Coronavirus Relief - Pandemic Relief for Aviation Workers

Objective

The Payroll Support Program (PSP1), Payroll Support Program Extension (PSP2), and Third Payroll Support Program (PSP3) provided financial assistance to passenger air carriers, cargo air carriers, and certain aviation industry contractors to preserve employment in the aviation sector as a result of the COVID-19 pandemic. The financial assistance payments were required to be used exclusively for the continuation of payment of employee salaries, wages, and benefits. Division A, Title IV, Subtitle B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted on March 27, 2020, established the PSP1 to provide a total of up to $25 billion, $4 billion, and $3 billion for passenger air carriers, cargo air carriers, and certain contractors, respectively. The PSP2, authorized under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law), enacted on December 27, 2020, provided a total of up to $15 billion for passenger air carriers and up to $1 billion for certain contractors. The PSP3, authorized under Title VII, Subtitle C, Section 7301 of the American Rescue Plan Act of 2021 (ARP), enacted on March 11, 2021, provided a total of up to $14 billion for passenger air carriers and up to $1 billion for certain contractors.

Who Can Apply

• For-Profit Organization

PSP1: Payments may be provided only to applicants that are eligible passenger air carriers, cargo air carriers, and contractors, as those terms are defined in the CARES Act and in the guidelines and application procedures for PSP1. Only an entity (whether in the form of a corporation, limited liability company, sole proprietorship, or otherwise) that is individually eligible for PSP1 may receive financial assistance. Eligible applicants must agree to the terms and conditions set out in the PSP1 Agreement and, if Treasury requires, provide certain financial instruments as appropriate taxpayer compensation for the provision of the financial assistance. PSP2: Payments may be provided only to applicants that are eligible passenger air carriers or contractors, as those terms are defined in the PSP Extension Law and in the guidelines and application procedures for PSP2. Only an entity (whether in the form of a corporation, limited liability company, sole proprietorship, or otherwise) that is individually eligible for PSP2 may receive financial assistance. If an applicant includes more than one affiliated entity in its application, Treasury will review each entity to determine whether it meets the criteria for an eligible passenger air carrier or contractor. Any entity that is not itself an eligible passenger air carrier or contractor should not be included on a PSP2 application. Eligible applicants must agree to the terms and conditions set out in the PSP2 Agreement. Passenger air carriers that receive over $100 million in financial assistance and contractors that receive over $37.5 million in financial assistance must provide certain financial instruments as appropriate taxpayer compensation for the provision of the financial assistance. PSP3: Under the ARP, Treasury has authority to provide financial assistance under PSP3 only to a passenger air carrier or contractor that (1) received assistance under PSP2; (2) provided air transportation or performed eligible contractor functions, as the case may be, as of March 31, 2021; and (3) has not conducted involuntary terminations or furloughs or reduced pay rates or benefits between March 31, 2021, and the date on which the passenger air carrier or contractor makes certain certifications that would be included in its PSP3 Agreement entered into with Treasury. Only an entity (whether in the form of a corporation, limited liability company, sole proprietorship, or otherwise) that is individually eligible for PSP3 may receive financial assistance.

Assistance Types

• Direct Payment for Specified Use

Program Contact

CARESActCompliance@treasury.gov
(202)622-2000