Trade Adjustment Assistance (TAA)
for Workers
Benjamin Collins
Analyst in Labor Policy
November 7, 2011
The House Ways and Means Committee is making available this version of this Congressional Research Service
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exclusively for the United States Congress, providing policy and legal analysis to Committees and Members of
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Trade Adjustment Assistance (TAA) for Workers

Summary
Trade Adjustment Assistance for Workers (TAA) provides federal assistance to production and
service workers who have been adversely affected by foreign trade. 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 or downstream producers to TAA-certified firms may
also be eligible for TAA benefits.
After the Department of Labor verifies the role of foreign trade in the group’s job losses, workers
can apply for individual benefits. The two largest TAA benefits are (1) training assistance and (2)
Trade Readjustment Allowance (TRA), an income support for certified workers who have
exhausted their unemployment compensation. Workers may collect TRA benefits as long as they
remain enrolled in eligible training, up to 130 weeks.
Certified workers may also be eligible for other benefits. Workers who cannot obtain employment
in their local commuting areas may be eligible for job search and relocation allowances. Workers
age 50 or older are eligible to participate in Reemployment Trade Adjustment Assistance (RTAA),
a wage insurance program for older workers who are TAA-certified. Both TRA- and RTAA-
eligible workers may be eligible for a Health Coverage Tax Credit (HCTC), which provides a
refundable tax credit to offset 72.5% of qualified health insurance premiums.
This report provides background on the TAA and RTAA programs. After a brief legislative
history, it discusses TAA eligibility and benefits as set by the Trade Adjustment Assistance
Extension Act of 2011 (P.L. 112-40). It concludes by presenting data on past application activity
and benefit usage.

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Contents
Introduction...................................................................................................................................... 1
Legislative History........................................................................................................................... 1
2011 Reauthorization................................................................................................................. 1
Administration and Financing ......................................................................................................... 2
Eligibility and Application Process.................................................................................................. 3
TAA Group Eligibility............................................................................................................... 3
TAA Group Petition and Certification Process.......................................................................... 4
TAA Individual Eligibility and Certification............................................................................. 4
RTAA Eligibility........................................................................................................................ 5
Benefits............................................................................................................................................ 6
Training Assistance.................................................................................................................... 7
Trade Readjustment Allowance................................................................................................. 8
Job Search and Relocation Allowances ..................................................................................... 9
Health Coverage Tax Credit .................................................................................................... 10
Reemployment Trade Adjustment Assistance ......................................................................... 10
Participation and Program Performance ........................................................................................ 12
Applications and Certification Activity................................................................................... 12
Training Assistance.................................................................................................................. 14
Trade Readjustment Allowances ............................................................................................. 15
Job Search and Relocation Allowances ................................................................................... 15
Health Coverage Tax Credit .................................................................................................... 16
Reemployment Trade Adjustment Assistance ......................................................................... 17
Post-TAA Performance Data for Program Exiters................................................................... 17

Tables
Table 1. TAA Group Certification Requirements Under the Trade Adjustment Assistance
Extension Act of 2011................................................................................................................... 6
Table 2. TAA Benefits Under the Trade Adjustment Assistance Extension Act of 2011............... 11
Table 3. Petitions and Certifications, FY2003-FY2010................................................................. 13
Table 4. Training and Benefit Data for TAA-Certified Workers, FY2003-FY2010 ...................... 13
Table 5. Ten Largest Recipients of TAA Training Funds, FY2010................................................ 14
Table 6. Trade Readjustment Allowance Participation and Costs, FY2003-FY2010 .................... 15
Table 7. Reemployment Trade Adjustment Assistance, FY2003-FY2010 .................................... 17
Table 8. Employment Outcomes for TAA Exiters ......................................................................... 18

Contacts
Acknowledgments ......................................................................................................................... 19
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Trade Adjustment Assistance (TAA) for Workers

Introduction
This report provides background information on Trade Adjustment Assistance for workers
(TAA).1 TAA provides federal assistance to qualified workers who have been adversely affected
by foreign trade. The report begins with a legislative history, including a discussion of the
program’s reauthorization in October 2011. The next section describes how the TAA program is
financed and administered. The report then explains how groups and individual workers establish
eligibility for TAA, describes the types of benefits available, and presents program participation
and performance data from recent years.
Legislative History
TAA was formally established by the Trade Expansion Act of 1962 (P.L. 87-794) but was little
used until the Trade Act of 1974 (P.L. 93-618) expanded benefits and eligibility. Except for a
lapse between December 1985 and March 1986, a variety of legislative vehicles kept TAA
authorized through the end of FY2001. 2 Authorization then lapsed for 11 months, but the
program remained funded through appropriations.
The Trade Act of 2002 (P.L. 107-210) reauthorized TAA, expanded benefits, and established
Reemployment Trade Adjustment Assistance (RTAA; then called Alternative Trade Adjustment
Assistance). Authorization expired on December 31, 2007, but the Consolidated Appropriations
Act of 2008 (P.L. 110-161) funded TAA for FY2008. The Consolidated Security, Disaster
Assistance, and Continuing Appropriations Act, 2009 (P.L. 110-329), funded TAA through March
6, 2009 and specified that the programs would continue through that date.
The Trade and Globalization Adjustment Assistance Act of 2009 (TGAAA), part of the American
Recovery and Reinvestment Act (ARRA, P.L. 111-5) was signed on February 17, 2009. TGAAA
reauthorized TAA and temporarily expanded both eligibility and benefit levels.
Authorization for the TGAAA changes was set to expire on December 31, 2010, but the Omnibus
Trade Act of 2010 (P.L. 111-344) extended them though February 12, 2011. After that date, TAA
reverted back to the pre-expansion provisions that were in place prior to TGAAA.
2011 Reauthorization
TAA operated under the pre-expansion provisions from February 13, 2011, to October 21, 2011,
when the Trade Adjustment Assistance Extension Act of 2011 (TAAEA; P.L. 112-40) was signed
into law. TAAEA reauthorized TAA through 2014 and expanded many TAA benefits to near-
TGAAA levels through 2013. The law was retroactive and groups who were denied certification

