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Payroll Support Program (PSP1) and Payroll Support Program Extension (PSP2), and Third Payroll Support Program (PSP3)
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The Payroll Support Program (PSP1), Payroll Support Program Extension (PSP2), and Third Payroll Support Program (PSP3) provided financial assistance to passenger air carriers, cargo air carriers, and certain aviation industry contractors to preserve employment in the aviation sector as a result of the COVID-19 pandemic. The financial assistance payments were required to be used exclusively for the continuation of payment of employee salaries, wages, and benefits. Division A, Title IV, Subtitle B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted on March 27, 2020, established the PSP1 to provide a total of up to $25 billion, $4 billion, and $3 billion for passenger air carriers, cargo air carriers, and certain contractors, respectively. The PSP2, authorized under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law), enacted on December 27, 2020, provided a total of up to $15 billion for passenger air carriers and up to $1 billion for certain contractors. The PSP3, authorized under Title VII, Subtitle C, Section 7301 of the American Rescue Plan Act of 2021 (ARP), enacted on March 11, 2021, provided a total of up to $14 billion for passenger air carriers and up to $1 billion for certain contractors.
This chart shows obligations for the program by fiscal year. All data for this chart was provided by the
administering agency and sourced from SAM.gov, USASpending.gov, and Treasury.gov.
For more information on each of these data sources, please see the
About the data page.
Payments will be made directly to passenger air carriers, cargo air carriers, and certain contractors to be used exclusively for the continuation of payment of employee salaries, wages, and benefits.
Please visit the U.S. Department of the Treasury’s (Treasury) website at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-industry/airline-and-national-security-relief-programs for a summary of the Payroll Support Program and accomplishments, including a list of program participants.
PSP1, PSP2, and PSP3, Treasury awarded $59 billion in financial assistance to the domestic aviation industry for the continued payment of employee wages, salaries, and benefits. The largest recipients issued warrants to Treasury to purchase 58 million shares of common stock and continue to repay $15 billion in long-term debt issued as appropriate compensation for the provision of financial assistance. As of February 2023, approximately 700 large and small businesses in every state have received assistance under one or more of the three PSP rounds. Recipients reported using the assistance to fully or partially fund the salaries and benefits of more than 640,000 aviation employees during the COVID-19 pandemic, help maintain critical infrastructure capacity, and facilitate industry recovery. Additionally, recipients reported more than 360,000 aviation jobs being retained or created as a result of receiving assistance. Employment levels in the aviation industry have now surpassed 2019 levels.
Single Audit Applies (2 CFR Part 200 Subpart F):
For additional information on single audit requirements for this program, review the current Compliance Supplement.
OMB is working with the U.S. Government Accountability Office (GAO) and agency offices of inspectors general to include links to relevant oversight reports. This section will be updated once this information is made available.
