Title IV of the CARES Act addressed certain issues involving air carriers. Section 4006 mandates that the Secretary of Transportation require, to the extent reasonably practicable, that air carriers maintain scheduled air service as the Secretary deems appropriate to ensure service to all points serviced by the carrier on March 1, 2020. Emphasis is particularly placed on assuring service for small and rural communities, and maintaining well-functioning health care and pharmaceutical supply chains, including for medical devices and supplies. The Section also eliminates certain excise taxes.
In Section 4025, the CARES Act forbids any limitation on loans and loan guarantees to air carriers and certain other eligible businesses subject to the Railway Labor Act or National Labor Relations Act by the setting of a pre-condition that such businesses implement measures to enter into collective bargaining agreements.
Title XIII designates certain funding for the Department of Transportation to support the Department and its agencies as they seek to “prevent, prepare for, and respond to the coronavirus.” More specifically they have allocated:
- $56 million from General Treasury Funds for Essential Air Service and the Rural Improvement Fund
- $10 billion to the Federal Aviation Administration for Grants-in-Aids to airports, such funds only to be utilized for purposes directly related to airports. This includes $100 million specifically designated for general aviation airports
- $492 million to Amtrak for activities in the Northeast Corridor and $529 million for activities in the national network
- $25 billion in Transit Infrastructure Grants to the Federal Transit Administration
- $3.1 million to the Federal Maritime Administration, including $1 million to the US Merchant Marine Academy and $1 million for state maritime academy operations
- $1.75 million for the Department generally, including for necessary operating costs and capital expenses
- $250,000 to the Federal Railway Administration
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