By John Crawley WASHINGTON, May 7 (Reuters) - Key U.S. lawmakers want to rescind a federal credit program set up in the aftermath of Sept. 11 to help struggling airlines, putting new pressure on two big domestic carriers considering that kind of help. According to a proposal for $29.8 billion in emergency home land security funding to be unveiled in the House of Representatives on Wednesday, the loan guarantee initiative would end once that bill becomes law. The legislation is on the fast-track because it contains critical funding for pressing U.S. security enhancements, including the overhaul of airline passenger screening and the purchase of luggage bomb-detection equipment. The Air Transportation Stabilization Board, which was established to administer the credit support program, is supposed to accept applications through the end of June. The decision about whether an applicant gets government-backed guarantees for private-sector borrowing can take months. But the proposal by leaders of the House Appropriations Committee would prohibit the government from issuing any more credit guarantees once the bill becomes law. America West Airlines (AWA) has been the only big airline to apply for and receive guarantees. That package, which was revised over time, was worth $380 million. Some smaller carriers also have sought support. United Airlines (UAL) has recently said it might seek the credit guarantees, and US Airways Group Inc. (U) has said it would likely apply for them as well. United posted a $510 million first quarter loss, while US Airways said it lost $269 million in the same period. The top eight U.S. carriers lost nearly $9 billion last year because of Sept. 11 and the recession. Although business has rebounded in recent months, the industry maintains that some carriers remain vulnerable. "Certainly loan guarantees were made available to provide longer term access to capital for those airlines who may need it," said Michael Wascom, a spokesman for the airline lobbying group, the Air Transport Association. "It seems like it totally pulls the rug out from under them at a critical time. It's poor public policy and has the potential to further erode the financial strength of an industry critical to the national economy," Wascom said. But the former executive director of the program, Joseph Adams, signaled last week after resigning his position that the airline recovery and access to capital markets had rebounded much faster than expected. Adams said that the presence of the federal air stabilization fund had calmed credit markets after the tremendous financial fallout from Sept. 11. And Leo Mullin, chairman of Delta Air Lines (DAL), told shareholders last month that U.S. airlines had recovered from the initial blow of the current crisis and that it appeared all big carriers would survive. ©2002 Reuters Limited.