The U.S. Department of Transportation (DOT) is offering an additional $69 million in awards provided by the American Rescue Plan to 127 more aviation manufacturing and repair businesses.
The Aviation Manufacturing Jobs Protection Program (AMJP), created to ensure the aviation manufacturing workforce was kept intact despite declines in airline travel due to the COVID-19 pandemic. These new awards, combined with the prior rounds of funding (announced in September and November 2021), bring the total to $673 million to help protect aviation manufacturing jobs.
“The aviation industry was hit hard by the pandemic, and we have taken action to support and protect the jobs of aviation manufacturing workers,” said U.S. Transportation Secretary Pete Buttigieg. “The critical American Rescue Plan funding announced today is protecting tens of thousands of manufacturing jobs, supporting hundreds of small businesses, and helping keep America’s aviation industry strong as it continues its robust recovery.”
Many of the recipients are small businesses. Of the 593 companies receiving funds from this program, 393 of them (66 per cent) had fewer than 100 employees at the beginning of April 2020, and 498 of them (84 per cent) had fewer than 250 employees. DOT employed a broad range of strategies to contact potentially eligible businesses to lay out the application process and eligibility rules.
Among the awards granted were $12.9 million to Airbus’ U.S arm, $15 million to Learjet, a unit of Bombardier Inc,
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, recipient businesses must make several commitments, including not to involuntarily furlough or lay off employees (or reduce pay or benefits) within that group while receiving AMJP payroll support.