Summary
Trade Adjustment Assistance for Workers (TAA) provides federal assistance to workers who have involuntarily lost their jobs due to foreign competition. It was last reauthorized by the Trade Adjustment Assistance Reauthorization Act of 2015 (TAARA; Title IV of P.L. 114-27). As specified in TAARA, the program is scheduled to revert to a more restrictive set of eligibility and benefit requirements beginning July 1, 2021. This report focuses on the current law version of the program and briefly discusses major components of the scheduled changes.
To be eligible for TAA, a group of workers must establish that they were separated from their employment either because their jobs moved outside the United States or because of an increase in directly competitive imports. Workers at firms that are suppliers to or downstream producers of TAA-certified firms may also be eligible for TAA benefits. Private sector workers who produce goods or supply services are eligible for TAA benefits. Beginning July 1, 2021, new petitions from groups of adversely affected workers who supply services will no longer be eligible to be certified; only production workers will be eligible.
To establish eligibility for TAA benefits, a group of trade-affected workers (or their representative) must petition the Department of Labor (DOL) and a DOL investigation must verify the role of increased foreign trade in the workers' job losses. Once a petition is certified by DOL, covered workers may apply for individual benefits.
Individual benefits are funded by the federal government and administered by state agencies through their workforce systems and unemployment insurance systems. Benefits available to individual workers include the following:
TAA is supported through mandatory appropriations. Appropriations for the program in FY2021 were about $634 million. These funds were subject to 5.7% sequestration, meaning that the post-sequestration funding level was about $597 million.
Trade Adjustment Assistance for Workers (TAA) provides federal assistance to workers who involuntarily lose their jobs due to foreign competition.1 The primary benefits for TAA-eligible workers are funding for training and reemployment services as well as income support while a worker is enrolled in training. Workers may also be eligible for other benefits, including a tax credit equal to a portion of qualified health insurance premiums. Workers age 50 and over may be eligible for Reemployment Trade Adjustment Assistance, a wage insurance program.
After a brief discussion of the program's purpose and most recent reauthorization, this report describes TAA as reauthorized by the Trade Adjustment Assistance Reauthorization Act of 2015 (TAARA, Title IV of P.L. 114-27). TAARA has sunset provisions that will take effect July 1, 2021. At that time, the program will revert to a more restrictive set of eligibility and benefit provisions for new program participants. This report focuses on the eligibility and benefit provisions under current law. It discusses major components of the sunset provisions.
Reduced barriers to international trade are widely acknowledged to offer benefits to consumers in the form of increased choices and lower prices. Expanded trade may also offer expansionary opportunities to firms that produce goods or supply services that see increased exports. Reduced barriers to trade may, however, have concentrated negative effects on domestic industries and workers that face increased competition. TAA is designed to provide readjustment assistance to workers who suffer dislocation (job loss) due to foreign competition or offshoring. Generally, TAA provides a more robust set of benefits and services than would be available to a worker who lost his or her job for reasons other than foreign competition.2
TAA is designed to assist workers who have been adversely affected by reduced trade barriers and increased trade. Its availability to workers who are adversely affected by declines in international trade (e.g., a domestic firm that experiences a reduction in foreign demand and corresponding exports) may be limited.
TAA was created in 1962 and, historically, has been reauthorized alongside expansionary trade policies. TAA is currently authorized by Title II of the Trade Act of 1974, as amended. A brief legislative history of the program is in the Appendix.
Trade Adjustment Assistance Reauthorization Act of 2015
TAA was most recently reauthorized by TAARA in June 2015.3 TAARA was part of a bill that extended other trade-related policies. TAARA was also passed in conjunction with a separate bill that reauthorized the Trade Promotion Authority (TPA, Title I of P.L. 114-26). TPA (also known as "fast track") grants the President authority to negotiate trade agreements, which are then subject to an "up or down" vote in Congress. Since the reauthorization of TPA in 2015, Congress has not voted on any presidentially negotiated trade agreements.4
Applicability of TAARA Provisions
TAARA established eligibility and benefit provisions that are scheduled to remain in effect through June 30, 2021. The law also had retroactivity provisions and, in some cases, workers who were parts of groups certified prior to TAARA may be covered under the TAARA provisions. Groups of workers with applications that were denied between January 1, 2014, and the enactment of TAARA also had their applications reconsidered under the TAARA eligibility criteria.
