The Trump administration is asking Congress to approve a massive economic stimulus package of around $850 billion to stanch the economic free-fall caused by the coronavirus, the Washington Post reported. Treasury Secretary Steven Mnuchin will present details to Senate Republicans today. The package would be mostly devoted to flooding the economy with cash, through a payroll tax cut or other mechanism with nearly $50 billion directed specifically to helping the airline industry. The $850 billion package would come in addition to another roughly $100 billion package that aims to provide paid sick leave for impacted workers, though the details of that legislation remain very fluid as it moves through Congress. Mnuchin would like to see the package pass the Senate by the end of the week, he told senators yesterday. Read more.
In related news, U.S. airlines are seeking over $50 billion in financial assistance from the government, more than three times the size of the industry’s bailout after the Sept. 11 attacks, the Wall Street Journal reported. The exact form of the aid—and the amount—is under discussion with Trump administration officials and congressional leaders. A potential aid package could include government-backed loans, cash grants and other measures including relief from taxes and fees. Industry trade group Airlines for America, or A4A, also proposed $8 billion in grants and guarantees for cargo carriers. U.S. airports are separately seeking $10 billion in assistance to counter forecast full-year losses already approaching $9 billion. Read more. (Subscription required.)
