Third Fiscal Stimulus Bill Includes $14 Billion in Payroll Support Program

Close up hand holding an airplane model background the airport

When money starts getting dispersed from the American Rescue Plan, it won’t just be everyday Americans getting an additional stimulus payment. When the bill is signed into law by president Joe Biden, airlines will get an additional $14 billion in Payroll Support Program money, to keep their employees onboard through October 2021.

American air carriers will get another financial windfall from Washington once the American Rescue Plan Act is signed into law by president Joe Biden. FlightGlobal reports the aviation industry will also receive their third bailout related to the COVID-19 pandemic – this time for $14 billion.

Third Stimulus Dedicates Additional Funds to Payroll Support Program

Under the deal, airlines will once again get bailout money, on the condition it is used towards employee wages and benefits. The additional round of Payroll Support Program funds will offer $14 billion to U.S. based passenger airlines, and $1 billion for air cargo carriers. Biden already stated he will sign the bill on Friday, March 12, 2021.

Immediately, airlines, unions and trade groups praised the bill as vital to the air industry. The Dallas Morning News reports American Airlines rescinded all of their layoff notices once the bill was passed. After clashing with the government over their continued travel cautions, Airlines for America issued a statement which “applauds” the act of Congress to support the airline industry.

“U.S. airline employees have worked tirelessly to provide essential services throughout the COVID-19 crisis, including transporting vaccines, medical equipment, personnel and supplies,” Airlines for America president Nicholas E. Calio said in a statement. “It is vital to have our employees on the job and ready to assist as our nation prepares to move forward from this crisis and resume connecting communities, families and businesses across the country and around the world.”

“PSP is for everyone in our airline industry—every worker at every airline,” read a statement from the Association of Flight Attendants-CWA. “It was designed to ensure this crisis—the biggest our industry has faced in all of its 100 years even if you combine all other crises together—doesn’t fall on the backs of workers.”

Total Airline Support During COVID-19 Pandemic Exceeds $50 Billion

With the third wave of PSP funding coming to airlines, the U.S. government has injected $54 billion into the aviation industry to secure jobs for over a year. The figure does not include the loans issued by the U.S. Treasury.

However, it won’t just be the airlines getting additional funding. According to the American Association of Airport Executives, airports will also receive $8 billion for coronavirus support.