Sunset Provisions and Scheduled 2021 Changes
TAARA has sunset provisions that specify that beginning on July 1, 2021, the TAA program is scheduled to revert to a more restrictive set of eligibility and benefit provisions that were in place prior to its enactment. The sunset provisions do not change the general structure of the program: the respective roles of the federal government and state agencies remain the same and the program continues to be funded through the same mechanisms. Instead, the sunset provisions make more granular changes to specific eligibility and benefit provisions. The most significant scheduled changes include the following:
The sunset provisions apply to workers who would qualify for the program under petitions filed after the provisions take effect. The sunset provisions are not retroactive. Workers from groups certified under the current law provisions would continue to be eligible even if the eligibility provisions that they were certified under are no longer in effect.
The sunset provisions are scheduled to apply for one year. After July 1, 2022, the TAA program is scheduled to be phased out. The program will continue to serve certified workers but will no longer certify new petitions.7
Prior Implementation of Sunset Provisions and "Reversion 2014" Provisions
The sunset provisions in TAARA are similar to the sunset provisions that were established in the Trade Adjustment Assistance Extension Act of 2011 (TAAEA; Title II of P.L. 112-40) and took effect January 1, 2014. The implementation of the "Reversion 2014" provisions that were in place between January 1, 2014, and the effective date of TAARA in 2015 can offer some perspectives on how the reversion scheduled for July 1, 2021, may be implemented and how it may interact with a subsequent reauthorization.8
Immediately prior to the Reversion 2014 provisions taking effect, DOL issued detailed guidance to cooperating state agencies on the forthcoming changes to the program.9 Since the reversion provisions were not retroactive, a key aspect of the guidance was differentiating the provisions under which different program participants would be served.
The timing of the Reversion 2014 provisions (January 1, 2014) meant that the cap on training funding and a number of associated details changed in the midst of FY2014. DOL allocated its appropriation to effectively prorate the changes in funding for training and other activities.10
In FY2015, the program operated under the Reversion 2014 provisions for the full fiscal year. The sunset provisions of TAAEA had scheduled the TAA program to begin to be phased out beginning January 1, 2015, but the law providing TAA funding for FY2015 (P.L. 113-235) provided full funding for the program under the Reversion 2014 provisions and specified that the program would continue, including the certification of new petitions, for the entirety of the fiscal year.
In June 2015, TAARA was enacted. TAARA specified that any petitions that were rejected between January 1, 2014, and the effective date of TAARA would be reconsidered under the new law. The new law also specified that any workers who were certified under the Reversion 2014 provisions could elect to receive benefits under the new law's provisions.11
TAA Administration and Financing
TAA is jointly administered by the federal government and state agencies. It is funded by the federal government. The respective roles of federal and state governments in administering and financing the TAA program were in place prior to TAARA and were not substantively changed by the reauthorization law.
TAA is jointly administered by the U.S. Department of Labor (DOL) and cooperating state agencies. DOL makes group eligibility determinations, allots appropriated funds to cooperating state agencies, and oversees grantees. Individual benefits are provided through state workforce systems and state unemployment insurance systems.12 Workers may physically receive benefits and services through local American Job Centers (also known as One-Stop Career Centers). States are responsible for collecting participation and outcome data and reporting these data to DOL.
The Health Coverage Tax Credit, which is available to qualified TAA-certified workers who purchase qualified health insurance, is administered by the Internal Revenue Service (IRS).13 It is administered separately from the TAA program's other benefits and services.
TAA is funded by mandatory appropriations. Typically, Congress appropriates a single sum that supports all TAA activities.14 DOL then allocates these funds to various program activities.
Under TAARA, funding for training and reemployment services is capped at $450 million per year. These funds are allotted to the states via a grant allocation formula that considers past and anticipated program usage.15 States may expend training and reemployment service funds in the year of allotment or in either of the next two fiscal years.
Training subsidies are states' primary expenditures out of their reemployment services funding. TAARA specifies that states must allocate at least 5% of their reemployment services funding to case management and no more than 10% to administrative costs.16
Funds for the Trade Readjustment Allowance income support and Reemployment Trade Adjustment Assistance wage insurance program are not capped. Appropriations for these benefits are based on congressional estimates. Funding for these benefits that is not spent in the year of allotment is returned to the Treasury.
TAA is a direct spending (also referred to as "mandatory") program and subject to sequestration under the Budget Control Act of 2011, as amended. For FY2021, the Office of Management and Budget (OMB) determined that the reduction for nonexempt, nondefense spending would be 5.7%.17 Sequester levels in subsequent years are to be determined by OMB.
