{ "id": "R44153", "type": "CRS Report", "typeId": "R", "number": "R44153", "active": true, "source": "CRSReports.Congress.gov, EveryCRSReport.com", "versions": [ { "source_dir": "crsreports.congress.gov", "title": "Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015", "retrieved": "2021-03-19T04:04:04.114316", "id": "R44153_10_2021-02-17", "formats": [ { "filename": "files/2021-02-17_R44153_3ae4974ac20223d1a4514cbe24c36444b9d021b2.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R44153/10", "sha1": "3ae4974ac20223d1a4514cbe24c36444b9d021b2" }, { "format": "HTML", "filename": "files/2021-02-17_R44153_3ae4974ac20223d1a4514cbe24c36444b9d021b2.html" } ], "date": "2021-02-17", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R44153", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 610854, "date": "2019-06-19", "retrieved": "2019-12-20T18:14:25.786850", "title": "Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015", "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). This report discusses the TAA program as enacted by TAARA.\nTo 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 services are eligible for TAA benefits.\nTo 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\u2019 job losses. Once a petition is certified by DOL, covered workers may apply for individual benefits. \nIndividual 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:\nTraining and reemployment services are designed to assist workers in preparing for and obtaining new employment. Training subsidies are the largest reemployment services expenditure and support workers in developing skills for a new occupation. Workers may also receive case management services and job search assistance. In some cases, workers who pursue employment outside their local commuting area may be eligible for job search or relocation allowances.\nTrade Readjustment Allowance (TRA) is a weekly income support payment for TAA-certified workers who have exhausted their unemployment compensation (UC) and who are enrolled in an eligible training program. Weekly TRA payments are equal to the worker\u2019s final weekly UC benefit. Workers may collect UC and TRA for a combined maximum of 130 weeks, the final 13 of which are only available if necessary for the worker to complete a qualified training program.\nReemployment Trade Adjustment Assistance (RTAA) is a wage insurance program available to certified workers age 50 and over who obtain reemployment at a lower wage. The wage insurance program provides a cash payment equal to 50% of the difference between the worker\u2019s new wage and previous wage, up to a two-year maximum of $10,000.\nThe Health Coverage Tax Credit is a credit equal to 72.5% of qualified health insurance premiums. Eligibility is aligned with TRA. Unlike other TAA benefits, it is administered through the tax code.\nTAA is a mandatory program that is supported through annual appropriations. Appropriations for the program in FY2019 were $790 million. These funds were subject to 6.2% sequestration, meaning that the post-sequestration funding level was about $741 million.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R44153", "sha1": "6fd0dbfe26cea42d38a67083e3d941ff28a0b681", "filename": "files/20190619_R44153_6fd0dbfe26cea42d38a67083e3d941ff28a0b681.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R44153", "sha1": "ed7f75a7be6e55206efea9aef0f96d90c6139f59", "filename": "files/20190619_R44153_ed7f75a7be6e55206efea9aef0f96d90c6139f59.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4765, "name": "Trade Agreements & WTO" }, { "source": "IBCList", "id": 4865, "name": "Import Policy" }, { "source": "IBCList", "id": 4888, "name": "Unemployment Insurance" }, { "source": "IBCList", "id": 4943, "name": "Workforce Development & Employment Services" } ] }, { "source": "EveryCRSReport.com", "id": 583961, "date": "2018-08-14", "retrieved": "2019-04-18T13:54:27.341594", "title": "Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015", "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). This report discusses the TAA program as enacted by TAARA.\nTo 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 services are eligible for TAA benefits.\nTo 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\u2019 job losses. Once a petition is certified by DOL, covered workers may apply for individual benefits. \nIndividual 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:\nTraining and reemployment services are designed to assist workers in preparing for and obtaining new employment. Training subsidies are the largest reemployment services expenditure and support workers in developing skills for a new occupation. Workers may also receive case management services and job search assistance. In some cases, workers who pursue employment outside their local commuting area may be eligible for job search or relocation allowances.