Pentagon’s Halt in Moving Troops Seen Putting Companies at Risk

Civilian moving companies, denied a requested $186.6 million bailout in the most recent pandemic relief legislation Congress enacted, should be protected from financial failure amid a halt in military shipments, a top general said.

Gen. Steve Lyons, the head of U.S. Transportation Command, said he is keeping in close contact with the industry following the halt of all shipments of troops’ personal belongings to new job postings March 12. The pause came as the military imposed wider restrictions aimed at slowing infections.

The halt in troop transfers affects hundreds of companies and has temporarily eliminated one of the industry’s biggest revenue sources—up to 20% of its business—prompting it to request emergency relief from lawmakers earlier this month.

A child plays on a moving truck.

John Moore/Getty Images

“It will be very, very important that we protect our small business across the nation, so we are watching that very closely,” Lyons said in a telephone press briefing.

The requested $186.6 million would be equal to 60% of the industry’s billings to the military during the same March-May period last year, according to the American Moving and Storage Association and the International Association of Movers.

Congress included nothing specific for the moving companies in an historic $2 trillion stimulus package (Public Law 116-136), which President Donald Trump signed last week, said Katie McMichael, director of government affairs for the American Moving and Storage Association.

“We still plan on pushing this request as movers are starting to lay off employees,” McMichael wrote in an email. “We are hopeful that in any new potential relief packages they will include our request as it is very important.”

Critical to Security?

Additionally, companies are still trying to determine if they could be eligible for up to $17 billion in loans and loan guarantees in the legislation for businesses deemed critical to national security. McMichael said the treasury secretary has not yet defined what companies might meet that definition.

The association shared a variety of anecdotes from member companies that are now faced with going out of business, unpaid bills, and furloughing employees as the military stops almost all non-essential travel because of the pandemic.

The industry had already been roiled by Transportation Command’s plan to contract out management of the global household goods shipments to a private entity. It currently oversees the hundreds of companies that pack and unpack troops’ household belongings during moves across the country or abroad.

Lyons said that contract is still on schedule despite the coronavirus and is set to be awarded at the end of April, but could be adjusted if needed for safety.

“Administratively we are continuing to move on that,” he said.