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CRS Updates Report on Trade Adjustment Assistance for Workers

MAY 5, 2011

CRS Updates Report on Trade Adjustment Assistance for Workers

DATED MAY 5, 2011
DOCUMENT ATTRIBUTES

 

CRS Report for Congress

 

 

Prepared for Members and Committees of Congress

 

 

May 5, 2011

 

 

Congressional Research Service

 

 

7-5700

 

www.crs.gov

 

RS22718

 

 

Summary

Trade Adjustment Assistance for Workers (TAA) provides assistance to qualifying workers who lose their jobs directly due to increased imports or shifts in production out of the United States. Certified workers whose unemployment compensation has ended and who are in approved training may receive income support payments (Trade Readjustment Allowances, or TRA) for a maximum of 156 weeks. Some workers aged 50 or older are eligible to receive Alternative Trade Adjustment Assistance (ATAA), a wage supplement program. Both TAA-and ATAA-eligible workers can receive a Health Coverage Tax Credit (HCTC), which provides a refundable tax credit to offset 80% of their health insurance premiums.

This report provides background on the TAA and ATAA programs, including a description of the eligibility for these programs and benefits available to participants. It also describes the main changes to the TAA program with the reauthorization and expansion of TAA in the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5), which was signed into law by President Barack Obama on February 17, 2009. The changes made by ARRA were to expire on December 31, 2010. H.R. 6517, the Omnibus Trade Act of 2010, extended the changes made by ARRA though February 12, 2011. H.R. 6517 passed the House and the Senate on December 22, 2010. Petitions for TAA that were filed from May 19, 2009, through February 14, 2011, were considered under the ARRA amendments. Workers who are covered by petitions filed from May 19, 2009, through February 14, 2011, receive the benefits and services provided under the ARRA amendments. Petitions for TAA filed on or after February 15, 2011, are considered under the pre-ARRA program. Workers who are covered by petitions filed on or after February 15, 2011, receive the benefits and services of the TAA program prior to the ARRA amendments.

This report will be updated as legislative activity warrants.

                            Contents

 

 

 Background

 

 

 Financing

 

 

 Administration

 

 

 Trade Adjustment Assistance Benefits

 

 

      Income Support (Trade Readjustment Allowances)

 

 

      Training Assistance

 

 

      Job Search and Relocation Assistance

 

 

 Alternative Trade Adjustment Assistance Benefits

 

 

 Health Coverage Tax Credit Benefit

 

 

 Eligibility

 

 

      TAA Group Eligibility

 

 

      TAA Individual Eligibility

 

 

      ATAA Group Eligibility

 

 

      ATAA Individual Eligibility

 

 

 Participation

 

 

 Changes to TAA Due to Reauthorization

 

 

 Expiration of TAA Expansions Under ARRA

 

 

 TAA Legislation in the 112th Congress

 

 

                             Tables

 

 

 Table 1. Trade Adjustment Assistance (TAA) for Workers Benefits

 

 

 Table 2. Group Eligibility Requirements for Trade Adjustment

 

          Assistance for Workers

 

 

 Table 3. Petitions and Certifications, FY2003-FY2010

 

 

 Table 4. Selected Statistics on TAA Benefits, FY2003-FY2009

 

 

                            Contacts

 

 

 Author Contact Information

 

 

Background

Trade Adjustment Assistance for Workers (TAA) provides extended income support as well as training, job search, and relocation benefits.1 To be eligible for TAA, workers must have become unemployed for one of three reasons: (1) their jobs moved to another country; (2) their job losses can be attributed to increased imports that contributed importantly to an actual decline in sales or production; or (3) their job losses resulted from the loss of business with a primary firm because of a trade-related reason. Older TAA-eligible workers may be able to opt for Alternative Trade Adjustment Assistance (ATAA), which provides a wage supplement in lieu of TAA benefits.2 In addition, workers can claim a refundable Health Coverage Tax Credit (HCTC). The HCTC was established to help both eligible TAA and ATAA workers pay for health insurance.3

