ANNOUNCEMENT 08 Aug 2021

The U.S. administration provides payroll support to the passenger carrier Hyannis Air Service Inc. under the Payroll Support Program extension (PSP3).

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

U.S. Department of the Treasury, Payroll Support Program Extension (PSP3) Agreements, Passenger Carriers, Hyannis Air Service Inc. Available at: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-industry/payroll-support-program/psp3

Inception date: 08 Aug 2021 | Removal date: open ended

Financial grant

On 8 August 2021, the Department of the Treasury reached an agreement with the passenger carrier Hyannis Air Service Inc. in support of the payments of employee wages, salaries, and benefits under the Payroll Support Program extension (PSP3) of the American Rescue Plan Act of 2021. Within the scope of the agreement, Hyannis Air Service Inc. will receive around USD 12.8 million payroll support from the U.S. Treasury provided that the funds exclusively used for the continuation of payment of employee wages, salaries, and benefits.

The U.S. Administration signed into law the American Rescue Plan Act of 2021 on 11 March 2021 (see related state act). The act provides pandemic relief for the workers in the aviation industry in the form of payroll support under the Payroll Support Program extension (PSP3). The U.S. Administration allocated an aggregate amount of USD 14 billion for passenger air carriers and USD 1 billion for airline contractors to preserve aviation jobs and compensate air carrier industry workers. The American Rescue Plan Act of 2021 builds upon the CARES act and the Consolidated Appropriations Act of 2021, which also included payroll support under the PSP1 and PSP2 programs respectively. To be eligible for PSP3, participants must have participated in the PSP2 under the Consolidated Appropriations Act of 2021. Similar to the conditions under PSP1 and PSP2, payroll support under PSP3 requires the participants to refrain from “conducting involuntary furloughs or terminations of employees through the later of September 30, 2021, and the date on which the entity’s PSP3 funds are exhausted.”

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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