Notice the role Congress plays in establishing the agencies that eventually become the FAA and in defining the broad parameters of its powers. Also notice that the aviation industry pushed for the creation of the agency in order to enhance commerce - and look ts the role the (constitutionally mandated) post office played in it as well.
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The Air Commerce Act of May 20, 1926, is the cornerstone of the federal government's regulation of civil aviation. This landmark legislation was passed at the urging of the aviation industry, whose leaders believed the airplane could not reach its full commercial potential without federal action to improve and maintain safety standards. The Act charged the Secretary of Commerce with fostering air commerce, issuing and enforcing air traffic rules, licensing pilots, certifying aircraft, establishing airways, and operating and maintaining aids to air navigation. The newly created Aeronautics Branch, operating under the Department of Commerce assumed primary responsibility for aviation oversight.
In fulfilling its civil aviation responsibilities, the Department of Commerce initially concentrated on such functions as safety regulations and the certification of pilots and aircraft. It took over the building and operation of the nation's system of lighted airways, a task that had been begun by the Post Office Department. The Department of Commerce improved aeronautical radio communications and introduced radio beacons as an effective aid to air navigation.
. . . In 1938, the Civil Aeronautics Act transferred the federal civil aviation responsibilities from the Commerce Department to a new independent agency, the Civil Aeronautics Authority. The legislation also expanded the government's role by giving them the authority and the power to regulate airline fares and to determine the routes that air carriers would serve.
. . . In 1967, a new U.S. Department of Transportation (DOT) combined major federal responsibilities for air and surface transport. The Federal Aviation Agency's name changed to the Federal Aviation Administration as it became one of several agencies (e.g., Federal Highway Administration, Federal Railroad Administration, the Coast Guard, and the Saint Lawrence Seaway Commission) within DOT (albeit the largest). The FAA administrator would no longer report directly to the president but would instead report to the Secretary of Transportation. New programs and budget requests would have to be approved by DOT, which would then include these requests in the overall budget and submit it to the president.