TAA was formally established by the Trade Expansion Act of 1962 (P.L. 87-794) but was little used until the Trade Act of 1974 (P.L. 93-618) expanded benefits and eligibility. The Trade Act of 2002 (P.L. 107-210) amended P.L. 93-618, established ATAA, and reauthorized and expanded TAA. TAA and ATAA were set to expire on December 31, 2007. The House passed a three-month extension (H.R. 4341) by a voice vote. However, the Senate did not act on the measure. The Consolidated Appropriations Act, 2008 (P.L. 110-161, signed by President George W. Bush on December 26, 2007) contained an appropriation for the TAA for Workers and ATAA programs that fully funded the programs for FY2008.4 The Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009 (P.L. 110-329) fully funded the TAA and ATAA programs through March 6, 2009, and specified that the programs would continue through this date. The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5, which was signed into law by President Barack Obama on February 17, 2009) reauthorized and expanded TAA. Authorization for the changes made by ARRA were set to expire on December 31, 2010. H.R. 6517, the Omnibus Trade Act of 2010, extended the changes made by ARRA though February 12, 2011. H.R. 6517 passed the House and the Senate on December 22, 2010.

Petitions for TAA that were filed prior to February 15, 2011, are considered under the ARRA amendments. Workers who are covered by petitions filed prior to February 15, 2011, receive the benefits and services under the ARRA amendments. Petitions for TAA filed on or after February 15, 2011, are considered under the pre-ARRA amendments. Workers who are covered by petitions filed on or after February 15, 2011, receive the benefits and services of the TAA program prior to the ARRA amendments.

Authorization for the TAA for Workers program expires December 31, 2011.

Financing

TAA financing has several components. Trade Readjustment Allowances (TRA) funds for extended unemployment benefits are appropriated as an entitlement out of general revenue (not out of the Unemployment Trust Fund). TRA benefits are provided to all workers who meet eligibility requirements. In FY2010, $1.8 billion was appropriated for the TAA for Workers program and $1.1 billion was appropriated for TRA benefits. Funds for training, job search and relocation expenses, and administrative costs are a line item appropriation of which training is a capped entitlement. The TAA statute authorizes $220 million ($575 million under the ARRA amendments) for training. The ATAA is appropriated as an entitlement out of the general fund. In FY2010, $65.0 million was appropriated for ATAA. HCTC is funded out of general revenue. The administration's FY2012 total request is for $1.7 billion, which consists of $1.1 billion request under current law and $571 million under the legislative proposal to reauthorize the ARRA amendments.

Administration

At the federal level, the TAA and ATAA programs are administered by the Office of Trade Adjustment Assistance within the U.S. Department of Labor (DOL). Claims for benefits by individual workers are administered by the state Unemployment Compensation (UC) agencies under agreements and contracts with DOL. The use of funds varies greatly from year to year and from state to state.

Trade Adjustment Assistance Benefits

TAA benefits, which are primarily focused on the re-employment of certified workers, have several components: up to 130 weeks of income support while in training; training assistance; and job search and relocation assistance.

Table 1 summarizes the benefits under ARRA amendments and the program prior to the ARRA amendments.

        Table 1. Trade Adjustment Assistance (TAA) for Workers Benefits

 

 _____________________________________________________________________________

 

 

 ARRA Amendments                            Pre-ARRA Amendments

 

 _____________________________________________________________________________

 

 

 Trade Readjustment Allowances (TRA)

 

 

 Up to 130 weeks of cash payments for       Up to 104 weeks of cash payments

 

 workers enrolled in full-time training     for workers enrolled in full-time

 

                                            training

 

 

 Up to 156 weeks of cash payments if        Up to 130 weeks of cash payments

 

 the worker is also enrolled in remedial    if the worker is also enrolled in

 

 or prerequisite training                   remedial training.

