U.S. Congress Set To Vote on $900bn Coronavirus Aid Package

Photo: shutterstock

Reading Time: < 1 minute

The U.S. has reached an agreement on a $900bn coronavirus relief deal. It includes $16bn for the airline industry and a nearly $285bn extension of the Paycheck Protection Program.

The bill, set for voting in the House and the Senate on Monday, will be the fifth piece of financial support passed in the U.S. since the start of the coronavirus pandemic.

“It’s a good bipartisan deal,” Nancy Pelosi, Democratic House Speaker, said. “We will do some good with this legislation.”

Biden, who will be denominated on January 20, is also optimistic about the deal. Still, he said more input would be needed to “support to struggling families, and investments in jobs and economic recovery.”

The aid for airlines implies that over 32000 workers furloughed during the autumn period will have to be called back. United and American have been taking aggressive furloughing approach, whereas both Delta and Southwest have been keeping the furloughing rate at its minimum. The financial aid package will provide job security for the timeframe from December 1, 2020, to March 31, 2021, but not beyond this period.

The stimulus package will additionally contain:
• $1bn for airline contractors
• $2bn for private bus and ferry operators
• $2bn for airports and concessionaires
• $10bn for state highways
• $14bn for transit

Compared with $15bn received due to the CARES Act, $25bn does not seem to be a generous amount. Besides, it is unclear how the airlines that have not furloughed their staff will benefit from the deal.

Source: CNBC