I 

116TH CONGRESS 

2D SESSION H. R. 8504 

To extend the Payroll Support Program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 2, 2020 

Mr. DEFAZIO (for himself and Mr. LARSEN of Washington) introduced the 

following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committees on Transportation and Infrastructure, 

and the Budget, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To extend the Payroll Support Program, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Payroll Support Pro5 gram Extension Act’’. 

6 SEC. 2. DEFINITIONS. 

7 Unless otherwise specified, the definitions in section 

8 40102(a) of title 49, United States Code, shall apply to 

9 this Act, except that— 


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1 (1) the term ‘‘airline catering employee’’ means 

2 an employee who performs airline catering services; 

3 (2) the term ‘‘airline catering services’’ means 

4 preparation, assembly, or both, of food, beverages, 

5 provisions and related supplies for delivery, and the 

6 delivery of such items, directly to aircraft or to a lo7 cation on or near airport property for subsequent 

8 delivery to aircraft; 

9 (3) the term ‘‘contractor’’ means— 

10 (A) a person that performs, under contract 

11 with a passenger air carrier conducting oper12 ations under part 121 of title 14, Code of Fed13 eral Regulations— 

14 (i) catering functions; or 

15 (ii) functions on the property of an 

16 airport that are directly related to the air 

17 transportation of persons, property, or 

18 mail, including but not limited to the load19 ing and unloading of property on aircraft; 

20 assistance to passengers under part 382 of 

21 title 14, Code of Federal Regulations; se22 curity; airport ticketing and check-in func23 tions; ground-handling of aircraft; or air24 craft cleaning and sanitization functions 

25 and waste removal; or 


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1 (B) a subcontractor that performs such 

2 functions; 

3 (4) the term ‘‘employee’’ means an individual, 

4 other than a corporate officer, who is employed by 

5 an air carrier or a contractor; and 

6 (5) the term ‘‘Secretary’’ means the Secretary 

7 of the Treasury. 

8 SEC. 3. PANDEMIC RELIEF FOR AVIATION WORKERS. 

9 (a) FINANCIAL ASSISTANCE FOR EMPLOYEE WAGES, 

10 SALARIES, AND BENEFITS.—Notwithstanding any other 

11 provision of law, to preserve aviation jobs and compensate 

12 air carrier industry workers, the Secretary shall provide 

13 financial assistance that shall exclusively be used for the 

14 continuation of payment of employee wages, salaries, and 

15 benefits to— 

16 (1) passenger air carriers, in an aggregate 

17 amount up to $25,500,000,000; 

18 (2) cargo air carriers, in an aggregate amount 

19 up to $300,000,000; and 

20 (3) contractors, in an aggregate amount up to 

21 $3,000,000,000. 

22 (b) ADMINISTRATIVE EXPENSES.—Notwithstanding 

23 any other provision of law, the Secretary may use funds 

24 made available under section 4112(b) of the CARES Act 

25 (15 U.S.C. 9072(b)) for costs and administrative expenses 


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1 associated with providing financial assistance under this 

2 Act. 

3 SEC. 4. PROCEDURES FOR PROVIDING PAYROLL SUPPORT. 

4 (a) AWARDABLE AMOUNTS.—The Secretary shall 

5 provide financial assistance under this Act— 

6 (1) to an air carrier required to file reports pur7 suant to part 241 of title 14, Code of Federal Regu8 lations, as of March 27, 2020, in an amount equal 

9 to— 

10 (A) the amount such air carrier received 

11 under section 4113 of the CARES Act (15 

12 U.S.C. 9073); or 

13 (B) at the request of such air carrier, or 

14 in the event such an air carrier did not receive 

15 assistance under section 4113 of the CARES 

16 Act (15 U.S.C. 9073), the amount of the sala17 ries and benefits reported by the air carrier to 

18 the Department of Transportation pursuant to 

19 such part 241, for the period from October 1, 

20 2019, through March 31, 2020; 

21 (2) to an air carrier that did not transmit re22 ports under such part 241, as of March 27, 2020, 

23 in an amount equal to— 

24 (A) the amount such air carrier received 

25 under section 4113 of the CARES Act (15 


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1 U.S.C. 9073), plus an additional 15 percent of 

2 such amount; 

3 (B) in the event such an air carrier did not 

4 receive assistance under section 4113 of the 

5 CARES Act (15 U.S.C. 9073), an amount that 

6 such an air carrier certifies, using sworn finan7 cial statements or other appropriate data, as 

8 the amount of total salaries and related fringe 

9 benefits that such air carrier incurred and 

10 would be required to be reported to the Depart11 ment of Transportation pursuant to such part 