 

 

 Training Enrollment Deadlines

 

 

 Workers must be enrolled in training       Workers must be enrolled in

 

 26 weeks after certification or layoff,    training eight weeks after

 

 whichever is later, in order to receive    certification or 16 weeks after

 

 TRA                                        layoff, whichever is later, in

 

                                            order to receive TRA

 

 

 States have wide latitude in applying      States may extend the training

 

 good cause provisions to missed deadlines  enrollment deadline by 45 days in

 

                                            the event of extenuating

 

                                            circumstances

 

 

 Training Services

 

 

 Training may be approved on a full-time   Training may only be approved on a

 

 or part-time basis, although full-time    full-time basis

 

 training is required for TRA eligibility

 

 

 Certified workers may begin approved      Certified workers may not begin

 

 training when threatened with             approved training until they have

 

 separation, or when they are totally      been totally or partially separated

 

 or partially separated, from              from adversely affected employment

 

 adversely affected employment

 

 

 Funding: $575 million per fiscal year     Funding: $220 million per fiscal

 

                                           year

 

 

 Reemployment Trade Adjustment Assistance/Alternative Trade Adjustment

 

 Assistance

 

 

 Available to workers 50 years of age      Available to workers 50 years of

 

 or older                                  age or older

 

 

 Does not require a separate               Requires a separate certification

 

 certification of group eligibility        of group eligibility

 

 

 Workers may participate in TAA-approved   Workers may not participate in

 

 training                                  TAA-approved training

 

 

 Requires full-time employment, unless     Requires full-time employment

 

 the worker is also enrolled in            within 26 weeks of separation

 

 TAA-approved training and employed at

 

 least 20 hours per week, and does not

 

 set a deadline for reemployment

 

 

 Available only for workers earning less   Available only for workers earning

 

 than $55,000 per year in reemployment     less than $50,000 per year in

 

                                           reemployment

 

 

 Maximum benefit of $12,000 over a period  Maximum benefit of $10,000 over a

 

 of up to two years                        period of up to two years

 

 

 Job Search Allowances

 

 

 100% of allowable costs, up to $1,500     90% of allowable costs, up to

 

                                           $1,250

 

 Relocation Allowances

 

 

 100% of costs, up to the statutory limit  90% of costs, up to the statutory

 

 for Federal Employees                     limit for Federal Employees

 

 

 Provides an additional lump sum           Provides an additional lump sum

 

 payment of up to $1,500                   payment of up to $1,250

 

 

 Health Coverage Tax Credit (HCTC)

 

 

 80% of allowable health insurance         65% of allowable health insurance

 

 premiums. Provision expired for all       premiums. Provision applies to all

 

 workers February 12, 2011. HCTC           workers approved for TAA benefits,

 

 returns to pre-ARRA level for all         including those certified under the

 

 workers, regardless of certification.     ARRA amendments.

 

 _____________________________________________________________________________

 

 

 Source: Department of Labor, CRS.

 

 

Income Support (Trade Readjustment Allowances)

Workers have both basic and additional TRA available to them and can receive up to 130 weeks (156 weeks under the ARRA amendments) of income support.

  • Basic TRA. Workers receive basic TRA after their UC benefits are exhausted. The weekly TRA payment is equal to the worker's most recent UC benefit. The total amount of basic TRA benefits available to a worker is equal to 52 times the weekly TRA benefit minus the total amount of UC benefits. For example, a worker who receives 26 weeks of UC would be eligible to receive an additional 26 weeks of basic TRA.5 To receive the basic TRA benefit, workers must be enrolled or participating in TAA-approved training, have completed such training, or have obtained a waiver of the training requirement.6

  • Additional TRA. An additional 52 weeks (78 weeks under the ARRA amendments) of income support is available for workers who are enrolled in TAA-approved training programs, plus another 26 weeks are available for workers in remedial training programs. A worker cannot receive a waiver of the training requirement to receive additional TRA.

 

Workers receive TRA benefits once they have exhausted eligibility for unemployment benefits, including any extended unemployment benefits. A worker cannot receive unemployment and TRA in the same week. Unemployment benefits received offset a worker's eligible TRA benefit. DOL has indicated that, as a result of extended unemployment benefit programs, the number of workers who have received TRA payments was much less in FY2010 compared with FY2009. The TRA allotment for FY2010 was $256 million.

