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Thursday, August 21, 2025

Delta agrees to pay $8.1 million settlement after allegations it violated COVID relief program - 11Alive.com

The settlement stems from Delta’s participation in the Payroll Support Program (PSP), established by Congress in March 2020 under the CARES Act.

ATLANTA — Delta Air Lines has agreed to pay an $8.1 million settlement to resolve allegations that it violated the False Claims Act under a COVID relief program, the Department of Justice announced Tuesday.

The settlement stems from Delta’s participation in the Payroll Support Program (PSP), established by Congress in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to a release from the DOJ, Delta is accused of exceeding federal compensation limits, which provide payroll support to passenger and cargo air carriers and certain contractors for payment of employee wages, salaries and benefits.

To participate in the PSP program, airlines had to comply with certain conditions, including caps for corporate officers and employees earning over $425,000 per year.

Federal prosecutors allege that from March 2020 through April 2023, Delta awarded compensation to certain corporate officers and employees in excess of those limits. According to the DOJ, Delta is also accused of inaccurately certifying compliance with PSP requirements in quarterly reports submitted to the U.S. Department of the Treasury and failing to notify the Treasury of the breach once it was discovered by Delta.

“The PSP was intended to provide critical assistance to the airline industry during the pandemic,” said Assistant Attorney...



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