Order Code RL34251
Federal Programs Available
to Unemployed Workers
November 14, 2007
Julie M. Whittaker
Specialist in Income Security
Domestic Social Policy
Blake Alan Naughton
Analyst in Education Policy
Domestic Social Policy

Federal Programs Available to Unemployed Workers
Summary
Four groups of federal programs target unemployed workers: income support,
health care assistance, job search assistance, and training. Unemployed workers and
their families may experience substantial income loss and, as a result, may qualify
for a number of other federal programs that determine eligibility based on income
(e.g., the Earned Income Tax Credit, Temporary Assistance for Needy Families, or
Medicaid). This report presents information on federal programs targeted to
unemployed workers specifically, but does not attempt to discuss means-tested
programs.
A variety of benefits may be available to unemployed workers to provide them
with income support during a period of unemployment. When eligible workers lose
their jobs, the Unemployment Compensation (UC) program may provide income
support through the payment of UC benefits (often referred to as Unemployment
Insurance, or UI, benefits). Certain groups of workers who lose their jobs on account
of international competition may qualify for additional or supplemental income
support through Trade Adjustment Act (TAA) programs. If an unemployed worker
is not eligible to receive UC benefits and the worker’s unemployment may be directly
attributed to a declared major disaster, a worker may be eligible to receive Disaster
Unemployment Assistance (DUA) benefits.
Two federal laws may aid unemployed workers in the purchase of health
insurance. The first, the Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA), allows unemployed workers in certain circumstances to purchase
continued health insurance coverage. The second, the Health Care Tax Credit
(HCTC), allows certain TAA and Alternative TAA (for older workers) participants
to receive an advanceable and refundable tax credit for purchasing health insurance.
Federal support for Americans seeking assistance to obtain, retain, or change
employment is undertaken by a national system of local One-Stop Career Centers
(One-Stops) that were established by the Workforce Investment Act of 1998 (WIA,
P.L. 105-220). A variety of services and partner programs — notably including UC
and TAA — are located within or linked to One-Stops, which primarily provide job
search assistance, career counseling, labor market information, and other employment
services. Core labor exchange services (matching job seekers and employers) are
provided by the U.S. Employment Service, which was first established by the
Wagner-Peyser Act of 1933 and most recently amended under Title III of WIA. In
addition to ES, Title I of WIA authorizes resources for similar core and intensive
employment services for youth, adults, dislocated workers, and targeted populations.
WIA Title I is also the nation’s central job training legislation, providing funds
for traditional, on-the-job, customized, and other forms of training to individuals
unable to obtain or retain employment through other services.
This report will be updated as new legislation warrants.

Contents
Income Support for Unemployed Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Unemployment Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Extended Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Trade Readjustment Allowance (TRA): Unemployment Benefit Extensions
for Workers Unemployed on Account of International Trade . . . . . . . . 3
Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Job Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Older Workers and TAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Disaster Unemployment Assistance (DUA) . . . . . . . . . . . . . . . . . . . . . . . . . 4
Health Care Assistance for Unemployed Workers . . . . . . . . . . . . . . . . . . . . . . . . 5
Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA, P.L. 99-272) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Health Care Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Job Search Assistance for Unemployed Workers . . . . . . . . . . . . . . . . . . . . . . . . . 6
Wagner-Peyser Act of 1933 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Employment Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Wagner-Peyser Act Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Job Training Assistance for Unemployed Workers . . . . . . . . . . . . . . . . . . . . . . . . 7
Workforce Investment Act of 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
WIA State Formula Grant Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
National Training Programs for Special Populations . . . . . . . . . . . . . . 8
Other Targeted Competitive Grant Programs . . . . . . . . . . . . . . . . . . . . 9
Workforce Investment Act Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Targeted Federal Job Training Activities: Trade Adjustment Assistance
and Community Service Employment for Older Americans . . . . . . . . 10
Trade Adjustment Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Community Service Employment for Older Americans . . . . . . . . . . . 11
Employer Education Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
List of Tables
Table 1. Workforce Investment Act Title I FY2007 Appropriations . . . . . . . . . 10