\nTrade Readjustment Allowance (TRA) is a weekly income support payment for TAA-certified workers who have exhausted their unemployment compensation (UC) and who are enrolled in an eligible training program. Weekly TRA payments are equal to the worker\u2019s final weekly UC benefit. Workers may collect UC and TRA for a combined maximum of 130 weeks, the final 13 of which are only available if necessary for the worker to complete a qualified training program.\nReemployment Trade Adjustment Assistance (RTAA) is a wage insurance program available to certified workers age 50 and over who obtain reemployment at a lower wage. The wage insurance program provides a cash payment equal to 50% of the difference between the worker\u2019s new wage and previous wage, up to a two-year maximum of $10,000.\nThe Health Coverage Tax Credit is a credit equal to 72.5% of qualified health insurance premiums. Eligibility is aligned with TRA. Unlike other TAA benefits, it is administered through the tax code.\nTAA is a mandatory program that is supported through annual appropriations. Appropriations for the program in FY2018 were $790 million.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R44153", "sha1": "945def3f028082ed88fc20fe31c6c86e9f8f0566", "filename": "files/20180814_R44153_945def3f028082ed88fc20fe31c6c86e9f8f0566.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R44153", "sha1": "50358a9f3ec875358e8ec79b343e5e018c5d3632", "filename": "files/20180814_R44153_50358a9f3ec875358e8ec79b343e5e018c5d3632.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4765, "name": "Trade Agreements & WTO" }, { "source": "IBCList", "id": 4865, "name": "Import Policy" }, { "source": "IBCList", "id": 4888, "name": "Unemployment Insurance" }, { "source": "IBCList", "id": 4943, "name": "Workforce Development & Employment Services" } ] }, { "source": "EveryCRSReport.com", "id": 455738, "date": "2016-09-14", "retrieved": "2016-09-16T18:03:33.797538", "title": "Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015", "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). This report discusses the TAA program as enacted by TAARA.\nTo 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 services are eligible for TAA benefits.\nTo 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 foreign trade in the workers\u2019 job losses. Once a petition is certified by DOL, covered workers may apply for individual benefits. \nIndividual 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:\nTraining and reemployment services are designed to assist workers in preparing for and obtaining new employment. Training subsidies are the largest reemployment services expenditure and support workers in developing skills for a new occupation. Workers may also receive case management services and job search assistance. In some cases, workers who pursue employment outside their local commuting area may be eligible for job search or relocation allowances.\nTrade Readjustment Allowance (TRA) is a weekly income support payment for TAA-certified workers who have exhausted their unemployment compensation (UC) and who are enrolled in an eligible training program. Weekly TRA payments are equal to the worker\u2019s final weekly UC benefit. Workers may collect UC and TRA for a combined maximum of 130 weeks, the final 13 of which are only available if necessary for the worker to complete a qualified training program.\nReemployment Trade Adjustment Assistance (RTAA) is a wage insurance program available to certified workers age 50 and over who obtain reemployment at a lower wage. The wage insurance program provides a cash payment equal to 50% of the difference between the worker\u2019s new wage and previous wage, up to a two-year maximum of $10,000.\nThe Health Coverage Tax Credit is a credit equal to 72.5% of qualified health insurance premiums. Eligibility is aligned with TRA. Unlike other TAA benefits, it is administered through the tax code.\nTAA is a mandatory program that is supported through annual appropriations. Appropriations for the program in FY2016 were $861 million.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R44153", "sha1": "1fc6210dad0ec15a7168c8ebd9063b3449038d70", "filename": "files/20160914_R44153_1fc6210dad0ec15a7168c8ebd9063b3449038d70.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R44153", "sha1": "b89ee04f3e736d5003ef8fe611a03a69fea3f6f6", "filename": "files/20160914_R44153_b89ee04f3e736d5003ef8fe611a03a69fea3f6f6.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 365, "name": "U.S. and International Trade Agreements" }, { "source": "IBCList", "id": 3938, "name": "Unemployment Insurance" }, { "source": "IBCList", "id": 647, "name": "Employment and Training Policy" } ] }, { "source": "EveryCRSReport.com", "id": 444240, "date": "2015-08-18", "retrieved": "2016-04-06T18:34:50.458850", "title": "Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015", "summary": "Congressional Research Service\n7-5700\nwww.crs.gov\nR44153\nSummary\nTrade 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). This report discusses the TAA program as enacted by TAARA.