Updated June 19, 2019
Trade Adjustment Assistance for Workers (TAA)
Overview and Program Rationale
foreign trade contributed to the workers’ job loss. DOL then
Reduced barriers to international trade are widely
conducts an investigation to determine if the circumstances
acknowledged to offer net benefits by expanding market
of the workers’ job loss meet program eligibility criteria.
access but may adversely affect domestic industries and
Qualified circumstances of job loss are the following:
workers that face increased competition. Trade Adjustment
Assistance (TAA) is designed to help trade-affected
Increase in directly competitive imports. The sales or
workers adjust to job loss resulting from increased foreign
production of the petitioning firm has decreased and
competition. The primary benefits under TAA are funding
imports of articles or services directly competitive with
for retraining and weekly income support payments while
the petitioning firm have increased.
affected workers are enrolled in training.
Shift in production. The workers’ firm has shifted the
This product provides a brief overview of the TAA for
production of articles or services that were produced by
workers program. For a more detailed discussion, see CRS
the petitioning workers to a foreign country, or the
Report R44153, Trade Adjustment Assistance for Workers
workers’ firm has begun to acquire from a foreign
and the TAA Reauthorization Act of 2015, by Benjamin
country articles or services that are directly competitive
Collins.
with those produced by the workers.
Trade Adjustment Assistance
Qualified secondary firm. The workers’ firm is a
Reauthorization Act of 2015
supplier or downstream producer to a firm that was
In June 2015, Congress enacted the Trade Adjustment
certified under either of the prior two criteria, and the
Assistance Reauthorization Act of 2015 (TAARA; Title IV
secondary firm meets certain other criteria.
of P.L. 114-27). This law established a set of TAA
eligibility and benefit provisions that are set to remain in
USITC firm. The workers’ firm is publicly identified
place through June 30, 2021. The law also authorized
by name by the United States International Trade
appropriations through that date. This product discusses the
Commission as injured by a market disruption or other
program as amended by TAARA.
qualified action.
Program Administration
If DOL’s investigation finds that the cause of the workers’
TAA is administered jointly by the U.S. Department of
dislocation meets the statutory criteria, the workers’ petition
Labor (DOL) and cooperating state agencies. DOL is
is certified. Workers covered by a certified group petition
responsible for investigating group petitions to establish
can then pursue individual benefits.
program eligibility. State agencies are responsible for
administering federally funded benefits to eligible workers.
The TAA eligibility criteria are designed to target workers
who lose their jobs due to increased international trade and
Funding and FY2019 Appropriations
increased imports. The eligibility criteria are not designed
TAA is supported by mandatory appropriations. Funding
for workers who are adversely affected by reductions in
for training and reemployment services is capped at $450
international trade or declines in exports.
million per year. Training for income support is not capped
at the aggregate level, though there are individual benefit
Training and Reemployment Services
limits.
Workers covered by a certified TAA petition are entitled to
certain benefits and services to aid them in preparing for
Appropriations for TAA in FY2019 were $790 million:
and obtaining new employment. As noted above, training
$450 million for training and reemployment services and
and reemployment services are administered through state
$340 million for income support and other benefits. TAA is
workforce agencies.
nonexempt mandatory (direct) spending, which means it is
subject to sequestration under the Budget Control Act. In
Case management and career services are typically
FY2019, sequestration for nonexempt, nondefense spending
provided by staff at state-run American Job Centers (also
was 6.2%, meaning that the postsequestration funding level
known as One-Stop Career Centers). Statute specifies a
was about $741 million.
group of services that all TAA-certified workers shall
receive, including a comprehensive skills assessment and
Eligibility and Group Application Process the development of an individual plan to identify an
To be eligible for TAA benefits, an individual worker must
employment objective and training to achieve that
be part of a group of TAA-certified workers. To obtain
objective.
group certification, a group of three or more dislocated
workers files a petition with DOL that describes how
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Trade Adjustment Assistance for Workers (TAA)
Training benefits can be paid directly to a training provider
Health Coverage Tax Credit (HCTC)
or through a voucher system. Statute establishes a set of
The HCTC provides a subsidy for qualified health
conditions under which training shall be approved: if there
insurance premiums for TAA workers. The HCTC equals
is no suitable employment available for the worker, the
72.5% of qualified health insurance costs. To qualify for the
training is available at a reasonable cost, the worker is
HCTC, the worker must be receiving TRA, UI in lieu of
qualified to undertake the training, and there is a reasonable
TRA, or RTAA.