1 Other Trade Adjustment Assistance programs target different recipients: TAA for Firms (see CRS Report RS20210,
Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues, by J. F. Hornbeck), TAA for
Communities (see CRS Report R40863, Trade Adjustment Assistance for Communities: The Law and Its
Implementation, by Eugene Boyd and Cassandria Dortch), and TAA for Farmers (see CRS Report R40206, Trade
Adjustment Assistance for Farmers, by Remy Jurenas).
2 For more background and a detailed discussion of the legislative history of TAA, see CRS Report R41922, Trade
Adjustment Assistance (TAA) and Its Role in U.S. Trade Policy, by J. F. Hornbeck and Laine Elise Rover.
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under the prior provisions were automatically reconsidered under the provisions enacted by
TAAEA. Groups who were certified under the prior provisions were eligible to reapply under the
new expanded provisions.
The expanded provisions of the TAAEA are set to expire on December 31, 2013. Eligibility
criteria and benefit levels would then revert back to the those set by the Trade Act of 2002 and
remain in place for one year before authorization for the TAA for workers program expires on
December 31, 2014.
Administration and Financing
At the federal level, the TAA for workers programs are administered by the Office of Trade
Adjustment Assistance within the Department of Labor (DOL). Except for the Health Coverage
Tax Credit (HCTC), which is administered by the Internal Revenue Service (IRS), all individual
benefits are administered by cooperating state agencies (CSAs). Typically, workers can apply for
these state-administered benefits at their local One-Stop Career Centers.
The TAA for Workers program is a mandatory program that is fully funded by the federal
government. DOL receives a single appropriation that it allocates to the program’s components.
Reemployment services (i.e., training and other noncash benefits) are a single capped entitlement
with annual funding levels determined by statute. Under current law, the annual cap is $575
million. The funding level for each state is determined by a formula that considers (1) the trend of
certified workers in the state during the past four quarters, (2) the trend of workers participating
in training during the previous four quarters, (3) the number of workers estimated to be
participating in training during the fiscal year, and (4) the amount of funding estimated to be
necessary to provide approved training.3
At the beginning of the fiscal year, 65% of the year’s reemployment service funds is distributed to
the states using the formula. The remaining 35% is held in a reserve fund. States with
emergencies or unforeseen training burdens may apply for these reserve funds. Any reserve funds
that are not allocated through the emergency funding process are allocated to the states using the
original formula throughout the fiscal year.4
CSAs must fund case management, administrative activities, and the job search and relocation
allowance program out of their reemployment services allocations. States may spend no more
than 10% of their allocation on administrative costs and must spend at least 5% on case
management services.5 Funds for reemployment services that CSAs have obligated to individuals
can be expended in the current or either of the two succeeding fiscal years.6
The Trade Readjustment Allowance (TRA) income support and Reemployment Trade Adjustment
Assistance (RTAA) wage insurance program are uncapped entitlements that are funded by the
federal government and administered by state unemployment offices. Annual congressional

3 For full details on the formula, see 20 C.F.R. 618.900-940.
4 See 20 C.F.R. 618.910-930. The regulations state that at least 90% of the funds must be distributed by July 15. The
remaining 10% can be distributed at any point during the remainder of the fiscal year.
5 See 19 U.S.C. 2295a.
6 See 19 U.S.C. 2317.
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appropriations for these programs typically reflect the request in the President’s budget. Any
funds from these allocations that are unobligated at the end of the fiscal year expire.
The HCTC is administered through the tax system and funded out of general revenue. It is not
part of the appropriations process.
Eligibility and Application Process
Obtaining TAA or RTAA benefits is a two-stage process. First, a group of workers must petition
DOL to establish that foreign trade contributed to their job losses and become TAA certified.
Once a group has been certified, individual workers covered by the group’s petition apply for
TAA or RTAA benefits at a local One-Stop Career Center.
TAA Group Eligibility
To be eligible for TAA group certification, a group of workers from a firm (or a subdivision of a
firm) must have become or have been threatened with becoming totally or partially separated
from their employment.7 Both production and service firms are eligible for TAA.
The petitioning workers must establish that foreign trade contributed importantly to their
separation.8 The role of foreign trade can be established in one of several ways:
• An increase in competitive imports. The sales or production of the petitioning
firm has decreased absolutely and imports of articles or services like or directly
competitive with those produced by the petitioning firm have increased.
• A shift in production. The workers’ firm has moved production of the goods or
services that the petitioning workers produced to a foreign county. Separated
workers whose firms now acquire goods or services from foreign countries that
are directly competitive with those produced by the separated workers are also
eligible under this criterion.
• Adversely affected secondary workers. The petitioning firm is a supplier or a
downstream producer9 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’ job losses.
Beginning in 2014, TAA group eligibility requirements will revert to the more restrictive criteria
set by the Trade Act of 2002. These changes are outlined in Table 1. Under the provisions that
will take effect in 2014, only workers from production firms (not workers from service firms) will
be eligible for TAA certification. Eligibility under the shift in production criterion will also be

