WASHINGTON, D.C. – Today, Senator Thom Tillis (R-NC) co-sponsored the Coronavirus Economic Relief for Transportation Services (CERTS) Act, a bipartisan bill to provide $10 billion in emergency relief funding to motorcoach operators, school bus companies, U.S. flag passenger vessel operators, and other U.S. transportation service providers designated by the Secretary of the Treasury in consultation with the Secretary of Transportation.
“As North Carolina faces another active hurricane season, the need to support the U.S. motorcoach industry is being magnified,” said Senator Tillis. “North Carolina’s motorcoach operators play a critical role in hurricane evacuations and mobilizing first responders to address emerging threats. The industry also supports our men and women in uniform by transporting troops and equipment across the country for training and deployments. With thousands of transportation service companies on the brink of bankruptcy due to COVID-19 restrictions, I’m proud to support the bipartisan Coronavirus Economic Relief for Transportation Services (CERTS) Act that will provide immediate relief for motorcoach operators when they need it most.”
According to the American Bus Association, the $15 billion-a-year motorcoach industry, which provides 600 million passenger trips annually, is currently operating at about 15 percent of capacity due to COVID-19. As a result, most of the nation’s 3,000 motorcoach companies have had to furlough employees and their 36,000 vehicles are stuck in parking lots instead of out on the road.
During the pandemic, motorcoaches have been used to help move U.S. National Guard forces and remove civilians from dangerous situations, such as natural disasters, or recently in evacuating cruise ship passengers affected by COVID-19.
Virtually every source of business and revenue for these companies has been severely restricted or eliminated. The abrupt closure of colleges, universities, and public schools, the cancellation of mass public events like concerts and sporting events, and the suspension of most tourism means that passenger levels will likely be depressed for many more months. Even as states reopen their economies, the public is likely to be wary of commercial bus travel until a vaccine or other measures eliminate the risk of illness from COVID-19.
For those companies still offering service, there will be significant additional operating costs as they observe public health recommendations for social distancing, cleaning, and the use of personal protective equipment (PPE). These added costs come on top of already high overhead and insurance costs for the industry, with new buses, motorcoaches, or vessels costing $500,000 or more. And the vehicles in operation may require not only significant debt service, but also ongoing maintenance so they are ready when called upon.
Read the bill text here.
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