Summary of Subject Matter: Hearing on Assessing the Federal Government's COVID-19 Relief and Response Efforts
Summary
A July 26, 2021 Summary of Subject Matter memorandum from the staff of the Committee on Transportation and Infrastructure to its members, for a full committee hearing titled Assessing the Federal Government's COVID-19 Relief and Response Efforts and Its Impact. The memorandum states that the committee will meet on Thursday, July 29, 2021, in 2167 Rayburn House Office Building and via Zoom, and that the hearing will examine the federal response to the pandemic, oversight of that response, and the impact of relief efforts on the transportation and infrastructure sectors and their workers. It states that the first panel will include witnesses from the Government Accountability Office, the Department of Transportation Office of Inspector General, the Department of Homeland Security Office of Inspector General and the Pandemic Response Accountability Committee.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Summary of Subject Matter: Hearing on Assessing the Federal Government's COVID-19 Relief and Response Efforts.”
Original at docs.house.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/hhrg-117-pw00-20210729-sd001-31dba5924282-11cbeb9893/
, SHA-256 31dba5924282174b8ddcefa44627d464c85944e3bf939e2f86d0d28b36e16442.Full text
Peter A. DeFazio Sam Graves
Chairman Ranking Member
Katherine W. Dedrick Paul J. Sass
Staff Director Republican Staff Director
July 26, 2021
SUMMARY OF SUBJECT MATTER
TO: Members, Committee on Transportation and Infrastructure
FROM: Staff, Committee on Transportation and Infrastructure
RE: Full Committee Hearing on “Assessing the Federal Government’s COVID-19 Relief
and Response Efforts and Its Impact”
PURPOSE
The Committee on Transportation and Infrastructure (T&I) will meet on Thursday, July 29,
2021, at 11:00 a.m. EDT in 2167 Rayburn House Office Building and via Zoom to hold a hearing
titled “Assessing the Federal Government’s COVID-19 Relief and Response Efforts and Its
Impact.” The hearing will examine the federal response to the COVID-19 pandemic, efforts to
provide oversight of that response, areas for improvement, and the impact of pandemic relief efforts
on the transportation and infrastructure sectors and their workers.
The Committee will hear testimony from two panels. The first panel will include federal
government witnesses from the Government Accountability Office (GAO), the Department of
Transportation Office of Inspector General (DOT OIG), the Department of Homeland Security
Office of Inspector General (DHS OIG), and the Pandemic Response Accountability Committee
(PRAC).1 The second panel will include witnesses from the American Public Transportation
Association (APTA), the International Association of Emergency Managers (IAEM), the Hoover
Institution at Stanford University, the Hamilton Project at the Brookings Institution, and the
Transport Workers Union of America (TWU).
BACKGROUND
In response to the COVID-19 pandemic, Congress and the Executive Branch have taken a
series of actions to protect the health and economic security of American individuals and businesses.
Congress included $5.9 trillion dollars of relief and job protection measures in the CARES Act, the
1 The CARES Act established the Pandemic Response Accountability Committee (PRAC) as a committee of the Council
of the Inspectors General on Integrity and Efficiency (CIGIE), which is composed of inspectors general from across the
government. See https://www.pandemicoversight.gov/our-mission/about-the-prac; CARES Act, Pub. L. No. 116-136
(2020), Sec. 15010.
Consolidated Appropriations Act of 2021, the American Rescue Plan, and other legislation.2 Federal
agencies, including the Federal Emergency Management Agency (FEMA), the operating
administrations within the Department of Transportation (DOT), and the U.S. Department of the
Treasury (Treasury) are responsible for administering and overseeing more than $200 billion in
federal assistance provided for transportation and emergency management.3 These agencies also
conduct other pandemic response and recovery functions. For example, FEMA helped supply states
and localities with personal protective equipment (PPE) and distributing vaccine and testing
supplies, as well as reimbursing for many activities tied to response to the COVID-19 pandemic.4
Within DOT, the Federal Aviation Administration (FAA), the Federal Transit Administration (FTA)
and other department components provided pandemic-related guidance and support to their
respective modes to help keep employees and passengers on our nation’s transportation systems
safe.5
Oversight of the Federal Response - Summary
The federal oversight community, such as GAO, PRAC, and federal Offices of Inspectors
General (OIGs), have been monitoring agencies’ use of COVID-19 relief and response funds. These
organizations also have assessed the federal government’s actions, policies, and programs to respond
to COVID-19 to identify problems, including cases of waste, fraud, abuse, and mismanagement, as
well as lessons learned and areas for improvement.
Historically, federal oversight organizations have found that large-scale federal relief
programs can be vulnerable to significant risk of erroneous payments, waste, and fraud.6 For
2 CARES Act, Pub. L. No. 116-136 (2020); Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (2020); American
Rescue Plan Act of 2021, Pub. L. No. 117-2 (2021).
3 U.S Department of the Treasury, “Coronavirus Economic Relief for Transportation Services (CERTS) Program,”
accessed on July 26, 2021, available at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-
industry/coronavirus-economic-relief-for-transportation-services, and “Airline and National Security Relief Programs,”
accessed on July 26, 2021, available at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-
industry/airline-and-national-security-relief-programs; Federal Transit Administration, “Novel Coronavirus (COVID-
19), accessed on July 26, 2021, available at https://www.transit.dot.gov/coronavirus; National Railroad Passenger
Corporation (AMTRAK) Office of Inspector General, GOVERNANCE: Amtrak Continues to Demonstrate Good
Stewardship of Pandemic Relief Funds, OIG-MAR-2021-009, (May 12, 2021), available at:
https://amtrakoig.gov/sites/default/files/reports/OIG-MAR-2021-009%20Relief%20Act.pdf; GAO, COVID-19:
Continued Attention Needed to Enhance Federal Preparedness, Response, Service Delivery, and Program Integrity, GAO-21-551, (July
2021), available at https://www.gao.gov/assets/gao-21-551-highlights.pdf; Federal Aviation Administration,
“Information for Airports about COVID-19,” accessed on July 26, 2021, available at
https://www.faa.gov/airports/special_programs/covid-19-airports; House Committee on Transportation and
Infrastructure, “Chair DeFazio Applauds New Round of Aid for the Hard-Hit Transportation Sector in Omnibus and
COVID Relief Legislation,” December 22, 2020, available at https://transportation.house.gov/news/press-
releases/chair-defazio-applauds-new-round-of-aid-for-the-hard-hit-transportation-sector-in-omnibus-and-covid-relief-
legislation-; FEMA, 100 Days of FEMA and Our Partners in Action (April 30, 2021) available at
https://www.fema.gov/blog/100-days-fema-and-our-partners-action.
4 FEMA, Pandemic Response to Coronavirus Disease 2019 (COVID-19): Initial Assessment Report, (January 2021), available at
https://www.fema.gov/sites/default/files/documents/fema_covid-19-initial-assessment-report_2021.pdf;
5 FTA, “FTA COVID-19 Resource Tool” (May 7, 2021), available at https://www.transit.dot.gov/regulations-and-
programs/safety/fta-covid-19-resource-tool; and FAA, Coronavirus Guidance and Resources from FAA (April 19,
2021), available at https://www.faa.gov/coronavirus/guidance_resources/.