Training Assistance

Workers' training assistance is for full-time participation in an approved training program. Approved training programs include, but are not limited to, employer-based training, including customized training and on-the-job training; any training program provided by a state pursuant to Title I of the Workforce Investment Act of 1998 (WIA; P.L. 105-220); any training program approved by a private industry council under Section 102 of WIA; a program of prerequisite education; a training program or coursework at an accredited higher education institution; or any training program for which all, or any portion, of the costs are paid (1) under a federal or state program or (2) from any other source. According to DOL, in FY2010 average number of weeks of training per participant was 58, and 72% of participants completed training.

Job Search and Relocation Assistance

Certified workers who cannot obtain suitable employment within their commuting areas can receive an allowance of 90% (100% under the ARRA amendments) of their job search and relocation expenses, up to a maximum of $1,250 ($1,500 under the ARRA amendments) for each benefit. Less than 1% of TAA-eligible workers receive these benefits.

  • Job Search Allowance. Applications must be submitted before a job search begins and made by the 365th day after certification or final separation (whichever is later) or within 182 days of the end of training.

  • Relocation Expenses. Applications must be submitted before the relocation occurs and made within 425 days of certification or layoff (whichever is later) or within 182 days of the end of training. The relocation must occur within 182 days of filing the application for relocation assistance or within 182 days after the conclusion of training.

 

Alternative Trade Adjustment Assistance Benefits

Workers who qualify for the ATAA benefit can receive a wage supplement worth half the difference in salary between their old and new jobs for a maximum of $10,000 ($12,000 under the ARRA amendments) over two years. Although workers are ineligible if their wages are more than $50,000 ($55,000 under the ARRA amendments) a year, their combined wages and ATAA payments can exceed $50,000 a year. For example, a worker who earned $48,000 at a previous job and earns $43,000 at a new job would be eligible for a benefit of $2,500 per year for two years. In this case, the worker would receive a total of $53,500 per year (for two years) in wages and ATAA benefits.

Health Coverage Tax Credit Benefit

HCTC is available to TAA and ATAA workers. The HCTC covers 65% of the premium for qualified health insurance purchased by an eligible taxpayer (the taxpayer is responsible for the other 35%). It is refundable, so workers may claim the full credit even if they have little or no federal income tax liability. The credit may also be advanced, so taxpayers have the option of using the credit on a monthly basis when premiums are due rather than waiting until the end of the year. Individuals may receive the HCTC for one month longer than their TAA eligibility or exactly two years in the case of their ATAA eligibility.

Eligibility

Obtaining TAA or ATAA benefits is a two-stage process: (1) a group of workers must petition DOL to become TAA certified. A group of workers that is TAA certified is automatically certified for ATAA; and (2) individual workers apply for TAA or ATAA benefits at a local One-Stop Career Center.

TAA Group Eligibility

To gain TAA eligibility, a group of three or more workers (or their union, firm, or state) petitions DOL. Then, DOL investigates whether import competition contributed importantly to the group's job loss or whether their firm has shifted their jobs to a foreign country.7 TAA also extends eligibility to groups of secondary workers whose job losses result from the loss of business with a primary firm (i.e., the firm that directly lost business or outsourced as a result of trade).

Table 2 details the certification criteria under the ARRA amendments and the pre-ARRA amendments.

          Table 2. Group Eligibility Requirements for Trade Adjustment

 

                             Assistance for Workers

 

 _____________________________________________________________________________

 

 

 ARRA Amendments                           Pre-ARRA Amendments

 

 _____________________________________________________________________________

 

 

      Workers Who Become Unemployed Because of Shifts in Production

 

 

 In the case of a firm that shifts         In the case of a firm that shifts

 

 production to a foreign country,          production to a foreign country,

 

 certification requires the following:     certification requires the

 

                                           following:

 

 

 A significant number (3 or more workers   A significant number (3 or more

 

 in a firm of fewer than 50 workers or 5%  workers in a firm of fewer than 50

 

 of the workforce in a firm of 50 or       workers or 5% of the workforce in a

 

 more) of workers are laid off or          firm of 50 or more) of workers has

 

 threatened with layoffs;                  been totally or partially separated

 

                                           or is threatened with total or

 

                                           partial separation;

 

 

