The U.S. Department of Transportation announced Monday that it will offer $482.3 million in funding to 313 businesses as part of a jobs savings program created by the American Rescue Plan.
The Aviation Manufacturing Jobs Protection Program funds, offered to companies based in 37 states and Puerto Rico, will protect as many as 22,500 jobs nationwide.
“For the past year and a half, our aviation industry workers have helped keep this economy moving, including by supporting the delivery of lifesaving medical equipment and vaccines,” U.S. Transportation Secretary Pete Buttigieg said. “The funding announced today will save jobs and support the workers who have supported us throughout the pandemic.”
Most of the recipients of the AMJP funds are small businesses, with 60 percent of the companies offered assistance having 100 employees or fewer, and 80 percent of the companies having 250 or fewer employees.
AMJP funds can be used to pay up to half of the payroll costs for certain categories of employees who handle manufacturing or repair, for up to six months. In return, the business must commit to several stipulations, including not to furlough or lay off employees (or reduce pay or benefits) while the company is receiving AMJP payroll support.
Businesses receiving the offer of assistance ranged from Illinois-based A.J. Kay Company; offered $16,347 for one employee, to Kansas-based Spirit AeroSystems Holdings Inc; offered $75,519,418 for 3,214 employees.
Prior to the COVID-19 pandemic, the aerospace industry employed an estimated 2.2 million workers, the DOT said, including 1.2 million in various parts of the nationwide supply chain. The historic drop in air travel precipitated by the pandemic led to a reduction in parts demand, repairs, modifications and other services in the industry. Over 100,000 jobs have been lost in the industry since the start of the pandemic, and officials estimate hundreds of thousands more are at risk. With demand for air travel rebounding, these businesses are crucial to the safety and function of the aviation industry, the DOT said, and to the broader U.S. economy.