a dramatic way, and it seems to be more based in spite than in policy.”

Cruz’s office and his Commerce Committee staff did not respond to a request for comment from the Washington Examiner.