On Monday, Congress approved an additional COVID-19 relief package and government funding legislation that included more than $45 billion in emergency aid for the transportation industry.
In addition to funding the federal government for 2021, the bill also provides money for various sectors of the transportation industry that have been begging for financial help in the past months due to travel reductions since the COVID-19 pandemic began.
The COVID-19 stimulus package includes $2 billion in grants for operations and personnel costs at airports, including some economic relief for airport retail establishments and assistance to communities with small airports. The relief bill also includes $10 billion for State Departments of Transportation and local transportation agencies to replace amounts lost due to the pandemic and to be used for preventative maintenance, routine maintenance, operations, and personnel costs.
The stimulus package also allocated $1 billion in support to Amtrak in its efforts to operate Northeast Corridor, State-supported and long-distance rail service. The funding includes $284.7 million to assist states and commuter rail providers in making required payments to Amtrak. Legislators said the money would prevent further employee furlough and requires Amtrak to recall workers as passenger rail services are restored. The legislation also prevents Amtrak from replacing furloughed workers with contractors and prevent Amtrak from reducing long-distance rail service.
Railroad passenger group applauded the bill.
Statement from Rail Passengers Association President and CEO on the unveiling of a bipartisan coronavirus relief package that includes $1 billion in emergency funding for Amtrak and $14 billion for mass transit systems.
“On behalf of the 40 million Americans that depend on passenger trains, we’re pleased that the political logjam appears to have broken over the weekend and that emergency coronavirus aid for U.S. railroads and transit systems is finally on its way,” Rail Passengers Association President and CEO Jim Mathews said. “This funding will avert further job losses and cuts to essential transportation services, which would deal yet another blow to the U.S. economy.”
However, the group acknowledged this is only a first step in helping transportation organizations.
“While this bill addresses the immediate needs of Amtrak and transit agencies, there is still work to be done to restore these systems to their pre-pandemic levels. We look forward to working with Congress and the incoming Biden Administration on additional legislation as soon as Congress returns to expand and grow rail service,” Mathews said. “With the widespread introduction of the vaccine around the corner, Americans are ready to get moving again; the federal government must take action to restore the nation’s transportation network to promote a full economic recovery.”
The stimulus package also includes $14 billion for transit agencies to fund operations. Legislators said with the money in the CARES Act passed earlier this spring, this would ensure both rural and urban transit agencies receive amounts based on their operating expenses.
“This $14 billion of desperately needed emergency transit funding is vital to the industry’s survival and is a much-needed immediate step in bolstering an industry ravaged by the coronavirus pandemic,” said American Public Transportation Association President and CEO Paul P. Skoutelas. “The proposed legislation is a critical step in supporting public transit agencies so that they can survive and help our communities and nation recover from the economic fallout of the pandemic. However, this legislation is just one important step. APTA and the public transportation industry will continue to advocate for additional emergency funding in the new year, with at least $32 billion needed to serve essential workers and help our communities recover.”
Another $10 billion was allocated for highways, and $2 billion was allocated for intercity buses.
The amounts in the bill far short of what transportation industry leaders said they needed, however.
In October, Amtrak CEO William Flynn told the Senate Transportation Committee that the railroad company needed $4.9 billion in 2021 to avoid further service reductions and prevent furloughs.
Previously, the airline industry said it needed $50 billion in aid to weather the COVID-19 pandemic storm. The airline industry received $25 billion from the CARES Act. However, when the funding for direct payroll assistance for airlines expired in September, the airline industry furloughed tens of thousands of employees.