6 GAO, COVID-19: Critical Vaccine Distribution, Supply Chain, Program Integrity, and Other Challenges Require Focused Federal
Attention,” GAO-21-265, (January 28, 2021), available at https://www.gao.gov/products/gao-21-265; PRAC, UPDATE:
2
example, GAO reported that the American Reinvestment and Recovery Act of 2009 posed these types of
risks because of the need to spend funds quickly and because it increased funding for existing
programs to a degree that might have exceeded the capacity of existing controls and oversight
mechanisms.7 Similarly, the DOT OIG reported that significant infusions of federal funding—such
as the disaster relief funding provided to FTA for transit agencies in the wake of Hurricane Sandy—
can create the risk of improper payments without appropriate agency oversight plans and procedures
in place.8 In light of these and other risks, an effective federal response to COVID-19 fraud risks,
according to GAO, should help ensure that federal programs fulfill their intended purpose, funds
are spent effectively, and assets are safeguarded.9
Other challenges that the oversight community identified include problems with FEMA’s
disaster-management capabilities, interagency coordination, and incomplete reporting on the use of
pandemic relief funds. In its work on FEMA, GAO found a lack of coordination with the
Department of Health and Human Services (HHS) and other federal partners on the procurement
and delivery of essential PPE, shortages in staff available to be deployed to disaster areas, and
inconsistencies in how FEMA communicates with states and localities on the use of advance
contracting.10
In addition, GAO criticized the Office of Management and Budget’s (OMB) issuance of a
Compliance Supplement, as part of the Single Audit Act, that is used to help auditors understand a
federal program’s objectives, procedures, and compliance requirements during audits of non-federal
recipients of federal funds, such as local and state governments and nonprofit organizations.11 The
2020 Compliance Supplement was not released by OMB until August 2020, after initial COVID-19
relief funds had already been dispersed to recipients. However, GAO found the supplement to be
incomplete and said the delay in issuing it “may lead to inconsistent reporting and affect award
recipients’ development of corrective actions.”12 GAO warned that preparing and providing this
guidance to auditors in a timely manner was “essential to help ensure that single audits can be
performed timely and enhance the federal government’s ability to help safeguard billions of dollars
in federal funds, including those provided under COVID-19 relief laws.”13 OMB issued an
addendum to the Compliance Supplement in December 2020, but it did not address all concerns
raised by auditors to conduct these single audits.14 In March 2021, OMB issued a memorandum to
executive branch agencies that outlines steps agencies must take to implement sound financial
Top Challenges in Pandemic Relief and Response, (February 3, 2021), available at
https://www.pandemicoversight.gov/media/file/update-top-challenges-pandemic-relief-and-response.
7 GAO, Recovery Act: Opportunities to Improve Management and Strengthen Accountability over States’ and Localities’ Uses of Funds,
GAO-10-999, (September 20, 2010), available at https://www.gao.gov/assets/gao-10-999.pdf.
8 DOT OIG, Initial Assessment of FTA’s Oversight of the Emergency Relief Program and Hurricane Sandy Relief Funds, MH-2014-
008, (December 3, 2013), available at
https://www.oig.dot.gov/sites/default/files/FTA%E2%80%99s%20Oversight%20of%20the%20Emergency%20Relief
%20Program%20and%20Hurricane%20Sandy%20Relief%20Funds%5E12-3-13_1.pdf.
9 Supra n. 4, GAO-21-265.
10 GAO, COVID-19: FEMA’s Role in the Response and Related Challenges, GAO-20-685T (July 14, 2020), available at
https://www.gao.gov/products/gao-20-685t and COVID-19: Federal Efforts Could Be Strengthened by Timely and Concerted
Actions, GAO-20-701, (September 21, 2020), available at https://www.gao.gov/products/gao-20-701.
11 GAO, COVID-19: Sustained Federal Action Is Crucial as Pandemic Enters Its Second Year, GAO-21-387, March 2021,
available at https://www.gao.gov/assets/gao-21-387.pdf.
12 Id.
13 Id.
14 Id.
3
management of the pandemic relief funding resources, including complying with the requirements of
the Single Audit Act.15 The memorandum states that when OMB issues its annual compliance
supplement later this year, it will include the topic of subaward reporting as a requirement for all
financial assistance programs that are reviewed under the Single Audit Act.16
Regarding the use of relief funds, PRAC found that agencies’ initial reporting on the use of
pandemic funds left out important information required by the CARES Act, such as identifying all
subrecipients of the funding.17 PRAC recommended that OMB issue guidance to agencies to direct
them to collect and report the missing information.18
Another critical component of the oversight efforts of the OIGs and PRAC is supporting federal
agency personnel through training and other assistance. For example, the DHS OIG has provided
training to program staff on how to identify cases of waste, fraud, or abuse related to COVID-19
relief funding, and PRAC has hosted a training session on identifying and preventing loan fraud.19
PRAC also supports federal OIGs’ data analysis capabilities by providing them with non-public data
sets on selected pandemic relief programs and helping them get easier access to data analytics
contractors.20
Government Accountability Office
The CARES Act directed GAO to monitor and oversee the use of funds made available to
prepare for, respond to, and recover from the COVID-19 pandemic.21 To date, GAO has issued
eight reports that assess efforts across the government and has made 87 recommendations to
improve the COVID-19 response.22 However, federal agencies have only fully implemented 16 of
these 87 recommendations so far, but have generally agreed with 57, or 66 percent, of these
recommendations and are in the process of implementing those.23 GAO has examined, among other
things, the federal government’s management of the medical supply chain and its assistance to state
and local emergency management efforts; support provided to airports, airlines, and other aviation
companies through loans and grants; and FTA’s assistance to the nation’s transit agencies.24
FEMA Lacked an Adequate Plan and National Strategy for the Supply Chain of Critical
Equipment
GAO reported in September 2020 that FEMA, along with HHS and the Department of
Defense, had taken steps to mitigate supply chain issues that were leading to shortages in the
15
Office of Management and Budget, Memorandum for the Heads of Executive Departments and Agencies: Promoting Public Trust
in the Federal Government through Effective Implementation of the American Rescue Plan Act and Stewardship of the Taxpayer Resources,
(March 19, 2021) available at https://www.whitehouse.gov/wp-content/uploads/2021/03/M_21_20.pdf.
16 Id.
17 PRAC, MITRE Report: Transparency in Pandemic-Related Federal Spending: Report of Alignment and Gaps, (November 2020),
available at https://www.pandemicoversight.gov/media/file/transparency-pandemic-related-federal-spending-full-report.
18 Id.
19 Committee staff briefings with DHS OIG on February 11, 2021, and with PRAC on April 21, 2021.
20 Committee staff briefing with PRAC on April 21, 2021.
21 Pub. L. No. 116-136, § 19010, 134 at 579-81.
22 GAO, “COVID-19: Continued Attention Needed to Enhance Federal Preparedness, Response, Service Delivery, and Program
Integrity,” GAO-21-551, (July 2021), available at https://www.gao.gov/assets/gao-21-551-highlights.pdf
23 Id.
24 See https://www.gao.gov/coronavirus and discussion on following pages.
4
availability of PPE and testing supplies.25 Nonetheless, there continued to be constraints around
certain types of PPE and testing supplies. For example, in the summer of 2020, some states, nursing
homes, and an association of nurses reported PPE shortages, including N95 masks, nitrile gloves,
and gowns.26 Thousands of nurses reported that as a result they were required or encouraged to re-
use single-use N95 masks.27 GAO also found that states and public health laboratories experienced
ongoing shortages of testing supplies, including swabs, reagents, and tubes, in the summer of 2020.28
In the midst of these supply constraints, GAO revealed that FEMA, along with HHS, had
not developed plans outlining specific actions the federal government would take to help mitigate
remaining medical supply gaps needed to respond to the pandemic, including through the use of
existing Defense Production Act authorities.29 Further, FEMA and HHS had not worked with their
federal partners to define roles and responsibilities for managing the supply chain.30
GAO recommended that HHS, in coordination with FEMA, (1) create such a plan and (2)
document roles and responsibilities for supply chain management.31 Creating a plan for continued
support of the COVID-19 pandemic, according to GAO, can help inform a longer-term,
comprehensive national supply chain strategy, which in turn could help better position all
stakeholders for future public health events.32 GAO indicated that “transition planning efforts are
underway” by HHS, but that they “have not yet culminated in a written plan,” which GAO has
suggested HHS should prepare “immediately.”33
States, Territories, and Tribes Faced Challenges Managing Supplies and Navigating FEMA
Reimbursement Programs
Officials from FEMA regional offices and states also identified problems related to federal
support programs for pandemic supplies and other emergency expenses. According to GAO, these
challenges continue to hamper their efforts to plan for and carry out their pandemic response plans.
