Air Transportation Safety and System Stabilization Act

This law, enacted shortly after the September 11 terrorist attacks, provided $15 billion in emergency financial assistance to stabilize the U.S. airline industry and established a federal compensation system for victims. It authorized $5 billion in direct grants to cover losses from the temporary grounding of aircraft and $10 billion in federal loan guarantees to help carriers maintain operations during the subsequent economic downturn.

For citizens, the Act created the September 11th Victim Compensation Fund, allowing injured individuals and families of those killed in the attacks to seek financial relief from the federal government as an alternative to lengthy private lawsuits. Additionally, the law capped the legal liability of air carriers and established federal oversight of airline executive salaries for companies receiving assistance. It also provided funding to strengthen airport security measures and ensured that air service continued to reach small and rural communities.