• The aviation fund was created to cover up to half of eligible airline companies’ expenditures.
• The U.S. House of Representatives will vote on a bill that will shift USD 15.6 billion in COVID-19 relief funds to other COVID projects.

A suggested bill to sustain the U.S. government's operations until September will reportedly cut USD 2 billion from the COVID-19 program, which aims to enhance aviation production activities and support maintenance businesses.

On Wednesday, the U.S. House of Representatives is set to vote on a bill that will shift USD 15.6 billion in COVID-19 relief funds to other COVID projects. In the USD 3 billion worth program, the US Department of Transportation has offered USD 673 million in three rounds of awards across the country.

In 2021, the aviation production payroll subsidy program was created to cover up to half of the eligible enterprises' compensation expenditures for 6 months. However, some large aircraft companies, such as Boeing and General Electric, chose to not take part in the program.

The program restricted grantees from conducting layoffs without the approval of employees or firing workers covered by subsidies.

For those unaware, out of the 593 awards, Connecticut-based Hexcel Corp received USD 20.9 million, Spirit AeroSystems received USD 75.5 million, Airbus received USD 12.9 million, BAE Systems Controls received USD 17.5 million, Learjet, received USD 15 million, and Dassault Falcon Jet Corp. was awarded USD 12.5 million.

According to credible sources, Safran, which is known as the world's third-largest aerospace supplier, was offered USD 40 million for several U.S. units. The awards will support 31,000 employments in 43 states.

To be eligible, a company must have involuntarily laid off at least 10% of its total staff or incurred a 15% drop in total operating revenue in 2020.

Source Credits –

https://money.usnews.com/investing/news/articles/2022-03-09/congress-looks-to-cut-2-billion-from-covid-aviation-jobs-fund