12 241, if the air carrier were required to transmit 

13 such information during the period from Octo14 ber 1, 2019, through March 31, 2020; or 

15 (C) at the request of such carrier, provided 

16 such carrier received assistance under section 

17 4113 of the CARES Act (15 U.S.C. 9073), the 

18 sum of— 

19 (i) the amount that such air carrier 

20 certifies, using sworn financial statements 

21 or other appropriate data, as the amount 

22 of total salaries and related fringe benefits 

23 that such air carrier incurred and would be 

24 required to be reported to the Department 

25 of Transportation pursuant to such part 


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1 241, if the carrier were required to trans2 mit such information during the period 

3 from October 1, 2019, through March 31, 

4 2020; and 

5 (ii) an additional amount equal to the 

6 difference between the amount certified 

7 under clause (i) and the amount the air 

8 carrier received under section 4113 of the 

9 CARES Act (15 U.S.C. 9073); and 

10 (3) to a contractor in an amount equal to— 

11 (A) the amount such contractor received 

12 under section 4113 of the CARES Act (15 

13 U.S.C. 9073); or 

14 (B) in the event such contractor did not 

15 receive assistance under section 4113 of the 

16 CARES Act (15 U.S.C. 9073), an amount that 

17 the contractor certifies, using sworn financial 

18 statements or other appropriate data, as the 

19 amount of wages, salaries, benefits, and other 

20 compensation that such contractor paid the em21 ployees of such contractor during the period 

22 from October 1, 2019, through March 31, 

23 2020. 

24 (b) DEADLINES AND PROCEDURES.— 

25 (1) IN GENERAL.— 


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1 (A) FORMS; TERMS AND CONDITIONS.—Fi2 nancial assistance provided to an air carrier or 

3 contractor under this Act shall— 

4 (i) be in such form, on such terms 

5 and conditions (including requirements for 

6 audits and the clawback of any financial 

7 assistance provided upon failure by a pas8 senger air carrier, cargo air carrier, or con9 tractor to honor the assurances specified in 

10 section 5), as agreed to by the Secretary 

11 and the recipient for assistance received 

12 under section 4113 of the CARES Act (15 

13 U.S.C. 9073), except where inconsistent 

14 with this Act; or 

15 (ii) in the event such an air carrier or 

16 contractor did not receive assistance under 

17 section 4113 of the CARES Act (15 

18 U.S.C. 9073), be in such form, on such 

19 terms and conditions (including require20 ments for audits and the clawback of any 

21 financial assistance provided upon failure 

22 by a passenger air carrier, cargo air car23 rier, or contractor to honor the assurances 

24 specified in section 5), as the Secretary de25 termines appropriate. 


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1 (B) PROCEDURES.—The Secretary shall 

2 publish streamlined and expedited procedures 

3 not later than 5 days after the date of enact4 ment of this Act for air carriers and contractors 

5 to submit requests for financial assistance 

6 under this Act. 

7 (2) DEADLINE FOR IMMEDIATE PAYROLL AS8 SISTANCE.—Not later than 10 days after the date of 

9 enactment of this Act, the Secretary shall make ini10 tial payments to air carriers and contractors that 

11 submit requests for financial assistance approved by 

12 to the Secretary. 

13 (d) PRO RATA REDUCTIONS.—The amounts under 

14 subsections (a)(1)(B) and (a)(2)(B) shall, to the max15 imum extent practicable, be subject to the same pro rata 

16 reduction applied by the Secretary to air carriers or con17 tractors, as applicable, that received assistance under sec18 tion 4113 of the CARES Act (15 U.S.C. 9073). 

19 (e) AUDITS.—The Inspector General of the Depart20 ment of the Treasury shall audit certifications made under 

21 subsection (a). 

22 SEC. 5. REQUIRED ASSURANCES. 

23 (a) IN GENERAL.—To be eligible for financial assist24 ance under this Act, an air carrier or contractor shall 

25 enter into an agreement with the Secretary, or otherwise 


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1 certify in such form and manner as the Secretary shall 

2 prescribe, that the air carrier or contractor shall— 

3 (1) refrain from conducting involuntary fur4 loughs or reducing pay rates and benefits until— 

5 (A) with respect to air carriers, March 31, 

6 2021; or 

7 (B) with respect to contractors, March 31, 

8 2021, or the date on which the contractor ex9 hausts such financial assistance, whichever is 

10 later; 

11 (2) ensure that neither the air carrier or con12 tractor nor any affiliate of the air carrier or con13 tractor may, in any transaction, purchase an equity 

