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Bloomberg
House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer urged the Treasury Department to move more quickly to help airlines to save industry jobs and refrain from imposing “unreasonable conditions†that might spur some carriers to decline payroll assistance.
In a letter to Treasury Secretary Steven Mnuchin, Pelosi and Schumer stressed that provisions of the $2.2 trillion stimulus passed by Congress were aimed specifically at bolstering aviation jobs. The lawmakers expressed concern that guidelines released by the department a week ago didn’t go far enough to safeguard workers.
“We are concerned that Treasury Department’s recent guidance on the ‘Airline Industry Payroll Support’ Program does not fully reflect the intent of Congress,†they wrote in the letter, which also was signed by House Transportation Chairman Peter DeFazio and Sherrod Brown, the ranking Democrat on the Senate Banking Committee.
Pelosi and DeFazio have previously said that demands for airline equity stakes in exchange for the $25 billion in grants designed to save jobs are onerous and could prompt carriers to decline the help.
The industry faces steep declines in travel due to the Covid-19 pandemic. The Treasury on March 30 released guidelines for how airlines could apply for grants and loans, but stopped short of saying what the minimum stakes would be.