In FY2021, Congress appropriated $633.6 million for the TAA for Workers programs.18 Of this amount, $406.6 million was for training and other activities and the remaining $227 million was for income support and wage insurance.19 The entire $633.6 million appropriation was subject to 5.7% sequestration ($36.1 million). DOL opted to apply the entirety of the sequestration to the training and reemployment services funding, reducing the funding for training and reemployment services from $406.6 million to about $370.5 million and leaving the $227 million for income support and wage insurance unchanged.20
Eligibility and Application Process
Obtaining TAA benefits is a two-stage process. First, a group of workers or their representative (e.g., firm, union, or state) must petition DOL to establish that their job loss was attributable to foreign trade and met statutory criteria. Once a group has been certified by DOL, individual workers covered by the group's petition apply for state-administered benefits at local American Job Centers (AJCs; also known as One-Stop Career Centers). TAA is available to workers in the 50 states, the District of Columbia, and Puerto Rico.
This section describes eligibility criteria scheduled to be in effect through June 30, 2021. After that date, eligibility criteria are scheduled to revert to the narrower eligibility criteria that were in place between January 1, 2014, and the enactment of TAARA. See the "Sunset Provisions and Scheduled 2021 Changes" section for more detail.
TAA Group Eligibility Criteria
To be eligible for TAA group certification, a group of workers from a firm (or a subdivision of a firm) must have become totally or partially separated from their employment or have been threatened with becoming totally or partially separated.21 Private sector workers who produce goods ("articles" in the law) or supply services are eligible for TAA. Beginning July 1, 2021, new petitions from service workers will no longer be eligible.
The petitioning workers must establish that foreign trade contributed importantly to their separation.22 The role of foreign trade can be established in one of several ways:
The TAA eligibility criteria are designed to target workers who lose their jobs due to increased international trade and increased imports. The structure of the eligibility criteria mean that the program may not be available to workers who are adversely affected by reductions in international trade or declines in exports.
TAA Group Petition and Certification Process
To establish TAA eligibility, a group of workers (or their representative, such as a union, firm, or state) must complete a two-page petition and submit it, along with any supporting documentation, to DOL.24 An additional copy of the TAA petition must also be filed with the governor of the state in which the affected firm is located.25 After receiving the petition, DOL investigates to determine if the petition meets any of the criteria outlined in the previous subsection of this report. Determinations of TAA petitions are published in the Federal Register and on the DOL website.
If a petition is certified, DOL will also determine an impact date on which trade-related layoffs began or threatened to begin.26 This date can be as early as one year prior to the petition. A certified petition will cover all workers laid off by the firm (or applicable subdivision of the firm) between the impact date and two years after the certification of the petition. For example, if a petition is certified on November 1, 2015, and the impact date is found to be March 1, 2015, all members of the certified group laid off between March 1, 2015, and November 1, 2017, would be eligible for TAA benefits.
If a petition is denied, the group may request administrative reconsideration by DOL.27 Reconsideration requests must be mailed within 30 days of the publication of the initial denial in the Federal Register. 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 the U.S. Court of International Trade within 60 days of Federal Register publication of the initial denial or the administrative reconsideration denial.
After DOL certifies a group of workers as eligible, the individual workers covered by the certification then apply to their local AJCs for individual benefits. To be eligible for Trade Readjustment Allowance payments, a worker must meet all of the following conditions: (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 unemployment compensation (UC) benefits, and (4) no disqualification for extended unemployment benefits. Additionally, workers must be enrolled in an approved training program or have received a waiver from training.28
Group-certified workers who are denied individual benefits can appeal the decision. The determination notice that individual workers receive after filing their applications for each benefit explains their appeal rights and time limits for filing appeals.
Benefits for Certified Workers
TAA benefits for individual workers include training and reemployment services and income support for workers who have exhausted their UC benefits and are enrolled in training. Workers age 50 and over may participate in the Reemployment Trade Adjustment Assistance (RTAA) wage insurance program. Certified workers may also be eligible for a tax credit for a portion of the premium costs for qualified health insurance.
This section describes benefits available to workers eligible under certified petitions filed through June 30, 2021. After that date, the universe of available benefits will remain broadly similar, but the funding cap for training will be reduced and modified. See the "Sunset Provisions and Scheduled 2021 Changes" section for more detail.