• Some state officials described confusion about the various federal programs available to pay
for PPE and testing supplies, including about reimbursement and cost share responsibility,
and concerns about potential duplication of benefits.34 States had trouble confirming that
the right entities received correct and usable supplies when FEMA-provided supplies were
shipped directly to local points of care, such as hospitals, laboratories, or nursing homes.35
25 GAO, COVID-19: Federal Efforts Could Be Strengthened by Timely and Concerted Actions, GAO-20-701, (September 21,
2020), available at https://www.gao.gov/products/gao-20-701.
26 Id.
27 Id.
28 Id.
29 Id.
30 Id.
31 Id.
32 Id.
33 GAO, “COVID-19: Federal Efforts Could Be Strengthened by Timely and Concerted Actions,” GAO-20-701, (September 2020),
available at: https://www.gao.gov/assets/gao-20-701.pdf
34 Supra, n.8, GAO-20-701
35 Id.
5
• Some tribal leaders who had trouble completing administrative requirements for Public
Assistance grants said that no FEMA staff were available to assist them. Further, FEMA
failed to conduct sufficient outreach to tribes when determining items eligible for
reimbursement under the Public Assistance program, even though such outreach is required
by FEMA’s own policy.36
In September 2020, GAO recommended that FEMA and HHS work with federal, state,
territorial, and tribal stakeholders to devise interim solutions to help states enhance their ability to
track the status of supply requests and plan for supply needs for the remainder of the COVID-19
pandemic response.37 More recently, in March 2021, GAO recommended that FEMA provide timely
and consistent technical assistance to support tribal governments and that it adhere to its policy on
tribal consultation when developing new policies and procedures related to COVID-19 assistance.38
DOT Needs a National Aviation Preparedness Plan
Since 2015, just after the 2014 Ebola outbreak in West Africa, GAO has reported on the
importance of DOT developing a national aviation preparedness plan so safeguards are in place to
limit the spread of communicable disease threats and to minimize unnecessary interference with
travel and trade.39 Although DOT issued guidance to airports and airlines on measures to mitigate
the public health risks associated with COVID-19, it has still not developed a preparedness plan for
future communicable disease threats.40 DOT has said that HHS and DHS should lead such planning
efforts since they are responsible for, respectively, communicable disease response and preparedness
planning.41 However, both DHS and HHS have said that they are not well positioned to develop a
pandemic preparedness plan for aviation.42 In February 2021, H.R. 884, the National Aviation
Preparedness Plan Act, was reintroduced by Aviation Subcommittee Chair Rick Larsen.43 This bill
would require DOT, in coordination with HHS and DHS, to develop a national aviation
preparedness plan for communicable disease outbreaks.44
Payroll Support Program (PSP) Needs Better Compliance Monitoring
As GAO reported in September 2020, standing up a new financial assistance program in a
condensed time frame posed challenges both to Treasury and program recipients.45 Aviation
industry associations told GAO that their members experienced confusion about PSP eligibility and
other requirements, lack of direct contact at Treasury for answers to time-sensitive issues and means
36 Supra, n.9, GAO-21-387.
37 Supra, n.8 GAO-20-701.
38 Supra, n.8 and 9 GAO-20-701, GAO-21-387.
39 GAO, Air Travel and Communicable Diseases: Comprehensive Federal Plan Needed for U.S. Aviation System's Preparedness, GAO-
16-127 (December 16, 2015), available at https://www.gao.gov/products/gao-16-127; Air Travel and Communicable
Diseases: Status of Research Efforts and Action Still Needed to Develop Federal Preparedness Plan, GAO-20-655T (June 23, 2020),
available at https://www.gao.gov/products/gao-20-655t; and COVID-19: Brief Update on Initial Federal Response to the
Pandemic, GAO-20-708, (August 31, 2020), available at https://www.gao.gov/products/gao-20-708.
40 Id.
41 Id.
42 Supra, n. 8, GAO-20-708.
43 H.R.884, National Aviation Preparedness Plan Act of 2021.
44 Id.
45 Supra, n. 8, GAO-20-701.
6
to check on the status of an application, and delays in PSP awards.46 Regarding these identified
challenges, Treasury officials said that they published email addresses where applicants could direct
questions and communicated with more applicants, and redesigned the application portal to be more
user-friendly.47
Further, while PSP funds have benefited recipients, as discussed in the following paragraph,
certain factors added to the risk of funds being used for purposes other than payroll support.48 Some
PSP recipients accessed other assistance under the CARES Act that may overlap with PSP funds,
such as the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), while
others received PSP funds in excess of their number of employees. GAO notes that while these
actions might be consistent with program requirements, they make it more difficult to ensure PSP
funds are used to only pay employees.49 To help mitigate these risks, Treasury started to monitor
PSP recipients’ compliance with program terms; but, it has not finalized its monitoring plans,
determined which automated tests will be used, or identified factors or thresholds from testing that
trigger additional reviews.50
Separately, the Treasury OIG found that some air carriers applying for PSP loans incorrectly
calculated payroll amounts, affecting the accuracy of the amounts awarded to these recipients.51
Upon learning of the OIG’s findings, Treasury implemented measures to identify and correct PSP
award amounts.52
Action Is Needed to Ensure Assistance to Aviation Industry Is Equitable
Treasury’s assistance to the aviation industry may have disproportionately gone to large
airlines.53 In its report on the CARES Act loan program for aviation, GAO found that small
businesses were less likely to receive loans under this program and that Treasury prioritized
applications from large passenger carriers.54 The Regional Airline Association expressed concerns
that Treasury delayed action on smaller airlines’ PSP loan applications, while approving applications
for large air carriers.55 Industry associations reported to GAO that for applicants such as smaller air
carriers and ticket agents, the amount of time Treasury took to evaluate loan applications, as well as
46 Id.
47 Supra, n. 8 and 9, GAO-21-387, GAO-20-701.
48 General Aviation Manufacturers Association, Protecting Aviation Manufacturing and Maintenance Jobs, (March 10, 2021)
available at https://gama.aero/news-and-events/press-releases/protecting-aviation-manufacturing-and-maintenance-
jobs/; Airlines for America, Statement from A4A CEO and President Nicholas E. Calio on the Passage of the American Rescue Plan
(March 10, 2021) available at https://www.airlines.org/news/statement-from-a4a-ceo-and-president-nicholas-e-calio-on-
the-passage-of-the-american-rescue-plan/.
49 GAO, COVID-19: Urgent Actions Needed to Better Ensure an Effective Federal Response, GAO-21-191, (November 30, 2020),
available at https://www.gao.gov/products/gao-21-191.
50 Supra, n. 9, GAO-21-387.
51 Department of the Treasury Office of Inspector General, Interim Audit Update – Air Carrier and Contractor Certifications
for Payroll Support Program (March 31, 2021), available at https://oig.treasury.gov/sites/oig/files/2021-04/OIG-21-
025.pdf.
52 Id.
53 GAO, Financial Assistance: Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible Businesses, GAO-
21-198 (December 10, 2020), available at https://www.gao.gov/products/gao-21-198.
54 Id.
55 Regional Airline Association President Faye Malarkey Black letter to Treasury Secretary Janet Yellen (March 11, 2021)
available at https://www.raa.org/wp-content/uploads/2021/03/20210311-RAA-Treasury-Letter-PSP2-delays-PSP3-
request_FINAL.pdf.
