U.S. DOT Announces First Round of Recipients of Aviation Manufacturing Jobs Protection Program Funding
New Program Created by the American Rescue Plan is Estimated to Save Tens of Thousands of U.S. Jobs, Many of Them at Manufacturers with Fewer than 100 Employees
WASHINGTON – The U.S. Department of Transportation (DOT) today announced that it will offer $482.3 million in funding to 313 businesses, under a new jobs-saving program created as part of the Biden-Harris administration’s American Rescue Plan. The funding announced today will go to companies based in 37 states and Puerto Rico, helping 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,” said U.S. Transportation Secretary Pete Buttigieg. “The funding announced today will save jobs and support the workers who have supported us throughout the pandemic.”
Before the pandemic, the aerospace industry was estimated to employ approximately 2.2 million workers, including 1.2 million who worked in various parts of the supply chain nationwide, according to industry sources. The historic drop in air travel precipitated by the pandemic led to reduced demand for parts, repairs, modifications, and other services. Over 100,000 jobs in the aerospace industry have been lost since the start of the pandemic, and estimates show hundreds of thousands more are at risk. As demand for aviation rebounds, these businesses are crucial to the safety and functioning of the aviation industry and the broader U.S. economy.
About the Aviation Manufacturing Jobs Protection Program:
In addition to fulfilling statutory requirements of the AMJP program, the awards reflect two key DOT priorities – economic strength and equity. DOT employed a broad range of strategies to contact potentially eligible businesses to lay out the application process and the eligibility rules established by Congress. Because of swift action, DOT was able to notify eligible businesses of these awards just six months after enactment of the law.
Notably, many of the recipients are small businesses. Of the 313 companies receiving funds, 188 of them (60%) had fewer than 100 employees at the end of calendar year 2020, and 252 of them (80%) had fewer than 250 employees.
The AMJP funds can be used to pay up to half of the payroll costs for certain categories of employees engaged in manufacturing or repair, for up to six months. In return, the business must make several commitments, including not to involuntarily furlough or lay off employees (or reduce pay or benefits) within that group during the time the business is receiving AMJP payroll support.
A full list of round one awardees can be found at Aviation Manufacturing Jobs Protection (AMJP) Program Eligible Recipients | US Department of Transportation.
The applications for the second round of funding closed September 1st and additional funding recipients will be announced later this fall.