Training and Reemployment Services
TAA-certified workers may receive several types of benefits and services to aid them in preparing for and obtaining new employment. The largest reemployment benefit from a budgetary standpoint is training assistance. Workers may also receive case management services and reimbursements for qualified job search and relocation expenses.
TAARA caps annual funding for training and reemployment services at $450 million per year. Training and reemployment services funds are granted to state workforce agencies via formula.29
Eligible workers request training assistance through their local AJCs.30 Statute specifies that training for a worker shall be approved if all of the following conditions are met:
Once approved, training can be paid on the worker's behalf directly to the service provider or through a voucher system. The range of approved training includes a variety of governmental and private programs.33 There is no federal limit on the amount of training funding an individual can receive, though some states have a cap.
A concise summation of TAA training programs is difficult to provide due to the range of acceptable activities and the decentralized nature of approval and training. Data from DOL, however, offer some insight into the nature and duration of TAA-sponsored training programs. In FY2019, approximately 81% of TAA training participants received what DOL describes as occupational skills training: training in a specific occupation, typically provided in a classroom setting. The remainder of training was classified as remedial, prerequisite, on-the-job, or other customized training.34
Among program participants who exited the TAA program in FY2019 and participated in training, 75% completed their program of training.35 Among the training participants who completed their training programs in FY2019, the average duration of enrollment in the program was 459 days and the average training cost was $15,087.36
TAA does not require training programs to lead to a degree or other credential. In its FY2019 annual report, DOL reported that 88% of workers who completed training earned an industry-recognized credential, or a secondary school diploma or equivalent.37
Interaction of TAA Training Funding and Other Forms of Assistance
TAA funding may be the only source of funding for a worker's training costs. Statute addresses scenarios in which other resources are used in the pursuit of TAA-funded training.
In determining if the cost of a training program is reasonable, an administering state agency may consider public and private non-TAA funding available to the worker. For example, a worker may voluntarily offer to pay for a portion of a program with personal funds so that an agency may approve a program for which the costs would not otherwise be reasonable. An administering state agency may not require a TAA-certified worker to contribute personal funds or apply for other assistance as a condition of approving a TAA training program.38
A key exception to the policy of administering state agencies considering non-TAA aid is that the Higher Education Act specifies that certain types of federal student aid (including Pell Grants)39 "shall not be taken into account in determining the need or eligibility of any person for benefits or assistance, or the amount of such benefits or assistance, under any Federal, State, or local program financed in whole or in part with Federal funds."40 As such, a TAA-certified worker's training benefit could not be reduced on the basis of that worker's access to a Pell Grant. Guidance from DOL notes that this policy "allows a worker to use student financial assistance for living expenses instead of tuition and thus provides the worker income support during long-term training."41
Case Management and Employment Services
TAARA specifies that, through the administering state agencies and AJC system, DOL shall provide a series of case management and employment services to all TAA-certified workers. These services include a comprehensive assessment of a worker's skills and needs, assistance in developing an individual employment objective and identifying the training and services necessary to achieve that goal, and guidance on training and other services for which a worker may be eligible.42 Under TAARA, states are required to use at least 5% of their reemployment services allotments for case management and employment services.
Job Search and Relocation Allowances
States may use their reemployment services funding to provide job search and relocation allowances.43 These allowances target workers who are unable to obtain suitable employment within their commuting areas. Certified workers can receive an allowance equal to 90% of each of their job search and relocation expenses, up to a maximum of $1,250 for each benefit.
Trade Readjustment Allowance (TRA) is a weekly income support payment to certified workers who have exhausted their UC benefits and who are enrolled in training.44 To be eligible for TRA, a worker must be enrolled in training within 26 weeks of separation from the worker's job or within 26 weeks of TAA certification, whichever is later. In limited circumstances, a worker may obtain a training waiver.45
The sunset provisions scheduled to take effect July 1, 2021, do not make substantial changes to the maximum duration or amount of TRA benefits.
TRA is funded by the federal government and administered by the states through their unemployment insurance systems. TRA is an individual entitlement and not subject to an annual funding cap. Appropriation levels are based on estimated usage and unused funds are returned to the Treasury at the end of the fiscal year.