 Either (1) a shift in the production of   A shift in production has occurred

 

 articles or services like or directly     to a foreign country by the

 

 competitive with those produced by the    workers' firm. Either (1) the shift

 

 workers' firm to a foreign country, or    in production was to a country with

 

 (2) the workers' firm has acquired the    which the United States has a free

 

 articles or services from a foreign       trade agreement or to a country

 

 country; and                              that is a beneficiary country under

 

                                           the Andean Trade Preference Act,

 

                                           P.L. 102-182, approved December 4,

 

                                           1991; the African Growth and

 

                                           Opportunity Act, P.L. 106-200,

 

                                           approved May 18, 2000; or the

 

                                           Caribbean Basin Economic Recovery

 

                                           Act, P.L. 98-67, approved August 5,

 

                                           1983; or (2) there is, has been, or

 

                                           is likely to be, an increase in

 

                                           imports of like or directly

 

                                           competitive articles; and

 

 

 The shift in production or acquisition    The workers' company produces a

 

 of foreign goods or services              product (i.e., an article). Workers

 

 contributed importantly to the workers'   in firms that provide services are

 

 separation.                               not eligible for TAA certification.

 

 

       Workers Who Become Unemployed for Reasons Other Than Shifts in

 

                                 Production

 

 

 In the case of a firm that does not       In the case of a firm that does not

 

 shift production to a foreign country,    shift production to a foreign

 

 certification requires the following:     country, certification requires the

 

                                           following:

 

 

 A significant number of workers are laid  A significant number of workers are

 

 off or threatened with layoffs;           laid off or threatened with

 

                                           layoffs;

 

 

 The sales or production of the firm       The sales or production of the firm

 

 decreased; and                            decreased;

 

 

 Increased imports of (1) articles or      Imports competitive with the firm's

 

 services competitive with the firm's      articles have increased and the

 

 articles or services or (2) articles      increased imports contributed

 

 which are competitive with the articles   importantly to the workers'

 

 in which the firm's products or services  separation and to the decline in

 

 are component parts. The increased        sales or production at the firm; an

 

 imports must have contributed

 

 importantly to the decline in sales or

 

 production.

 

 

                                           The workers' company produces a

 

                                           product (i.e., an article). Workers

 

                                           in firms that provide services are

 

                                           not eligible for TAA certification.

 

                                           Workers in firms that provide

 

                                           services are not eligible for TAA

 

                                           certification.

 

 

       Adversely Affected Secondary Workers Who Become Unemployed

 

 

 In the case of adversely affected         In the case of adversely affected

 

 secondary workers, certification          secondary workers, certification

 

 requires the following:                   requires the following:

 

 

 A significant number of workers are       A significant number of workers are

 

 laid off or threatened with layoffs;      laid off or threatened with

 

                                           layoffs;

 

 

 The workers' firm is a supplier or        The workers' firm is a supplier or

 

 downstream producer to a TAA-certified    downstream producer to a

 

 firm; and                                 TAA-certified firm;

 

 

 Either (1) the sales or production to     Either (1) the sales or production

 

 the TAA-certified firm accounted for      to the TAA-certified firm accounted

 

 at least 20% of the sales or production   for at least 20% of the sales or

 

 of the supplier firm or (2) the loss of   production of the supplier firm or

 

 sales to the TAA-certified firm           (2) the loss of sales to the

 

 contributed importantly to the workers'   TAA-certified firm contributed

 

 job losses.                               importantly to the workers' job

 

                                           losses; and

 

 

                                           The workers' company produces a

 

                                           product (i.e., an article). Workers

 

                                           in firms that provide services are

 

                                           not eligible for TAA certification.

 

 

               Public Sector Workers Who Become Unemployed

 

 

 In the case of public sector workers,     No provision.

 

 certification requires the following:

 

 

 A significant number of workers in the

 

 public agency is laid off or threatened

 

 with layoffs;

 

 

 The public agency has acquired like or

 

 competitive services from a foreign

 

 country, and

 

 

 The acquisition of the services

 

 contributed importantly to the workers'

 

 separation.

 

 _____________________________________________________________________________

 

 

 Source: Congressional Research Service.

