Additional Provisions in the CRRSA Act
All airports receiving these funds must continue to employ at least 90% of the number they employed as of March 27, 2020, through February 15, 2021. This may be waived if the Secretary of Transportation believes this is causing undue economic hardship to the airports.
Air Carriers and contractors receiving this money agree they will refrain from conducting involuntary furloughs or reducing pay rate and benefits until March 31, 2021, if they are an air carrier, and if they are a contractor, until March 31, 2021, or the date that the contractor expends the financial assistance - whichever is later.
Additionally, if air carriers or contractors received CARES Act funding and performed any layoffs or furloughs between October 1, 2020 and the date they received these supplemental funds, they must recall those employees involuntarily furloughed and must compensate returning employees for lost pay and benefits between December 1, 2020 and the date they receive the supplemental funds.
If passenger air carriers or contractors did not receive financial assistance from the CARES Act, they must recall employees who were involuntarily furloughed between March 27, 2020 and the date they receive the supplemental funds, and compensate returning employees for lost pay and benefits from December 1, 2020 to the date they receive the supplemental funds.
carriers and contractors also agree not to purchase any equity security of the
passenger air carrier or contractor or parent company or pay dividends or make
other capital distributions; air carriers agree not to make these purchases
through March 31, 2022 and contractors agree not to make these purchases through March 31, 2022 or the date on which the contract is up, whichever is later.
The rail grants to the National Railroad Passenger Corporation should be used to prevent further employee furloughs and to prevent further reductions to the frequency of rail service and on any long-distance route. If the National Railroad Passenger Corporation does conduct employee furloughs, they must provide employees with the opportunity to be recalled to work based on seniority and classification of work, regardless of their service time, as intercity passenger rail service is restored. The National Railroad Passenger Corporation is prohibited from contracting out any scope-covered work conducted by an employee who was furloughed through reductions in the workforce unless contracting was in place prior to March 1, 2020.
The transit infrastructure grants specify that to the maximum extent possible, these funds should be directed to payroll and operations of public transit, including payroll and expenses of private providers of public transportation, unless the recipient certifies that they have not furloughed any employees.
Highway grants refer to grants to states, territories, Puerto Rico, or Indian Tribes to prevent, prepare for, and respond to COVID-19. These grants flow through and are administered by the Federal Highway Administration.
The 'other' section refers to grants to providers of transportation services. Providers of transportation services are defined as having significant operations and a majority of employees in the U.S., was in operation on March 1, 2020, and operates a vessel of the United States (including a passenger vessel, small passenger vessel, or pilotage services vessel), a company providing transportation services using a bus (including local and intercity fixed-route service, commuter service, and charter or tour services), a company providing transportation services using a school bus, or other passenger transportation services company.
The providers of transportation services must certify that they have experienced a revenue loss of 25% or more on an annual basis as a direct or indirect result of COVID-19. Providers would have had 500 or fewer full-time, part-time or temporary employees on March 1, 2020 and have not received assistance from previous sections of the CARES act.
In accepting these funds, providers agree to maintain expenditures on payroll costs for all employees and they may not impose any involuntary furlough or any reduction in pay rates or benefits for any nonexecutive employees from the date of this act through March 31, 2021. They must also recall or rehire any employees laid off, furloughed, or terminated after March 27, 2020.