14 security of the air carrier or contractor or the parent 

15 company of the air carrier or contractor that is list16 ed on a national securities exchange through— 

17 (A) with respect to air carriers, March 31, 

18 2022; or 

19 (B) with respect to contractors, March 31, 

20 2022, or the date on which the contractor ex21 hausts such financial assistance, whichever is 

22 later; 

23 (3) ensure that the air carrier or contractor 

24 shall not pay dividends, or make other capital dis25 tributions, with respect to common stock (or equivaVerDate Sep 11 2014 23:31 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8504.IH H8504

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1 lent interest) of the air carrier or contractor 

2 through— 

3 (A) with respect to air carriers, March 31, 

4 2022; or 

5 (B) with respect to contractors, March 31, 

6 2022, or the date on which the contractor ex7 hausts such financial assistance, whichever is 

8 later; 

9 (4) meet the requirements of sections 6 and 7; 

10 and 

11 (5) affirm that the air carrier or contractor 

12 has— 

13 (A) in the case of an air carrier or con14 tractor that received loans, loan guarantees, 

15 other investments, or financial assistance under 

16 title IV of the CARES Act, recalled any em17 ployees involuntarily furloughed by such air car18 rier or contractor between March 27, 2020, and 

19 the date such air carrier or contractor enters 

20 into an agreement with the Secretary for finan21 cial assistance under this Act, compensated 

22 such employees for lost pay and benefits, and 

23 restored the rights and protections for such em24 ployees as if they had not been involuntarily 

25 furloughed; or 


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1 (B) in the case of an air carrier or con2 tractor that did not receive loans, loan guaran3 tees, other investments, or financial assistance 

4 under title IV of the CARES Act, recalled any 

5 employees involuntarily furloughed by such air 

6 carrier or contractor between October 1, 2020, 

7 and the date such air carrier or contractor en8 ters into an agreement with the Secretary for 

9 financial assistance under this Act, com10 pensated such employees for lost pay and bene11 fits, and restored the rights and protections for 

12 such employees as if they had not been involun13 tarily furloughed. 

14 SEC. 6. PROTECTION OF COLLECTIVE BARGAINING AGREE15 MENTS. 

16 (a) IN GENERAL.—Neither the Secretary, nor any 

17 other actor, department, or agency of the Federal Govern18 ment, shall condition the issuance of financial assistance 

19 under this Act on an air carrier’s or contractor’s imple20 mentation of measures to enter into negotiations with the 

21 certified bargaining representative of a craft or class of 

22 employees of the air carrier or contractor under the Rail23 way Labor Act (45 U.S.C. 151 et seq.) or the National 

24 Labor Relations Act (29 U.S.C. 151 et seq.), regarding 

25 pay or other terms and conditions of employment. 


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1 (b) AIR CARRIER PERIOD OF EFFECT.—With respect 

2 to any air carrier to which financial assistance is provided 

3 under this Act, this section shall be in effect with respect 

4 to the air carrier beginning on the date on which the air 

5 carrier is first issued such financial assistance and ending 

6 on March 31, 2021. 

7 (c) CONTRACTOR PERIOD OF EFFECT.—With respect 

8 to any contractor to which financial assistance is provided 

9 under this Act, this section shall be in effect with respect 

10 to contractor beginning on the date on which the con11 tractor is first issued such financial assistance and ending 

12 on March 31, 2021, or until the date on which all funds 

13 are expended, whichever is later. 

14 SEC. 7. LIMITATION ON CERTAIN EMPLOYEE COMPENSA15 TION. 

16 (a) IN GENERAL.—The Secretary may only provide 

17 financial assistance under this Act to an air carrier or con18 tractor after such carrier or contractor enters into an 

19 agreement with the Secretary which provides that, during 

20 the 2-year period beginning October 1, 2020, and ending 

21 October 1, 2022, no officer or employee of the air carrier 

22 or contractor whose total compensation exceeded 

23 $425,000 in calendar year 2019 (other than an employee 

24 whose compensation is determined through an existing colVerDate Sep 11 2014 23:31 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H8504.IH H8504

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1 lective bargaining agreement entered into prior to enact2 ment of this Act)— 

3 (1) will receive from the air carrier or con4 tractor total compensation which exceeds, during 

5 any 12 consecutive months of such 2-year period, 

6 the total compensation received by the officer or em7 ployee from the air carrier or contractor in calendar 

8 year 2019; 

9 (2) will receive from the air carrier or con10 tractor severance pay or other benefits upon termi11 nation of employment with the air carrier or con12 tractor which exceeds twice the maximum total com13 pensation received by the officer or employee from 

14 the air carrier or contractor in calendar year 2019; 

15 and 

16 (3) no officer or employee of the air carrier or 

17 contractor whose total compensation exceeded 

18 $3,000,000 in calendar year 2019 may receive dur19 ing any 12 consecutive months of such period total 

20 compensation in excess of the sum of— 

21 (A) $3,000,000; and 

22 (B) 50 percent of the excess over 

23 $3,000,000 of the total compensation received 

24 by the officer or employee from the air carrier 

25 or contractor in calendar year 2019. 


