Trade Adjustment Assistance for Workers and
the TAA Reauthorization Act of 2015
Updated February 17, 2021
Congressional Research Service
https://crsreports.congress.gov
R44153

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

Summary
Trade Adjustment Assistance for Workers (TAA) provides federal assistance to workers who have
involuntarily lost their jobs due to foreign competition. It was last reauthorized by the Trade
Adjustment Assistance Reauthorization Act of 2015 (TAARA; Title IV of P.L. 114-27). As
specified in TAARA, the program is scheduled to revert to a more restrictive set of eligibility and
benefit requirements beginning July 1, 2021. This report focuses on the current law version of the
program and briefly discusses major components of the scheduled changes.
To be eligible for TAA, a group of workers must establish that they were separated from their
employment either because their jobs moved outside the United States or because of an increase
in directly competitive imports. Workers at firms that are suppliers to or downstream producers of
TAA-certified firms may also be eligible for TAA benefits. Private sector workers who produce
goods or supply services are eligible for TAA benefits. Beginning July 1, 2021, new petitions
from groups of adversely affected workers who supply services wil no longer be eligible to be
certified; only production workers wil be eligible.
To establish eligibility for TAA benefits, a group of trade-affected workers (or their
representative) must petition the Department of Labor (DOL) and a DOL investigation must
verify the role of increased foreign trade in the workers’ job losses. Once a petition is certified by
DOL, covered workers may apply for individual benefits.
Individual benefits are funded by the federal government and administered by state agencies
through their workforce systems and unemployment insurance systems. Benefits available to
individual workers include the following:
 Training and reemployment services are designed to assist workers in
preparing for and obtaining new employment. Training subsidies are the largest
reemployment services expenditure and support workers in developing skil s for
a new occupation. Workers may also receive case management services and job
search assistance. In some cases, workers who pursue employment outside their
local commuting area may be eligible for job search or relocation al owances.
 Trade Readjustment Allowance (TRA) is a weekly income support payment
for TAA-certified workers who have exhausted unemployment compensation
(UC) and who are enrolled in an eligible training program. Weekly TRA
payments are equal to the worker’s final weekly UC benefit. Workers may collect
UC and TRA for a combined maximum of 130 weeks, the final 13 of which are
only available if necessary for the worker to complete a qualified training
program.
 Reemployment Trade Adjustment Assistance (RTAA) is a wage insurance
program available to certified workers age 50 and over who obtain reemployment
at a lower wage. The wage insurance program provides a cash payment equal to
50% of the difference between the worker’s new wage and previous wage, up to
a two-year maximum of $10,000.
 The Health Coverage Tax Credit is a credit equal to 72.5% of qualified health
insurance premiums. Eligibility is aligned with TRA. Unlike other TAA benefits,
it is administered through the tax code.
TAA is supported through mandatory appropriations. Appropriations for the program in FY2021
were about $634 mil ion. These funds were subject to 5.7% sequestration, meaning that the post-
sequestration funding level was about $597 mil ion.
Congressional Research Service

link to page 17 Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

rade Adjustment Assistance for Workers (TAA) provides federal assistance to workers who
involuntarily lose their jobs due to foreign competition.1 The primary benefits for TAA-
T eligible workers are funding for training and reemployment services as wel as income
support while a worker is enrolled in training. Workers may also be eligible for other benefits,
including a tax credit equal to a portion of qualified health insurance premiums. Workers age 50
and over may be eligible for Reemployment Trade Adjustment Assistance, a wage insurance
program.
After a brief discussion of the program’s purpose and most recent reauthorization, this report
describes TAA as reauthorized by the Trade Adjustment Assistance Reauthorization Act of 2015
(TAARA, Title IV of P.L. 114-27). TAARA has sunset provisions that wil take effect July 1,
2021. At that time, the program wil revert to a more restrictive set of eligibility and benefit
provisions for new program participants. This report focuses on the eligibility and benefit
provisions under current law. It discusses major components of the sunset provisions.
Program Rationale and Purpose
Reduced barriers to international trade are widely acknowledged to offer benefits to consumers in
the form of increased choices and lower prices. Expanded trade may also offer expansionary
opportunities to firms that produce goods or supply services that see increased exports. Reduced
barriers to trade may, however, have concentrated negative effects on domestic industries and
workers that face increased competition. TAA is designed to provide readjustment assistance to
workers who suffer dislocation (job loss) due to foreign competition or offshoring. General y,
TAA provides a more robust set of benefits and services than would be available to a worker who
lost his or her job for reasons other than foreign competition.2
TAA is designed to assist workers who have been adversely affected by reduced trade barriers and
increased trade. Its availability to workers who are adversely affected by declines in international
trade (e.g., a domestic firm that experiences a reduction in foreign demand and corresponding
exports) may be limited.
TAA was created in 1962 and, historical y, has been reauthorized alongside expansionary trade
policies. TAA is currently authorized by Title II of the Trade Act of 1974, as amended. A brief
legislative history of the program is in the Appendix.
Trade Adjustment Assistance Reauthorization Act
of 2015
TAA was most recently reauthorized by TAARA in June 2015.3 TAARA was part of a bil that
extended other trade-related policies. TAARA was also passed in conjunction with a separate bil

