Action Alert: House Passes Democratic Relief Package But Bipartisan Agreement Remains Elusive
October 1, 2020
After Congressional leaders and White House officials were unable to come together on a bipartisan coronavirus relief package, the House tonight approved on a largely party-line vote a $2.2 trillion Democratic plan (the updated Heroes Act) that includes funding for airports, concessionaires and airlines. The vote was 214 to 207. But the Senate is not expected to take up the partisan measure, and the stalemate prompted the airlines to begin furloughing tens of thousands of employees.
No Breakthrough In Relief Talks
House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steven Mnuchin have been working to try to resolve their differences on the size and the substance of the next relief package. Democrats came down more than $1 trillion from their initial $3.4 trillion plan. White House officials indicated they were willing to go as high as $1.6 trillion. But the two sides couldn't close the remaining funding gap.
To complicate matters, Senate Republicans have been moving in the opposite direction. After unveiling the HEALS Act in late July -- a $1 trillion coronavirus relief package that included $10 billion for airports, Senate Republicans proposed a $300 million "skinny" relief package. Senate Majority Leader Mitch McConnell (R-KY) called the latest House Democratic plan, "outlandish."
Additional Airport Funding on Hold
The updated Heroes Act includes $13.5 billion to help airports and concessionaires deal with COVID-19. Of that amount, $12.5 billion would go toward commercial service airports with 25 percent reserved for concessionaires. Funds would be distributed based on FY19 enplanements.
The House Democratic plan calls for $500 million to cover the local match requirement for airport projects funded with FY21 money. Another $200 million would be reserved for nonprimary commercial service and GA airports. Like the CARES Act, the federal share for projects would be 100 percent.
Airlines Begin Furloughing Workers
The House Democratic bill includes more than $28 billion to extend the Payroll Support Program and keep aviation workers on the job. Of that amount, $25 billion would go toward passenger air carriers, $3 billion for contractors, and $300 million for cargo carriers. Two Senate transportation committee leaders recently introduced a freestanding airline relief bill with similar funding levels.
But without a bipartisan agreement in place, the airlines began furloughing 32,000 aviation workers -- 19,000 at American Airlines and another 13,000 at United Airlines. The carriers and labor groups, with help from lawmakers on both sides of the aisle, have been mounting a full court press to extend the PSP through March 2021.
What's Next?
It is still possible that White House officials and Democratic leaders could reach an agreement on a COVID-19 relief bill. But that won't be easy considering the wide disagreement and with elections just around the corner. Barring some last-minute breakthrough, it seems increasingly likely lawmakers will be forced to try again during the post-election lame duck session or in the next Congress.
Senate Clears CR
The Senate yesterday passed a short-term continuing resolution to keep the government operating past the elections and through December 11. The measure, which the President signed into law earlier today, includes a $14 billion transfer from the general fund to shore up the Airport and Airway Trust Fund.
House Passes Early Incentive Bill
Earlier today, the House approved H.R. 5912, the Expedited Delivery of Airport Infrastructure Act of 2020. The bill, which was spearheaded by Transportation and Infrastructure Committee Ranking Member Sam Graves (R-MO) and Aviation Subcommittee Ranking Member Garret Graves (R-LA), would allow airports to use AIP funds for early incentive payments.
AAAE and ACI-NA began pushing for this change during consideration of the last FAA reauthorization bill. We pointed out that this option could be helpful to airports and especially those in northern tier states with short construction cycles. The Senate Commerce Committee approved a similar bill (S. 3958) in July.
After Congressional leaders and White House officials were unable to come together on a bipartisan coronavirus relief package, the House tonight approved on a largely party-line vote a $2.2 trillion Democratic plan (the updated Heroes Act) that includes funding for airports, concessionaires and airlines. The vote was 214 to 207. But the Senate is not expected to take up the partisan measure, and the stalemate prompted the airlines to begin furloughing tens of thousands of employees.
No Breakthrough In Relief Talks
House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steven Mnuchin have been working to try to resolve their differences on the size and the substance of the next relief package. Democrats came down more than $1 trillion from their initial $3.4 trillion plan. White House officials indicated they were willing to go as high as $1.6 trillion. But the two sides couldn't close the remaining funding gap.
To complicate matters, Senate Republicans have been moving in the opposite direction. After unveiling the HEALS Act in late July -- a $1 trillion coronavirus relief package that included $10 billion for airports, Senate Republicans proposed a $300 million "skinny" relief package. Senate Majority Leader Mitch McConnell (R-KY) called the latest House Democratic plan, "outlandish."
Additional Airport Funding on Hold
The updated Heroes Act includes $13.5 billion to help airports and concessionaires deal with COVID-19. Of that amount, $12.5 billion would go toward commercial service airports with 25 percent reserved for concessionaires. Funds would be distributed based on FY19 enplanements.
The House Democratic plan calls for $500 million to cover the local match requirement for airport projects funded with FY21 money. Another $200 million would be reserved for nonprimary commercial service and GA airports. Like the CARES Act, the federal share for projects would be 100 percent.
Airlines Begin Furloughing Workers
The House Democratic bill includes more than $28 billion to extend the Payroll Support Program and keep aviation workers on the job. Of that amount, $25 billion would go toward passenger air carriers, $3 billion for contractors, and $300 million for cargo carriers. Two Senate transportation committee leaders recently introduced a freestanding airline relief bill with similar funding levels.
But without a bipartisan agreement in place, the airlines began furloughing 32,000 aviation workers -- 19,000 at American Airlines and another 13,000 at United Airlines. The carriers and labor groups, with help from lawmakers on both sides of the aisle, have been mounting a full court press to extend the PSP through March 2021.
What's Next?
It is still possible that White House officials and Democratic leaders could reach an agreement on a COVID-19 relief bill. But that won't be easy considering the wide disagreement and with elections just around the corner. Barring some last-minute breakthrough, it seems increasingly likely lawmakers will be forced to try again during the post-election lame duck session or in the next Congress.
Senate Clears CR
The Senate yesterday passed a short-term continuing resolution to keep the government operating past the elections and through December 11. The measure, which the President signed into law earlier today, includes a $14 billion transfer from the general fund to shore up the Airport and Airway Trust Fund.
House Passes Early Incentive Bill
Earlier today, the House approved H.R. 5912, the Expedited Delivery of Airport Infrastructure Act of 2020. The bill, which was spearheaded by Transportation and Infrastructure Committee Ranking Member Sam Graves (R-MO) and Aviation Subcommittee Ranking Member Garret Graves (R-LA), would allow airports to use AIP funds for early incentive payments.
AAAE and ACI-NA began pushing for this change during consideration of the last FAA reauthorization bill. We pointed out that this option could be helpful to airports and especially those in northern tier states with short construction cycles. The Senate Commerce Committee approved a similar bill (S. 3958) in July.
