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Transportation Sector Gears Up for More Than $65 Billion in Recent Proposed Federal Aid Package

February 9, 2021  


House committees propose more than $65 billion in aid be directed to the transportation sector

If approved, transit systems would receive $30 billion and airports would receive $8 billion for various personnel and operations needs and cleaning services

A related measure would allocate $15 billion to the airline industry to be used exclusively for wages, salaries and benefits

As part of the next federal COVID-19 stimulus package, two U.S. House committees are seeking aid for the transportation and airline industries. The House Committee on Transportation and Infrastructure is proposing more than $50 billion for the transportation sector and the Committee on Financial Services is asking for $15 billion in assistance for the airline industry. Hearings will be held on Feb. 10.

The Transportation and Infrastructure Committee proposal would allocate $30 billion for transit systems around the country through Federal Transit Administration grants, as well as $1.5 billion specifically for Amtrak. Airports will receive $8 billion to be used for operations, personnel, cleaning, sanitizing and janitorial services, and debt service. Other transportation-related entities and activities will also receive additional funding. 

This committee will consider its draft language for S. Con. Res. 5, the Concurrent Resolution on the Budget for Fiscal Year 2021, on Feb. 10.

Funds for the airline industry through the Committee on Financial Services would be an effort to forestall expected furloughs that could further hurt the airline’s ability to recover from the pandemic. Air carriers will also be eligible for assistance from a $14 billion funding stream, and eligible air carrier contractors from a $1 billion funding stream, to exclusively be used for the continuation of payment of employee wages, salaries and benefits.

This committee will also consider its draft language on Feb. 10.

For more information about this topic, or about other topics involving the federal government, please contact the Barnes & Thornburg attorney with whom you work or Ron Miller at 202-408-6923 or ronnie.miller@btlaw.com

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