\nTo 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. Under TAARA, private sector workers who produce goods or services are eligible for TAA benefits.\nTo 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 foreign trade in the workers\u2019 job losses. Once a petition is certified by DOL, covered workers may apply for individual benefits. \nIndividual benefits are funded by the federal government and administered by the states through their workforce systems and unemployment insurance systems. Benefits available to individual workers include the following:\nReemployment services are a group of benefits and services designed to assist workers in preparing for and obtaining new employment. Training subsidies are the largest reemployment services expenditure and support workers in developing skills for a new occupation. Workers may also receive case management services and job search assistance. In some cases, workers who pursue employment outside their local commuting area may be eligible for job search or relocation allowances.\nTrade Readjustment Allowance (TRA) is a weekly income support payment for TAA-certified workers who have exhausted their unemployment insurance (UI) and who are enrolled in an eligible training program. Weekly TRA payments are equal to the worker\u2019s final UI benefit. Workers may collect UI and TRA for a combined maximum of 130 weeks, the final 13 of which are only available if necessary for the worker to complete a training program.\nReemployment Trade Adjustment Assistance (RTAA) is a wage insurance program available to certified workers age 50 and over who obtain reemployment at a lower wage. The wage insurance program provides a cash payment equal to 50% of the difference between the worker\u2019s new wage and previous wage, up to a two-year maximum of $10,000.\nThe Health Coverage Tax Credit is a credit equal to 72.5% of qualified health insurance premiums. Eligibility is aligned with TRA. Unlike other TAA benefits, it is administered through the tax code.\nTAA is mandatory spending. Total funding for reemployment services, including training, is capped at $450 million per year. Total funds for TRA and RTAA benefits are uncapped, though there are limits for individual beneficiaries.\nContents\nProgram Rationale and Purpose\t1\nTrade Adjustment Assistance Reauthorization Act of 2015\t1\nApplicability of TAARA Provisions\t2\nBenefits for Certified Workers\t2\nReemployment Services\t5\nTraining Assistance\t6\nCase Management and Employment Services\t6\nJob Search and Relocation Allowances\t7\nTrade Readjustment Allowance\t7\nReemployment Trade Adjustment Assistance\t8\nHealth Coverage Tax Credit\t8\nTAA Administration and Financing\t2\nAdministration\t2\nFinancing\t2\nEligibility and Application Process\t2\nTAA Group Eligibility Criteria\t3\nTAA Group Petition and Certification Process\t4\nRetroactive Group Eligibility Under TAARA\t4\nTAA Individual Eligibility\t5\n\nAppendixes\nAppendix. Program History\t10\n\nContacts\nAuthor Contact Information\t12\n\nTrade Adjustment Assistance for Workers (TAA) provides federal assistance to workers who involuntarily lose their jobs due to foreign competition. The primary benefits for TAA-eligible workers are funding for reemployment services (including training) and 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 supplement program.\nAfter a brief discussion of the program\u2019s purpose and 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).\nProgram Rationale and Purpose\nReduced 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 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.\nTAA was created in 1962 and, historically, has been reauthorized alongside expansionary trade policies. A detailed legislative history of the program is in the Appendix.\nTrade Adjustment Assistance Reauthorization Act of 2015\nIn June 2015, TAA was reauthorized by TAARA. The eligibility and benefit provisions of TAARA are authorized to continue through June 30, 2021.\nTAARA was part of a bill that extended other trade-related policies as well. 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 \u201cfast track\u201d) grants the President authority to negotiate trade agreements, which are then subject to an \u201cup or down\u201d vote in Congress. \nApplicability of TAARA Provisions\nThis report focuses on the eligibility and benefit provisions of TAA as enacted by TAARA. These provisions apply to all workers certified for TAA after the law\u2019s enactment. The law also had retroactivity provisions and, in some cases, workers that were parts of groups certified prior to the 2015 reauthorization may also be covered under the TAARA provisions. \nIn some cases, however, a worker who was certified under pre-2015 provisions may continue to receive benefits under the prior provisions. As such, while the version of the program described in this report will apply to all new program participants certified through June 30, 2021, it may not apply to some participants who were already enrolled in TAA prior to the enactment of TAARA. In these cases, states may operate multiple TAA programs to concurrently serve workers certified under the TAARA provisions and workers certified under other provisions.