7 Partial separation is defined as hours of work being reduced to less than 80% of the worker’s weekly average and
wages being reduced to less than 80% of the worker’s weekly average. See 20 CFR 617.3(cc).
8 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).
9 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.”
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limited to workers affected by shifts to countries with which the United States has a free trade
agreement or countries that are beneficiaries under certain trade laws.10
TAA Group Petition and Certification Process
To gain TAA eligibility, a group of three or more workers (or their 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 three criteria outlined above.
DOL is statutorily required to make a determination on a TAA petition within 40 days of filing.11
Determinations on 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. This date can be as early as one year prior to the petition. A certified
petition will cover all workers laid off between the impact date and two years after the
certification of the petition. For example, if a petition was certified on June 1, 2010, and the
impact date was found to be March 1, 2010, all members of the certified group laid off between
March 1, 2010, and June 1, 2012, would be eligible for TAA.
If a petition is denied, the group who was denied certification may request administrative
reconsideration by DOL. Reconsideration requests must be mailed within 30 days of Federal
Register publication. Workers who are denied certification may seek judicial review of DOL’s
initial petition denial or denial following administrative reconsideration. Appeals for judicial
review must be filed with the U.S. Court of International Trade within 60 days of Federal
Register publication of the initial denial or the administrative reconsideration denial.
TAA Individual Eligibility and Certification
If DOL certifies a petitioning group of workers as eligible, the individual workers then apply to
their One-Stop Career Center for individual benefits. In addition to being covered under a
certified petition, 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, to receive the Trade Readjustment Allowance (TRA) benefit, workers must also be
enrolled in an approved training program or have received a waiver from training.12

10 The relevant laws are the Andean Trade Preference Act, P.L. 102-182, signed December 4, 1991; the African Growth
and Opportunity Act, P.L. 106-200, signed May 18, 2000; or the Caribbean Basin Economic Recovery Act, P.L. 98-67,
signed August 5, 1983.
11 See 19 U.S.C. 2273(a). The high number of applications in FY2009 and FY2010 resulted in processing times of
greater than 40 days. In FY2008, the last full year before the TGAAA expansions, the average processing time was 35
days.
12 19 U.S.C. 2291(c) defines three waiver requirements: (1) a worker is unable to participate in training due to health
reasons, (2) enrollment in training is not available, or (3) training is not available.
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Certified workers who are denied individual benefits can appeal the decision. The determination
notice that certified workers receive after filing their applications for each benefit explains their
appeal rights and time limits for filing appeals.
RTAA Eligibility
RTAA is a wage insurance program for TAA-eligible workers age 50 and over.13 RTAA is
designed as an alternative support program for older trade-affected workers who likely have
limited time remaining in the labor force and for whom comprehensive retraining may not be a
cost-effective option. To qualify for RTAA, a certified worker must either (1) secure full-time
employment at a new firm and not be enrolled in a TAA-sponsored training program or (2) secure
part-time employment at a new firm while concurrently being enrolled in an approved training
program. To be eligible for RTAA wage supplements, the worker’s new annual wage must be
lower than his or her certified job and less than $50,000.
A petition for TAA group eligibility also functions as a petition for RTAA eligibility. If certified
for both programs, workers have the option of applying for TAA or RTAA benefits at their local
One-Stop Career Center.
At the beginning of 2014, several changes to the RTAA program are set to take place. Participants
would no longer be eligible to participate in TAA-sponsored training and only those reemployed
on a full-time basis would be eligible for wage insurance. RTAA participants would also be
required to secure reemployment within 26 weeks of separation; prior to 2014, there is no time
requirement.

13 Prior to a temporary change in TGAAA and a permanent change in the 2011 reauthorization, the TAA-related wage
insurance program for older workers was known as Alternative Trade Adjustment Assistance or ATAA. Past literature
likely uses the prior program name and acronym.
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Table 1. TAA Group Certification Requirements Under the Trade Adjustment
Assistance Extension Act of 2011
Eligibility Requirements from October 21, 2011,
Changes to Eligibility Requirements Effective
to December 31, 2013
from January 1, 2014, to December 31, 2014
In All Cases