Federal Programs Available to
Unemployed Workers
There are four groups of federal programs that target unemployed workers:
income support, health care assistance, job search assistance, and training. On the
following pages we describe these programs, how they interact with each other, and
their funding.
Unemployed workers and their families may experience substantial income loss.
If the unemployed worker’s family income is low enough, there are a number of
means-tested benefits and programs for which the unemployed worker’s family might
qualify (e.g., the Earned Income Tax Credit, Temporary Assistance for Needy
Families, or Medicaid). Eligibility for such programs is not conditional on one’s
employment status. This report does not attempt to discuss these means-tested
programs.
Income Support for Unemployed Workers
A variety of benefits may be available to unemployed workers to provide them
with income support during a spell of unemployment. When eligible workers lose
their jobs, the Unemployment Compensation (UC) program may provide income
support through the payment of UC benefits. Certain groups of workers who lose
their jobs on account of international competition may qualify for additional or
supplemental income support through Trade Adjustment Act (TAA) programs. If an
unemployed worker is not eligible to receive UC benefits and the worker’s
unemployment may be directly attributed to a declared major disaster, a worker may
be eligible to receive Disaster Unemployment Assistance (DUA) benefits.1
The federal government provided Temporary Extended Unemployment
Compensation (TEUC) benefits to unemployed workers in the past during some
economic recessions. This temporary program generally extended UC benefits for
an additional 13 weeks and had an expiration date. As of this writing, no TEUC
program exists; therefore, these benefits are not available
.
1 For a more comprehensive review of these income support programs, see CRS Report
RL33362, Unemployment Insurance: Available Unemployment Benefits and Legislative
Activity
, by Julie Whittaker; CRS Report RS22718, Trade Adjustment Assistance for
Workers (TAA) and Alternative Trade Adjustment Assistance for Older Workers (ATAA)
, by
John Topoleski; and CRS Report RS22022, Disaster Unemployment Assistance (DUA), by
Julie Whittaker.

CRS-2
Unemployment Compensation
The cornerstone of an unemployed worker’s income support is the joint federal-
state Unemployment Compensation (UC)2 program, which may provide income
support through the payment of UC benefits. The underlying framework of the UC
system is contained in the Social Security Act (the act). Title III of the act authorizes
grants to states for the administration of state UC laws, Title IX authorizes the
various components of the federal Unemployment Trust Fund (UTF), and Title XII
authorizes advances or loans to insolvent state UC programs. UC is financed by
federal taxes under the Federal Unemployment Tax Act (FUTA) and by state payroll
taxes under the State Unemployment Tax Acts (SUTA).
The federal government appropriates funds for federal and state UC program
administration, the federal share of Extended Benefit (EB) payments, and federal
loans to insolvent state UC programs. The federal government has distributed base
funding amounts distributed to states for the administration of their UC programs for
FY2008. States should receive an estimated $2.29 billion.3 In FY2007, states spent
an estimated $30.8 billion on UC benefits.
The UC system pays benefits to covered workers who become involuntarily
unemployed for economic reasons and meet state-established eligibility rules. The
UC system generally does not provide UC benefits to the self-employed, to those
who are unable to work, or to those who do not have a recent earnings history. States
usually disqualify claimants who lost their jobs because of inability to work,
unavailability for work, or a labor dispute, or who voluntarily quit without good
cause, who were discharged for job-related misconduct, or who refused suitable work
without good cause. To receive UC benefits, claimants must have enough recent
earnings to meet their state’s earnings requirements.
Weekly UC maximums in January 2007 ranged from $210 (Mississippi) to $575
(Massachusetts) and, in states that provide dependent’s allowances, up to $862
(Massachusetts).
In FY2007, the U.S. average weekly benefit was $280. Benefits are available
for up to 26 weeks (30 weeks in Massachusetts). For the third quarter of FY2007,
the U.S. average regular UC benefit duration was 15.1 weeks.
Extended Benefits. The EB program, established by P.L. 91-373 (26 U.S.C.
3304), may extend UC benefits at the state level if certain economic situations within
the state exist. Although the EB program is not currently active in any state, it — like
the UC program — is permanently authorized. The EB program is triggered when
2 For more information on UC, see CRS Report RS22538, Unemployment Compensation:
The Cornerstone of Income Support for Unemployed Workers
, by Julie M. Whittaker, and
CRS Report RL33362, Unemployment Insurance: Available Unemployment Benefits and
Legislative Activity
, by Julie M. Whittaker.
3 In addition to the base state amounts, states may receive extra funds each quarter for actual
UC claims workload above the state’s base.

