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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Payroll Support Pro-
gram Extension Act’’. 
SEC. 2. DEFINITIONS. 
Unless otherwise specified, the definitions in section 
40102(a) of title 49, United States Code, shall apply to 
this Act, except that— 
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(1) the term ‘‘airline catering employee’’ means 
an employee who performs airline catering services; 
(2) the term ‘‘airline catering services’’ means 
preparation, assembly, or both, of food, beverages, 
provisions and related supplies for delivery, and the 
delivery of such items, directly to aircraft or to a lo-
cation on or near airport property for subsequent 
delivery to aircraft; 
(3) the term ‘‘contractor’’ means— 
(A) a person that performs, under contract 
with a passenger air carrier conducting oper-
ations under part 121 of title 14, Code of Fed-
eral Regulations— 
(i) catering functions; or 
(ii) functions on the property of an 
airport that are directly related to the air 
transportation of persons, property, or 
mail, including but not limited to the load-
ing and unloading of property on aircraft; 
assistance to passengers under part 382 of 
title 14, Code of Federal Regulations; se-
curity; airport ticketing and check-in func-
tions; ground-handling of aircraft; or air-
craft cleaning and sanitization functions 
and waste removal; or 
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(B) a subcontractor that performs such 
functions; 
(4) the term ‘‘employee’’ means an individual, 
other than a corporate officer, who is employed by 
an air carrier or a contractor; and 
(5) the term ‘‘Secretary’’ means the Secretary 
of the Treasury. 
SEC. 3. PANDEMIC RELIEF FOR AVIATION WORKERS. 
(a) FINANCIAL ASSISTANCE FOR EMPLOYEE WAGES, 
SALARIES, AND BENEFITS.—Notwithstanding any other 
provision of law, to preserve aviation jobs and compensate 
air carrier industry workers, the Secretary shall provide 
financial assistance that shall exclusively be used for the 
continuation of payment of employee wages, salaries, and 
benefits to— 
(1) passenger air carriers, in an aggregate 
amount up to $25,500,000,000; 
(2) cargo air carriers, in an aggregate amount 
up to $300,000,000; and 
(3) contractors, in an aggregate amount up to 
$3,000,000,000. 
(b) ADMINISTRATIVE EXPENSES.—Notwithstanding 
any other provision of law, the Secretary may use funds 
made available under section 4112(b) of the CARES Act 
(15 U.S.C. 9072(b)) for costs and administrative expenses 
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associated with providing financial assistance under this 
Act. 
SEC. 4. PROCEDURES FOR PROVIDING PAYROLL SUPPORT. 
(a) AWARDABLE AMOUNTS.—The Secretary shall 
provide financial assistance under this Act— 
(1) to an air carrier required to file reports pur-
suant to part 241 of title 14, Code of Federal Regu-
lations, as of March 27, 2020, in an amount equal 
to— 
(A) the amount such air carrier received 
under section 4113 of the CARES Act (15 
U.S.C. 9073); or 
(B) at the request of such air carrier, or 
in the event such an air carrier did not receive 
assistance under section 4113 of the CARES 
Act (15 U.S.C. 9073), the amount of the sala-
ries and benefits reported by the air carrier to 
the Department of Transportation pursuant to 
such part 241, for the period from October 1, 
2019, through March 31, 2020; 
(2) to an air carrier that did not transmit re-
ports under such part 241, as of March 27, 2020, 
in an amount equal to— 
(A) the amount such air carrier received 
under section 4113 of the CARES Act (15 
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U.S.C. 9073), plus an additional 15 percent of 
such amount; 
(B) in the event such an air carrier did not 
receive assistance under section 4113 of the 
CARES Act (15 U.S.C. 9073), an amount that 
such an air carrier certifies, using sworn finan-
cial statements or other appropriate data, as 
the amount of total salaries and related fringe 
benefits that such air carrier incurred and 
would be required to be reported to the Depart-
ment of Transportation pursuant to such part 
241, if the air carrier were required to transmit 
such information during the period from Octo-
ber 1, 2019, through March 31, 2020; or 
(C) at the request of such carrier, provided 
such carrier received assistance under section 
4113 of the CARES Act (15 U.S.C. 9073), the 
sum of— 
(i) the amount that such air carrier 
certifies, using sworn financial statements 
or other appropriate data, as the amount 
of total salaries and related fringe benefits 
that such air carrier incurred and would be 
required to be reported to the Department 
of Transportation pursuant to such part 
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241, if the carrier were required to trans-
