Companies are scaling back layoffs because of Biden’s stimulus package

American Airlines said it planned to rescind notices it sent last month to 13,000 employees about coming layoffs.

“Those are happily canceled — you can tear them up!” Doug Parker, American’s CEO, and Robert Isom, its president, wrote in a note to employees. “We are grateful for the support of our government leaders and their continued acknowledgment of all you do.”

The $1.9 trillion stimulus package Congress passed on Wednesday, which is expected to be signed by President Biden on Thursday , delivers payments for middle- and lower-income households and expands unemployment benefits for workers. It also sets aside hundreds of billions of dollars for cities and states, school re-openings, vaccine distribution and testing and other health-care funding.

Unlike previous stimulus efforts, Biden’s relief package includes far less for companies, but it does include $65 billion that is directed to range of hurting industries including restaurants, aviation, live entertainment and tourism.

Chip Rogers, president and CEO of the American Hotel and Lodging Association, called it a vital step forward that will help small businesses and protect jobs. He said that the pandemic has wiped out 10 years of hotel industry growth , noting that leisure and hospitality accounted for about 39 percent of the jobs lost during the pandemic.

“We applaud President Joe Biden for recognizing that small businesses need more help to get through this difficult time and we urge Congress to act immediately,” he said in a statement. “ This legislation will serve as a critical lifeline for hotels and other businesses that have been decimated by the pandemic.”

The bill sets aside $15 billion for airlines and airline contractors, which have struggled mightily with sagging demand for travel during the pandemic, to keep employees on the payroll through September.

Boeing, which had said it would pare its workforce down to about 130,000 jobs by the end of this year, down about 30,000 positions since the beginning of 2020, declined to say whether the aid would help avert any of the layoffs, but said it was grateful for the package.

“This legislation will allow airlines and aerospace suppliers to keep employees on the job and ready to help drive a strong economic recovery, with travel continuing to serve as an engine of the global economy,” the company said in a statement.

The Metropolitan Transportation Authority of New York had warned that it might have to eliminate 9,000 positions. But it is expected to receive $6 billion from the stimulus package now, which it said would help protect against layoffs and service cuts in the coming years.

The Washington Metropolitan Area Transit Authority, which is projected to receive the bulk of $1.4 billion in transit funding earmarked for the region, said that it would be able to put off the service cuts and layoffs proposed for fiscal year 2022 because of the package. It proposed cutting some 2,400 positions last year.

“Congress has once again stepped up to address the needs of Metro and the regional transit systems that will be critical to our region’s economic recovery,” Metro Board of Directors Chair Paul C. Smedberg said in a statement. “While it will take more time to work out all the details, including Metro’s exact share of this funding, the $1.4 billion provided by the American Recovery Plan for our region’s transit agencies will allow us to avert the painful service reductions and layoffs that were on the table.”

The aid provisions have also drawn some unlikely support. Republican Sen. Roger Wicker voted against the legislation Wednesday but hailed the $28.6 billion in relief for restaurants it included. “This funding will ensure small businesses can survive the pandemic by helping to adapt their operations and keep their employees on the payroll,” he said on Twitter.

Other Republicans have continued to fight against it. Sen. Rick Scott, of Florida, on Wednesday urged cities and states to return the $350 billion in aid they are slated to receive, despite the popularity of the measure and the pleas from many local leaders, including Republicans,for the funding.

Lori Aratani, Luz Lazo, and Hamza Shaban contributed to this report.