7
other challenges, affected the number of loans executed.56 To better engage the aviation community,
GAO reported that Treasury could have made greater use of DOT to design the program,
communicate with businesses, and help in the application evaluation process or loan program, as
many eligible businesses have established relationships with DOT.57 Looking forward, GAO made
suggestions for better ensuring equity among businesses of different sizes and types:58
• Establish multiple programs, or multiple paths within a program, to better accommodate
businesses of varied types and sizes.59
• Communicate clear timelines and expectations for borrowers to avoid frustration among
applicants regarding the loan application process and the time needed to make loans.60
Airport Grants
The CARES Act provided substantial additional funding for airports through a program
similar to the Airport Improvement Program (AIP), and though FAA already had processes for
administering grants of this type, it nonetheless faced challenges administering and monitoring the
funding.61 To address the increased workload of processing and monitoring more grants under
expedited timeframes, FAA hired staff, streamlined the invoicing process to reduce workload, and
provided consolidated information to airports about eligibility.62 According to FAA officials, FAA
staff review all reimbursement requests from airports to help ensure that only eligible costs are
reimbursed with CARES Act funding.63
FAA officials have also taken actions to oversee and monitor compliance with workforce
retention requirements. The CARES Act required that most airports accepting grants must continue
to employ at least 90 percent of the number of individuals employed prior to the pandemic.64 FAA’s
actions include reviewing quarterly reports from airports, sending letters to the airports that had not
submitted the required reports, and comparing airports’ current workforce numbers to those from
March 2020 to ensure they meet the 90 percent threshold.65 FAA told GAO that, as of January 2021,
no airports had requested a waiver from the workforce retention requirements.66
Grants to Transit Agencies
In all, FTA received nearly $70 billion in COVID-relief aid for transit agencies.67 According
to GAO, FTA has not experienced any notable challenges with administering the $25 billion in
grants from the CARES Act or overseeing recipients’ use of the funds, due to the funds being
56 GAO-21-198.
57 Id
58 Id.
59 Id.
60 Id.
61 CARES Act, Pub. L. No. 116-136 (2020), Federal Aviation Administration, Grants-in-Aid for Airports; see also supra, n.
8, GAO-20-701.
62 Supra n.42 and 9, GAO-21-191, GAO-21-387
63 Supra, n. 8, GAO-20-701.
64 CARES Act, Pub. L. No. 116-136 (2020), Federal Aviation Administration, Grants-in-Aid for Airports.
65 Supra, n. 42, GAO-21-191; supra n. 9, GAO 21-387.
66 Supra, n. 9, GAO-21-387.
67 Federal Transit Administration, Novel Coronavirus, (last accessed July 21, 2021)
https://www.transit.dot.gov/coronavirus.
8
provided through existing programs that have well established procedures for administration and
oversight.68 FTA officials told GAO that FTA continues regular outreach to recipients through
industry calls, and regional staff are in regular contact with recipients.69 These officials also told
GAO that they updated the oversight guidance for the grant programs with information on CARES
Act requirements, and that FTA plans to oversee the funding through its existing review programs.70
In addition, daily reports on CARES Act obligations and disbursements to transit agencies are sent
to the FTA Office of the Administrator, ensuring that the agency’s leadership is both engaged and
well informed on these issues.71
Similarly, transit agencies appear to have had little difficulty with the CARES Act-funded
grants. Officials from 22 transit agencies GAO interviewed for its November 2020 report said they
had not experienced challenges related to the distribution of CARES Act grants from FTA, and
officials from all but one of these transit agencies said they had not faced challenges getting help
from FTA during the awards process.72 Early on, some transit agencies had trouble understanding
the expanded list of activities eligible for CARES Act funding. In response, FTA provided technical
assistance through webinars, guidance on its website, and support from regional staff.73
Department of Transportation Office of Inspector General (DOT OIG)
The DOT OIG identified several key risk areas in DOT’s oversight of CARES Act funding.
These areas, some of which are described below, are based on previous OIG work on DOT’s
implementation of funds for economic stimulus or emergency relief, such as the American Recovery
and Reinvestment Act of 2009.74
Improved Monitoring and Increased Outreach Can Help Prevent Waste, Fraud, and Abuse
The DOT OIG observed that the volume of CARES Act funds and the speed with which
they are disbursed puts these funds at a higher risk for improper payments, fraud, waste, and abuse.75
For example, the CARES Act provided $10 billion for airports, much more than the approximately
$3 billion in annual funding for airports that FAA normally oversees.76 Further, the OIG has found
weaknesses in DOT’s financial management systems, resulting in incomplete and inaccurate
expenditure data20.77 Implementing procedures for tracking funds and detecting improper payments
68 Supra n. 11, GAO-21-387; supra, n. 42, GAO-21-191; supra n.8, GAO-20-701.
69 Supra, n. 42, GAO-21-191.
70 GAO-21-191.
71 Supra, n. 8, GAO-20-701.
72 Supra, n. 42, GAO-21-191.
73 Supra, n. 8, GAO-20-701.
74 DOT OIG, Memorandum from the Office of Inspector General of the U.S. Department of Transportation to the Secretary of
Transportation: Information: Key Potential Risk Areas for the Department of Transportation in Overseeing CARES Act Requirements
(June 17, 2020) available at https://www.oig.dot.gov/library-item/37926.
75 Id.
76 Supra, n. 42, GAO-21-191; CARES Act, Pub. L. No. 116-136 (2020), Federal Aviation Administration, Grants-in-Aid
for Airports.
77 DOT OIG, Quality Control Review of the Independent Auditor’s Review of DOT’s DATA Act Implementation (October 29,
2019), available at
https://www.oig.dot.gov/sites/default/files/DOT%20DATA%20Act%20QCR%20Final%20Report%5E10-29-19.pdf.
9
could help DOT better ensure effective stewardship of its funds.78 The DOT OIG also suggested
that DOT mitigate these risks by increasing its outreach and education efforts to enhance
understanding among DOT staff, grantees such as airports and transit agencies, and their
contractors on how to recognize and prevent potential fraud to the appropriate authorities.79
Airport Grants Require Effective Risk-Based Oversight
The DOT OIG identified some aspects of CARES Act funding for airports that FAA
should focus its management and oversight activities on, including the following:80
• FAA will need to ensure that recipient airports comply with the workforce retention
requirements of the CARES Act.
• The CARES Act authorized the federal share of approved project costs to be increased to
100 percent, eliminating the local share of the costs. As a result, FAA could face risks related
to controlling project costs, since localities are less incentivized to do so.
• Because FAA is overseeing a vast number of grants with its limited resources, it should
follow a risk-based oversight approach and ensure that its existing risk assessments are
sufficient given new program requirements and restrictions.
In February 2021, the DOT OIG initiated an audit of FAA’s award and oversight of
CARES Act airport grants. The audit’s purpose is to assess whether FAA’s policies and procedures
for awarding and overseeing CARES Act grants are sufficient to protect taxpayer interests.81
Prudent Oversight of Pandemic Waivers Is Needed
To account for conditions caused by COVID-19, the CARES Act allows DOT to
temporarily waive certain existing federal requirements, such as some for the state highway safety
programs that the National Highway Traffic Safety Administration (NHTSA) administers.82 The
DOT OIG noted that it will be vital for DOT to monitor the use and impact of these waivers.83
The DOT OIG has other audits under way that it expects will identify ways that the
operating administrations can improve their COVID-19 responses. These include reports on FTA’s
financial management system that support CARES Act funding and its management of Hurricane
Sandy emergency funding.84
78 DOT OIG, June 2020 memorandum, available at
https://www.oig.dot.gov/sites/default/files/OIG%20Memorandum%20to%20the%20Secretary%20-
%20Key%20Risk%20Areas%20for%20DOT%20in%20Overseeing%20CARES%20Act%20Requirements.pdf.
79 Id.
80 Id.
81 DOT OIG, New Audit Announcement: Audit Initiated of FAA’s Award and Oversight of CARES Act Funds (February 19,
2021), available at https://www.oig.dot.gov/library-item/38296.
82 DOT OIG, June 2020 memorandum, available at
https://www.oig.dot.gov/sites/default/files/OIG%20Memorandum%20to%20the%20Secretary%20-
%20Key%20Risk%20Areas%20for%20DOT%20in%20Overseeing%20CARES%20Act%20Requirements.pdf.