 

 

The determination on a TAA petition must be made by DOL within 40 days of filing. Generally, the certification covers all members of the worker group who are laid off during the three-year period beginning one year before the petition was filed (the impact date) and ending two years after the date of the certification. Determinations on TAA petitions are published in the Federal Register and on the DOL website. Workers who are denied certification may request administrative reconsideration by DOL. Reconsideration requests must be mailed within 30 days of Federal Register publication. Workers who are denied certification may seek judicial review of DOL's initial petition denial or denial following administrative reconsideration. Appeals for judicial review must be filed with U.S. Court of International Trade within 60 days of Federal Register publication of the initial denial or administrative reconsideration denial.

TAA Individual Eligibility

If DOL certifies a petitioner's group of workers as eligible, the individual workers then apply to their state agency to establish a TAA benefit claim. For an individual worker, eligibility is based on all of the following: (1) separation from the firm on or after the impact date specified in the certification but within two years of DOL certification; (2) employment with the affected firm in at least 26 of the 52 weeks preceding layoff; (3) entitlement to state UC benefits; (4) no disqualification for extended unemployment benefits; and (5) enrollment or a waiver for participation in an approved training program. Certified workers who are denied individual benefits can appeal the decision. The determination notice that certified workers receive after filing their applications for each benefit will explain their appeal rights and time limits for filing appeals.

ATAA Group Eligibility

For petitions filed on or before February 14, 2011, workers certified for TAA are also certified for ATAA. For these workers, neither separate petitions nor separate certifications are required for ATAA. For petitions filed on or after February 15, 2011, certification for ATAA requires a separate petition and certification.

ATAA Individual Eligibility

If DOL certifies a group as TAA and ATAA eligible, then an individual worker must meet the following requirements:

  • be at least 50 years old at the time of reemployment and

  • obtain full-time employment earning less than $50,000 per year within 26 weeks of separation from employment.

 

Participation

Table 3 includes data on TAA petitions and certifications for FY2003 to FY2010. The numbers do not exhibit a particular trend over time because the number of petitions depends on the episodic nature of layoffs, especially within a particular state.8 Factors that could explain the increase in petitions and certifications in FY2009 include the recession beginning in December 2007 and the expansion of TAA eligibility beginning in May 2009. Although TAA eligibility was extended to public sector workers, DOL has not certified any petitions from public sector workers.

              Table 3. Petitions and Certifications, FY2003-FY2010

 

 _____________________________________________________________________________

 

 

                Petitions Filed                     Petitions Certified

 

              _____________________     ______________________________________

 

 

 Fiscal                 Estimated                                    Estimated

 

 Year        Petitions  Workers         Number        Percentage     Workers

 

 ______________________________________________________________________________

 

 

  2003         3,567      292,827        1,880           53%           197,359

 

  2004         2,992      171,281        1,802           60%           149,705

 

  2005         2,638      164,371        1,534           58%           118,022

 

  2006         2,478      172,651        1,426           57%           119,602

 

  2007         2,228      190,430        1,427           64%           146,606

 

  2008         2,146      162,629        1,368           64%           125,529

 

  2009         4,549           na        1,845            na           201,053

 

  2010         2,222           na        2,718            na           280,873

 

 ______________________________________________________________________________

 

 

 Source: CRS table from data provided by the U.S. Department of Labor,

 

 Employment and Training Administration.

 

 

 Notes: The large number of petitions filed in FY2009 was a result of

 

 several factors including the economic downturn, the ARRA expansions in

 

 eligibility, and the withdrawal and refiling of petitions as a result of the

 

 ARRA expansions. In FY2010, the number of petitions certified was larger than

 

 the number of petitions filed because certification decisions for a large

 

 number of petitions filed in FY2009 did not occur until FY2010.

 

 

Table 4 includes data on TAA benefits for FY2003 to FY2010. The number of new recipients of basic TRA declined from FY2003 to FY2009. The reporting requirements were changed beginning in FY2007, therefore, FY2007 and later data for number of workers who entered training may not be comparable to previous years. The number of workers who received TRA in FY2009 and FY2010 was greatly affected by the availability of extended unemployment benefits. Some workers may have ceased to be eligible for TRA allowances prior to the end of their eligibility for extended unemployment benefits.