1 In addition to the program for workers, other T rade Adjustment Assistance programs are authorized for firms and
farmers that have been adversely affected by international trade. T his report discusse s the program for workers. From a
budgetary standpoint, the workers program is substantially larger than the programs for firms and farmers and general
discussion of “T AA” often only refers to the workers program. For more information on other T AA programs, see CRS
Report RS20210, Trade Adjustm ent Assistance for Firm s and CRS Report R40206, Trade Adjustm ent Assistance for
Farm ers.
2 For more information on other workforce programs, see CRS Report R43301, Programs Available to Unemployed
Workers Through the Am erican Job Center Network.
3 T AARA also reauthorized the T AA programs for firms and farmers. For more information on T AARA and those
Congressional Research Service

1

link to page 4 Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

that reauthorized the Trade Promotion Authority (TPA, Title I of P.L. 114-26). TPA (also known
as “fast track”) grants the President authority to negotiate trade agreements, which are then
subject to an “up or down” vote in Congress. Since the reauthorization of TPA in 2015, Congress
has not voted on any presidential y negotiated trade agreements.4
Applicability of TAARA Provisions
TAARA established eligibility and benefit provisions that are scheduled to remain in effect
through June 30, 2021. The law also had retroactivity provisions and, in some cases, workers who
were parts of groups certified prior to TAARA may be covered under the TAARA provisions.
Groups of workers with applications that were denied between January 1, 2014, and the
enactment of TAARA also had their applications reconsidered under the TAARA eligibility
criteria.
Sunset Provisions and Scheduled 2021 Changes
TAARA has sunset provisions that specify that beginning on July 1, 2021, the TAA program is
scheduled to revert to a more restrictive set of eligibility and benefit provisions that were in place
prior to its enactment. The sunset provisions do not change the general structure of the program:
the respective roles of the federal government and state agencies remain the same and the
program continues to be funded through the same mechanisms. Instead, the sunset provisions
make more granular changes to specific eligibility and benefit provisions. The most significant
scheduled changes include the following:
 Reduction of eligible sectors. Under current law, workers who produce articles
and workers who supply services can qualify for TAA. Under the scheduled
reversion, only workers who produce articles would be eligible; new petitions
from groups of workers who supply services wil no longer be eligible.
 Reduction of layoff circumstances that are TAA-eligible. Under current law,
workers can qualify for TAA under the “shift in production” criteria if their jobs
are shifted to any foreign country. Under the scheduled reversion, workers would
largely only be eligible under this criteria if their jobs were moved to a country
with which the United States has a free trade agreement.5
 Reduction in training funding cap. Under current law, the statutory cap for
“training and other activities” is $450 mil ion. Under the scheduled reversion, the
cap would be limited to training and reduced to $220 mil ion.6
The sunset provisions apply to workers who would qualify for the program under petitions filed
after the provisions take effect. The sunset provisions are not retroactive. Workers from groups
certified under the current law provisions would continue to be eligible even if the eligibility
provisions that they were certified under are no longer in effect.

programs, see their corresponding reports cited in footnote 1.
4 For more information on T PA, see CRS In Focus IF10038, Trade Promotion Authority (TPA).
5 Shifts in production to countries that are beneficiaries under certain non -FT A trade agreements may also be covered.
6 T he funding structures under current law and the scheduled reversion are somewhat different. Under the scheduled
reversion, Congress may appropriate additional funds beyond the cap for administration and case management. Under
current law, the $450 million cap is inclusive of administration and case management costs.
Congressional Research Service

2

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

The sunset provisions are scheduled to apply for one year. After July 1, 2022, the TAA program is
scheduled to be phased out. The program wil continue to serve certified workers but wil no
longer certify new petitions.7
Prior Implementation of Sunset Provisions and “Reversion 2014” Provisions
The sunset provisions in TAARA are similar to the sunset provisions that were established in the
Trade Adjustment Assistance Extension Act of 2011 (TAAEA; Title II of P.L. 112-40) and took
effect January 1, 2014. The implementation of the “Reversion 2014” provisions that were in place
between January 1, 2014, and the effective date of TAARA in 2015 can offer some perspectives
on how the reversion scheduled for July 1, 2021, may be implemented and how it may interact
with a subsequent reauthorization.8
Immediately prior to the Reversion 2014 provisions taking effect, DOL issued detailed guidance
to cooperating state agencies on the forthcoming changes to the program.9 Since the reversion
provisions were not retroactive, a key aspect of the guidance was differentiating the provisions
under which different program participants would be served.
The timing of the Reversion 2014 provisions (January 1, 2014) meant that the cap on training
funding and a number of associated details changed in the midst of FY2014. DOL al ocated its
appropriation to effectively prorate the changes in funding for training and other activities.10
In FY2015, the program operated under the Reversion 2014 provisions for the full fiscal year.
The sunset provisions of TAAEA had scheduled the TAA program to begin to be phased out
beginning January 1, 2015, but the law providing TAA funding for FY2015 (P.L. 113-235)
provided full funding for the program under the Reversion 2014 provisions and specified that the
program would continue, including the certification of new petitions, for the entirety of the fiscal
year.
In June 2015, TAARA was enacted. TAARA specified that any petitions that were rejected
between January 1, 2014, and the effective date of TAARA would be reconsidered under the new
law. The new law also specified that any workers who were certified under the Reversion 2014
provisions could elect to receive benefits under the new law’s provisions.11
TAA Administration and Financing
TAA is jointly administered by the federal government and state agencies. It is funded by the
federal government. The respective roles of federal and state governments in administering and