83 Id.
84 DOT OIG, Audit Initiated of FTA’s Hurricane Sandy Funding Progress (January 15, 2020) available at
https://www.oig.dot.gov/library-item/37684; Audit Initiated of Security Controls for FTA’s Financial Management Systems That
Support CARES Act Funding (November 12, 2020), available at https://www.oig.dot.gov/library-item/38114. Although
10
Amtrak’s Use and Accounting of Funds
Amtrak received more than $3 billion, a total of $1.7 billion in Covid-19 relief funds,
including $1.7 billion in March 2021.85 In April 2020, the Amtrak OIG began an audit of the use of
pandemic relief funds appropriated to support Amtrak services and its state and commuter rail
partners.86 The Amtrak OIG issued reports in August 202087 and December 2020.88 In May 2021 it
issued another report stating that Amtrak “continues to be a good steward of the funds Congress
has provided” but also that Amtrak could be more transparent in its communications and reporting,
and made recommendations for improvement.89
Department of Homeland Security Office of Inspector General (DHS OIG)
Investigating and Preventing Fraud against the Government
The DHS OIG has opened at least 120 potential fraud investigations90 since the start of the
pandemic and has uncovered numerous fraud schemes.91 According to DHS OIG officials, ongoing
investigations include those related to theft of public funds, hoarding of scarce materials, and
fictitious or fraudulent claims against the government.92 For programs within FEMA’s purview, the
two focus areas for these investigations, according to DHS OIG officials, have been unemployment
insurance fraud and misrepresentations regarding PPE.93 For example, the DHS OIG investigated a
Virginia businessman who fraudulently attempted to obtain a multi-million-dollar PPE contract
from FEMA.94 As part of his scheme, the individual falsely stated to procurement officials from
FEMA that he was in possession of large quantities of PPE, including N95 masks. Based on the
false statements, FEMA awarded the individual’s company a contract valued at $3,510,000, though
according to FEMA, the funds were not provided to this individual.95 The individual pleaded guilty
the Hurricane Sandy report is not expected to explicitly address pandemic relief funding, DOT OIG officials told
Committee staff in an April 2020 briefing that they expect the report’s findings to be relevant to pandemic relief funding
because FTA uses the same systems and procedures to manage both funding sources.
85 See: Department of Transportation, “U.S. Transportation Secretary Elaine L. Chao Announces $1 Billion for Amtrak in
Response to COVID-19,” DOT Press Release, (April 10, 2020), available at: https://railroads.dot.gov/newsroom/press-
releases/us-transportation-secretary-elaine-l-chao-announces-1-billion-amtrak and National Railroad Passenger
Corporation (AMTRAK) Office of Inspector General, “GOVERNANCE: Amtrak Continues to Demonstrate Good
Stewardship of Pandemic Relief Funds,” OIG-MAR-2021-009, (May 12, 2021), available at:
https://amtrakoig.gov/sites/default/files/reports/OIG-MAR-2021-009%20Relief%20Act.pdf
86 Amtrak Office of Inspector General, Governance: Observations on Amtrak’s Use of CARES Act Funds (August 5, 2020)
available at https://amtrakoig.gov/sites/default/files/reports/OIG-MAR-2020-013%20CARES%20Act%20Review.pdf.
87 Id.
88 Amtrak Office of Inspector General, Governance: Final Observations on Amtrak’s Use of CARES Act Funds (December 15,
2020) available at https://amtrakoig.gov/sites/default/files/reports/OIG-MAR-2020-
013%20CARES%20Act%20Review.pdf.
89 Amtrak Office of Inspector General, Governance: Amtrak Continues to Demonstrate Good Stewardship of Pandemic Relief Funds
(May 12, 2021) available at https://amtrakoig.gov/sites/default/files/reports/OIG-MAR-2021-
009%20Relief%20Act.pdf.
90 E-mail from DHS OIG staff to T&I staff, July 23, 2021.
91 Committee staff briefing with DHS OIG, February 11, 2021.
92 Id.
93 Committee staff briefing with DHS OIG, February 11, 2021.
94 United States Attorney’s Office, Eastern District of Virginia, CEO Pleads Guilty to Defrauding Multiple Federal Agencies
(accessed on March 9, 2021) https://www.justice.gov/usao-edva/pr/ceo-pleads-guilty-defrauding-multiple-federal-
agencies.
95 Id.
11
in February 2021 of making false statements to federal agencies and faces up to 35 years in prison
for these and other related charges.96
The DHS OIG is working with FEMA and other DHS components, as well as with its
federal partners such as SBA, the Department of Veterans Affairs, the Federal Bureau of
Investigation (FBI), and the U.S. Secret Service, to identify and prevent fraud. Further, the DHS
OIG provides training to FEMA employees on tools they can use to prevent and detect fraud. DHS
OIG officials said that this training is updated regularly to reflect new types of fraud schemes
investigators are finding.97 However, the DHS OIG’s previous work indicates that training for
FEMA employees is not always effectively implemented. In 2019, the OIG assessed FEMA’s
compliance with a statutory requirement that it provide training on the prevention of waste, fraud,
and abuse in federal disaster relief assistance programs.98 The OIG found that most of FEMA’s
employees had not completed this required annual training and recommended that FEMA establish
monitoring and enforcement mechanisms to ensure training requirements are met.99
DHS OIG Is Reviewing FEMA’s Role in Pandemic Response and Preparedness
The DHS OIG has previously found FEMA’s management of disaster relief grants and
funds to be inadequate and reported last year that improving FEMA’s grant management would be
one of DHS’s top challenges in responding to the COVID-19 pandemic.100 The DHS OIG has
identified a pattern of FEMA management failures in overseeing procurements and reimbursing
procurement costs, and it continues to see systemic problems and operational difficulties. 101 At
times, according to the DHS OIG, FEMA has not followed procurement laws, regulations, and
procedures, nor has it ensured disaster grant recipients and subrecipients understand and comply
with these authorities.102
The DHS OIG has several ongoing audits related to how well FEMA is carrying out its
responsibilities related to the COVID-19 pandemic. These audits are examining the following
issues:103
• How FEMA managed and distributed medical supplies and equipment in response to
COVID-19;
96 Id.
97 Id.
98 DHS OIG, FEMA Must Take Additional Steps to Demonstrate the Importance of Fraud Prevention and Awareness in FEMA
Disaster Assistance Programs (July 24, 2019), available at https://www.oig.dhs.gov/reports/2019/fema-must-take-additional-
steps-demonstrate-importance-fraud-prevention-and-awareness-fema-disaster-assistance-programs/oig-19-55-jul19.
99 Id.
100 PRAC, TOP CHALLENGES FACING FEDERAL AGENCIES: COVID-19 Emergency Relief and Response Efforts,
(June 17, 2020), available at https://www.oversight.gov/sites/default/files/oig-
reports/Top%20Challenges%20Facing%20Federal%20Agencies%20-%20COVID-
19%20Emergency%20Relief%20and%20Response%20Efforts_1.pdf.
101 DHS OIG, FEMA Contracting: Reviewing Lessons Learned from Past Disasters to Improve Preparedness, Testimony before
U.S. House of Representatives Committee on Homeland Security (May 9, 2019), available at
https://www.oig.dhs.gov/sites/default/files/assets/TM/2019/oigtm-daig-aud-katherine-trimble-050919.pdf.
102 Id.
103 DHS OIG, Ongoing Projects (accessed on May 12, 2021) https://www.oig.dhs.gov/reports/ongoing-projects.
12
• To what extent FEMA followed federal and departmental procedures and guidelines for
awarding COVID-19 contracts to prospective vendors under unusual and compelling
circumstances; and
• How effectively FEMA has supported and coordinated federal efforts to distribute PPE and
ventilators in response to the COVID-19 outbreak.