CRS-3
a state’s insured unemployment rate (IUR)4 or total unemployment rate (TUR)5
reaches certain levels. All states must pay up to 13 weeks of EB if the IUR for the
previous 13 weeks is at least 5% and is 120% of the average of the rates for the same
13-week period in each of the 2 previous years. There are two other optional
thresholds that states may choose. If the state has chosen the option, they would
provide the following:
! Option 1: an additional 13 weeks of benefits if the state’s IUR is at
least 6%, regardless of previous years’ averages.
! Option 2: an additional 13 weeks of benefits if the state’s TUR is at
least 6.5% and is at least 110% of the state’s average TUR for the
same 13-weeks in either of the previous two years; an additional 20
weeks of benefits if the TUR is at least 8%.
No state currently has an active EB program.
Trade Readjustment Allowance (TRA): Unemployment Benefit
Extensions for Workers Unemployed on Account of
International Trade

The Trade Adjustment Act (TAA)6 program, established by the Trade
Expansion Act of 1962 (P.L. 87-794) and now authorized by the Trade Act of 1974
(P.L. 93-618), as amended, extends unemployment benefits for workers dislocated
by import competition. TAA eligible workers may also receive job training. To gain
TAA eligibility, a group of workers (or a state or firm on behalf of a group of
workers) petitions the Department of Labor (DOL), and DOL investigates whether
import competition “contributed importantly” to their job loss or whether their firm
has shifted production of like articles to certain countries. The reauthorization of
TAA by the Trade Act of 2002 (P.L. 107-210) extends eligibility to secondary
workers whose job loss results from the loss of business with a primary firm (the firm
that directly lost business or outsourced work as a result of trade). P.L. 110-89
extends authorization for the TAA program through December 31, 2007.
TAA funds are appropriated as an entitlement out of the federal government’s
general fund (not out of the Unemployment Trust Fund) to workers who meet the
eligibility requirements, although training funds are subject to annual funding caps.
At the federal level, TAA is administered by, and is part of the federal budget for, the
U.S. Department of Labor (DOL). Claims for TAA benefits by individual workers
are administered by the state UC agencies under agreements and contracts with DOL.
4 The IUR is the ratio of UC eligible unemployed workers to all UC eligible workers
(employed and unemployed) in the labor force.
5 The TUR is the ratio of unemployed workers to all workers (employed and unemployed,
without regard to UC eligibility) in the labor force.
6 For more information on TAA, see CRS Report RS22718, Trade Adjustment Assistance
for Workers (TAA) and Alternative Trade Adjustment Assistance for Older Workers (ATAA)
,
by John J. Topoleski.