In FY2010, a total amount of $33.5 million was received by approximately 4,550 participants in ATAA wage supplement program.

          Table 4. Selected Statistics on TAA Benefits, FY2003-FY2009

 

 ______________________________________________________________________________

 

 

                                               Training, Job Search,

 

         Trade Readjustment Allowance          Relocation Allowances

 

        ________________________________  _____________________________________

 

 

        New        Average

 

        Recipients Weekly     Total TRA                            Total

 

 Fiscal of Basic   Basic TRA  Outlays     Entered  Job    Re-      Outlays

 

 Year   TRA        Payment ($)($millions) Training Search location ($ millions)

 

 ______________________________________________________________________________

 

 

  2003   44,000       238         352      44,000    430    736         259

 

  2004   81,000       262         530      51,000    467    817         259

 

  2005   55,000       267         598      38,000    288    446         259

 

  2006   53,000       289         529      37,000    454    531         259

 

  2007   47,000       329         572      44,000    399    750         259

 

  2008   42,000       310         509      38,000    405    757         259

 

  2009   11,111        na          na      58,000    617    683         259

 

  2010   29,463        na        $256      44,000     na     na        $581

 

 _____________________________________________________________________________

 

 

 Source: FY2003 to FY2008, table provided to CRS by U.S. Department of

 

 Labor, Employment and Training Administration. FY2009 and FY2010, report to

 

 the Committee on Finance of the Senate and Committee on Ways and Means of the

 

 House of Representatives.

 

 

 Note: na indicates that data are not available.

 

 

Changes to TAA Due to Reauthorization

The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) reauthorized and expanded TAA and was signed into law by President Barack Obama on February 17, 2009. The act went into effect May 18, 2009, which was 90 days after enactment. These amendments expired February 12, 2011. Petitions filed from May 19, 2009, through February 14, 2011, were certified under the ARRA amendments; petitions filed on or after February 15, 2011, are considered under the pre-ARRA amendments. The provisions enacted by ARRA

  • extended TAA eligibility to service and public sector workers. Prior law required that workers produce an article to be eligible for TAA.

  • extended TAA eligibility to suppliers of component parts if the supplier experiences job losses for a trade-related reason regardless of whether the downstream producer is a TAA-certified firm. Prior law allowed suppliers of component parts to be certified for TAA only if the downstream producer was certified for TAA.

  • allowed TAA eligibility due to shifts in production to any country. Prior law required that firms shift production to countries with which the United States has a free-trade or beneficial trading agreement.

  • allowed workers to receive Additional TRA (income support payments) for an additional 26 weeks (for a total of 78 weeks), provided the workers are in training. Prior law allowed workers to receive Additional TRA for up to 52 weeks, provided the workers were in training.

  • extended the deadline for enrolling in training to the later of 26 weeks from the date of TAA certification or the date of separation from employment. Prior law required workers to enroll in training the later of 8 weeks after TAA certification or 16 weeks after separation from employment.

  • increased training funding to $575 million per fiscal year. Prior law authorized $220 million per fiscal year for workers' training.

  • required DOL to disburse training funds to states based on at least five factors; distribute at least 65% of the training funds in the initial distribution; and to disburse to a state no less than 25% of the prior year's initial distribution. Prior law did not specify any method for training funds to be allocated to states. In practice, DOL initially disbursed 75% of training funds based on a state's accrued training expenditures and the number of training participants over the previous two and one-half years, and disbursed to a state no less than 85% of the prior year's initial distribution.

  • increased the amount reimbursed for job search and relocation expenses to 100% of a worker's expenses up to $1,500 for each type of expense. Prior law limited reimbursement for job search and relocation expenses to 90% of a worker's expenses up to $1,250 for each type of expense.

  • continued the wage insurance program for older workers as ATAA. Prior law established Alternative Trade Adjustment Assistance (ATAA) for older workers as a five-year demonstration project.

  • eliminated the separate petition process for eligibility for the wage insurance program. Prior law required a separate ATAA petition to be filed concurrently with the TAA petition.