Individual TRA benefit levels are equal to a worker's final UC benefit. UC benefit levels are based on earnings during a base period of employment (typically, the first four of the last five completed calendar quarters). UC benefits typically replace a portion of a worker's wages up to a statewide maximum. Since states each administer their own UC programs, there is some variation in benefit levels. In July 2019, the highest maximum weekly UC benefit for a worker with no dependents was $795 in Massachusetts and the lowest maximum weekly benefit was $240 in Arizona.46
There are three stages of TRA:
Reemployment Trade Adjustment Assistance
RTAA is an entitlement that provides a wage supplement for workers age 50 and over who are certified for TAA benefits and obtain reemployment at a lower wage. The program provides a cash payment to an eligible worker equal to 50% of the difference between the worker's wage at the trade-affected job and the worker's wage at his or her new job. The maximum benefit is $10,000 over a two-year period. Workers may not receive TRA and RTAA benefits simultaneously.47
To be eligible for RTAA, a worker must either (1) be reemployed on a full-time basis, as defined by the law of the state in which the worker is employed or (2) be reemployed at least 20 hours a week and be enrolled in a TAA-sponsored training program. Workers who receive RTAA payments while enrolled in training and working less than full time may be subject to a reduced benefit.48
Health Coverage Tax Credit49
Workers who are receiving TRA, UC in lieu of TRA, or RTAA benefits may also be eligible for a tax credit that covers a portion of eligible health insurance premiums.50 The Health Coverage Tax Credit (HCTC) is equal to 72.5% of qualified health insurance premiums.
TAARA includes provisions specifying that a worker must elect between the HCTC and premium credits under the Patient Protection and Affordable Care Act (ACA; P.L. 111-148, as amended). Unlike other provisions of TAARA, which are in effect through June 30, 2021, the HCTC is authorized through December 31, 2021.
Collection and Publication of Program Data
The Trade Act requires DOL to collect and publish specified data on TAA participation, benefits, outcomes, and spending.51 Data to be collected and reported include (but are not limited to) the following:
The data required by the Trade Act are collected by the state agencies that administer the TAA program. These data are submitted to DOL, which publishes the data and other relevant information in annual reports.54 Since 2014, DOL has also published quarterly data and analysis on its website.55
In addition to participation data, DOL maintains a database of individual firms' TAA petitions. Users can access firm-level information, including the firm's full petition and DOL's assessment and determination of the petition.56
Appendix. Brief Program History57
Early History
The first TAA programs were enacted in 1962 but little used until the Trade Act of 1974 eased eligibility requirements. Program use expanded through the 1970s and the number of certified workers increased from about 59,000 in FY1975 to nearly 600,000 in FY1980. In light of rapidly increasing program costs, the Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35) cut spending by reducing benefits and emphasizing training and other reemployment services. TAA participation levels fluctuated throughout the 1980s, but were mostly well below the levels of the 1970s.
In 1988, the program was reauthorized through FY1993 by the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418). Among other changes, the 1988 reauthorization expanded eligibility for TRA but also placed a new emphasis on training by making it a program requirement.
1990s and NAFTA
The Omnibus Reconciliation Act of 1993 (P.L. 103-66) reauthorized TAA through 1998 with reductions in training funding. The North American Free Trade Agreement (NAFTA) Implementation Act of 1993 (P.L. 103-182) established a new component of TAA that offered dedicated benefits to workers whose job loss was attributable to trade with Mexico and Canada.
Trade Act of 2002
The next major reauthorization of TAA was part of the Trade Act of 2002 (P.L. 107-210). This law combined TAA, TPA, and other trade-related issues into a single piece of legislation. Among other changes, the 2002 TAA reauthorization merged the NAFTA-TAA program into the general TAA program and created the Health Coverage Tax Credit for TAA workers.
The Trade Act of 2002 reauthorized TAA through FY2007. Several short-term extensions continued the program until it was reauthorized in February 2009.
American Recovery and Reinvestment Act
In February 2009, TAA was reauthorized and expanded by the American Recovery and Reinvestment Act (ARRA; P.L. 111-5). Unlike other reauthorizations, which tended to be aligned with expansionary trade policy or budget reconciliations, this reauthorization was aligned with other domestic initiatives to spur economic activity during a time of above-average unemployment.
The ARRA reauthorization of TAA expanded the program in several ways. Among other provisions, it increased funding for training, increased the maximum number of weeks that a worker could receive TRA, and extended eligibility to service sector and public sector workers who had been displaced by trade.
The ARRA provisions of TAA were scheduled to expire after December 31, 2010. A short-term extension continued the program through February 12, 2011. After that date, TAA reverted to the more limited eligibility and benefit provisions that were in place prior to ARRA.