CRS-4
The income support portion of the TAA is a trade readjustment allowance
(TRA) benefit. The TRA benefit is identical to the UC benefit the worker would
have received under the regular UC program of the worker’s state. The TRA benefit
is available for 52 weeks, less any weeks in which regular UC or EB benefits are
received, plus an additional 52 weeks for claimants still in approved job training after
the basic TRA runs out. An additional 26-week extension is available to those in
need of remedial education. Therefore, the total period of unemployment benefit
receipt for a TAA certified unemployed worker — including regular and extended
UC benefits, as well as the TRA benefits — may last as long as 130 weeks.
In FY2006, there were 129,552 workers covered by TAA certifications and
approximately 60,000 new TRA recipients. Approximately $549 million was spent
on TRA benefits in FY2006.
Other Benefits. An allowance of up to $1,250 may be paid to eligible
workers who must search for work outside their commuting area. Another $1,250
allowance may be paid for the cost of relocation to another job market.
Job Training. TAA eligible workers may be provided job training through the
TAA. This assistance is discussed in the Job Training Assistance section below.
Older Workers and TAA. An alternative TAA (ATAA) for older workers
was established by the Trade Act of 2002 (P.L. 107-210). It replaces up to 50% of
the difference (up to $10,000) between the wages in a new job and the old job for up
to two years for an older worker who has been displaced by import competition.
The ATAA program went into effect on August 6, 2003, and is intended to
shorten transitions into new occupations or industries without requiring older
workers to participate in training programs. Eligibility is limited to those over age
50 whose incomes are less than $50,000 yearly, who work full time, and who find
new jobs within 26 weeks after job separation.
Disaster Unemployment Assistance (DUA)
The Disaster Unemployment Assistance (DUA) program provides monetary
assistance to individuals unemployed as a direct result of a major disaster who are not
eligible for regular Unemployment Compensation (UC) benefits. DUA is funded
through the Federal Emergency Management Agency (FEMA). DUA is administered
by the Department of Labor (DOL) through each state’s UC agency.
First created in1970 through P.L. 91-606, DUA benefits are authorized by the
Robert T. Stafford Disaster Relief and Emergency Relief Act (the Stafford Act),
which authorizes the President to issue a major disaster declaration after state and
local government resources have been overwhelmed by a natural catastrophe or,
“regardless of cause, any fire, flood, or explosion in any part of the United States”
(42 U.S.C. 5122(2)). On the basis of the request of the affected state’s governor, the
President may declare that a major disaster exists. The declaration identifies the areas
in the state eligible for assistance. The declaration of a major disaster provides the
full range of disaster assistance available under the Stafford Act, including, but not
limited to, the repair, replacement or reconstruction of public and non-profit

CRS-5
facilities, cash grants for the personal needs of victims, housing, and unemployment
assistance related to job loss from the disaster.
In FY2006, $373 million was spent on DUA benefits. This was an atypical
outlay and reflects the severity of the Hurricane Katrina disaster. Generally, the
federal budget contains an estimated $40 million in a given year for DUA benefits.
Health Care Assistance for Unemployed Workers
Two federal laws may aid unemployed workers in the purchase of health
insurance. The first, the Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA), allows unemployed workers in certain circumstances to purchase
continued health insurance coverage. The second, the Health Care Tax Credit
(HCTC), allows certain TAA and ATAA participants to receive an advanceable and
refundable tax credit for purchasing health insurance.
Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA, P.L. 99-272)

Title X of COBRA7 requires employers who offer health insurance to continue
coverage for their employees under certain circumstances. Congress approved the
legislation to expand access to coverage at group rates to qualified employees and
their families who are faced with loss of coverage due to certain events, including
termination or reduction in hours of employment (for reasons other than gross
misconduct). Although the law allows employers to charge 102% of the group plan
premium, this can be much less expensive than comparable coverage available in the
individual insurance market.
Coverage generally lasts 18 months but, depending on the circumstances, can
last for longer periods. COBRA requirements also apply to self-insured firms. An
employer must comply with COBRA even if it does not contribute to the health plan;
it need only maintain such a plan to come under the statute’s continuation
requirements.
Unpublished Department of Health and Human Services data from 2004
estimate that approximately 2.8 million non-elderly adults were enrolled in COBRA
coverage obtained through their own former employer.8
7 For more information on COBRA, see CRS Report RL30626, Health Insurance
Continuation Coverage Under COBRA,
by Heidi Yacker.
8 This estimate includes unemployed workers from private industry and state and local
governments. It does not include former federal workers.