Pandemic Response Accountability Committee (PRAC)
Congress established the PRAC in the CARES Act “to promote transparency,” “ensure
coordinated, efficient, and effective comprehensive oversight by the Committee and Inspectors
General over all aspects of covered funds and the Coronavirus response,” and “prevent and detect
fraud, waste, abuse, and mismanagement.”104 The PRAC is comprised of 22 federal inspectors
general, has its own dedicated staff, and works closely with inspectors general across the government
to identify the most pressing challenges in managing and overseeing pandemic relief funds in several
areas.105
Preventing and Detecting Fraud against Government Programs
With the unprecedented amount of disaster response funds appropriated to support the
country’s pandemic response, the opportunities for defrauding government programs have
significantly increased, according to the PRAC.106 The work conducted by OIGs to date indicates
that one of the primary fraud risks associated with the administration of pandemic response funds
stems from the failure to ensure that information from applicants is accurate.107 This can result in
payments to individuals who are not in fact eligible for program benefits; it can also result in
outright fraud, such as in the case of the N95 mask fraud scheme that the DHS OIG uncovered.108
Data Transparency and Completeness
Another key challenge that PRAC identified was a lack of detailed data on pandemic relief
funds, which is needed to inform funding and oversight decisions as well as to provide full
transparency on the use of these funds.109 Even before the pandemic, inspectors general reported
that the ability of agencies to track and report financial data was insufficient to meet agency needs
and was a top management and performance challenge.110 According to the non-profit Project on
Government Oversight, “[r]obust oversight and reporting are especially important given the ongoing
public health and economic emergencies that these relief funds were intended to help mitigate.111
104 CARES Act, Pub. L. No. 116-136 (2020), Sec. 15010
105 PRAC, UPDATE: Top Challenges in Pandemic Relief and Response (February 3, 2021) available at
https://www.pandemicoversight.gov/media/file/update-top-challenges-pandemic-relief-and-response.
106 Id.
107 Id.
108 Id.
109 Id.
110 PRAC, TOP CHALLENGES FACING FEDERAL AGENCIES.
111 Project on Government Oversight, Administration Seeks to Minimize Transparency of Coronavirus Relief Funds (May 13,
2020) available at https://www.pogo.org/analysis/2020/05/administration-seeks-to-minimize-transparency-of-
coronavirus-relief-funds/.
13
The CARES Act and related legislation included detailed reporting requirements for agencies
to help ensure transparency and accountability in their use of pandemic relief funds.112 In April 2020,
OMB issued guidance directing agencies to use existing reporting processes to meet the CARES Act
requirements, with only minor modifications.113 These existing processes, established pursuant to the
Federal Funding and Transparency Act of 2006 as amended by the Digital Accountability and Transparency
Act (DATA Act), include making information on all financial awards of more than $25,000 publicly
available on USASpending.gov.114 OMB’s guidance stated that no additional reporting by agencies or
recipients should be necessary to meet the requirements of these sections of the CARES Act.115
However, PRAC found that the data federal agencies had been reporting, as initially directed
by OMB, did not satisfy all of the requirements in the CARES Act, in part because the act required
more extensive reporting for certain awards.116 For example, the CARES Act explicitly directed
agencies to collect new data on funding awards of $150,000 or more, including the name and
description of the project or activity that received funding, the estimated number of jobs created or
retained, and detailed information on subcontracts and subgrants.117 The information agencies report
to USASpending.gov leaves out some of this required information, including job creation numbers,
detailed project descriptions, and sub-award loan information, making it difficult to track the
recipients of funds and the impact of the federal government’s efforts.118 PRAC also found
problems with the accuracy of the agency-reported data, including potentially incorrect award
amounts and mismatched location information.119 GAO, likewise, has reported on challenges related
to the accuracy, completeness, and timeliness of the data contained on USASpending.gov, which
limit users’ ability to appropriately interpret the data.120
Some federal OIGs have also found problems related to the reporting of CARES Act
data.121 The General Services Administration (GSA) OIG cited control weaknesses as a potential
impediment to accurately reporting CARES Act spending, referencing a November 2019 audit that
found errors in how GSA reports certain data to USASpending.gov.122 According to the GSA OIG,
GSA will need to address these errors to ensure that its CARES Act reporting is accurate.123
Similarly, the DHS OIG reported that key DHS financial systems do not comply with federal
requirements, and that this potentially will impact financial planning, payments, and internal controls
related to CARES Act funding.124
112 PRAC, TOP CHALLENGES FACING FEDERAL AGENCIES.
113 OMB, Implementation Guidance for Supplemental Funding Provided in Response to the Coronavirus Disease 2019 (COVID-19)
(April 10, 2020) available at https://www.whitehouse.gov/wp-content/uploads/2020/04/Implementation-Guidance-for-
Supplemental-Funding-Provided-in-Response.pdf.
114 https://www.usaspending.gov/about, accessed on June 3, 2021.
115 Supra, n. 95, OMB, Implementation Guidance.
116 PRAC, MITRE Report.
117 CARES Act, Pub. L. No. 116-136 (2020).
118 PRAC, MITRE Report.
119 Id.
120 Supra, n. 34, GAO-20-708. See also GAO, Data Act: Quality of Data Submissions Has Improved but Further Action is Needed
to Disclose Known Data Limitations, (November 8, 2019) available at https://www.gao.gov/products/gao-20-75.
121 PRAC, TOP CHALLENGES FACING FEDERAL AGENCIES.
122 GSA OIG, Audit of the Completeness, Accuracy, Timeliness, and Quality of GSA's 2019 DATA Act Submission, (November 1,
2019), available at https://www.gsaig.gov/sites/default/files/audit-reports/A190040_1.pdf.
123 GSA OIG, TOP CHALLENGES FACING THE GENERAL SERVICES ADMINISTRATION:
COVID-19 Emergency Response and Relief Efforts (June 23, 2020) available at
https://www.gsaig.gov/sites/default/files/management-challenges/GSA%20Top%20Challenges.pdf.
124 PRAC, TOP CHALLENGES FACING FEDERAL AGENCIES.
14
OMB has taken steps to ensure that agencies submit data that better meets the requirements
of the CARES Act.125 In June 2020, OMB issued a set of frequently asked questions to expand upon
and clarify its April guidance memorandum.126 And, in August 2020, it issued a Controller Alert
directing agencies to improve the quality of award description information in USASpending.gov.127
“Multi-Dipping”
PRAC and others have identified the risk of recipients receiving funding from multiple
federal programs for the same purpose (i.e., “multi-dipping”).128 The Special Inspector General for
Pandemic Recovery (SIGPR) reported that several airlines received payments from both the
Paycheck Protection Program and the Payroll Support Program, a potential case of multi-dipping.129
SIGPR cautioned that the existence of programs resulting in multiple forms of financial support to a
single individual or entity creates an increased risk of fraud and abuse.130 In January 2021, PRAC
initiated work on pandemic relief funds received by tribal governments, and it expects to be able to
identify CARES Act programs where multi-dipping has occurred.131
Impact of Federal COVID-19 Response and Relief Efforts
The policies and programs the federal government has implemented over the course of the
pandemic have had multiple challenges, as discussed on the previous pages, but also many benefits,
as is described below. States and localities received assistance to help vaccinate their residents.132
Businesses and public sector agencies retained workers that they otherwise would have laid off.133
The nation’s transportation systems continued to operate safely, providing transportation for
essential workers and others.134 Moreover, the economy as a whole is beginning to recover as the
economy opens back up with gross domestic product expected to show a substantial increase this
year after plunging at an annual rate of 31.4 percent in Q2 2020.135 However, there are concerns
about the effect of inflation on this recovery.136
125 PRAC, MITRE Report.
126 OMB, CARES Act and M-20-21 Recipient Frequently Asked Questions (June 24, 2020), available at
https://www.cfo.gov/wp-content/uploads/2020/07/M-20-21_FAQ_07312020_UPDATED.pdf.
127 OMB, Controller Alert: Award Description Data Quality for Financial Assistance Awards (August 2020) available at
https://www.cfo.gov/wp-content/uploads/2020/08/CONTROLLER_ALERT_AUGUST_2020_FA_Award_Des.pdf.
