Avoiding Improper Use Of CARES Act Airport Grants

Like much of the transportation industry during the COVID-19 pandemic, America’s airports are experiencing significant losses in revenue. Airports Council International predicts that the U.S. airport industry will lose $23 billion as a result of COVID-19. Title XII of Division B of the Coronavirus Aid, Relief, and Economic Security, or CARES, Act addresses these significant economic disruptions by providing approximately $10 billion to U.S. airports “to prevent, prepare for, and respond to the impacts of the COVID-19 public health emergency.” The funding is somewhat discretionary, with a requirement that it be used for any purpose for which airport revenues may lawfully be used, so long as the use of funds is related to the airport,

To read the full text of this article by Duane Morris attorneys Alan C. Kessler, Jamie E. Brown and Rachel Kubasak, please visit the firm website.

American Association of Railroads Responds to COVID-19 Crisis

Recent comments from American Association of Railroads (AAR) CEO Ian Jefferies highlight the critical role freight rail carriers have played in shoring up America’s national supply chain during the COVID-19 pandemic.[1]  Mr. Jefferies noted key developments in the government’s response to COVID-19 that have allowed freight railroads to continue operations, and gave special recognition to the contributions made by railroad employees during this national emergency.

Freight railroads deliver a wide variety of goods, including consumer goods, commodities, chemical products, and raw materials to virtually all corners of the nation.  As the COVID-19 pandemic has ratcheted up demand, freight rail carriers and their employees have had to work overtime to ensure an uninterrupted supply.  To that end, from the outset of the COVID-19 pandemic, the Cybersecurity and Infrastructure Agency (CISA) published Guidance on the Essential Critical Infrastructure Workforce, advising state, local, and industry regulators that freight rail workers should be considered “essential” and thus, exempt from state “stay-at-home” orders put into place.

Mr. Jefferies credits organizations such as the National League of Cities, National Governors Association, National Association of Counties, and the U.S. Conference of Mayors for effectively communicating CISA’s recommendations to governments at all levels to ensure railroad workers can continue their vital work.  And, in order to safeguard essential railroad employees, the AAR has adopted the CDC’s Guidance on Critical Infrastructure Workers, which implements measures such as social distancing, regular cleaning and sanitation of work environments, and regular mask usage.  Measures such as these, in conjunction with the railroad industry’s commitment to service, will ensure a steady supply of much-needed goods to businesses and consumers nationwide, even during these unprecedented times.

[1] See Ian Jefferies on Railroads and the Coronvavirus Pandemic, C-SPAN Apr. 14, 2020, available at https://www.c-span.org/video/?471162-102/washington-journal-ian-jefferies-discusses-railroads-coronavirus-pandemic; see also Coronavirus – Our freight rail network also delivering for America during COVID-19 pandemic, Ian Jefferies, https://www.foxbusiness.com/markets/coronavirus-freight-rail-network-covid-19-pandemic.

FAA Gives Details on $10 Billion in CARES Act Funds for Airports

On April 14, 2020, the Federal Aviation Administration (FAA) issued information regarding the application for and distribution of approximately $10 billion in relief funds to airports that fall within four categories under the Coronavirus Aid, Relief and Economic Security Act (CARES Act), signed into law on March 27, 2020.

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