A significant number of workers (three or more in a firm
The number of workers required to form a group does
of fewer than 50 workers or 5% of the workforce in a
not change though service workers are no longer eligible.
firm of 50 or more workers) at a production or service
Only production workers are eligible.
firm have become total y or partial y separated or are
threatened with total or partial separation.
Workers Who Become Unemployed Because of an Increase in Imports
The sales or production of the firm decreased; and there
Provisions are changed so that only production workers
has been an increase in imports of either (1) articles or
are eligible; workers affected by increased imports of
services competitive with the firm’s articles or services,
services are no longer eligible.
or (2) articles that are competitive with articles in which
the firm’s products or services are component parts; and
the increased imports have contributed importantly to
the decline in sales or production.
Workers Who Become Unemployed Because of a Shift in Production
The petitioning workers’ firm has either (1) shifted the
Provisions are changed so that only production workers
production of articles or services directly competitive
are eligible; and only workers affected by shifts in
with those produced by the petitioning workers to a
production to either (1) countries with which the United
foreign country, or (2) has acquired the articles or
States has a free trade agreement, or (2) a country that is
services directly competitive with those produced by the
a beneficiary country under the Andean Trade
petitioning workers from a foreign country; and the shift
Preference Act (P.L. 102-182), the African Growth and
in production or acquisition of foreign goods or services
Opportunity Act (P.L. 106-200), or the Caribbean Basin
contributed importantly to the workers’ separation.
Economic Recovery Act (P.L. 98-67) are eligible.
Adversely Affected Secondary Workers
The workers’ firm is a supplier or downstream producer
Provisions are changed so that only production workers
to a TAA-certified firm; and either (1) the sales or
are eligible.
production to the TAA-certified firm accounted for at
least 20% of the sales or production of the supplier firm,
or (2) the loss of sales to the TAA-certified firm
contributed importantly to the workers’ job losses.
Source: CRS analysis of P.L. 112-40 and P.L. 107-210
Notes: Groups denied certification under the provisions effective between February 13, 2011, and October 20,
2011, are automatical y reconsidered under the new TAAEA provisions
Benefits
TAA benefits have several components: training assistance, income support while in training, job
search and relocation allowances, and a refundable tax credit for purchasing qualifying health
insurance. Workers age 50 and over may participate in the RTAA wage insurance program.
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Training Assistance
Training is a capped entitlement and the primary expenditure out of each state’s reemployment
services allocation. TAAEA set the annual reemployment services cap at $575 million through the
end of 2013. In 2014, the annual cap will be $253 million.14
Eligible workers request training assistance through their local One-Stop Career Centers. Once
approved, training can be paid on the worker’s behalf directly to the service provider or through a
voucher system. In order 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.15 The range of
approved training includes a variety of governmental and private programs.16 The maximum
duration of training is determined by DOL.17 There is no federal limit on the amount of training
funding an individual can receive, though some states have a cap.
Due to the range of acceptable activities and decentralized nature of job training, a concise
summation of TAA training programs is difficult. Data from DOL, however, offer some insight
into the nature and duration of programs. In FY2010, approximately 90% of TAA training
participants received what DOL defined as Occupational Skills Training. The remainder of
training was classified as remedial, prerequisite, on-the-job, or other customized training. Among
the 70% of training participants that completed a program, the average duration of training was
428 days. Among the 30% of training participants that did not complete a program, training
averaged 335 days.18
DOL does not require the states to track the type of institutions that provide training to TAA
participants.19 Some data on this topic, however, are available from a 2006 report from the
Government Accountability Office (GAO). In this report, GAO closely examined five cases of
plant closures where a number of workers were TAA-eligible. The study found that in three of the
five cases, a majority or plurality of the TAA training participants enrolled in programs at public

14 In FY2012 and FY2013, $575 million is allocated for all reemployment services, including training, related
administrative costs, case management, and job search and relocation allowances. This provision continues through the
end of 2013 with funding prorated at the FY2013-FY2014 levels from October 1, 2013, to December 31, 2013.
Beginning January 1, 2014, the training cap is set at $220 million, though states are entitled to additional funding equal
to 15% of their training allocation to cover administrative expenses and case management.
15 “Reasonable cost” considers the cost of similar training at 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 CFR 617.22 for expanded
definitions of terms.
16 Eligible programs include but are not limited to employer-based training, any training program provided by a state
under Title I of the Workforce Investment Act of 1998, 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.
17 As of this writing, the Code of Federal Regulations has not been updated to reflect TAAEA. Historically, the
maximum duration of training has coincided with the maximum duration for TRA benefits. If this trend continues, the
maximum will be 130 weeks.
18 U.S. Department of Labor, “Trade Adjustment Assistance for Workers: Report to the Committee on Finance the
Senate and Committee on Ways and Means of the House of Representatives,” December 2010, p. 24,
http://www.doleta.gov/tradeact/docs/AnnualReport10.pdf.
19 The 2009 Trade Activity Participant Report Handbook from DOL outlined reporting requirements for state agencies.
It requires data collection on the type, duration, and cost of training, as well as if participants earned a credential.
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institutions such as community colleges or public vocational schools. The other two cases
reported a majority of training participants enrolling in proprietary (i.e., for profit) institutions.
No case reported more than 8% of its participants enrolling in on-the-job training and two cases
reported no participants partaking in such programs. In all five cases, a substantial majority
(between 64% and 100%) of training participants enrolled in a program with an anticipated cost
of less than $10,000. GAO noted that while the five cases were geographically diverse and
included urban and rural firms, their data were not necessarily representative of national trends.20
TAA does not require training programs to lead to a credential. Preliminary analysis of FY2009
participant-level data of TAA exiters obtained from DOL suggests that the majority of TAA
participants that completed a training program did not earn a credential. Among the minority that
did receive a credential, an occupational skills certificate was the most common.
Trade Readjustment Allowance
Trade Readjustment Allowance (TRA) is an uncapped entitlement that provides income support
to certified workers who are in approved training and whose unemployment insurance (UI)
benefits have been exhausted. It is funded by the federal government and administered by
the states. To qualify for TRA, a worker must be enrolled in a qualified training program within
26 weeks of separation or TAA certification, whichever is later.
In FY2010, the average weekly TRA payment was $320. TRA benefit levels are equal to the
worker’s 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 50% of a worker’s income up to a statewide maximum. Since states each
administer their own UI programs, there may be some variation in these calculations. In January
2011, the highest maximum weekly UI benefit for a worker with no dependents was $625 in
Massachusetts and the lowest was $235 in Louisiana.21
There are two stages of TRA:
• Basic TRA. The weekly basic TRA payment begins the week after a worker’s 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 39 weeks of UI benefits would be eligible for 13 weeks of
basic TRA. Presently, Emergency Unemployment Compensation (EUC) and
Extended Benefit (EB) programs may offset the entirety of basic TRA.
• Additional 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. As is the case with basic