mit such information during the period 
from October 1, 2019, through March 31, 
2020; and 
(ii) an additional amount equal to the 
difference between the amount certified 
under clause (i) and the amount the air 
carrier received under section 4113 of the 
CARES Act (15 U.S.C. 9073); and 
(3) to a contractor in an amount equal to— 
(A) the amount such contractor received 
under section 4113 of the CARES Act (15 
U.S.C. 9073); or 
(B) in the event such contractor did not 
receive assistance under section 4113 of the 
CARES Act (15 U.S.C. 9073), an amount that 
the contractor certifies, using sworn financial 
statements or other appropriate data, as the 
amount of wages, salaries, benefits, and other 
compensation that such contractor paid the em-
ployees of such contractor during the period 
from October 1, 2019, through March 31, 
2020. 
(b) DEADLINES AND PROCEDURES.— 
(1) IN GENERAL.— 
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(B) PROCEDURES.—The Secretary shall 
publish streamlined and expedited procedures 
not later than 5 days after the date of enact-
ment of this Act for air carriers and contractors 
to submit requests for financial assistance 
under this Act. 
(2) DEADLINE FOR IMMEDIATE PAYROLL AS-
SISTANCE.—Not later than 10 days after the date of 
enactment of this Act, the Secretary shall make ini-
tial payments to air carriers and contractors that 
submit requests for financial assistance approved by 
to the Secretary. 
(d) PRO RATA REDUCTIONS.—The amounts under 
subsections (a)(1)(B) and (a)(2)(B) shall, to the max-
imum extent practicable, be subject to the same pro rata 
reduction applied by the Secretary to air carriers or con-
tractors, as applicable, that received assistance under sec-
tion 4113 of the CARES Act (15 U.S.C. 9073). 
(e) AUDITS.—The Inspector General of the Depart-
ment of the Treasury shall audit certifications made under 
subsection (a). 
SEC. 5. REQUIRED ASSURANCES. 
(a) IN GENERAL.—To be eligible for financial assist-
ance under this Act, an air carrier or contractor shall 
enter into an agreement with the Secretary, or otherwise 
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certify in such form and manner as the Secretary shall 
prescribe, that the air carrier or contractor shall— 
(1) refrain from conducting involuntary fur-
loughs or reducing pay rates and benefits until— 
(A) with respect to air carriers, March 31, 
2021; or 
(B) with respect to contractors, March 31, 
2021, or the date on which the contractor ex-
hausts such financial assistance, whichever is 
later; 
(2) ensure that neither the air carrier or con-
tractor nor any affiliate of the air carrier or con-
tractor may, in any transaction, purchase an equity 
security of the air carrier or contractor or the parent 
company of the air carrier or contractor that is list-
ed on a national securities exchange through— 
(A) with respect to air carriers, March 31, 
2022; or 
(B) with respect to contractors, March 31, 
2022, or the date on which the contractor ex-
hausts such financial assistance, whichever is 
later; 
(3) ensure that the air carrier or contractor 
shall not pay dividends, or make other capital dis-
tributions, with respect to common stock (or equiva-
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lent interest) of the air carrier or contractor 
through— 
(A) with respect to air carriers, March 31, 
2022; or 
(B) with respect to contractors, March 31, 
2022, or the date on which the contractor ex-
hausts such financial assistance, whichever is 
later; 
(4) meet the requirements of sections 6 and 7; 
and 
(5) affirm that the air carrier or contractor 
has— 
(A) in the case of an air carrier or con-
tractor that received loans, loan guarantees, 
other investments, or financial assistance under 
title IV of the CARES Act, recalled any em-
ployees involuntarily furloughed by such air car-
rier or contractor between March 27, 2020, and 
the date such air carrier or contractor enters 
into an agreement with the Secretary for finan-
cial assistance under this Act, compensated 
such employees for lost pay and benefits, and 
restored the rights and protections for such em-
ployees as if they had not been involuntarily 
furloughed; or 
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(B) in the case of an air carrier or con-
tractor that did not receive loans, loan guaran-
tees, other investments, or financial assistance 
under title IV of the CARES Act, recalled any 
employees involuntarily furloughed by such air 
carrier or contractor between October 1, 2020, 
and the date such air carrier or contractor en-
ters into an agreement with the Secretary for 
financial assistance under this Act, com-
pensated such employees for lost pay and bene-
fits, and restored the rights and protections for 
such employees as if they had not been involun-
tarily furloughed. 