expectation of employment after the completion of the
training. Statute specifies a somewhat broad range of
Issues for Congress
qualified training programs, including any coursework at an
Equity among dislocated workers. TAA provides a set of
accredited institution of higher education for the purposes
benefits and services that, in many cases, are more robust
of obtaining a degree or certification.
than those available to workers who involuntarily lose their
jobs for nontrade reasons. Some opponents of TAA suggest
Funding for training and reemployment services is granted
trade-affected workers should not receive special treatment
from the federal DOL to state agencies using a formula that
and trade-affected workers should instead utilize the
considers the state’s past and anticipated usage of TAA. A
benefits and services that are available to all dislocated
portion of funding is withheld from the initial formula
workers. Supporters of TAA note that, due to the
distribution and states may apply for these reserve funds.
congressional role in approving trade agreements, trade-
based dislocation may have a more direct relationship to
Income Support: Trade Readjustment
congressional action than other forms of job loss, and
Allowance (TRA)
therefore a specialized program is warranted.
TRA is a weekly payment that works in conjunction with
unemployment insurance (UI) to provide a TAA-certified
The relationship between TAA and expansionary trade
worker with income while the worker is enrolled in
policy. Historically, TAA has been reauthorized and
training. TRA begins the week after a worker exhausts his
expanded alongside policies that relate to expansionary
or her UI. A worker’s weekly TRA benefit equals his or her
trade policy. For example, TAARA was enacted in 2015 in
final weekly UI payment. There are three stages of TRA
conjunction with the Trade Promotion Authority, which
that, when combined with UI, offer a maximum of 130
granted the President the authority to negotiate trade
weeks of benefits.
agreements that would be subject to an “up or down” vote
in Congress. Some members may consider expansionary
Basic TRA begins the week after a worker exhausts UI.
trade policy more appealing if it is accompanied by TAA
A worker may collect UI and Basic TRA for a combined
legislation.
total of 52 weeks. In limited cases, a worker may be able
to obtain a training waiver and collect Basic TRA
Other TAA Programs
without enrolling in training.
This product discussed the TAA for Workers program. In
addition to the program for workers, statute also authorizes
Additional TRA begins the week after a worker exhausts
smaller programs that provide assistance to firms and
Basic TRA. A worker may collect Additional TRA for
farmers adversely affected by international competition.
up to 65 weeks. Only workers enrolled in training may
collect Additional TRA; workers with waivers are not
Trade Adjustment Assistance for Firms supports
eligible.
trade-impacted businesses by providing technical
assistance in developing business recovery plans and
Completion TRA is an additional 13 weeks of benefits
matching funds to implement those plans. The
that are available only if a worker will complete a
authorization for the TAA for Firms program was
training program during that time.
extended by TAARA, and FY2018 funding for the
program was $13.0 million. For more information, see
Wage Insurance for Older Workers:
CRS Report RS20210, Trade Adjustment Assistance for
Reemployment Trade Adjustment
Firms, by Rachel F. Fefer.
Assistance (RTAA)
Workers who are age 50 and over can participate in the
Trade Adjustment Assistance for Farmers is
RTAA program, which provides a wage supplement to
authorized in statute to provide technical assistance and
qualified workers who obtain new employment at a lower
cash payments to trade-affected agricultural commodity
wage. RTAA is a payment equal to 50% of the difference
producers. The authorization of the TAA for Farmers
between the worker’s wage at his or her TAA-certified job
program was extended by TAARA, but the program has
and his or her new job. The maximum RTAA benefit is
not received an appropriation since FY2011. For more
$10,000 or two years of benefits, whichever comes first.
information, see CRS Report R40206, Trade Adjustment
Assistance for Farmers, by Mark A. McMinimy.
To qualify for RTAA, a worker must either be employed on
a full-time basis (as defined by the laws of the state in
which the worker is employed) or be employed at least 20
Benjamin Collins, Analyst in Labor Policy
hours per week and be enrolled in a TAA-sponsored
training program. RTAA beneficiaries are not eligible to
IF10570
concurrently receive TRA. RTAA beneficiaries who had
previously received TRA receive a reduced RTAA benefit.
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Trade Adjustment Assistance for Workers (TAA)
Disclaimer
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https://crsreports.congress.gov | IF10570 · VERSION 4 · UPDATED