  • allowed older workers to be eligible for ATAA for up to two years after the exhaustion of regular unemployment benefits or reemployment. The new law allowed workers participating in TAA-approved training to receive wage insurance if they switch from receiving TRA while in training to receiving ATAA. Prior law required workers to find reemployment within 26 weeks of separation and also prohibited workers who receive TRA from receiving wage insurance.

  • increased the limit on wages to be eligible for reemployment assistance to $55,000 per year and increased the maximum wage insurance benefit to $12,000 over two years. Prior law limited eligibility to workers with reemployment wages less than $50,000 and limited the maximum benefit to $10,000 over two years.

  • established an Office of Trade Adjustment Assistance in DOL to be headed by an administrator who will report directly to the Deputy Assistant Director for Employment and Training. Under prior law, TAA was administered as part of the Office of National Response.

  • increased the HCTC to 80% of a worker's qualified health insurance premiums beginning April 18, 2009. Prior law covered 65% of a worker's qualified health insurance premiums.

  • authorized TAA and ATAA through December 31, 2010. H.R. 6517, which passed the House and Senate on December 22, 2010, extended the TAA program as expanded by ARRA through February 12, 2011.

 

Expiration of TAA Expansions Under ARRA

The provisions in ARRA that expanded benefit eligibility under the TAA program were scheduled to sunset on December 31, 2010. In addition, ARRA provided that on January 1, 2011, the TAA program be administered as if the provisions of ARRA had not been enacted, although workers covered by petitions filed before January 1, 2011, would receive benefits under the TAA program as expanded by ARRA. Finally, ARRA provided that the authorization for the TAA program would expire on December 31, 2011.

H.R. 6517, the Omnibus Trade Act of 2010, extended the provisions of the TAA program as enacted by ARRA though February 12, 2011. H.R. 6517 passed the House and the Senate on December 22, 2010, and was signed by President Barack Obama on December 29, 2010, and became P.L. 111-344.

TAA Legislation in the 112th Congress

The following legislation in the 112th Congress would make changes to the TAA program:

S. 308, Trade Extenders Act of 2011, was introduced on February 8, 2011, by Senator Robert Casey. Among other provisions, this bill would authorize the amendments enacted by ARRA through June 30, 2012.

Author Contact Information

 

 

John J. Topoleski

 

Analyst in Income Security

 

jtopoleski@crs.loc.gov, 7-2290

 

FOOTNOTES

 

 

1 Other Trade Adjustment Assistance available is TAA for Firms (see CRS Report RS20210, Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues, by J. F. Hornbeck), and TAA for Farmers (see CRS Report R40206, Trade Adjustment Assistance for Farmers, by Remy Jurenas).

2 Alternative Trade Adjustment Assistance (ATAA) was called Reemployment Trade Adjustment Assistance (RTAA) in the ARRA amendments.

3 For more information, see CRS Report RL32620, Health Coverage Tax Credit, by Bernadette Fernandez.

4 For more information see CRS Report RL34383, Trade Adjustment Assistance (TAA) for Workers: Current Issues and Legislation, by John J. Topoleski.

5 Amounts of Emergency Unemployment Compensation or Extended Benefits (EB) offset the amount of Basic TRA for which a worker is eligible. For example, a worker that receives 13 weeks of EB in addition to the usual 26 weeks of UC would be entitled to receive 13 weeks of Basic TRA.

6 Reasons for a training waiver include the following: the worker will be recalled reasonably soon, the worker has marketable skills for suitable employment and a reasonable expectation of employment, the worker is within two years of eligibility for a pension or Social Security, the worker is unable to participate in or complete training for health reasons, the worker cannot enroll in training immediately, or the worker cannot find a suitable training program.

7 The term contributed importantly means a cause that is important but not necessarily more important than any other cause. See 19 U.S.C. 2272(c)(1).

8 For example, the Government Accountability Office notes that Kansas had 4,117 trade-affected workers laid off in 2004, 75 in 2006, and 721 in 2007. See GAO-07-994T, Trade Adjustment Assistance: Program Provides an Array of Benefits and Services to Trade-Affected Workers, June 14, 2007, available at http://www.gao.gov/new.items/d07995t.pdf.

 

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