SEC. 6. PROTECTION OF COLLECTIVE BARGAINING AGREE-
MENTS. 
(a) IN GENERAL.—Neither the Secretary, nor any 
other actor, department, or agency of the Federal Govern-
ment, shall condition the issuance of financial assistance 
under this Act on an air carrier’s or contractor’s imple-
mentation of measures to enter into negotiations with the 
certified bargaining representative of a craft or class of 
employees of the air carrier or contractor under the Rail-
way Labor Act (45 U.S.C. 151 et seq.) or the National 
Labor Relations Act (29 U.S.C. 151 et seq.), regarding 
pay or other terms and conditions of employment. 
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(b) AIR CARRIER PERIOD OF EFFECT.—With respect 
to any air carrier to which financial assistance is provided 
under this Act, this section shall be in effect with respect 
to the air carrier beginning on the date on which the air 
carrier is first issued such financial assistance and ending 
on March 31, 2021. 
(c) CONTRACTOR PERIOD OF EFFECT.—With respect 
to any contractor to which financial assistance is provided 
under this Act, this section shall be in effect with respect 
to contractor beginning on the date on which the con-
tractor is first issued such financial assistance and ending 
on March 31, 2021, or until the date on which all funds 
are expended, whichever is later. 
SEC. 7. LIMITATION ON CERTAIN EMPLOYEE COMPENSA-
TION. 
(a) IN GENERAL.—The Secretary may only provide 
financial assistance under this Act to an air carrier or con-
tractor after such carrier or contractor enters into an 
agreement with the Secretary which provides that, during 
the 2-year period beginning October 1, 2020, and ending 
October 1, 2022, no officer or employee of the air carrier 
or 
contractor 
whose 
total 
compensation 
exceeded 
$425,000 in calendar year 2019 (other than an employee 
whose compensation is determined through an existing col-
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lective bargaining agreement entered into prior to enact-
ment of this Act)— 
(1) will receive from the air carrier or con-
tractor total compensation which exceeds, during 
any 12 consecutive months of such 2-year period, 
the total compensation received by the officer or em-
ployee from the air carrier or contractor in calendar 
year 2019; 
(2) will receive from the air carrier or con-
tractor severance pay or other benefits upon termi-
nation of employment with the air carrier or con-
tractor which exceeds twice the maximum total com-
pensation received by the officer or employee from 
the air carrier or contractor in calendar year 2019; 
and 
(3) no officer or employee of the air carrier or 
contractor 
whose 
total 
compensation 
exceeded 
$3,000,000 in calendar year 2019 may receive dur-
ing any 12 consecutive months of such period total 
compensation in excess of the sum of— 
(A) $3,000,000; and 
(B) 50 percent of the excess over 
$3,000,000 of the total compensation received 
by the officer or employee from the air carrier 
or contractor in calendar year 2019. 