128 Id.
129 SIGPR, Initial Report to Congress (August 3, 2020) available at https://www.sigpr.gov/sites/sigpr/files/2020-
09/SIGPR-Initial-Report-to-Congress-August-3-2020_0.pdf.
130 Id.
131 PRAC, Multi-Dipping of Pandemic Response Funds Provided to Tribal Government (January 29, 2021) available at
https://www.pandemicoversight.gov/oversight/reports?f%5B0%5D=submitting_organization%3APandemic%20Resp
onse%20Accountability%20Committee.
132 FEMA, 100 Days of FEMA and Our Partners in Action (April 30, 2021) available at https://www.fema.gov/blog/100-
days-fema-and-our-partners-action.
133 General Aviation Manufacturers Association, Protecting Aviation Manufacturing and Maintenance Jobs, (March 10, 2021)
available at https://gama.aero/news-and-events/press-releases/protecting-aviation-manufacturing-and-maintenance-
jobs/, Amalgamated Transit Union, Relief on the way for transit and working families with American Rescue Plan (March 10,
2021) available at https://www.atu.org/media/releases/atu-relief-on-the-way-for-transit-and-working-families-with-
american-rescue-plan.
134 Id.
135 Congressional Research Service, COVID-19 and the U.S. Economy (May 11, 2021) available at
https://crsreports.congress.gov/product/pdf/R/R46606.
136 Rachel Siegel, Biden Says Fed ‘should take whatever steps it deems necessary’ to respond to inflation, WASH. POST. (July 19, 2021),
available https://www.washingtonpost.com/us-policy/2021/07/19/biden-powell-inflation-economy/.
15
FEMA’s Assistance to States, Localities, Tribes, Territories, and Individuals
The COVID-19 pandemic posed an unprecedented challenge to the disaster response
capabilities of states, localities, tribes, and territories. As the lead federal agency for the COVID-19
response, FEMA has undertaken expansive efforts to help them, as well as to assist individuals
suffering from the economic hardships of the pandemic.137 Since January 2020, FEMA has taken the
following actions, among others:
• Provided more than $4.75 billion in support of vaccination efforts in communities across the
country.138
• Worked with its federal, state, and local partners to establish 1,732 new community
vaccination centers.139
• Coordinated with HHS to deliver, as of September 2020, 249 million N95 masks, 1.1 billion
surgical masks, 46.7 million eye and face shields, 432 million surgical gowns or coveralls, and
more than 28.6 billion gloves.140
• Provided funding to nonprofits, faith-based organizations, and government entities that
provide shelter, food, transportation, COVID-19 testing and medical care to their
communities.141
• Obligated, as of the end of September 2020, $42.6 billion as a supplemental benefit for
unemployment insurance benefits.142
• In January 2021, the federal cost share for a majority of eligible FEMA assistance for all
COVID-19 related Emergency and Major Disasters was expanded to 100 percent and made
applicable to costs of eligible activities from the beginning of the pandemic incident period
on January 20, 2020, to September 30, 2021.143
Aviation Industry
As a result of the pandemic, air passenger demand fell far below prior years and, according
to some industry analysts, a return to pre-pandemic traffic levels might not occur until 2023.144 The
number of passengers going through Transportation Security Administration (TSA) checkpoints
increased throughout the spring of 2021 but was still far below pre-pandemic levels. In June 2021,
for example, TSA traveler throughput was 26 percent lower than in June 2019.145 As a result of this
decline in passenger demand and other factors, U.S. passenger airlines are projecting pre-tax losses
137 FEMA, 100 Days.
138 Id.
139 Id.
140 Id.
141 Id.
142 FEMA, Pandemic Response to Coronavirus Disease 2019 (COVID-19): Initial Assessment Report. FEMA’s Lost Wages
Assistance (LWA) program was unprecedented because it was instituted as a new program despite another discrete
Stafford Act section on disaster unemployment assistance (Sec. 410). FEMA failed to provide the Committee with a
legal justification memo explaining why or how LWA was administered as it was despite section 410.
143 FEMA, FEMA Statement on 100% Cost Share (February 3, 2021) available at https://www.fema.gov/press-
release/20210203/fema-statement-100-cost-share.
144 GAO, COVID-19 Pandemic: Preliminary Observations on Efforts toward and Factors Affecting the Aviation Industry’s Recovery,
GAO-21-412T (March 2, 2021) available at https://www.gao.gov/assets/gao-21-412t.pdf.
145 See, e.g., TSA, TSA Checkpoint Travel Numbers, (last accessed July 19, 2021) .
https://www.tsa.gov/coronavirus/passenger-throughput.
16
of $18 billion this year, according to Airlines for America.146 Similarly, Airports Council
International-North America (ACI-NA) expects that U.S. airports will lose at least $40 billion by
March 2022 because of the prolonged decline in commercial aviation traffic.147
The PSP was created to prevent layoffs in this hard-hit sector. Congress has appropriated
$63 billion to this program, which provides financial assistance to airlines, manufacturers, and other
related businesses for employee wages, salaries, and benefits.148 According to the General Aviation
Manufacturers Association, PSP has allowed companies to keep highly skilled workers in the
industry and supported some of the smaller companies that needed assistance to maintain
operations.149 Airlines were able to preserve the jobs of flight attendants, pilots, mechanics, gate
agents and others, according to Airlines for America.150
Congress also appropriated about $20 billion in grant assistance to help airports respond to
the COVID-19 pandemic, including funds for operating expenses, debt service, and other
expenses.151 The additional grants are helping airports offset some of the financial damage from the
abrupt, unexpected drop in air travel that resulted from precautions to limit the spread of COVID-
19, according to ACI-NA.152
Transit Agencies
COVID-19 and the resulting shelter-in-place orders, business closures, suspension of
tourism, and increasing unemployment and increasing numbers of employees working from home
significantly decreased public transit and commuter rail ridership.153 Nationally, transit ridership in
146 Statement of Mr. Nicholas E. Calio, President and Chief Executive Officer, Airlines For America, “COVID-19’S
Effects on U.S. Aviation and The Flight Path to Recovery” before the United States House Committee on
Transportation and Infrastructure Subcommittee on Aviation, (March 2, 2021) available at
https://transportation.house.gov/imo/media/doc/Calio%20Testimony.pdf.
147 Airports Council International, Airports Council Applauds Passage of $8 Billion in COVID-19 Relief for Airports (last
accessed July 19, 2021), available at https://airportscouncil.org/press_release/airports-council-applauds-passage-of-8-
billion-in-covid-19-relief-for-airports/
148 House Committee on Transportation and Infrastructure, Chair DeFazio Applauds Inclusion of T&I Provisions, Including
Payroll Support Program Extension, in House Democrats’ Latest COVID-19 Relief Package, (September 29, 2020), available at
https://transportation.house.gov/news/press-releases/chair-defazio-applauds-inclusion-of-tandi-provisions-including-
payroll-support-program-extension-in-house-democrats-latest-covid-19-relief-package; U.S. Department of the
Treasury, Airline and National Security Relief Programs (accessed on May 7, 2021) https://home.treasury.gov/policy-
issues/coronavirus/assistance-for-american-industry/airline-and-national-security-relief-programs.
149 General Aviation Manufacturers Association, Protecting Aviation Manufacturing and Maintenance Jobs, (March 10, 2021)
available at https://gama.aero/news-and-events/press-releases/protecting-aviation-manufacturing-and-maintenance-
jobs/.
150 Airlines for America, Statement from A4A CEO and President Nicholas E. Calio on the Passage of the American Rescue Plan
(March 10, 2021) available at https://www.airlines.org/news/statement-from-a4a-ceo-and-president-nicholas-e-calio-on-
the-passage-of-the-american-rescue-plan/.
