Treasury Dept. Investigating Airlines Over Potential CARES Act Violations

In an exclusive report from Fox Business, the U.S. Treasury Department’s Inspector General will conduct an investigation into major domestic airlines, looking to see if carriers who accepted government grants and loans last year during the onset of the pandemic are in compliance with the CARES Act.

At issue with the audit is whether airlines who took the loans, and have since instituted employee vaccination mandates, are violating the terms of the loan agreement by threatening to terminate or lay off employees.

At the time last year, the CARES Act stipulated that accepting the grants and loans meant that airlines could not make a reduction in staff unless employees retired and/or accepted a buyout.

But, starting with United’s own organic decision to mandate employee vaccines in August of this year – and a subsequent Biden Administration order that all businesses with federal contracts must vaccinate employees by December 8 – airlines, mostly United, have parted ways with workers who declined the shot.

United said it has terminated 232 employees so far.

The audit was initiated by Sen. Josh Hawley (R-Missouri), who wrote to the Treasury Dept. asking for a “complete investigation” of airlines.

Treasury Department Acting Inspector General Rich Delmar responded to Hawley in a letter obtained by Fox Business.

“I am responding to your October 18 letter expressing your concerns about widespread layoffs in the airline industry related to Federal COVID-19 vaccine mandates, and whether such layoffs are inconsistent with commitments made by companies as a condition for receipt of air carrier Payroll Support Program (PSP) funds,” Delmar wrote. “The Treasury Office of Inspector General is planning to conduct audit work with respect to aspects of this matter. Audit processes are best suited to address issues such as those you raise, which concern systemic programmatic compliance.”