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(b) TOTAL COMPENSATION DEFINED.—In this sec-
tion, the term ‘‘total compensation’’ includes salary, bo-
nuses, awards of stock, and other financial benefits pro-
vided by an air carrier or contractor to an officer or em-
ployee of the air carrier or contractor. 
SEC. 8. MINIMUM AIR SERVICE GUARANTEES. 
(a) IN GENERAL.—The Secretary of Transportation 
is authorized to require, to the extent reasonable and prac-
ticable, an air carrier provided financial assistance under 
this Act to maintain scheduled air transportation, as the 
Secretary of Transportation determines necessary, to en-
sure services to any point served by that air carrier before 
March 1, 2020, continues to receive a basic level of air 
service. 
(b) REQUIRED CONSIDERATIONS.—When considering 
whether to exercise the authority provided by this section, 
the Secretary of Transportation shall take into consider-
ation the air transportation needs of small and remote 
communities, the need to maintain well-functioning health 
care supply chains, including medical devices and supplies, 
and pharmaceutical supply chains, and such other matters 
as the public interest requires. 
(c) SUNSET.—The authority provided under this sec-
tion shall terminate on September 1, 2022, and any re-
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quirements issued by the Secretary of Transportation 
under this section shall cease to apply after that date. 
SEC. 9. TAX PAYER PROTECTION. 
(a) CARES ACT ASSISTANCE RECIPIENTS.—With re-
spect to a recipient of assistance under section 4113 of 
the CARES Act (15 U.S.C. 9073) that receives assistance 
under this Act, the Secretary may receive warrants, op-
tions, preferred stock, debt securities, notes, or other fi-
nancial instruments issued by such recipient in the same 
form and amount, and under the same terms and condi-
tions, as agreed to by the Secretary and the recipient for 
assistance received under such section 4113 to provide ap-
propriate compensation to the Federal Government for the 
provision of the financial assistance under this Act. 
(b) OTHER APPLICANTS.—With respect to an appli-
cant that did not receive assistance under such section 
4113, the Secretary may receive warrants, options, pre-
ferred stock, debt securities, notes, or other financial in-
struments issued by an applicant that receives assistance 
under this Act in a form and amount that are, to the max-
imum extent practicable, the same as the terms and condi-
tions as agreed to by the Secretary and similarly situated 
recipients of assistance under such section 4113 to provide 
appropriate compensation to the Federal Government for 
the provision of the financial assistance under this Act. 
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SEC. 10. REPORTS. 
(a) REPORT.—Not later than May 1, 2021, the Sec-
retary shall update and submit to the Committee on 
Transportation and Infrastructure and the Committee on 
Financial Services of the House of Representatives and 
the Committee on Commerce, Science, and Transportation 
and the Committee on Banking, Housing, and Urban Af-
fairs of the Senate a report on the financial assistance 
provided to air carriers and contractors under this Act, 
which includes— 
(1) a description of any financial assistance 
provided to air carrier and contractors under this 
Act; 
(2) any audits of air carriers or contractors re-
ceiving financial assistance under this Act; 
(3) any reports filed by air carriers or contrac-
tors receiving financial assistance under this Act; 
(4) any non-compliances by air carriers or con-
tractors receiving financial assistance under this Act 
with the terms and conditions of this Act or agree-
ments entered into with the Secretary to receive 
such financial assistance; and 
(5) information relating to any clawback of any 
financial assistance provided to air carriers or con-
tractors under this Act. 
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(b) INTERNET UPDATES.—The Secretary shall up-
date the website of the Department of the Treasury on 
a daily basis as necessary to reflect new or revised dis-
tributions of financial assistance under this Act with re-
spect to each air carrier or contractor that receives such 
assistance, the identification of any applicant that applied 
for financial assistance under this Act, and the date of 
application. 
