ADVOCATING FOR YOU LEGISLATIVEUPDATE
AS THE HAI GOVERNMENT AFFAIRS team, John Shea and I represent your interests to your elected representatives, advocating for a legal and regulatory environ ment that will enhance the growth and stability of our industry. I find the inner workings of congressional committees or the tortuous path of a bill through the sys- tem to be fascinating. However, I’m often told that I’m using that word incorrectly; I probably meant “frustrating” or “incompre- hensible” or “dysfunctional.” However, with a global economy and political systems reacting to a pandemic and less than 90 days until a US national election, it’s only natural if your interest in politics is heightened (maybe not to the level of “fascinating”) in recognition of these legislators’ very real ability to enact laws that affect us. For some recent exam- ples of how the US government COVID relief programs have benefited the vertical flight industry, please see Figure 1 or visit the Legislative Action Center.
As of this writing, Congress is in the middle of intense negotiations over what the next COVID relief package will look like (see the “Legislative Spotlight” section, opposite). However, as important as that is, there’s some other vital work Congress must address in a very short time frame. One must-do is averting a government shutdown.
Congressional spending is authorized through the end of September. The House has finished its work on the majority of the 12 FY 2020–21 appropriations bills (Homeland Security and legislative branch appropriations have made it out of commit- tee but haven’t yet received a House vote). Due to partisan disagreement, however, those bills aren’t expected to reach the president’s desk.
In the Senate, the appropriations pro- cess has stalled because of disagreements over proposed amendments to the bills. As a result, it’s increasingly likely that Congress will need to pass a continuing
Air Carrier Loans and Air Carrier Payroll Support Program
Figure 1. HAI Actions on COVID Relief for US Members HAI strongly advocated for general aviation air carriers as the
Treasury Department implemented the Payroll Support Program: ■ To date, over $76 million has been provided to HAI members ■ HAI resolved technical legislative language that threatened access for members engaged in intrastate operations only.
Air Transportation Tax Relief
HAI supported the suspension of all federal air transportation excise taxes that apply to commercial operations (Part 135 flights) effective
Mar. 27, 2020, through Jan. 1, 2021: ■ This includes all taxes that a commercial operator pays, including the 7.5% tax on amounts paid, applicable domestic and international segment fees, and the 4.3 cents per gallon portion of the fuel tax.
Paycheck Protection Program (PPP)
HAI advocated for changes to the PPP to allow greater flexibility in
funds for small businesses: ■ The Paycheck Protection Program Flexibility Act (PPPFA) provides borrowers more freedom in how and when loan funds are spent while retaining the possibility of full forgiveness.
12 ROTOR 2020 Q3
resolution to keep the government funded past Sep. 30, 2020. With the recent delib- erations on the next COVID relief package stalled, Congress very well could be com- ing back from August recess with just weeks to deal with funding the govern- ment and the relief package, making for a very complicated September. While the COVID relief and appropria- tions bills inch forward, politicians are also deep into reelection activity. In the Senate, 35 seats are up for election: 12 Democrat and 23 Repub lican. However, if Democrats net just 4 of those 23 Republican seats without losing any of their own, they’ll take control of the Senate. Over in the House, election politics are
making for some interesting races. Several incumbents face high-profile primaries, with some already out of a job. The GOP released a list of more than 50 targeted seats, including 30 districts that President Donald Trump won in 2016. Democrats aim to protect their freshmen, listing 42 com- petitive seats they intend to aggressively defend. Most of these freshmen seats are in suburban areas that have experienced rapid, diverse population growth in recent years. Democrats are also recruiting top- tier candidates to take on Republican incumbents. The census provides a fascinating angle of political intrigue. Based on the recent analysis of the census count, 17 states may see a change in their number of con- gressional seats. It’s likely Texas, Florida, and North Carolina will gain seats while Michigan, Ohio, and Pennsylvania will lose a seat. This situation will come into play in the 2022 midterm congressional elections. If this process isn’t fascinating, I don’t
know what is. Congress is in the middle of deciding important policies that will impact our industry. HAI continues to advocate on your behalf to keep the rotors turning.
– Cade Clark
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