2011 Reauthorization: Trade Adjustment Assistance Extension Act
In October 2011, the Trade Adjustment Assistance Extension Act (TAAEA; Title II of P.L. 112-40) was enacted. This reauthorization was aligned with the separate passage of three implementing bills of free trade agreements with Colombia, Panama, and South Korea.
TAAEA reinstated some, but not all, of the expansions that had been enacted under ARRA. Most notably, it re-expanded eligibility to service sector (but not public sector) workers and increased training funding to near-ARRA levels. TAAEA also curtailed benefits by reducing the eligible reasons for training waivers from six to three.
Sunset and Termination Provisions of 2011 Reauthorization
The eligibility and benefit provisions initially enacted by TAAEA were scheduled to remain in place until December 31, 2013. Beginning January 1, 2014, the TAA program reverted to a more limited set of eligibility and benefit provisions ("Reversion 2014 provisions").58 Among other changes, the Reversion 2014 provisions ended eligibility for service workers and reduced the cap on training funding to the 2002 levels.
The Reversion 2014 provisions were scheduled to remain in place for one year before authorization expired after December 31, 2014, and the program was scheduled to begin to be phased out. The program did not, however, expire as scheduled at the end of 2014. Instead, the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235) provided funding for full operation of the program under the Reversion 2014 provisions through FY2015.
2015 Reauthorization: Trade Adjustment Assistance Reauthorization Act
TAA continued to operate under the Reversion 2014 provisions until the enactment of the Trade Adjustment Assistance Reauthorization Act of 2015 (TAARA; Title IV of P.L. 114-27). This reauthorization was aligned with the separate extension of the Trade Promotion Authority (TPA, also known as "fast track"). Any agreements negotiated under TPA are subject to an "up or down" vote in Congress.
TAARA reinstated many of the eligibility and benefit provisions that were enacted by TAAEA in 2011. TAARA reinstated eligibility for service workers and increased training funding to a level between those of TAAEA and the Reversion 2014 provisions.
Sunset and Termination Provisions of 2015 Reauthorization
TAARA contains sunset provisions similar to those in TAAEA that took effect in 2014. Beginning July 1, 2021, the TAA program is scheduled to revert to a more limited set of eligibility and benefit provisions that are similar to the Reversion 2014 provisions. These provisions are scheduled to remain in place for one year until authorization is set to expire after June 30, 2022, and then the program is scheduled to begin to be phased out.
| 1. |
In addition to the program for workers, other Trade Adjustment Assistance programs are authorized for firms and farmers that have been adversely affected by international trade. This report discusses the program for workers. From a budgetary standpoint, the workers program is substantially larger than the programs for firms and farmers and general discussion of "TAA" often only refers to the workers program. For more information on other TAA programs, see CRS Report RS20210, Trade Adjustment Assistance for Firms and CRS Report R40206, Trade Adjustment Assistance for Farmers. |
| 2. |
For more information on other workforce programs, see CRS Report R43301, Programs Available to Unemployed Workers Through the American Job Center Network. |
| 3. |
TAARA also reauthorized the TAA programs for firms and farmers. For more information on TAARA and those programs, see their corresponding reports cited in footnote 1. |
| 4. |
For more information on TPA, see CRS In Focus IF10038, Trade Promotion Authority (TPA). |
| 5. |
Shifts in production to countries that are beneficiaries under certain non-FTA trade agreements may also be covered. |
| 6. |
The funding structures under current law and the scheduled reversion are somewhat different. Under the scheduled reversion, Congress may appropriate additional funds beyond the cap for administration and case management. Under current law, the $450 million cap is inclusive of administration and case management costs. |
| 7. |
See Section 285 of the Trade Act as scheduled to be modified by Section 406 of TAARA. |
| 8. |
The term "Reversion 2014" does not appear in statute but was regularly used by DOL in referring to the provisions that took effect on January 1, 2014. |
| 9. |
See U.S. Department of Labor, Training and Employment Guidance Letter 07-13, "Operating Instructions for Implementing the Sunset Provisions of the Amendments to the Trade Act of 1974 Enacted by the Trade Adjustment Assistance Extension Act of 2011 (TAAEA or the 2011 Amendments)," December 27, 2013, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3972. |