(c) SUPPLEMENTAL UPDATE.—Not later than the 
last day of the 1-year period following the date of enact-
ment of this Act, the Secretary shall update and submit 
to the Committee on Transportation and Infrastructure 
and the Committee on Financial Services of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate, the report 
submitted under subsection (a). 
SEC. 11. COORDINATION. 
In implementing this Act, the Secretary shall coordi-
nate with the Secretary of Transportation. 
SEC. 12. DIRECT APPROPRIATION. 
Notwithstanding any other provision of law, there is 
appropriated, out of amounts in the Treasury not other-
wise appropriated, $28,800,000,000 to carry out this Act. 
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SEC. 13. TECHNICAL CORRECTIONS AND CLARIFICATION. 
(a) Section 4003(c)(1)(B) of the CARES Act (15 
U.S.C. 9042(c)(1)(B)) is amended— 
(1) by striking ‘‘As soon’’ and inserting the fol-
lowing: 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), as soon’’; and 
(2) by adding at the end the following: 
‘‘(ii) REQUIREMENT.—The procedures 
and any related guidance issued under 
clause (i) shall not prohibit any air carrier 
from applying for or receiving a loan or 
loan guarantee under paragraph (1), (2), 
or (3) of subsection (b) based on the 
amount of the loan or loan guarantee re-
quested.’’. 
(b) Section 4113(c) of the CARES Act (15 U.S.C. 
9073(c)) is amended— 
(1) by striking ‘‘ section 4112’’ and inserting 
‘‘subsection (a)’’; and 
(2) by striking ‘‘such section’’ and inserting 
‘‘such subsection’’. 
(c) Section 4114 of the CARES Act (15 U.S.C. 9074) 
is amended by adding at the end the following new sub-
sections: 
‘‘(c) CONTINUED APPLICATION.— 
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‘‘(1) IN
GENERAL.—If, after September 30, 
2020, a contractor expends funds made available 
pursuant to section 4112 and distributed pursuant 
to section 4113, the assurances under this section 
shall continue to apply until all funds are expended, 
notwithstanding the time limits included in para-
graphs (1) through (3) of subsection (a), or section 
4115 or 4116. 
‘‘(2) SPECIAL RULE.—Not later than January 
5, 2021, each contractor that has received funds 
pursuant to such section 4112 shall report to the 
Secretary on the amount of such funds that the con-
tractor has expended through December 31, 2020. If 
the contractor has expended an amount that is less 
than 50 percent of the total amount of funds the 
contractor received under such section, the Secretary 
shall initiate an action to recover any funds that re-
main unexpended as of January 31, 2021. 
‘‘(d) CLAWBACK OF ASSISTANCE.—Any contractor 
that conducted involuntary furloughs or reduced pay rates 
and benefits, between March 27, 2020, and the date on 
which the contractor entered into an agreement with the 
Secretary related to financial assistance under this sub-
title, shall recall employees who were involuntary fur-
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loughed, or the Secretary shall claw back such financial 
assistance, as necessary.’’. 
(d) With respect to loans issued under paragraph (1) 
or (2) of section 4003(b) of the CARES Act (15 U.S.C. 
9042(b)) after the date of enactment of this Act to an 
air carrier, the Secretary may accept an unsecured debt 
instrument (in addition to a senior secured debt instru-
ment) for a total loan allocation less than $300,000,000, 
if the air carrier certifies that the air carrier cannot fea-
sibly issue collateral sufficient to receive the full amount 
of its loan allocation. 
SEC. 14. EMERGENCY REQUIREMENT. 
(a) IN GENERAL.—This Act is designated as an 
emergency requirement pursuant to section 4(g) of the 
Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(g)). 
(b) DESIGNATION IN SENATE.—In the Senate, this 
Act is designated as an emergency requirement pursuant 
to section 4112(a) of H. Con. Res. 71 (115th Congress), 
the concurrent resolution on the budget for fiscal year 
2018. 
Æ 
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