Congress Considers Relief for Aviation Manufacturing

When Congress returns from the August recess, they will have limited time to address Covid-10-relief bills before they break again for election season.  One bill they may consider is the Aviation Manufacturing Jobs Protection Act of 2020.

This bill would permit the federal government to provide a matching fund in which they would fund aviation companies for up to 50 percent of employee compensation for “at-risk” aviation employees.  The funding could be issued for up to a year’s worth of compensation, but it could only be used exclusively for compensation.  The company would be expected to furnish the other half of the compensation.  The program (as proposed) would be expected to provide funding to FAA production approval holders, FAA repair station approval holders, and suppliers of such businesses (at the Treasury Secretary’s discretion).

Many MARPA members are facing hard times, but are trying desperately to retain their staff in an industry that has been especially-hard-hit by the Covid-19 shutdowns.  This could help them to maintain staff that would otherwise be subject to lay-off or furlough.

As planned, the compensation assistance would be limited to at-risk employees, and this could be no more than 25 percent of the workforce. The “at-risk employees” are those who could be subject to a permanent reduction in force or furlough, but for the compensation assistance provided for in this Act.  Treasury would provide compensation assistance for up to six months of compensation.  If enacted, the program is expected be available until April 30, 2021.

• The Senate introduced their version of the bill, S.3705, on May 13.  The bill was referred to the Commerce, Science, and Transportation Committee.
• The House introduced a corollary bill, H.R. 8002 on August 11.  The bill has been referred to the Committees on Financial Services, and Ways and Means.  The House is expected to return from the August recess and take up business on September 14.
  

There are pros and cons to this suggestion.  On the one hand, this helps support aviation manufacturing businesses.  On the other hand, companies that cannot (or do not) take advantage of this opportunity might be placed at a competitive disadvantage relative to the businesses that do take advantage of the opportunity.

MARPA members who might be affected by this bill (positively or negatively) should consider reaching out to their members of Congress and voicing their opinions.