\nTAA Financing and Administration\nTAA is jointly administered by the federal government and the states. 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 changed by it.\nAdministration\nTAA 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. 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.\nThe 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). It is administered separately from the TAA program\u2019s other benefits and services.\nFinancing\nTAA is funded by mandatory appropriations. Typically, Congress appropriates a single sum that supports all TAA activities. DOL then allocates these funds to various program activities. \nUnder TAARA, funding for reemployment services is capped at $450 million per year. Funds are allotted to the states via a grant allocation formula that considers past and anticipated program usage. States may expend reemployment service funds in the year of allotment or in either of the next two fiscal years.\nTraining subsidies are states\u2019 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.\nFunds 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.\nTAA is a direct spending (also referred to as \u201cmandatory\u201d) program and subject to sequestration under the Budget Control Act of 2011, as amended. For FY2016, the Office of Management and Budget (OMB) has estimated that the reduction for non-exempt, nondefense spending will be 6.8%. Sequester levels in subsequent years will be determined by OMB.\nEligibility and Application Process\nObtaining 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 foreign trade \u201ccontributed importantly\u201d to their job losses and become TAA certified. Once a group has been certified by DOL, individual workers covered by the group\u2019s 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.\nTAA Group Eligibility Criteria\nTo 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. Under TAARA, private sector workers who produce goods (\u201carticles\u201d in the law) or services are eligible for TAA.\nThe petitioning workers must establish that foreign trade contributed importantly to their separation. The role of foreign trade can be established in one of several ways:\nAn increase in competitive imports. The sales or production of the petitioning firm have decreased absolutely and imports of articles or services like or directly competitive with those produced by the petitioning firm have increased.\nA shift in production to a foreign country. The workers\u2019 firm has moved production of the articles or services that the petitioning workers produced to a foreign country or the firm has acquired, from a foreign provider, articles or services that are directly competitive with those produced by the workers.\nAdversely affected secondary workers. The petitioning firm is a supplier or a downstream producer to a TAA-certified firm and either (1) the sales or production for the TAA-certified firm accounted for at least 20% of the sales or production of the petitioning firm or (2) a loss of business with a TAA-certified firm contributed importantly to the workers\u2019 job losses.\nUSITC workers. Workers separated from firms that have been publicly identified by the United States International Trade Commission (USITC) as injured by a market disruption or other qualified action.\nTAA Group Petition and Certification Process\nTo 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. An additional copy of the TAA petition must also be filed with the governor of the state in which the affected firm is located. 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. \nIf a petition is certified, DOL will also determine an impact date on which trade-related layoffs began or threatened to begin. 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.\nIf a petition is denied, the group may request administrative reconsideration by DOL. 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\u2019s 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.\nRetroactive Group Eligibility Under TAARA\nTAARA contains several mechanisms to extend TAA benefits to groups of workers who met the eligibility criteria under TAARA but were dislocated when prior provisions with narrower eligibility criteria were in effect. The narrower eligibility criteria (described as the \u201cReversion 2014 provisions\u201d in the Appendix) took effect January 1, 2014, and were in effect until the enactment of TAARA.