20 Government Accountability Office (GAO), “Trade Adjustment Assistance: Most Workers in Five Layoffs Received
Services, but Better Outreach Needed on New Benefits,” GAO-06-43, January 2006, Appendix II.
21 For a more detailed discussion of UI calculations and programs, see CRS Report RL33362, Unemployment
Insurance: Programs and Benefits, by Katelin P. Isaacs and Julie M. Whittaker.
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TRA, UI benefits also offset additional TRA. As such, a worker who is eligible
for 99 weeks of UI would be eligible for a maximum of 18 weeks of additional
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 more weeks (130 weeks
total) if the worker will complete the training program during that time.
TAA participants may only collect additional TRA as long as they remain enrolled in a qualified
training program. In cases where a worker’s training program is shorter than the maximum TRA
duration, the worker is not entitled to the maximum number of TRA weeks.
The maximum duration of TRA benefits will not change in 2014. The time period in which a
certified worker must enroll in training, however, is reduced. In order to be eligible for TRA in
2014, a worker must be enrolled in training within 16 weeks of separation or 8 weeks of
certification, whichever is later. Through 2013, a worker needs to be enrolled in training within
26 weeks of separation or certification, whichever is later.
Job Search and Relocation Allowances
States may use their reemployment services funds for job search and relocation allowances. This
program targets workers who are unable to obtain suitable employment within their commuting
area. Certified workers can receive an allowance equal to 90% of their job search and relocation
expenses, up to a maximum of $1,250 for each benefit.
• A Job Search Allowance may be available to subsidize transportation and
subsistence costs related to job search activities outside an eligible worker’s 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. Applications must be submitted
before a job search begins and job search activities must be completed within 365
days of certification or final separation or within 182 days of the end of training,
whichever is latest.
• A 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.
Certified workers submit their applications and receive their relocation allowance prior to
moving. Applications must be submitted before the relocation occurs and be made within 425
days of certification or layoff or within 182 days of the end of training, whichever is later. The
relocation must occur within 182 days of filing the application for relocation assistance or within
182 days after the conclusion of training.
Neither eligibility nor benefits related to the job search and relocation allowance program are set
to change in 2014.
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Health Coverage Tax Credit
The HCTC is available to workers who are collecting TRA or UI in lieu of TRA, or RTAA. The
HCTC covers 72.5% of the premium for qualified health insurance purchased by an eligible
taxpayer (the individual taxpayer is responsible for the other 27.5%).22 It is refundable, so
workers may claim the full credit even if they have little or no federal income tax liability. The
credit may also be advanced, so taxpayers have the option of using the credit on a monthly basis
when premiums are due rather than waiting until the end of the year. Individuals may receive the
HCTC for one month longer than they are eligible for TRA. RTAA recipients that receive the
HCTC are eligible for two years of credits.
Unlike some other provisions of TAA, which are set to revert to pre-expansion levels in 2014, the
HCTC is set to expire completely on January 1, 2014. This expiration would coincide with the
availability of new federal tax credits for health coverage under the Patient Protection and
Affordable Care Act (P.L. 111-148).
Reemployment Trade Adjustment Assistance
RTAA is an uncapped entitlement that provides a wage supplement for workers age 50 and over
who are adversely affected by foreign trade and pursue reemployment at a lower wage. The
program pays workers who secure new employment half the difference between the old and new
wage. The maximum benefit is $10,000 over a two-year period. Although workers are ineligible
if their new annual wage is more than $50,000, their combined wages and RTAA payments can
exceed $50,000 a year. For example, a worker who earned $58,000 at a previous job and earns
$48,000 at a new job would be eligible for a benefit of $5,000 per year for two years.
RTAA participants are not eligible for TRA or job search and relocation allowances. Through
2013, certified workers may collect RTAA if they are reemployed part-time and enrolled in a
TAA-sponsored training program. This option is set to expire at the end of 2013.

22 For a discussion of eligible plans, see CRS Report RL32620, Health Coverage Tax Credit, by Bernadette Fernandez.
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Table 2. TAA Benefits Under the Trade Adjustment Assistance Extension Act of 2011
Benefits for Workers Certified between
Changes to Benefits for Workers Certified
October 21, 2011, and December 31, 2013
between January 1, 2014, and December 31, 2014
Training Assistance

Primary expenditure of the reemployment services fund,
Reemployment services funding is capped at $253 million
which is capped at $575 million per year.
per year.
Training may be approved on a ful -time or part-time
Training may only be approved on a ful -time basis.
basis, although full-time training is required for TRA
eligibility.
Trade Readjustment Allowance

Up to 117 weeks of cash payments for all workers
No change in duration provisions.
concurrently enrol ed in full-time training; it can be
extended to a total of 130 weeks under certain

circumstances.


