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US DOT Providing Additional $184 Million to Aviation Manufacturers

November 8, 2021 by Dan McCue
(Photo courtesy Gulfstream/General Dynamics)

WASHINGTON — More than 150 aviation manufacturing businesses will soon be receiving a portion of an additional $184 million in COVID-19 relief, the Transportation Department announced Monday.

The funding is being provided through the American Rescue Plan Act, the $1.9 trillion economic stimulus bill passed by Congress and signed into law by President Joe Biden in March.

The funding was intended to speed up the nation’s recovery from the economic and health effects of the COVID-19 pandemic and the ensuing recession.

The new awards are being made under the umbrella of the Aviation Manufacturing Jobs Protection Program. Combined with the first round of funding in September, Monday’s announcement brings the total allocated to protect aviation manufacturing jobs to $626 million.

At the same time, the DOT has announced that it will reopen the application process one last time. Final applications will be due on Monday, Dec. 13, 2021. 

“This administration has made it a priority to protect manufacturing jobs in the U.S.,” said Transportation Secretary Pete Buttigieg in a written statement. 

“This funding will save thousands of manufacturing jobs, support hundreds of small businesses, and help keep America’s aviation industry strong,” he added.

Many of the recipients to date have been small businesses. Of the 469 companies receiving funds in the first two rounds, 298 of them (63%) had fewer than 100 employees at the beginning of April 2020, and 381 of them (81%) had fewer than 250 employees. 

According to a press release, the DOT employed a broad range of strategies to contact potentially eligible businesses to lay out the application process and eligibility rules.

In addition to money for manufacturers, the American Rescue Plan allocated $15 billion in payroll support for passenger air carriers and contractors and $8 billion in economic assistance to U.S. airports.

Aviation Manufacturing Jobs Protection Program funds can be used to pay up to half of the payroll costs for certain categories of employees engaged in manufacturing or repair, for up to six months. 

In return, recipient businesses must make several commitments, including not to involuntarily furlough or lay off employees (or reduce pay or benefits) within that group while receiving AMJP payroll support.

A full list of all recipient businesses can be found here. The first round of funding was announced in September.

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