\nTAARA specifies that petitions that were denied between January 1, 2014, and the enactment of TAARA will automatically be reconsidered under the new criteria. TAARA further specifies that petitions that were filed before the enactment of TAARA but not determined before its enactment will be considered under the new criteria.\nTAARA also specifies that for petitions filed within 90 days of TAARA\u2019s enactment, DOL could determine an impact date as early as January 1, 2014. (Typically, an impact date can be no earlier than one year prior to a certification.) This broader window allows for the coverage of workers whose job loss occurred after January 1, 2014, and who meet the criteria of TAARA but did not meet the criteria of the pre-TAARA provisions.\nTAA Individual Eligibility\nAfter 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 UI 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. \nGroup-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.\nBenefits for Certified Workers\nTAA benefits for individuals include reemployment services and income support for workers who have exhausted their UI 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.\nReemployment Services\nTAA-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.\nTAARA caps annual funding for reemployment services at $450 million per year. Reemployment funds are granted to state workforce agencies via formula.\nTraining Assistance\nEligible workers request training assistance through their local AJCs. Once approved, training can be paid on the worker\u2019s behalf directly to the service provider or through a voucher system. To receive funding, the worker must be qualified to undertake the requested training, the training must be available at a reasonable cost, and there must be a reasonable expectation of employment following the completion of training.\nThe range of approved training includes a variety of governmental and private programs. There is no federal limit on the amount of training funding an individual can receive, though some states have a cap.\nA concise summation of TAA training programs is difficult due to the range of acceptable activities and the decentralized nature of job training. Data from DOL, however, offer some insight into the nature and duration of TAA-sponsored training programs. In FY2014, approximately 87% 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. Among the training participants who completed a program in FY2014, the average duration of enrollment in the program was 585 days.\nTAA does not require training programs to lead to a degree or other credential. In its FY2014 annual report, DOL reported that 83% of workers who completed training earned an industry-recognized credential, or a secondary school diploma or equivalent.\nCase Management and Employment Services\nTAARA specifies a series of case management and employment services to which all TAA-certified workers are entitled. These services include a comprehensive assessment of a worker\u2019s 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. Under TAARA, states are required to use at least 5% of their reemployment services allotments for case management and employment services.\nJob Search and Relocation Allowances\nStates may use their reemployment services funding to provide job search and relocation allowances. 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.\nA Job Search Allowance may be available to subsidize transportation and subsistence costs related to job search activities outside an eligible worker\u2019s local commuting area. Subsistence payments may not exceed 50% of the federal per diem rate and travel payments may not exceed the prevailing mileage rate authorized under federal travel regulations.\nA Relocation Allowance may be available to workers who have secured permanent employment outside their local commuting area. The benefit covers 90% of the reasonable and necessary expenses of moving the workers, their families, and their household items. Relocating workers may also be eligible for a lump sum payment of up to three times their weekly wage, though the total relocation benefit may not exceed $1,250.\nTrade Readjustment Allowance\nTrade Readjustment Allowance (TRA) is a weekly income support payment to certified workers who have exhausted their UI benefits and are enrolled in training. To be eligible for TRA, a worker must be enrolled in training within 26 weeks of separation from the worker\u2019s job or within 26 weeks of TAA certification, whichever is later. In some circumstances, a worker may obtain a training waiver. \nTRA 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.\nIndividual TRA benefit levels are equal to a worker\u2019s final UI benefit. UI benefit levels are based on earnings during a base period of employment (typically, the first four of the last five completed calendar quarters). UI benefits typically replace a portion of a worker\u2019s wages up to a statewide maximum. Since states each administer their own UI programs, there is some variation in benefit levels. In July 2014, the highest maximum weekly UI benefit for a worker with no dependents was $679 in Massachusetts and the lowest maximum weekly benefit was $240 in Arizona.