Worker must be enrol ed in training 26 weeks after
Worker must be enrol ed in training 8 weeks after
certification or layoff, whichever is later, to receive TRA.
certification or 16 weeks after layoff, whichever is later,
to receive TRA
Reemployment Trade Adjustment Assistance

Available to workers 50 years of age or older and
No change in income ceiling, benefit formula, or
earning less than $50,000 per year in reemployment.
maximum benefit level.
Provides a wage supplement equal to 50% of the

difference between a worker’s reemployment wage and
wage at the worker’s certified job with a maximum

benefit of $10,000 over a period of up to two years.

No time limit on reemployment.
Workers must be reemployed within 26 weeks.


Eligible workers who are reemployed on a part-time
RTAA participants are no longer eligible for TAA-
basis may collect RTAA if they are concurrently enrolled
sponsored training and the option of combining part-
in a TAA-sponsored training program.
time, RTAA-supplemented reemployment and TAA-
sponsored training is no longer available.
Job Search Allowances

States may provide a cash payment equal to 90% of
No change from previous provisions.
al owable costs, up to a maximum benefit of $1,250.
Relocation Allowances

States may provide a cash payment equal to 90% of
No change from previous provisions.
al owable costs, plus an additional lump sum payment of
up to a maximum total benefit of $1,250.
Health Coverage Tax Credit (HCTC)

Refundable tax credit equal to 72.5% of al owable health
Program expires and other tax credits related to health
insurance premiums.
coverage become available.
Source: CRS analysis of P.L. 112-40 and P.L. 107-210
Notes: Workers from groups certified between February 13, 2011, and October 20, 2011, have the option of
receiving benefits established under TAAEA.
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Participation and Program Performance
Data on TAA participation and benefit usage is tracked by CSAs that implement the program.
Prior to FY2010, CSAs produced three separate reports with TAA data. In the first quarter of
FY2010, CSAs transitioned to producing a single Trade Adjustment Assistance Trade Activity
Participant Report (TAPR) with data from TAA for workers programs. This streamlined approach
was intended to improve data quality while minimizing reporting burden.
Applications and Certification Activity
Table 3 includes data on TAA petitions and certifications from FY2003 to FY2010. The sharp
increase of petitions filed in 2009 coincided with the expanded eligibility and benefits under the
TGAAA program that began on May 19. Between May and July of 2009, more than 2,000 TAA
petitions were filed. This represented a nearly fourfold increase from the 535 applications that
were filed during the same three-month period in 2008.23
This surge of applications created a backlog at the investigation and certification level. In April
2009, the last full month before the TGAAA expansion, there were fewer than 200 pending TAA
petitions. By May, the number of pending applications had increased to more than 800 and by
August, more than 1,600 petitions were awaiting a decision. Due to this backlog, many petitions
filed in FY2009 were not determined until FY2010. A combination of backlog reduction
initiatives from DOL and a decline in applications reduced the number of pending applications to
less than 300 by September 2010.24
DOL did not explicitly report the proportion of certifications during the TGAAA expansion that
were due to expanded eligibility. Its 2010 annual report, however, noted that about 950
certifications in FY2010 were related to a shift in service production or other service-related
criteria. Such certifications would not have been possible under the pre-expansion criteria. DOL
also noted that while the TGAAA expansion made public sector groups eligible for TAA under
certain circumstances, no public agency had been certified.
Except for the exclusion of public sector workers, the eligibility criteria under TAAEA are the
same as during the TGAAA expansions.

23 U.S. Department of Labor, “Trade Adjustment Assistance for Workers: Report to the Committee on Finance of the
Senate and Committee on Ways and Means of the House of Representatives,” December 2009, p. 6,
http://www.doleta.gov/tradeact/docs/AnnualReport09.pdf
24 U.S. Department of Labor, “Trade Adjustment Assistance for Workers: Report to the Committee on Finance the
Senate and Committee on Ways and Means of the House of Representatives,’ December 2010, p. 8,
http://www.doleta.gov/tradeact/docs/AnnualReport10.pdf.
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Table 3. Petitions and Certifications, FY2003-FY2010

Petitions Filed
Petitions Certified
Estimated
Estimated
Fiscal Year
Petitions
Workers Petitions Workers
2003 3,567 304,367 1,894 197,748
2004 2,992 210,567 1,812 149,705
2005 2,644 156,022 1,561 118,022
2006 2,465 169,017 1,444 119,602
2007 2,272 190,494 1,444 146,838
2008 2,224 171,326 1,437 125,845
2009 4,549 422,248 1,845 201,312
2010 2,222 156,785 2,718 280,873
Source: Office of Trade Adjustment Assistance Management Information System. Data are current as of
December 2010.
Note: The large number of petitions filed in FY2009 was a result of several factors including the economic
downturn and expansions in eligibility. This increase in petitions created a backlog and the investigations for
approximately 1,200 petitions that were filed in FY2009 were not completed until FY2010.

