FR 2025-01834

The document in question, issued by the U.S. Department of the Treasury, seeks public comments on a proposed information collection related to the CARES Act Loan and Payroll Support Programs for air carriers and other eligible businesses. This initiative is part of an effort to comply with the requirements of the Paperwork Reduction Act of 1995, aiming to minimize paperwork and the burden on respondents. The deadline for submitting comments is March 31, 2025.

General Summary

The Treasury Department's announcement primarily concerns the continuation of compliance reporting for programs established under the CARES Act and subsequent legislative acts, despite these programs no longer accepting new applications. The notice outlines that compliance requirements remain in place for air carriers and businesses that have already received funds under these programs. Feedback is being solicited to gauge the practicality of the information gathering, methods to improve clarity, and to explore ways to minimize the paperwork burden on businesses.

Significant Issues and Concerns

One of the main issues is the potential burden imposed on recipients of previous funding. Although the loan and payroll support programs have ceased accepting applications, the ongoing compliance and recordkeeping requirements remain in effect. This can be viewed as administratively burdensome, particularly since the estimated annual effort required by respondents is expected to be around 11,747 hours. Such a significant time commitment could seem excessive and potentially wasteful.

Moreover, the document refers to multiple funding phases—PSP1, PSP2, and PSP3—and several legislative acts like the CARES Act, the Consolidated Appropriations Act, and the American Rescue Plan Act. This complex terminology and lack of summarization of the legislative details could confuse stakeholders unfamiliar with the programs' history.

The request for public comments is notably broad, which might result in general rather than targeted feedback. More specific guidance on which aspects of the process need refinement could lead to more constructive suggestions from the public.

Impact on the Public

Broadly, the document reflects the federal government’s ongoing regulatory processes in areas affected by temporary but significant economic disruptions—such as the COVID-19 pandemic. By inviting public comments, it aims to engage citizens and possibly reduce bureaucratic inefficiencies linked to compliance requirements.

This engagement provides a channel for affected entities, such as businesses and industry stakeholders, to voice their concerns or suggestions about compliance issues, potentially leading to a reduction in unnecessary administrative burdens.

Impact on Specific Stakeholders

Specific stakeholders, including air carriers and associated businesses that benefited from these programs, may experience the greatest direct impact. For some, the continuing compliance requirements might detract from their ability to focus on business recovery post-pandemic, presenting an ongoing financial and administrative challenge.

Conversely, these efforts to solicit public input may positively empower stakeholders by allowing them to influence possible regulatory adjustments. With clearer feedback, the Treasury might identify ways to simplify compliance processes, positively impacting current and future administrative burdens on these organizations.

In summary, while the document evidences ongoing regulatory obligations, it also opens avenues for public engagement in the improvement of federal processes, highlighting the importance of balancing governmental oversight with the administrative capacity of involved stakeholders.

The document under review involves significant financial allocations from various legislative acts intended to provide emergency assistance to air carriers and other eligible businesses affected by the COVID-19 pandemic. It details these allocations and the ongoing requirements tied to them, raising questions about the burden on recipients and transparency in these processes.

The CARES Act is highlighted as a major source of financial support, with the document noting that it authorized the Secretary of the Treasury to make loans, loan guarantees, and other investments up to $500 billion. This allocation aims to ensure liquidity for businesses, states, and municipalities suffering financially due to the pandemic. Moreover, Section 4112 of the CARES Act provided $32 billion specifically for payroll support to air carriers and certain contractors, known as PSP1.

Following the CARES Act, subsequent legislative measures continued this financial support. The Consolidated Appropriations Act, 2021, referred to as the PSP Extension Law within the document, allocated an additional $16 billion for financial assistance to passenger air carriers and related contractors (termed PSP2). This extension was essential for ongoing support as the impacts of the pandemic persisted.

Further extending this line of aid, the American Rescue Plan Act of 2021 authorized another financial injection of $15 billion under what is called PSP3. This provision was targeted at recipients who earlier benefited from PSP2, ensuring sustained support levels.

While these sizeable financial allocations demonstrate a robust governmental response to the crisis faced by the aviation sector, one of the issues presented in the document is the ongoing compliance reporting and recordkeeping requirements associated with these programs. Although applications for the loan programs have closed, recipients must still devote substantial time and resources to fulfill these obligations. The estimated burden of 11,747 hours annually raises concerns about administrative inefficiency and excessive demands on businesses that are no longer actively receiving new financial support.

Additionally, the complexity of describing multiple phases of funding—PSP1, PSP2, and PSP3—might confuse those not intimately familiar with the legislative history and details of these programs. The various acts authorizing these funds are named but not fully explained, potentially obscuring the understanding of the exact provisions attached to these financial allocations. Enhanced clarity and simplification of language could improve transparency and comprehension, leading to more effective feedback from stakeholders during the comment period—particularly on the efficiency and practicality of the compliance requirements tied to these substantial financial efforts.