\nThere are three stages of TRA:\nBasic TRA. The weekly basic TRA payment begins the week after a worker\u2019s UI eligibility expires. 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 from the training requirement. 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 UI benefits. For example, assuming a constant benefit level, a worker who received 20 weeks of UI benefits would be eligible for 32 weeks of basic TRA.\nAdditional TRA. After basic TRA has been exhausted, workers who are enrolled in a TAA-approved training program are eligible for an additional 65 weeks of income support, for a total of 117 weeks of benefits. Additional TRA is limited to workers who are enrolled in a training program; workers who have received a training waiver are not eligible for additional TRA. TAA participants may only collect additional TRA as long as they remain enrolled in a qualified training program. In cases where a worker\u2019s training program is shorter than the maximum TRA duration, the worker is not entitled to the maximum number of TRA weeks.\nCompletion TRA. In cases where a worker has collected 117 weeks of combined TRA and UI and is still enrolled in a training program that leads to a degree or industry-recognized credential, the worker may collect TRA for up to 13 additional weeks (130 weeks total) if the worker will complete the training program during that time.\nReemployment Trade Adjustment Assistance\nRTAA 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\u2019s wage at the trade-affected job and the worker\u2019s 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. \nTo 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.\nHealth Coverage Tax Credit\nWorkers who are receiving TRA, UI in lieu of TRA, or RTAA benefits may also be eligible for a tax credit that covers a portion of eligible health insurance premiums. The Health Coverage Tax Credit (HCTC) is equal to 72.5% of qualified health insurance premiums.\nTAARA includes provisions specifying that a worker must elect between the HCTC and premium credits under the Patient Protection and Affordable Care Act (P.L. 111-148, amended). Unlike other provisions of TAARA, which are in effect through June 30, 2021, the HCTC is authorized through December 31, 2019.\nProgram History\nEarly History\nThe 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.\nIn 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.\n1990s and NAFTA\nThe 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.\nTrade Act of 2002\nThe 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.\nThe Trade Act of 2002 reauthorized TAA through FY2007. Several short-term extensions continued the program until it was reauthorized in February 2009.\nAmerican Recovery and Reinvestment Act\nIn 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.\nThe 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.\nThe 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.\n2011 Reauthorization: Trade Adjustment Assistance Extension Act\nIn 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.\nTAAEA 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. \nSunset and Termination Provisions of 2011 Reauthorization\nThe 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 (\u201cReversion 2014 provisions\u201d). Among other changes, the Reversion 2014 provisions ended eligibility for service workers and reduced the cap on training funding to the 2002 levels.\nThe 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.\n2015 Reauthorization: Trade Adjustment Assistance Reauthorization Act\nTAA 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 \u201cfast track\u201d). Any agreements negotiated under TPA are subject to an \u201cup or down\u201d vote in Congress.\nTAARA 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.\nSunset and Termination Provisions of 2015 Reauthorization\nTAARA 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.\n\nAuthor Contact Information\n\nBenjamin Collins\nAnalyst in Labor Policy\nbcollins@crs.loc.gov, 7-7382", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R44153", "sha1": "bf566c9faef72dc825d8be9345a90b191fb5b582", "filename": "files/20150818_R44153_bf566c9faef72dc825d8be9345a90b191fb5b582.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R44153", "sha1": "8f7a9a5943a2f0866f9ede3216e5421297eba232", "filename": "files/20150818_R44153_8f7a9a5943a2f0866f9ede3216e5421297eba232.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 365, "name": "U.S. and International Trade Agreements" }, { "source": "IBCList", "id": 3938, "name": "Unemployment Insurance" }, { "source": "IBCList", "id": 647, "name": "Employment and Training Policy" } ] } ], "topics": [ "Foreign Affairs" ] }