CRS Updates Report on Trade Adjustment Assistance for Workers
CRS Updates Report on Trade Adjustment Assistance for Workers
- AuthorsTopoleski, John J.
- Institutional AuthorsCongressional Research Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2011-9698
- Tax Analysts Electronic Citation2011 TNT 88-22
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
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.
END OF FOOTNOTES
- AuthorsTopoleski, John J.
- Institutional AuthorsCongressional Research Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2011-9698
- Tax Analysts Electronic Citation2011 TNT 88-22