Poll: Should the U.S. Treasury Be Seeking Partial Repayments For Payroll Aid Grants to Airlines?

The U.S. Treasury Department wants airlines to repay close to a third of the value of payroll assistance received under the Coronavirus Aid, Recovery, and Economic Security (CARES) Act—and carriers are not happy about it.  

The proposal—first reported over the weekend by Reuters—calls for the largest six U.S. airlines to repay 30% of payroll assistance received in the form of low-interest loans due in five years, for which they must issue warrants that can be converted into stock.

Airlines for America (A4A) spokeswoman Katherine Estep said that requiring carriers to repay portions of the grants could hamper the efficacy of the rescue package, noting that workforce grants are “passthrough monies” designed specifically to fund payrolls.

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