Table 4. Training and Benefit Data for TAA-Certified Workers, FY2003-FY2010

Training
Other Benefits


Share of
Total
Exiting
Obligations,
New
Exiting
that
Job Search
Relocation
Including
Total
Training
Training
Completed
Allowance
Allowance
Administration
Outlays
Year
Participants
Participants
Training
Participants
Participants
(millions)
(millions)
2003 43,672
n/a
n/a
430
736
$222
$206
2004 50,929
n/a
n/a
467
817
$258
$225
2005 38,207
n/a
n/a
288
446
$259
$224
2006 37,426
n/a
n/a
454
531
$259
$206
2007 49,339 52,071
72%
405
757
$260
$217
2008 38,189 24,120
72%
526
461
$260
$241
2009 58,190 24,380
69%
617
682
$685
$289
2010 44,255 27,995
70%
319
404
$685
$495
Source: Program data from FY2007-FY2010 are current as of August 2011 and are from FY2007-FY2009 ETA
563 and FY2007-FY2010 Trade Activity Participation Report. FY2003-FY2006 data are from the 2008 Ways and
Means Committee Green Book. Obligation data are from 2005-2012 federal budget appendices. Outlay data
were obtained directly from the Employment Training Administration of the U.S. Department of Labor.
Note: Obligations may include financial commitments for future years.

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Training Assistance
Table 4 offers recent data for training enrollment as well as program costs. DOL requires states to
track the number of new and exiting training participants, but data on the total number of training
participants in a given year are not available.
As noted above, training funds are distributed to the states using a formula that considers past
program usage and anticipated training costs. Table 5 shows the 10 states with the largest training
allocations in FY2010. Collectively, these states accounted for 54% of TAA’s training funding
and 58% of its new training participants.
In addition to those that took part in training, 89,964 TAA-certified workers were granted training
waivers during FY2010. These waivers allowed the workers to be eligible for basic TRA without
fulfilling the training requirement. About 88% of the waivers were due to a worker already having
marketable skills or enrollment in training being unavailable.
TAAEA eliminated three of the six waiver reasons and established an annual reemployment
services cap of $575 million. This cap includes training as well as related administrative and case
management costs. In calendar year 2014, the reemployment services cap will be $253 million.

Table 5. Ten Largest Recipients of TAA Training Funds, FY2010
Training Funds
New Training
State
(millions)
Participants
Michigan $83.1
5,398
Pennsylvania $31.1 2,707
Ohio $30.7
3,800
Oregon $28.7
1,510
Indiana $28.5
1,793
North Carolina
$28.3
3,215
Wisconsin $23.0 1,673
Illinois $20.9
1,949
Texas $18.8
2,468
Kentucky $17.8
1,043



Ten-state total
$310.8
25,556
National total
$575.0
44,255
Source: U.S. Department of Labor, Employment Training Administration, from a table published at
http://www.doleta.gov/tradeact/TAPR_2010.cfm.
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Trade Readjustment Allowances
As Table 6 shows, TRA participation in FY2009 and FY2010 was lower than in previous years.
As noted in the previous section, TRA benefits are offset by UI benefits and DOL has indicated
that the EB and EUC programs greatly reduced the number of otherwise eligible workers who
would have collected TRA. The EB and EUC programs also led some workers who did receive
TRA to collect it for a shorter period than they would have in the absence of the extension
programs.
Collectively, these factors led to relatively small financial outlays on TRA in FY2009 and
FY2010. Of the $1.1 billion that was allocated for TRA in FY2010, only $93 million was spent
on the program. By contrast, in FY2007 and FY2008 when EB and EUC were not widely
available, TRA outlays were more than $500 million.
The maximum TRA duration established under TAAEA (117 weeks for all workers, 130 in certain
circumstances) is shorter than the TGAAA expansions (130 weeks for all workers, 156 in certain
circumstances) but longer than the prior limit (104 weeks for all workers; 130 in certain
circumstances).
Table 6. Trade Readjustment Allowance Participation and Costs, FY2003-FY2010
New Basic TRA
New Additional
Total TRA Outlays
Fiscal Year
Recipients
TRA Recipients
(millions)
2003 43,857
17,090
$
352
2004 81,248
24,366
$
528
2005 55,206
29,466
$
589
2006 53,491
19,054
$
514
2007 47,048
14,371
$
540
2008 42,089
13,345
$
523
2009 11,111
8,006
$
122
2010 20,334
10,130
$
93
Source: Program data for FY2007-FY2010 are current as of August 2011 and are from FY2007-FY2009 ETA-
563 and FY2010 Trade Activity Participant Report. FY2003-FY2006 program data are from the 2008 Ways and
Means Committee Green Book. Outlay data were obtained directly from the Employment Training
Administration of the Department of Labor.
Job Search and Relocation Allowances
With 723 combined participants in FY2010, job search and relocation allowances were the least-
used TAA benefit. Beneficiaries of these programs accounted for less than 1% of all TAA
participants. According to the FY2010 TAA annual report, $6 million was allocated to job search
and relocation benefits and, at the end of the year, $5,854,426 remained. These remaining funds
were then distributed to the states using the original formula for allocating training funds. Table 4
shows that usage of these programs has been consistently low in recent years.
Research has shown that the low usage of these programs was only partially due to limited
awareness of them on the part of TAA participants. A 2010 study conducted for DOL by
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Mathematica Policy Research (MPR) surveyed TAA-eligible workers in 2007 and 2008. The
study found that 53% of TAA participants were aware of the relocation allowances and 54% were
aware of job search allowances.25
The eligibility criteria and benefit levels for the job search and relocation allowance program
established by TAAEA are not set to change in 2014 and are the same as those that existed before
the TGAAA expansions.
Health Coverage Tax Credit
Precise estimates on the participation rates in the HCTC program are difficult to develop. TAA-
certified and RTAA-certified workers are only a subset of the HCTC-eligible population and
some TAA participants may not qualify for the HCTC. (For example, a TAA-eligible individual
that is eligible for Medicare or Medicaid cannot claim the HCTC.) Furthermore, since the
program is implemented through the tax code, DOL is not able to track usage directly.
A 2010 report from GAO analyzed a combination of DOL and IRS data to develop estimates of
HCTC program data. While the report did not provide single-year costs, it estimated that the total
governmental cost of the HCTC between 2003 and 2010 was approximately $676 million (an
average of $84.5 million per year). GAO estimated that about $161 million (24%) of the HCTC’s
governmental costs went to administration. These data considered all recipients of the HCTC, not
just those covered under TAA.
The GAO report also estimated participation rates among potentially eligible populations before
and after the TGAAA expansions. It found that in the six months before TGAAA, about 6,000 out
of approximately 100,000 potentially eligible TAA participants used the HCTC. In the six months
after the expansion, an estimated 10,000 out of approximately 150,000 potentially eligible
participants claimed the credit.26
The aforementioned MPR study also collected data on knowledge of and participation in the
HCTC program. Knowledge of the program was moderate, with about 58% of TAA participants
aware of the program. Among participants with knowledge of the program, about 28% applied for
the HCTC. The most common reasons for not applying for the HCTC were the worker’s share of
the premium being too expensive (36% of nonapplicants) and already having coverage through a
spouse’s employer (21% of nonapplicants).
TAAEA authorized a HCTC benefit level of 72.5%. This is between the benefit level during
TGAAA (80%) and prior to the expansions (65%). The HCTC is set to terminate on December
31, 2013.