| 10. |
See U.S. Department of Labor, Training and Employment Guidance Letter 12-13, "Fiscal Year (FY) 2014 State Initial Allocations for Trade Adjustment Assistance (TAA) Training and Other Activities and the Process for Requesting TAA Program Reserve Funds," February 7, 2014, https://wdr.doleta.gov/directives/attach/TEGL/TEGL_12_13.pdf. |
| 11. |
See Section 405 of TAARA. |
| 12. |
For more information on state workforce systems see CRS Report R44252, The Workforce Innovation and Opportunity Act and the One-Stop Delivery System. For more information on state unemployment insurance systems, see CRS Report RL33362, Unemployment Insurance: Programs and Benefits. |
| 13. |
For more information on the Health Coverage Tax Credit, see CRS Report R44392, The Health Coverage Tax Credit (HCTC): In Brief. |
| 14. |
Funds for TAA are typically appropriated under "Federal Unemployment Benefits and Allowances" in the Labor, Health and Human Services, Education, and Related Agencies appropriations bill. |
| 15. |
For more information on the formula and allotment process, see 19 U.S.C. 2296(a)(2) and 20 C.F.R. 618.900-930. |
| 16. |
See 19 U.S.C. §2295a. |
| 17. |
See Office of Management and Budget, OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2021, February 10, 2020, https://www.whitehouse.gov/wp-content/uploads/2020/02/JC-sequestration_report_FY21_2-10-20.pdf. |
| 18. |
See Division H of the Consolidated Appropriations Act, 2021 (P.L. 116-260); and Department of Labor, Training and Employment Guidance Letter No. 14-20: "Initial Allocation for Fiscal Year (FY) 2021 Trade Adjustment Assistance (TAA) Training and Other Activities and the Process for Requesting TAA Reserve Funds," January 19, 2021, https://wdr.doleta.gov/directives/attach/TEGL/TEGL_14-20.pdf . |
| 19. |
The previously cited TEGL 14-20 did not specify the calculation of the total FY2021 funding level for training and other activities, but the funding level appears to approximate the sum of prorated amounts under the current law provisions and the reversion provisions that are scheduled to take effect July 1, 2021. |
| 20. |
See Section 4, "Allocation and Process Details," of TEGL 14-20. |
| 21. |
Partial separation is defined as hours of work and wages being reduced to less than 80% of a worker's weekly average. See 20 C.F.R. §618.110. |
| 22. |
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). |
| 23. |
19 U.S.C. §2272(c)(3) defines a downstream producer as "a firm that performs additional, value-added production processes or services directly for another firm." |
| 24. |
Petition is available at http://www.doleta.gov/tradeact/docs/RevisedPetition.pdf. |
| 25. |
Upon receiving the petition, the governor shall ensure that rapid response workforce services are made available to the petitioning workers. Rapid response services are provided by the state agency that administers federal Workforce Innovation and Opportunity Act funds. |
| 26. |
"Threatened to begin" means "in the context of impending total or partial separations, the date on which it could reasonably be predicted that separations were imminent." See 20 C.F.R. §618.110. |
| 27. |
See 20 C.F.R. §618.245 for detailed information on the reconsideration process. |
| 28. |
19 U.S.C. §2291(c) defines three waiver requirements: (1) a worker is unable to participate in training due to health reasons, (2) suitable training is not available, or (3) enrollment in training is not available within 60 days. |
| 29. |
For more information on the formula and allotment process, see 19 U.S.C. §2296(a)(2) and 20 C.F.R. §§618.900 to 618.950. |
| 30. |
American Job Centers are locally run facilities providing workforce services to individuals and serve as the local arm of the state workforce system. There are approximately 2,500 centers nationwide. For more information on AJCs, see http://jobcenter.usa.gov/. |
| 31. |
19 U.S.C. §2296(e) defines suitable employment as "work of a substantially equal or higher skill level than the worker's past adversely affected employment, and wages for such work at not less than 80 percent of the worker's average weekly wage." |
| 32. |
The "reasonable cost" determination considers the cost of similar training from a different provider and the cost of training relative to the expected employment outcome. See 19 U.S.C. §2296(a)(1) for legislative language and 20 C.F.R. §618.610(f)(2) and 20 C.F.R. §618.650 for expanded definitions of terms. |
| 33. |