CRS-6
Health Care Tax Credit
Workers eligible for Trade Adjustment Assistance or receiving a pension paid
by the Pension Benefit Guaranty Corporation (PBGC) may be eligible to receive an
advanceable, refundable tax credit (the Health Coverage Tax Credit, HCTC)9 to
purchase certain types of insurance. The Health Care Tax Credit (HCTC) is a
refundable and advanceable tax credit for 65% of health insurance premiums.
The HCTC is available to TAA and ATAA eligibles as well as individuals aged
55 and older receiving a PBGC pension payment. Recipients cannot be enrolled in
certain other health insurance, including Medicaid or employment-based insurance
for which the employer pays at least half the cost, nor can they be entitled to
Medicare.
The HCTC equals 65% of the premiums the taxpayer pays for qualifying
insurance. Up to 10 types of coverage are specified in the statute, although most
require state action to become effective. The credit is payable in advance to insurers,
allowing workers to benefit before they file their tax returns. It is also refundable:
workers can receive the full credit even if they have no regular tax liability.
The Congressional Budget Office (CBO) estimates $20 million in HCTC
expenditures for tax year 2006.
Job Search Assistance for Unemployed Workers
Federal support for Americans seeking assistance to obtain, retain, or change
employment is undertaken by a national system of local One-Stop Career Centers
(One-Stops). One-Stops were established by law under the Workforce Investment
Act of 1998 (WIA, P.L. 105-220), but had been encouraged by the Department of
Labor (DOL) since it began awarding states One-Stop development grants in 1993.
Although One-Stops bring together employment and training services of
approximately 20 required partners, the central component of all One-Stops is a labor
exchange system that is universally accessible to job seekers and employers. This
labor exchange system is undertaken by the U.S. Employment Service (ES), first
established by the Wagner-Peyser Act of 1933.
Wagner-Peyser Act of 1933
The Wagner-Peyser Act established the Employment Service10 as a system
jointly operated by DOL and the state employment security agencies. The central
mission of the ES is to facilitate the match between individuals seeking employment
and employers seeking workers. Services are open to all without fees.
9 For more information on the HCTC, see CRS Report RL32620, Health Coverage Tax
Credit Authorized by the Trade Act of 2002
, by Bernadette Fernandez.
10 For more information on ES, see CRS Report RL30248, The Employment Service: The
Federal-State Labor Exchange System
, by Alison Pasternak and Ann Lordeman.

CRS-7
Employment Services. Local ES offices are known by many names, such
as Employment Service, Job Service, One-Stop Career Center, and Workforce
Development Center. These offices offer an array of services to job seekers and
employers, including career counseling, job search workshops, labor market
information, job listings, applicant screening, and referrals to job openings. States
provide ES services through three tiers of service delivery: self-service, facilitated
self-help, and staff-assisted. As the names of the tiers imply, progressively more
active staff involvement is required as services range from internet job postings to
career counseling.
Upon the establishment of the Unemployment Compensation program in 1935,
ES offices also began to administer the UC “work test”requirements. These offices
monitor UC claimants to ensure that they are able to work, available for work, and
actively seeking work. For the recently unemployed, the ES processes UC income
support claims while helping the individual find new employment.
Wagner-Peyser Act Funding. Total funding for the Wagner-Peyser
activities was over $813 million for FY2007, including Employment Service national
activities and allotments to states as well as labor market information and other One-
Stop funding. Over 89% of this appropriation came from the Unemployment Trust
Fund, and approximately 96% was allotted to state employment security agencies for
One-Stop services.
Job Training Assistance for Unemployed Workers
The nation’s central job training legislation is the Workforce Investment Act
(WIA) of 1998. In addition, the act established linkages between WIA training
activities and three other populations targeted by federal programs: workers eligible
for TAA, military veterans, and workers over the age of 55 covered under the Older
Americans Act of 1965. Although not discussed below, it should be noted that other
federal education and training programs provide support that could assist the
unemployed in reaching career goals, even though these programs do not explicitly
target an unemployed population (e.g., student financial assistance authorized under
Title IV of the Higher Education Act of 1965 and the Lifetime Learning Credit).
Workforce Investment Act of 1998
The Workforce Investment Act includes titles that authorize programs for job
training, adult education and literacy (the Adult Education and Family Literacy Act),
vocational rehabilitation (the Rehabilitation Act of 1973), and the Employment
Service (the Wagner-Peyser Act of 1933). Title I of WIA11 provides for job training
and related services for unemployed and underemployed individuals through three
state formula grant programs (adults, dislocated workers, and youth) and a number
11 For more information on WIA, see CRS Report RL33687, The Workforce Investment Act
(WIA): Program-by-Program Overview and Funding of Title I Training Programs
, by Blake
Alan Naughton and CRS Report 97-536, Job Training Under the Workforce Investment Act
(WIA): An Overview
, by Ann Lordeman.