25 Mathematica Policy Research, “National Evaluation of the Trade Adjustment Assistance Program,” ETA Occasional
Paper 2010-06, April 2010. This study defined TAA participants as those that received one of the program’s four core
services (TRA, training, ATAA, or the HCTC). This definition is more restrictive than DOL’s definition of a TAA
participant.
26 Government Accountability Office (GAO), “Health Coverage Tax Credit: Participation and Administrative Costs,”
GAO 10-521R, April 2010.
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Reemployment Trade Adjustment Assistance
In FY2010, $27 million was paid to more than 6,300 participants in the RTAA wage insurance
program. The data in Table 7 include both RTAA participants as well as participants in the very
similar ATAA program that existed prior to 2009. Participation in RTAA fell during the initial
TGAAA expansion and it is unclear what effect, if any, other changes in TAA policies had on this
trend.
Under TAAEA, the RTAA program initially has aspects of both the TGAAA expansions as well
as the pre-expansion provisions. The benefit level and wage ceiling are both at their pre-TGAAA
levels. However, there is no reemployment deadline and workers who are employed part-time and
enrolled in an TAA-approved training program can also qualify for RTAA, as was the case under
the TGAAA provisions. In 2014, all RTAA provisions are set to revert their pre-TGAAA levels.
Table 7. Reemployment Trade Adjustment Assistance, FY2003-FY2010
Outlays
Year Participants (millions)
2003 n/a n/a
2004 n/a $2
2005 n/a $9
2006 6,354 $15
2007 7,477 $22
2008 8,718 $27
2009 6,827 $23
2010 6,363 $27
Source: Participant data are from FY2006-FY2009 ATAA Activity Reports and FY2010 Trade Activity
Participant Report. Outlay data were obtained directly from the Employment Training Administration of the U.S.
Department of Labor.
Notes: During the temporary TGAAAA expansion, the eligible annual wage ceiling was increased from $50,000
to $55,000 and the two-year benefit cap was raised from $10,000 to $12,000.
Post-TAA Performance Data for Program Exiters
Table 8 offers data on post-TAA outcomes for program exiters using DOL’s Common Measures,
a metric that exists across its workforce programs. In the table, entered employment rate (EER)
refers to the percentage of workers who were employed in the quarter after program exit. The
employment retention rate (ERR) is the share of these employed workers who were also
employed in the second and third quarter after exit. Average earnings (AE) were recorded in the
second and third quarters after exit among workers who were employed in the first quarter
after exit.
Neither of the groups in Table 8 include any recipients of the expanded TGAAA benefits because
there was not enough time in the reference period for beneficiaries to enroll in TAA, receive
services, exit the program, and then report employment outcomes.
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Table 8. Employment Outcomes for TAA Exiters
Entered Employment
Employment Retention
Year
Rate (EER)
Rate (ERR)
Average Earnings (AE)
2009 69% 88%
$15,117
2010 58% 87%
$14,906
Source: U.S. Department of Labor, FY2009 and FY2010 TAA annual reports.
Notes: For 2010 data, EER considers exiters between January 1, 2009, and December 31, 2009, while ERR and
AE consider exiters between July 1, 2008, and June 30, 2009. For 2009, al data are from exiters between July 1,
2007, and June 30, 2008.
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Acknowledgments
This report expands on and replaces RS22718, Trade Adjustment Assistance for Workers (TAA) and
Alternative Trade Adjustment Assistance (ATAA) by John J. Topoleski. Dr. Topoleski assisted in
developing this expanded report.

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