Eligible programs include (but are not limited to) employer-based training, any training program provided by a state under Title I of the Workforce Innovation and Opportunity Act of 2014, any program of remedial education, any program of prerequisite education or coursework required to enroll in an approved training program, any training program or coursework at an accredited institution of higher education, or any other training program approved by the Secretary of Labor. See 19 U.S.C. §2296(a)(5) for legislative language. |
| 34. |
U.S. Department of Labor, "Trade Adjustment Assistance for Workers Program: Fiscal Year 2019," Table 11, https://www.dol.gov/sites/dolgov/files/ETA/tradeact/pdfs/AnnualReport19.pdf. |
| 35. |
Ibid., Table 14. |
| 36. |
Ibid., Table 14 and Table 16. |
| 37. |
Ibid., Table 15. |
| 38. |
See 19 U.S.C. §2296(a)(9). |
| 39. |
Pell Grants are the primary form of federal grant aid awarded to students with financial need who are enrolled in postsecondary education. For more information, see CRS Report R45418, Federal Pell Grant Program of the Higher Education Act: Primer. |
| 40. |
See Section 479B of the Higher Education Act (20 U.S.C. §1087uu). |
| 41. |
TEGL 5-15, Operating Instructions for Implementing the Trade Adjustment Assistance Reauthorization Act of 2015, Section D.5.2, https://wdr.doleta.gov/directives/attach/TEGL/TEGL_05-15_Attachment1_Acc.pdf. |
| 42. |
Full requirements are outlined in 19 U.S.C. §2295. |
| 43. |
Under TAARA, states have discretion whether or not to offer job search and relocation allowances. If states opt to offer these benefits, the allowances are funded out of the state's training and reemployment services grants. |
| 44. |
In cases where unemployment benefits beyond state UC are available, the worker must exhaust all unemployment benefits before collecting TRA. Additional unemployment benefits offset TRA in the same manner as UC benefits. Maximum benefit durations reflect the combined total duration of unemployment benefits and TRA. |
| 45. |
A worker may obtain a training waiver if (1) the worker is unable to participate in training due to a health condition, (2) enrollment in a training program is available within 60 days, or (3) no suitable training is available. Workers who receive a training waiver may only collect Basic TRA; they are not eligible for the Additional and Completion tiers of TRA. |
| 46. |
These benefit amounts precede any changes to UC calculations during the COVID-19 pandemic. For a more detailed discussion of UC calculations and programs, see CRS Report RL33362, Unemployment Insurance: Programs and Benefits. For more information on pandemic-related provisions, see CRS Report R45478, Unemployment Insurance: Legislative Issues in the 116th Congress; and CRS In Focus IF11723, Unemployment Insurance Provisions in the Consolidated Appropriations Act, 2021 (Division N, Title II, Subtitle A, the Continued Assistance for Unemployed Workers Act of 2020). |
| 47. |
A worker who receives RTAA payments after receiving TRA payments will have his or her maximum RTAA benefit reduced on the basis of how long the worker collected TRA. Full calculation is at 19 U.S.C. §2318(a)(4)(B). |
| 48. |
See 19 U.S.C. §2318(a)(6)(B) for full calculation. |
| 49. |
For more information on the Health Coverage Tax Credit, see CRS Report R44392, The Health Coverage Tax Credit (HCTC): In Brief. |
| 50. |
More information on how workers may claim the credit is available from the IRS at https://www.irs.gov/credits-deductions/individuals/hctc. |
| 51. |
See 19 U.S.C. §2323 for full legislative language. |
| 52. |
The FY2019 TAA Annual Report defines a program exiter as a participant who "has not received a service funded by the program or certain other services funded by a partner program for 90 consecutive calendar days following the last service and is not scheduled for future services." See U.S. Department of Labor, Trade Adjustment Assistance for Workers Program: FY2019 Annual Report," https://www.dol.gov/sites/dolgov/files/ETA/tradeact/pdfs/AnnualReport19.pdf. |
| 53. |
Rapid response services are provided by state workforce systems after notification of a layoff. For more information, see https://www.doleta.gov/layoff/workers.cfm. |
| 54. |
Annual reports since FY2009 are available at https://www.doleta.gov/tradeact/taa-data/. As of this writing, the most recent report is for FY2019. |
| 55. |
See https://www.doleta.gov/tradeact/taa-data/participants-data/. |
| 56. |
The database is at https://doleta.gov/tradeact/petitioners/taa_search_form.cfm. |
| 57. |
For a more detailed history of the TAA program and its relationship with U.S. trade policy through 2013, see archived CRS Report R41922, Trade Adjustment Assistance (TAA) and Its Role in U.S. Trade Policy (available to congressional clients upon request). |
| 58. |
These provisions were similar, but not identical to, the provisions that were in place under the Trade Act of 2002. |