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1 (b) TOTAL COMPENSATION DEFINED.—In this sec2 tion, the term ‘‘total compensation’’ includes salary, bo3 nuses, awards of stock, and other financial benefits pro4 vided by an air carrier or contractor to an officer or em5 ployee of the air carrier or contractor. 

6 SEC. 8. MINIMUM AIR SERVICE GUARANTEES. 

7 (a) IN GENERAL.—The Secretary of Transportation 

8 is authorized to require, to the extent reasonable and prac9 ticable, an air carrier provided financial assistance under 

10 this Act to maintain scheduled air transportation, as the 

11 Secretary of Transportation determines necessary, to en12 sure services to any point served by that air carrier before 

13 March 1, 2020, continues to receive a basic level of air 

14 service. 

15 (b) REQUIRED CONSIDERATIONS.—When considering 

16 whether to exercise the authority provided by this section, 

17 the Secretary of Transportation shall take into consider18 ation the air transportation needs of small and remote 

19 communities, the need to maintain well-functioning health 

20 care supply chains, including medical devices and supplies, 

21 and pharmaceutical supply chains, and such other matters 

22 as the public interest requires. 

23 (c) SUNSET.—The authority provided under this sec24 tion shall terminate on September 1, 2022, and any reVerDate Sep 11 2014 23:31 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H8504.IH H8504

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1 quirements issued by the Secretary of Transportation 

2 under this section shall cease to apply after that date. 

3 SEC. 9. TAX PAYER PROTECTION. 

4 (a) CARES ACT ASSISTANCE RECIPIENTS.—With re5 spect to a recipient of assistance under section 4113 of 

6 the CARES Act (15 U.S.C. 9073) that receives assistance 

7 under this Act, the Secretary may receive warrants, op8 tions, preferred stock, debt securities, notes, or other fi9 nancial instruments issued by such recipient in the same 

10 form and amount, and under the same terms and condi11 tions, as agreed to by the Secretary and the recipient for 

12 assistance received under such section 4113 to provide ap13 propriate compensation to the Federal Government for the 

14 provision of the financial assistance under this Act. 

15 (b) OTHER APPLICANTS.—With respect to an appli16 cant that did not receive assistance under such section 

17 4113, the Secretary may receive warrants, options, pre18 ferred stock, debt securities, notes, or other financial in19 struments issued by an applicant that receives assistance 

20 under this Act in a form and amount that are, to the max21 imum extent practicable, the same as the terms and condi22 tions as agreed to by the Secretary and similarly situated 

23 recipients of assistance under such section 4113 to provide 

24 appropriate compensation to the Federal Government for 

25 the provision of the financial assistance under this Act. 


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1 SEC. 10. REPORTS. 

2 (a) REPORT.—Not later than May 1, 2021, the Sec3 retary shall update and submit to the Committee on 

4 Transportation and Infrastructure and the Committee on 

5 Financial Services of the House of Representatives and 

6 the Committee on Commerce, Science, and Transportation 

7 and the Committee on Banking, Housing, and Urban Af8 fairs of the Senate a report on the financial assistance 

9 provided to air carriers and contractors under this Act, 

10 which includes— 

11 (1) a description of any financial assistance 

12 provided to air carrier and contractors under this 

13 Act; 

14 (2) any audits of air carriers or contractors re15 ceiving financial assistance under this Act; 

16 (3) any reports filed by air carriers or contrac17 tors receiving financial assistance under this Act; 

18 (4) any non-compliances by air carriers or con19 tractors receiving financial assistance under this Act 

20 with the terms and conditions of this Act or agree21 ments entered into with the Secretary to receive 

22 such financial assistance; and 

23 (5) information relating to any clawback of any 

24 financial assistance provided to air carriers or con25 tractors under this Act. 


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1 (b) INTERNET UPDATES.—The Secretary shall up2 date the website of the Department of the Treasury on 

3 a daily basis as necessary to reflect new or revised dis4 tributions of financial assistance under this Act with re5 spect to each air carrier or contractor that receives such 

6 assistance, the identification of any applicant that applied 

7 for financial assistance under this Act, and the date of 

8 application. 

