Democratic lawmakers have launched an investigation into whether four aviation contractors violated provisions of the CARES Act by laying off thousands of workers, despite receiving millions of dollars from the government to keep workers on the job, The Washington Post reported. An analysis by the House Select Subcommittee on the Coronavirus Crisis found that more than $500 million in federal funds went to four companies that have laid off more than 7,500 workers. On Wednesday, lawmakers sent letters to the companies, including three that provide catering services to airlines: Flying Food Fare, Gate Gourmet and Swissport. A fourth, G2 Secure Staff, provides services to airports including baggage handling, wheelchair assistance and pre-departure screening, according to its website. “Congress created this program to ‘preserve aviation jobs’ by providing wage assistance to companies in exchange for keeping workers on the payroll,” lawmakers wrote. “Giving payroll support to companies that engaged in mass layoffs is not only contrary to congressional intent, but also wastes taxpayer dollars by covering the cost of payroll for employees that have already been laid off.” The lawmakers also are asking companies to provide information about their dealings with the Treasury Department, including whether company officials informed the government about layoffs that occurred between when an application for aid was submitted and when a final agreement was signed.
