Exclusive: Congressional Democrats Set To Back More Than $50 Billion For Transportation Sector

Democrats in the U.S. Congress are to release a sweeping plan on Monday to provide more than $50 billion in additional assistance to U.S. airlines, transit systems, airports and passenger railroad Amtrak and create a $3 billion program to assist aviation manufacturers with payroll costs, according to documents seen by Reuters and sources briefed on the matter.

The $1.9 trillion COVID-19 relief proposal will provide $30 billion to transit agencies, $14 billion for passenger airlines, $8 billion to U.S. airports, $1 billion for airline contractors and $1.5 billion to Amtrak, the draft legislation says. U.S. House committees are set to vote on the legislation on Wednesday.

Airline stocks rose sharply on news of the new funding, with American Airlines up 4.2%, while United Airlines gained 5% and Southwest Airlines jumped nearly 6%.

President Joe Biden had proposed $20 billion for struggling U.S. transit agencies – and nothing for airlines – while Democrats had pushed for more transit help, citing the collapse in travel demand as a result of the COVID-19 pandemic.

-REUTERS