151 GAO, COVID-19: Sustained Federal Action Is Crucial as Pandemic Enters Its Second Year, GAO-21-387 (March 31, 2021)
available at https://files.gao.gov/reports/GAO-21-387/index.html.
152 Airports Council International, Airports Council Statement on CARES Act Grants (last accessed July 19, 2021) available at
https://airportscouncil.org/press_release/airports-council-international-north-america-statement-on-cares-act-grants/.
153 Abby Vesoulis, The Future of American Public Transit Depends on Congress, Time (December 17, 2020) available at
https://time.com/5921917/mass-transit-covid-congress/.
17
2020 was down a historic 79 percent at the start of the pandemic compared to 2019 levels.154 Transit
agencies anticipate long-term consequences from the COVID-19 pandemic, including reduced
demand for service, increased operating costs, and limited state and local funding.155 According to
the American Public Transportation Association (APTA), when the economy does begin to recover,
transit agencies will still be challenged with severe fiscal constraints as a result of physical distancing
requirements that reduce vehicle capacity, increased costs of facility and vehicle cleaning and
disinfection, and decreased ridership due to the dramatic increase in telework.156
The CARES Act and subsequent pandemic relief funding have provided about $69.5 billion
in grant assistance to help transit agencies manage these fiscal constraints.157 Federal relief funds also
allowed transit agencies to keep critical service running, avoid layoffs, and provide workers and
riders with COVID-19 protections.158 As a result, some transit agencies across the country have
restored previously reduced service or have cancelled plans to further cut service.159 Transit agencies
have also used the funds to mitigate the spread of COVID-19, including through enhanced cleaning
and sanitation and social distancing.160 Further, restoring transit service is expected to help the
nation’s economic recovery, such as in New York City, where the economy depends on trains and
buses to carry riders to businesses, including theaters, retail stores, and restaurants, that have been
crippled by the pandemic.161
Other Transportation Sectors
Operators of motorcoaches, school buses, and passenger vessels have also suffered the
financial effects of lower demand for their services due to the pandemic. For example, though
passenger ships operating exclusively inside the United States have begun to resume operations,
virtually the entire U.S. domestic commercial passenger fleet, including overnight excursions, day
charters, and tours, was forced to shut down for a year.162 Companies operating commuter shuttle
154 American Public Transportation Association, The Impact of the COVID-19 Pandemic on Public Transit Funding Needs in the
U.S. (January 27, 2021) available at https://www.apta.com/wp-content/uploads/APTA-COVID-19-Funding-Impact-
2021-01-27.pdf.
155 Supra, n. 9, GAO-21-387.
156 American Public Transportation Association, The Impact of the COVID-19 Pandemic on Public Transit Funding Needs in the
U.S. (January 27, 2021) available at https://www.apta.com/wp-content/uploads/APTA-COVID-19-Funding-Impact-
2021-01-27.pdf.
157 This includes $25 billion from the CARES Act, $14 billion from the Consolidated Appropriations Act, 2021, and $30
billion from the American Rescue Plan. See https://www.transit.dot.gov/coronavirus.
158 Amalgamated Transit Union, Relief on the way for transit and working families with American Rescue Plan (March 10, 2021)
available at https://www.atu.org/media/releases/atu-relief-on-the-way-for-transit-and-working-families-with-american-
rescue-plan.
159 NEW YORK TIMES, Transit Got $30 Billion in Stimulus Aid. What Does That Mean for Riders? (March 15, 2021) available at
https://www.nytimes.com/2021/03/15/nyregion/biden-stimulus-public-transportation.html.
160 Supra, n. 9, GAO-21-387.
161 New York Times, Transit Got $30 Billion in Stimulus Aid. What Does That Mean for Riders? (March 15, 2021) available at
https://www.nytimes.com/2021/03/15/nyregion/biden-stimulus-public-transportation.html.
162 Letter from Passenger Vessel Association to Speaker Nancy Pelosi (April 8, 2020) available at
http://www.passengervessel.com/downloads/letters/2020-CARES-ACT-2-Speaker-Pelosi.pdf; The Maritime
Executive, American Coastal and River Cruising is Resuming (March 16, 2021) available at https://www.maritime-
executive.com/article/american-coastal-and-river-cruising-is-resumming.
18
buses and private bus charters also were forced to suspend service due to lack of passengers, and
some went out of business entirely, according to the American Bus Association.163
The Coronavirus Economic Relief for Transportation Services (CERTS) Program was
created to support companies such as motorcoach, school bus, passenger vessel, and pilot vessel
companies that were affected by the COVID-19 pandemic.164 Under the program, up to $2 billion in
grants is made available to eligible companies that certify they have experienced an annual revenue
loss of 25 percent or more as a direct or indirect result of COVID-19.165 Grant funds administered
through the CERTS program are primarily used to cover payroll costs but may also be used to cover
the acquisition of services, supplies, and the cost of operating and maintaining equipment, among
other things.166
These federal relief efforts have been critical to the nation’s economic and public health
recovery from COVID-19. They helped to get needed supplies to states and local governments and
financial relief to transportation workers and U.S. businesses impacted by the pandemic. However,
the federal oversight community has identified various instances of abuse by individual recipients of
these funds and areas where federal agencies can improve their oversight of the government’s
pandemic relief and response efforts. The hearing will provide an opportunity for Members to
discuss both the oversight of the government’s COVID-19 relief efforts and the impact of those
actions on the transportation industry and its workers.
163 American Bus Association, New Report Details Motorcoach Industry’s Dire Situation (August 10, 2020), available at
https://www.buses.org/news/article/new-report-details-motorcoach-industrys-dire-situation.
164 U.S. Department of the Treasury, Coronavirus Economic Relief for Transportation Services (CERTS) Program, available at
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-industry/coronavirus-economic-relief-
for-transportation-services.
165 Id, and Guidelines for the Coronavirus Economic Relief for Transportation Services (CERTS) Grant Program (May 6, 2021),
available at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-industry/coronavirus-
economic-relief-for-transportation-services.
166 U.S. Department of the Treasury, Coronavirus Economic Relief for Transportation Services (CERTS) Program and Guidelines for
the Coronavirus Economic Relief for Transportation Services (CERTS) Grant Program (May 6, 2021), available at
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-industry/coronavirus-economic-relief-
for-transportation-services. According to the CERTS guidelines Treasury published on May 6, 2021, to be eligible for
payments under this program, companies must be established or organized in the United States or pursuant to federal
law and must have a majority of employees in the United States, among other things. Further, passenger vessel
companies must carry out their principal business using one or more passenger vessels of the United States (as each is
defined in 46 USC § 2101) that (a) are for hire with a capacity of 6 to 2,400 passengers and (b) have U.S. Coast Guard
(USCG) issued Certificates of Inspection (COI).
19
WITNESS LIST – Panel I
The Honorable Michael E. Horowitz
Chair
Pandemic Response Accountability Committee
Ms. Heather Krause
Director, Physical Infrastructure Issues
Government Accountability Office
Mr. Chris Currie
Director, Homeland Security and Justice Issues
Government Accountability Office
The Honorable Eric J. Soskin
Inspector General
Department of Transportation
Mr. James Izzard
Assistant Inspector General for Investigations
Department of Homeland Security
WITNESS LIST – Panel II
Mr. Paul Skoutelas
President & CEO
American Public Transportation Association (APTA)
Mr. Juan Ortiz
Director of Homeland Security and Emergency Management, City of Austin, Texas -- on behalf of
the International Association of Emergency Managers (IAEM)
Dr. Michael J. Boskin
T.M. Friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University
Dr. Wendy Edelberg, PhD
Director, The Hamilton Project, The Brookings Institution
Mr. John Samuelsen
Transport Workers Union of America (TWU)
20
File and source
- File
- hhrg-117-pw00-20210729-sd001-31dba5924282.pdf
- Size
- 415,360 bytes
- SHA-256
- 31dba5924282174b8ddcefa44627d464c85944e3bf939e2f86d0d28b36e16442
- Original
- docs.house.gov