By John Crawley WASHINGTON, May 23 (Reuters) - US Airways Group Inc. (U) told employees on Thursday that proposed congressional action to delay funding for loan guarantees for struggling airlines would have a "devastating impact" on the company's restructuring plans. Proposals in emergency homeland security spending bills in the House and Senate would prevent the government from handing out new credit guarantees until Oct.1, the start of the next fiscal year. The Senate plan would slash the program from $10 billion to $4 billion. Delaying the loan program would help reduce the overall cost of the $30 billion homeland security bill between $300 million and $1.3 billion, according to different congressional estimates. Finding places to trim the price tag of that bill, which is expected to pass the House early on Friday, is a priority with congressional leaders trying to stay within spending limits acceptable to the White House. The full Senate has not yet taken up its version. But the No. 6 U.S. carrier, which plans to seek $1 billion in loan guarantees before the June 28 deadline for filing applications, said the fundamental changes in the credit program as proposed in both houses could be ruinous. "Any action to reduce the amount of the loan guarantee to which US Airways was originally qualified for, or any changes that would delay the granting of a loan guarantee, would have a devastating impact on our ability to restructure the company," US Airways management said in an e-mail to employees. Arlington, Va.-based US Airways urged workers to lobby Congress to preserve the credit plan as intended by lawmakers last year when they created a $15 billion bailout to help airlines get back on their feet financially after Sept. 11. US Airways lost $2.1 billion last year and another $269 million in the first quarter. "Securing a $1 billion federal loan guarantee is critical to the survival of US Airways. The future of US Airways, the jobs of thousands of employees, and air service to our state is dependent on US Airways obtaining the loan and successfully restructuring," the company said. Only one big airline, America West Holdings (AWA), has applied for and received the guarantees, which obligate the government to secure private loans to the airlines. America West got $380 million in guarantees to back a $429 million loan. It had to pledge $1.2 billion in concessions annually and gave the government the right to by a 33 percent stake in the company. It took roughly two months from the time America West filed its application in November 2001 to get its loan money. U.S. Rep. James Moran, a Virginia Democrat leading the fight to preserve loan guarantees, said in an interview that procedural options to change the language in the House bill were still a possibility as lawmakers prepared to vote. "They need it by August," Moran said of loan guarantees for cash-strapped US Airways. "There is no other way. They ought to be able to get a loan." Moran ruled out the possibility of a cash grant to bridge the gap. "You know, we can't make them whole but we ought not to make them bankrupt," he said. United Airlines, a unit of UAL Corp. (UAL), is also closely watching congressional action on loan guarantees as it considers them as part of a financial recovery plan after $2 billion in losses. US Airways shares closed up 19 cents, or 6.3 percent, to $3.19 on the New York Stock Exchange. Additional reporting by Julie MacIntosh in New York. ©2002 Reuters Limited.