Trump Administration Proposes $20 Billion Airline Bailout to Protect Jobs

By Kurt Stolz on 1 October 2020
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John F. Kennedy International Airport from the air

The Trump administration proposed the inclusion of a $20 billion extension in aid for the battered airline industry in a new stimulus plan on Thursday.

The move comes as U.S. airlines pleaded for a $25 billion payroll support package that would protect industry jobs for another six-month period.  The provisions of the previous stimulus package, the Cares Act, concerning layoff expired September 30 at midnight.

Negotiations between House Speaker Nancy Pelosi and Secretary of the Treasury Steve Mnuchin said they will continue to negotiate the terms of a relief package on Thursday. The two sides were $700 billion apart, as the Democrats sought a $2.2 trillion stimulus bill and the White House was at $1.5 trillion.  Both sides reported progress towards a deal to extent direct stimulus payments, unemployment benefits, and aid to businesses.

Meanwhile, American Airlines and United Airlines began the process of cutting some 32,000 jobs as a result.  Both airlines said they would reverse the job cuts if the needed aid were forthcoming in the next several days.

“While sadly, involuntary furloughs begin today, we haven’t given up,” United Airlines said in a statement. “In a continuing effort to give the federal government every opportunity to act, we have made clear to leadership in the administration, Congress and among our union partners that we can and will reverse the furlough process if the Cares Act Payroll Support Program is extended in the next few days.”

(Photo: Accura Media Group)

Accura News

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