Democrats to propose $50 billion for transportation sector

WASHINGTON — Democrats in the U.S. Congress were set to release a sweeping plan on Monday to provide more than $50 billion in additional assistance to U.S. airlines, transit systems, airports and passenger railroad Amtrak and create a new $3 billion program to assist aviation manufacturers with payroll costs, according to documents seen by Reuters and sources briefed on the matter.

The $1.9 billion COVID-19 relief proposal will provide $30 billion to transit agencies, $14 billion for passenger airlines, $8 billion to U.S. airports, $1 billion for airline contractors and $1.5 billion to Amtrak, the draft legislation says. U.S. House committees are set to vote on the legislation on Wednesday.

President Joe Biden had proposed $20 billion for struggling U.S. transit agencies, while Democrats had pushed for more, citing the collapse in travel demand as a result of the COVID-19 pandemic.

U.S. airlines have been awarded $40 billion in payroll support since March and airline unions had asked Congress for another $15 billion to keep thousands of workers on the payroll past March 31, when the current round of funding expires. The additional $14 billion will keeping nearly 30,000 airline workers on the job through Sept. 30.

The $3 billion aviation manufacturing program would provide a 50 per cent government subsidy to cover costs of pay, benefits and training for employees at risk of being furloughed or who were furloughed due to the pandemic.