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— The White House proposed $50 billion in loans only to assist airlines, instead of the immediate cash grants the industry asked for.
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— The Trump administration is asking Congress to include $500 million to prop up Amtrak in a new supplemental package.
— Positive coronavirus results at DHS and the FAA are testing the transportation agencies’ resources. Meanwhile, the top Republican on the House Appropriations panel overseeing transportation funding tested positive for the virus — one of the first members of Congress to do so.
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LOANS ONLY? Airlines’ hopes for the kind of fast cash infusion they’ve asked the government for appear to be slipping. The Trump administration’s plan offers $50 billion in loans, rather than the combination of grants and loans that the industry proposed earlier this week. It also places conditions on executive pay and service requirements.
But those checks aren’t enough for some of the Democrats and labor leaders who warned against giving airlines a “blank check.” Sara Nelson, who heads the Association of Flight Attendants-CWA, called the White House plan “a joke” on Twitter: “No more buybacks. No more bonuses. We need to make sure money goes to workers — period.”
As our team reports, several Democrats on the Hill also said they won’t back the plan unless more conditions are attached to protect workers and consumers.
Some Senate Republicans appear to be okay with the prospect, including Senate Appropriations Chairman Richard Shelby, who earlier in the week said he didn’t want to see a “bailout” for the industry, but clarified on Wednesday that loans are “different.”
What’s next: A task force of Senate Republicans, led by Commerce Chairman Roger Wicker, is working on the Senate’s language as part of its larger economic stimulus plans. One leading Senate Republican told POLITICO it’s likely not to materialize until next week.
Airports also made their ask official, telling Congress they need $10 billion in cash grants to “weather the immediate storm caused by dramatically reduced revenue” and warning that they could default on bond payments.
SOME EXTRA MONEY FOR AGENCIES’ CORONAVIRUS RESPONSE: The Trump administration is asking Congress for $46 billion in supplemental spending for federal agencies, including money for transportation. As our temporary transpo team member Anthony Adragna reports, the request asks for $21 million in emergency funding for various DOT programs, as well as nearly $153 million to support TSA operations.
Also included in the request: a $500 million bailout for Amtrak, in the form of several types of grants, to make up for “estimated revenue losses” through June 30.
MORE POSITIVE CASES AT DHS: The agency has more cases of coronavirus among its ranks than it has publicly reported: at least 13 confirmed or presumed, with 500 more employees quarantined, writes POLITICO’s newest reporter, Betsy Woodruff Swan.
It’s a major test for the agency’s massive workforce, many of whom interact with members of the public every day. “The department’s leadership is going to have to pay very close attention as this public health crisis evolves,” said John Cohen, former acting undersecretary of intelligence and analysis.
Meanwhile, a union representing FAA workers clarified that the shutdown of the air traffic control tower at Midway airport in Chicago was caused by two technicians testing positive, and that three more are awaiting results. “The situation at Midway may be the first, but it most likely won’t be the only airport affected,” PASS said in a statement, calling for the agency to set a “gold standard” for handling coronavirus outbreaks at airports. Your host has more for Pros.
POSITIVE CASES IN CONGRESS, TOO: Rep. Mario Diaz-Balart (R-Fla.), ranking member of the Appropriations Transportation-HUD Subcommittee, has tested positive for coronavirus, becoming one of the first U.S. lawmakers to contract the virus. Rep. Ben McAdams, a freshman Democrat from Utah, also tested positive.
DOT EXPANDS TRUCKING EXEMPTION: More truck drivers will be able to bypass hours of service regulations after the Federal Motor Carrier Safety Administration widened its exemption to include drivers carrying not only medical supplies, but also paper products to stock stores as well as certain manufacturing materials.
AT THE NORTHERN BORDER: As the U.S.-Canada border closes in response to the pandemic, Canadian officials are promising that trade won’t be affected. But as POLITICO’s Lauren Gardner reports, a slowdown could be inevitable as the two countries work out what counts as “essential.” Prime Minister Justin Trudeau said Wednesday that deliveries of food, fuel and medicines would continue under the agreement. But, as Lauren writes, “for a binational relationship with tight cultural and commercial ties, many specifics remained unanswered.”
AUTO FACTORIES ARE CLOSED: Major American car companies are halting production at their factories through the end of the month, they announced on Wednesday. Ford, GM and FCA said they’re shuttering the factories to clean.
Leaders from the companies and the United Auto Workers will work together on plans to restart production in compliance with social distancing protocols among workers, including at shift change times, and to maximize cleaning times between shifts changes, our Tanya Snyder reports.
And GM is considering retooling its production lines to make ventilators and other medical equipment, Pro’s Adam Behsudi reports.
Tesla, meanwhile, has been sparring with local officials over whether its factory in Fremont, Calif., can stay open. The plant “will remain open and operating at limited capacity, despite a previous order from county officials that declared the automobile plant non-essential during an area-wide lockdown over the coronavirus,” BuzzFeed News reported Wednesday.
LIPINSKI’S OUT: The ouster of Illinois Democrat Dan Lipinski, who lost in a primary to progressive challenger Marie Newman this week, means the chairmanship of the House Transportation Committee’s railroads subcommittee will be open next year, Tanya reports.
At least one member, Donald Payne of New Jersey, was interested in the seat last time it was open, but stood aside for the more senior Lipinski. He now chairs a Homeland Security subpanel that’s at the heart of the coronavirus response, so he may have a tough choice come January.
Lipinski still has 10 months running the subcommittee, and he has his work cut out for him — he’s working on the rail title of a reauthorization that he said will address the state of good repair backlog for commuter rail, Amtrak long-distance service, grade crossing safety, blocked crossings, and the need for more quiet zones.
AMTRAK, FCC NOMS SENT TO SENATE: The Trump administration on Wednesday sent two nominations to the chamber: Rick Dearborn to be a director on Amtrak’s board, and reappointing Michael O’Rielly to be a member of the FCC.
— “Coronavirus shows there’s still no such thing as a totally human-free self-driving car.” The Verge.
— “Delta parks 600 jets and scales back flights as revenue tanks.” Reuters.
— “2 cruise ships turned away by other ports head to Honolulu.” Associated Press.
— “Salt Lake City Airport, a hub for Delta, reopening after earthquake.” The Points Guy.
— “Top officials who helped write USMCA auto rules leaving USTR.” POLITICO Pro.
DOT appropriations run out in 194 days. The FAA reauthorization expires in 1,291 days. Highway and transit policy is up for renewal in 194 days.
