Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Coronavirus funding: Private jet company founded by Trump donor gets $27m government bailout

Clay Lacy Aviation appears to have received the largest grant of any private jet company eligible for stimulus payments

Oliver O'Connell
New York
Thursday 14 May 2020 18:30 BST
Comments
AOC posts powerful video of coronavirus in the Bronx

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A private jet company founded by a donor to President Donald Trump received nearly $27m in government funding under the $2trn CARES Act to counter the economic impact of the coronavirus.

Government filings show that Clay Lacy Aviation, a private jet charter company based in Van Nuys, California, received the payment from a program run by the Treasury Department.

The company appears to have received the largest grant of any private jet company on the list of recipients involved in air travel, CNBC reports. As a grant, not a loan, the money does not need to be repaid to the government.

Founder Clay Lacy gave $2,700 to the Trump campaign in 2016 — the maximum donation from an individual — and gave $47,000 to the Republican National Committee after Trump became the nominee, according to election filings.

The vast majority of the other 96 recipients of government funding or loans in the initiative, designed to compensate aviation industry workers and preserve jobs, are major commercial airlines, regional carriers, and their support companies.

Private aviation companies lobbied to be eligible for the relief package arguing that they support more than 1 million jobs and connect smaller communities without a major airport to the rest of the country. The 7.5 per cent excise tax on private jet flights was also suspended and funds for private jet terminals and other services were also allocated.

Clay Lacy Aviation charters its fleet of private jets to world leaders, businesses, government agencies, celebrities and sports teams.

Kyle Herrig, president of Accountable.US, a group that exposes government corruption, that first identified the grant and donations, said: “The entire country is hurting during this pandemic, but the president decided to award a campaign donor with $27m in free government money.”

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in