House Democrats have proposed extending the Payroll Support Program for airlines and airline contractors through September.
The House Financial Services Committee was expected to advance the proposal Wednesday afternoon as part of a mark-up of President Joe Biden's $1.9 trillion Covid-19 rescue legislation.
Airlines have thus far been guaranteed $40 billion in federal payroll support during the pandemic. The latest funding round of $15 billion expires on March 31.
This new proposal would provide carriers with another $15 billion, including $1 billion for contracted ground workers. In exchange, airlines would continue to employ all existing non-management-level staff through Sept. 30.
The six largest U.S. carriers lost a combined $34 billion in 2020. U.S. airlines shed 37,000 jobs in October after the original payroll support program came to an end. Carriers were required to offer furloughed employees their jobs back after the second round of funding was approved in December.
American has already warned 13,000 employees of new furloughs should payroll support expire in March.