By Linda Chiem

Law360 (March 11, 2021, 9:13 PM EST) -- Airlines, transit agencies and Amtrak scored billions in aid in the $1.9 trillion coronavirus relief package President Joe Biden signed into law Thursday, a much-needed boost to the U.S. transportation industry that staves off employee furloughs and service cutbacks.

The American Rescue Plan Act was sent straight to the president's desk after the House narrowly passed the Democrats' bill on Wednesday, days after the amended bill cleared the Senate with unanimous Republican opposition. Biden gave his first primetime address as president on Thursday night to mark the one-year anniversary of the COVID-19 pandemic.

The sprawling relief package provides $1,400 stimulus checks to Americans with qualifying incomes, boosts unemployment benefits, expands vaccination efforts and disaster relief, bolsters access to health care, and props up struggling restaurants and bars, among other things.

Transportation industry groups applauded the billions of dollars provided to hard-hit sectors such as the public transportation and airline industries.

The American Rescue Plan provides $30.5 billion to help transit agencies with operating costs, including payroll and personal protective equipment purchases. It also includes dedicated funds to support rural transit agencies, transit service for the elderly and individuals with disabilities, and transit on tribal lands.

Paul P. Skoutelas, president and CEO of the American Public Transportation Association, said in a Thursday statement that the $30.5 billion in emergency assistance "demonstrates a clear and continued commitment to public transportation and the important role it plays in America's economic recovery."

The package also includes a $15 billion extension of the payroll support program — which was first established in last year's Coronavirus Aid, Relief, and Economic Security Act, or CARES Act — dedicated to airline employees' payroll and benefits. The payroll support comes with a number of conditions, including barring airlines from implementing involuntary layoffs, furloughs or pay reductions for employees before Sept. 30.

The Association of Flight Attendants-CWA, AFL-CIO's international president, Sara Nelson, said in a Wednesday statement that "this is desperately needed relief, but it's also just the start and we'll all be stronger to fight for more to make sure working people don't pay for this crisis and the horrific deficits exposed by the pandemic are shored up." 

"All Americans need a living wage, access to health care, education, housing and a secure retirement. The American Rescue Plan is a reset and a significant start," Nelson said. "For flight attendants and other aviation workers, this bill passage means continuing the historic workers first payroll support program that we achieved in the CARES Act a year ago. Aviation workers will receive a paycheck and health care through September and stay current on our certifications so we're in place to meet demand as vaccinations are readily available and travel returns to the skies."

Airlines for America, the lead lobbying group for the nation's largest airlines, also applauded lawmakers and the Biden administration for extending the payroll support program.

At the height of the pandemic when government shutdown mandates ground travel to a halt, passenger volumes were down 96%, a level not seen since the dawn of the jet age, according to Airlines for America. Today, passenger volumes are down about 60%, while carriers are operating 40% fewer flights than this time last year. Overall, U.S. passenger airlines are burning an estimated $150 million of cash per day, according to the lobbying group.

"We are deeply appreciative of Congress' continued support of our employees, who are our industry's greatest resource and a critical component of the overall U.S. economic recovery," A4A President and CEO Nicholas Calio said in a Wednesday statement. "U.S. airline employees have worked tirelessly to provide essential services throughout the COVID-19 crisis, including transporting vaccines, medical equipment, personnel and supplies. These men and women are the backbone of our industry, and they are an integral part of our nation's infrastructure." 

Meanwhile, airports will get $8 billion in the relief package to cover costs of operations, personnel and cleaning, including a set-aside for rent relief and other costs of airport concessionaires primarily directed toward small businesses and minority-owned firms.

"We applaud the work President Biden and Congress have done to provide airports with an additional $8 billion in critical funding to continue safe and efficient operations," Kevin M. Burke, president and CEO of the Airports Council International-North America, said in a statement Wednesday. "Over the last year, the COVID-19 pandemic has forced shutdowns across North America and around the world. While airports quickly mobilized to protect travelers and workers, the significant drop in passenger traffic has decimated airport finances. 

"The pandemic is projected to cost U.S. airports more than $40 billion by March 2022 — a number that will grow if the pandemic drags on. Despite these challenges, American airports remain committed to ensuring the health and safety of the traveling public and airport workers by deploying enhanced sanitation procedures and adopting new technologies to limit the spread of COVID-19."

The relief package also includes $3 billion for a temporary payroll support program, which will be administered by the U.S. Department of Transportation, to provide a 50% federal share to eligible U.S. aerospace manufacturing companies to help cover the wages, salaries and benefits of manufacturing employees most at risk of being furloughed.

Aerospace Industries Association President and CEO Eric Fanning said in a statement Thursday that the aid will help strengthen the stability and resilience of the aerospace and defense industry.

"For our highly skilled workforce, this legislation will help protect and restore tens of thousands of jobs in aircraft manufacturing, maintenance and repair. For businesses of all sizes in our shared supply chain, it will provide critical financial support and help our industry recall workers previously laid off because of the pandemic," Fanning said. "The amendment of Senators [Mark] Warner and [Marco] Rubio extending CARES Act Section 3610 will allow federal agencies to continue reimbursing contractors for certain COVID-19-related expenses on critical NASA and national security programs."

The American Rescue Plan also includes $1.5 billion to keep Amtrak fully operational through fiscal year 2021. It specifically provides $820 million for the Northeast Corridor, the most heavily used passenger rail line in the country, and $680 million for Amtrak's national network.

The funding will allow Amtrak to recall and pay employees that were furloughed due to the COVID-19 pandemic through the end of fiscal year 2021 and restore daily long-distance service. It also sets aside $117 million to states to help cover lost revenue in state-supported routes, among other aid.

After Congress passed the bill Wednesday, Amtrak said in a statement it will fully restore daily service for 12 long-distance routes that were cut because of the pandemic in 2020 and recall the more than 1,200 furloughed employees through the remainder of fiscal year 2021 and into fiscal year 2022.

"Offering daily long-distance service represents a vital step in our road to recovery," Amtrak CEO Bill Flynn said in the statement. "Recognizing the immense value of our employees, we'd like to thank Congress for enabling service restoration and helping us recall furloughed employees."

--Editing by Janice Carter Brown.

For a reprint of this article, please contact reprints@law360.com.