California governor Vetoes bill aimed at limiting aviation revenue diversion

First reported

Governor Gavin Newsom vetoed Senate Bill 661, which would have limited the diversion of aviation fuel tax revenue in California, saying the proposal exceeds federal law and would shift money from the state’s General Fund and constitutionally dedicated funds.

The National Air Transportation Association (NATA) had endorsed the bill and led a coalition of business and general aviation groups urging the governor to sign it, and the association said it will continue its efforts in the next legislative session, warning that non‑compliance with FAA regulations could jeopardize federal support for California airports while it monitors an FAA request for detailed records on the state’s aviation fuel tax revenue handling.

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