America's coronavirus bailouts
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The Seattle-Tacoma International Airport on March 15. Photo: John Moore/Getty Images
U.S. industries and organizations are asking for over a trillion dollars in bailouts as states, cities, and counties direct residents to stay home to combat the spread of the novel coronavirus.
Driving the news: The National Governors Association asked Congress for $150 billion in aid on Friday to handle rising unemployment and business closures as states combat the virus with mandated social distancing.
The big picture: The White House asked Congress for $1 trillion on Wednesday to facilitate COVID-19 relief to individual taxpayers, small businesses, the airline industry, and other "severely distressed sectors," with half the money tagged for businesses and the other half for individuals.
- Reality check: Industries are already asking for way more than the $500 billion that President Trump's relief plan would allocate.
Who's asking for what:
- Hospitals: $100 billion to offset expenses related to coronavirus testing and treatment, Axios' Bob Herman reports.
- Manufacturing: $1.4 trillion in loans for manufacturers and small businesses, per the National Association of Manufacturers' statement on Wednesday.
- Hotels: $150 billion in aid, mostly to keep employees on the payroll, and another $100 billion for travel-related businesses like retail shops, attractions and restaurants, Axios' Joann Muller reports.
- Restaurants: A $145 billion recovery fund for the foodservice industry authorized by the Treasury Department, $35 billion in community block grants for disaster relief, $100 billion in business interruption insurance, $45 billion in small business loans, and $130 million in unemployment assistance, the National Restaurant Association said in a statement on Wednesday.
- Airlines: More than $50 billion in aid that could include cash grants and government-backed loans, the Wall Street Journal reports.
- Casinos: The American Gaming Association is calling for emergency funding as more states close casinos to combat the spread of COVID-19. An amount has not been disclosed. The association says 92% of all gaming properties in the U.S. have closed as of Saturday.
- Malls: U.S. shopping centers are asking the federal government to cover business interruptions so the industry's repayment of up to $1 trillion in unsecured and secured debt is not at risk, the International Council of Shopping Centers said in a memo to Congress on Tuesday.
- New York City's transit system: The New York Times reports that the MTA is looking for $4 billion.
- Energy: The Trump administration is "strongly considering pushing federal assistance" for natural gas and oil producers, the Post reports, citing four people familiar.
- Hollywood: "The National Association of Theater Owners ... asked the federal government for loan guarantees to help the industry through a time when strangers cannot gather in the dark to see the latest films," per NYT's Nicole Sperling and Brooks Barnes. An amount has not been publicly disclosed.
The bottom line: Nearly three-quarters of U.S. companies have had their supply chains disrupted by the spread of COVID-19, Axios' Dion Rabouin reported last week.
What's next: For aid to start flowing, Congress would need to approve the proposal that the White House presented on Wednesday. Industries will likely have to take additional steps, like applying for funding.
Go deeper:
- White House proposes $1 trillion coronavirus stimulus package
- Fed says it will help business-funding market amid coronavirus outbreak
Editor's note: This story has been updated with additional industries.