9 (c) SUPPLEMENTAL UPDATE.—Not later than the 

10 last day of the 1-year period following the date of enact11 ment of this Act, the Secretary shall update and submit 

12 to the Committee on Transportation and Infrastructure 

13 and the Committee on Financial Services of the House of 

14 Representatives and the Committee on Commerce, 

15 Science, and Transportation and the Committee on Bank16 ing, Housing, and Urban Affairs of the Senate, the report 

17 submitted under subsection (a). 

18 SEC. 11. COORDINATION. 

19 In implementing this Act, the Secretary shall coordi20 nate with the Secretary of Transportation. 

21 SEC. 12. DIRECT APPROPRIATION. 

22 Notwithstanding any other provision of law, there is 

23 appropriated, out of amounts in the Treasury not other24 wise appropriated, $28,800,000,000 to carry out this Act. 


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1 SEC. 13. TECHNICAL CORRECTIONS AND CLARIFICATION. 

2 (a) Section 4003(c)(1)(B) of the CARES Act (15 

3 U.S.C. 9042(c)(1)(B)) is amended— 

4 (1) by striking ‘‘As soon’’ and inserting the fol5 lowing: 

6 ‘‘(i) IN GENERAL.—Subject to clause 

7 (ii), as soon’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(ii) REQUIREMENT.—The procedures 

10 and any related guidance issued under 

11 clause (i) shall not prohibit any air carrier 

12 from applying for or receiving a loan or 

13 loan guarantee under paragraph (1), (2), 

14 or (3) of subsection (b) based on the 

15 amount of the loan or loan guarantee re16 quested.’’. 

17 (b) Section 4113(c) of the CARES Act (15 U.S.C. 

18 9073(c)) is amended— 

19 (1) by striking ‘‘ section 4112’’ and inserting 

20 ‘‘subsection (a)’’; and 

21 (2) by striking ‘‘such section’’ and inserting 

22 ‘‘such subsection’’. 

23 (c) Section 4114 of the CARES Act (15 U.S.C. 9074) 

24 is amended by adding at the end the following new sub25 sections: 

26 ‘‘(c) CONTINUED APPLICATION.— 


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1 ‘‘(1) IN GENERAL.—If, after September 30, 

2 2020, a contractor expends funds made available 

3 pursuant to section 4112 and distributed pursuant 

4 to section 4113, the assurances under this section 

5 shall continue to apply until all funds are expended, 

6 notwithstanding the time limits included in para7 graphs (1) through (3) of subsection (a), or section 

8 4115 or 4116. 

9 ‘‘(2) SPECIAL RULE.—Not later than January 

10 5, 2021, each contractor that has received funds 

11 pursuant to such section 4112 shall report to the 

12 Secretary on the amount of such funds that the con13 tractor has expended through December 31, 2020. If 

14 the contractor has expended an amount that is less 

15 than 50 percent of the total amount of funds the 

16 contractor received under such section, the Secretary 

17 shall initiate an action to recover any funds that re18 main unexpended as of January 31, 2021. 

19 ‘‘(d) CLAWBACK OF ASSISTANCE.—Any contractor 

20 that conducted involuntary furloughs or reduced pay rates 

21 and benefits, between March 27, 2020, and the date on 

22 which the contractor entered into an agreement with the 

23 Secretary related to financial assistance under this sub24 title, shall recall employees who were involuntary furVerDate Sep 11 2014 23:31 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H8504.IH H8504

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1 loughed, or the Secretary shall claw back such financial 

2 assistance, as necessary.’’. 

3 (d) With respect to loans issued under paragraph (1) 

4 or (2) of section 4003(b) of the CARES Act (15 U.S.C. 

5 9042(b)) after the date of enactment of this Act to an 

6 air carrier, the Secretary may accept an unsecured debt 

7 instrument (in addition to a senior secured debt instru8 ment) for a total loan allocation less than $300,000,000, 

9 if the air carrier certifies that the air carrier cannot fea10 sibly issue collateral sufficient to receive the full amount 

11 of its loan allocation. 

12 SEC. 14. EMERGENCY REQUIREMENT. 

13 (a) IN GENERAL.—This Act is designated as an 

14 emergency requirement pursuant to section 4(g) of the 

15 Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(g)). 

16 (b) DESIGNATION IN SENATE.—In the Senate, this 

17 Act is designated as an emergency requirement pursuant 

18 to section 4112(a) of H. Con. Res. 71 (115th Congress), 

19 the concurrent resolution on the budget for fiscal year 

20 2018. 

Æ 


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