1、CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i Restrictions on Compensation Under the CARES Act June 12, 2020 The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) was enacted to assist those affected by the economic impact of Coronavirus Dis
2、ease 2019 (COVID-19). A key part of this assistance is provided to eligible businesses, states, and municipalities in Division A, Title IV of the act. Section 4003 allocates $500 billion to the Department of the Treasury (Treasury) to make loans or loan guarantees to certain industries and to suppor
3、t Federal Reserve lending facilities. Section 4112 allocates $32 billion to Treasury to provide financial assistance to the aviation industry for employee wages, salaries, and benefits. Some have characterized these provisions as a “bailout” of private industry; others assert they are necessary to a
4、void employment losses and maintain economic stability. For more information, see CRS Report R46329, Treasury and Federal Reserve Financial Assistance in Title IV of the CARES Act (P.L. 116-136), coordinated by Andrew P. Scott. Recipient firms of this financial assistance must meet a number of requi
