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IPFS News Link • Military Industrial Complex

Pentagon Starts Bailing Out Companies That have Lost Business Due to Coronavirus

• https://cdn.defenseone.com BY MARCUS WEISGERBER

The Pentagon has begun to bail out U.S. companies that have seen large parts of their business dry up amid the coronavirus pandemic, in a bid to make sure they can still build weapons. 

On Wednesday, officials announced that five mid-tier defense companies had received a total of $135 million to "help sustain defense-critical workforce capabilities in body armor, aircraft manufacturing, and shipbuilding," according to a Defense Department statement."These actions will help to retain critical workforce capabilities throughout the disruption caused by COVID-19 and to restore some jobs lost because of the pandemic," Lt. Col. Mike Andrews, a Defense Department spokesman, said in the statement.

Meanwhile, a senior Pentagon official told lawmakers that DoD plans to ask Congress for money to reimburse many of its contractors for COVID-related expenditures; for example, wages paid to keep employees on the payroll despite idled production lines and vacated offices; purchases of personal protective gear, and alterations to factory and other work spaces for social distancing.