CRS-8
of national programs. Table 1 provides detailed national funding information for
WIA Title I programs. The WIA programs are briefly described below.
WIA State Formula Grant Programs. Funding for formula grant programs
is first allotted to states on the basis of a number of factors (e.g., relative number of
unemployed individuals compared to the number of unemployed individuals
nationally). In a second step, after a set amount is reserved for statewide activities,
funds are then allocated to local areas’ workforce investment boards for use in their
One-Stop system.
Training Services for Adults. This formula grant program provides
training and related services to both unemployed and employed individuals ages 18
and older. Any individual may receive “core” services (e.g., job search assistance).
To receive “intensive” services (e.g., individual career planning and job training), an
individual must need these services to become employed or to obtain or retain
employment that allows for self-sufficiency.
Training Services for Dislocated Workers. In general, of the funds
appropriated for this program, 80% are allocated by formula grants to states (which
in turn allocate funds to local entities) to provide training and related services to
individuals who have lost their jobs and are unlikely to return to them or similar jobs
in the same industry. Generally, 20% of the appropriation is reserved by DOL for a
national reserve account, which in part provides for national emergency grants to
states or local entities — especially in response to mass layoffs.
Training Services for Youth. This formula grant program provides training
and related services to low-income youth ages 14-21 who face barriers to
employment. Services prepare both in-school and out-of-school youth for
employment and post-secondary education by linkages between academic and
occupational learning.
National Training Programs for Special Populations. WIA authorizes
several national grant programs that provide training funds to targeted populations.
Job Corps and programs for Native Americans and migrant and seasonal farm
workers are generally found in all states.
Job Corps. This residential job training program provides services to low-
income individuals ages 16-24 primarily through contracts administered by DOL
with corporations and nonprofit organizations. Currently, there are 122 Job Corps
centers in 48 states, the District of Columbia, and Puerto Rico. On February 8, 2007,
DOL announced that three new centers will open, including the first centers in each
of the remaining two states, New Hampshire and Wyoming.
Native Americans Program. This program provides training and related
services to low-income Indians, Eskimos, Aleuts, and Native Hawaiians through
formula grants to Indian tribes and reservations and other Native American groups.
Migrant and Seasonal Farmworker Program. This program provides
training and related services, including technical assistance and housing, to
disadvantaged migrant and seasonal farmworkers and their dependents through

CRS-9
discretionary grants awarded to public, private, and nonprofit organizations. This
program is also referred to as the National Farmworker Jobs Program.
Other Targeted Competitive Grant Programs. Additional competitive
grant programs are specified in either the WIA legislation itself or in appropriations
language for WIA.
Veterans’ Workforce Investment Program. This program provides
training and related services to veterans through competitive grants to states and
nonprofit organizations. (DOL and the Department of Veterans Affairs administer
additional veterans employment programs.)
Responsible Reintegration for Young Offenders. This competitive
grant program funds projects that serve young offenders and youth at risk of
becoming involved in the juvenile justice system. This program is authorized under
the WIA’s general demonstration, pilot, and research authority. First funded in
FY2000, the program is specified only in annual appropriations language.
Prisoner Reentry Initiative. This competitive grant program funds faith-
based and community organizations that help recently released prisoners find work
when they return to their communities. This program is authorized under the WIA’s
general demonstration, pilot, and research authority. First funded in FY2005, this
program is directly specified only in annual appropriations language.

Community-Based Job Training Grants. This competitive grant
program, also known as the Community College Initiative, funds entities to
strengthen the capacity of community colleges to train workers in the skills required
to succeed in high-growth, high-demand industries. This program is authorized
under the WIA’s general demonstration, pilot, and research authority. First funded
in FY2005 under the general authority of WIA, this program is directly specified only
in annual appropriations language.
YouthBuild. This program provides disadvantaged young adults with
education and employment skills through rehabilitating and constructing housing for
low-income and homeless people. The program was transferred at the beginning of
FY2007 from the Department of Housing and Urban Development to DOL as a part
of WIA.
Workforce Investment Act Funding. Appropriations for WIA totaled
over $5.1 billion in FY2007. From that amount, nearly $3.0 billion was allotted to
states through programmatic formula grants. These dollars flow through the state
workforce investment board and then, by formula, to local boards to serve as the
central funding for One-Stops. Although unemployed persons are the target
population for WIA Title I programs, particularly for training, currently employed
individuals also benefit from many WIA services. Table 1 provides program-by-
program funding information.

