Loopholes in Congress’s $2 trillion coronavirus relief package could end up sending U.S. taxpayer funds to foreign workers in countries such as China and Mexico.
The Coronavirus Aid, Relief, and Economic Security Act—known as the CARES Act—fails to place safeguards on how U.S. commercial airline carriers spend the $50 billion they received to aid with the cost of maintaining their fleets. Many carriers rely on cheaper overseas facilities for their maintenance needs, meaning they will likely outsource the work to firms in China, Mexico, and other foreign nations.
Guidance on the stimulus money issued by the Treasury Department does not place restrictions on how this cash is used, raising concerns that American aviation workers who have been furloughed during the coronavirus pandemic will not benefit from the billions of dollars set aside for their industry.
The airline loophole is generating scrutiny in light of efforts by Congress and the Trump administration to scale down America’s dependence on China for critical needs, such as the production of medication. As the airline industry faces an unprecedented collapse in its business, U.S.-based maintenance firms are also struggling to survive.
“We are fighting for our lives up here right now,” Matt Yerbic, CEO of Aviation Technical Services (ATS), recently told the Seattle Times. “With the airlines in crisis, our work is at about 50 percent of where we thought we’d be in the next couple of weeks. It’s pretty ugly.” – READ MORE
Listen to the insightful Thomas Paine Podcast Below --