Create a free Industrial Equipment News account to continue

US Starts $3B Aviation Manufacturing Program for Compensation Costs

Coverage lasts for up to six months.

The U.S. Department of Transportation announced a $3 billion aviation manufacturing payroll subsidy program to assist with furloughs and layoffs.

Funded by Congress, it will cover as much as half of eligible companies’ compensation costs for up to six months, according to Reuters.

Eligible companies include aircraft, engine, propeller or component manufacturers. It also features companies that repair and overhaul airplanes and parts.

The program says companies cannot administer furloughs to non-consenting employees.

Companies also cannot lay off employees covered by subsidies during the six-month period.

Qualifications for companies include involuntary furloughs or layoffs of at least 10% of its total workforce, or a 15% decline in 2020 total operating revenues.

Coverage cannot exceed 25% of an employer’s total U.S. workforce as of April 2020.

It can only cover employees with total annual compensation of $200,000 or less.

More in Video