CRS-10
Table 1. Workforce Investment Act Title I
FY2007 Appropriations
Program
FY2007 Appropriation ($)
WIA Grand Total
5,137,966,000
Adult Activities
864,199,000
Dislocated Worker Activities
1,346,903,000
Youth Activities
940,500,000
Job Corps
1,578,277,000
Native Americans
53,696,000
Migrant and Seasonal Farmworkers
79,752,000
Veterans’ Workforce Investment
7,435,000
Responsible Reintegration for Young Offenders
49,104,000
Prisoner Reentry Program
19,642,000
Community-based Job Training Grants
125,000,000
YouthBuild
49,500,000
Technical Assistance
480,000
Pilots, Demonstrations, and Research
14,700,000
Evaluation
4,921,000
Source: Table compiled by CRS from House Committee on Appropriations tables.
Targeted Federal Job Training Activities: Trade Adjustment
Assistance and Community Service Employment for Older
Americans

As discussed above, the WIA statute mandates connections between the nation’s
One-Stop system and a number of other employment, education, and social service
programs. Two of these One-Stop partners also specifically fund employment and
training activities for their particular populations: workers affected by trade-related
layoffs and low-income older Americans.
Trade Adjustment Assistance. Trade Adjustment Assistance (TAA)
provides eligible workers with employment and training assistance. TAA training is
authorized by the Trade Act of 1974 (P.L. 93-618), as is the Trade Readjustment
Allowance (TRA) previously described in the income support section of this report.
In order for workers to receive TAA benefits, they generally must have lost their jobs
due to import competition or shifts to overseas production. Older workers who opt
for the Alternative Trade Adjustment Assistance (ATAA) program are excluded from
retraining assistance but may receive ES assistance.
TAA employment and training services include reemployment services (similar
to Employment Services described above); up to 26 weeks of remedial education;
and up to 104 weeks of classroom training, on-the-job training, or other kinds of
education.

CRS-11
TAA funds are appropriated as an entitlement out of the general fund (not out
of the Unemployment Trust Fund) to workers who meet the eligibility requirements,
although training funds are subject to annual funding caps. Appropriations for TAA
training funds were $220 million in FY2007.
Community Service Employment for Older Americans. Title V of the
Older Americans Act of 1965 (OAA, P.L. 89-73), which authorizes the Community
Service Employment Program (CSEP)12 for older Americans, has as its purpose the
promotion of part-time opportunities in community service activities for unemployed
low-income persons who are 55 years or older and who have poor employment
prospects. The program is the primary job creation program for adults since the
elimination of public service employment previously authorized under WIA’s
predecessor legislation. CSEP not only provides opportunities for part-time
employment and income for older persons but also contributes to the general welfare
of communities by providing a source of labor for various community service
activities.
For FY2007, CSEP funding of $434 million represented approximately one-
quarter of OAA funds. These funds are awarded to both states and national sponsor
organizations.
Employer Education Assistance
Generally, education assistance from employers must be included in employees’
gross income for federal income tax purposes. Sometimes, as a part of a severance
package, employers might provide laid-off workers with such assistance.
Section 127 of the Internal Revenue Code allows up to $5,250 in tuition
reimbursements and other forms of employer education assistance (e.g., payments for
books, supplies, and equipment) to be exempt from income and employment taxes
even if the education does not qualify as a deductible business expense.13 For the
purposes of Section 127, a laid-off employee may qualify for this exemption.
In January 2005, the Joint Committee on Taxation estimated that the tax
expenditure attributable to the Section 127 exclusion would be approximately $0.8
billion in FY2005.
12 For more information on CSEP, see CRS Report RL31336, The Older Americans Act:
Programs, Funding, and 2006 Reauthorization (P.L. 109-365)
, by Carol O’Shaughnessy and
Angela Napili.
13 For more information on the tax treatment of employer education assistance, see CRS
Report 97-243, The Current Status of Employer Education Assistance, by Linda Levine and
Bob Lyke.