7 See Section 285 of the T rade Act as scheduled to be modified by Section 406 of T AARA.
8 T he term “Reversion 2014” does not appear in statute but was regularly used by DOL in referring to the provisions
that took effect on January 1, 2014.
9 See U.S. Department of Labor, T raining and Employment Guidance Letter 07 -13, “Operating Instructions for
Implementing the Sunset Provisions of the Amendments to the T rade Act of 1974 Enacted by the T rade Adjustment
Assistance Extension Act of 2011 (T AAEA or the 2011 Amendments),” December 27, 2013, https://wdr.doleta.gov/
directives/corr_doc.cfm?DOCN=3972.
10 See U.S. Department of Labor, T raining and Employment Guidance Letter 12-13, “Fiscal Year (FY) 2014 State
Initial Allocations for T rade Adjustment Assistance (T AA) T raining and Other Activities and the Process for
Requesting T AA Program Reserve Funds,” February 7, 2014, https://wdr.doleta.gov/directives/attach/TEGL/
T EGL_12_13.pdf.
11 See Section 405 of T AARA.
Congressional Research Service

3

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

financing the TAA program were in place prior to TAARA and were not substantively changed by
the reauthorization law.
Administration
TAA is jointly administered by the U.S. Department of Labor (DOL) and cooperating state
agencies. DOL makes group eligibility determinations, al ots appropriated funds to cooperating
state agencies, and oversees grantees. Individual benefits are provided through state workforce
systems and state unemployment insurance systems.12 Workers may physical y receive benefits
and services through local American Job Centers (also known as One-Stop Career Centers).
States are responsible for collecting participation and outcome data and reporting these data to
DOL.
The Health Coverage Tax Credit, which is available to qualified TAA-certified workers who
purchase qualified health insurance, is administered by the Internal Revenue Service (IRS).13 It is
administered separately from the TAA program’s other benefits and services.
Financing
TAA is funded by mandatory appropriations. Typical y, Congress appropriates a single sum that
supports al TAA activities.14 DOL then al ocates these funds to various program activities.
Under TAARA, funding for training and reemployment services is capped at $450 mil ion per
year. These funds are al otted to the states via a grant al ocation formula that considers past and
anticipated program usage.15 States may expend training and reemployment service funds in the
year of al otment or in either of the next two fiscal years.
Training subsidies are states’ primary expenditures out of their reemployment services funding.
TAARA specifies that states must al ocate at least 5% of their reemployment services funding to
case management and no more than 10% to administrative costs.16
Funds for the Trade Readjustment Al owance income support and Reemployment Trade
Adjustment Assistance wage insurance program are not capped. Appropriations for these benefits
are based on congressional estimates. Funding for these benefits that is not spent in the year of
al otment is returned to the Treasury.
TAA is a direct spending (also referred to as “mandatory”) program and subject to sequestration
under the Budget Control Act of 2011, as amended. For FY2021, the Office of Management and
Budget (OMB) determined that the reduction for nonexempt, nondefense spending would be
5.7%.17 Sequester levels in subsequent years are to be determined by OMB.

12 For more information on state workforce systems see CRS Report R44252, The Workforce Innovation and
Opportunity Act and the One-Stop Delivery System . For more information on state unemployment insurance systems,
see CRS Report RL33362, Unem ployment Insurance: Program s and Benefits.
13 For more information on the Health Coverage T ax Credit, see CRS Report R44392, The Health Coverage Tax Credit
(HCTC): In Brief.
14 Funds for T AA are typically appropriated under “Federal Unemployment Benefits and Allowances” in the Labor,
Health and Human Services, Education, and Related Agencies appropriations bill.
15 For more information on the formula and allotment process, see 19 U.S.C. 2296(a)(2) and 20 C.F.R. 618.900 -930.
16 See 19 U.S.C. §2295a.
17 See Office of Management and Budget, OMB Report to the Congress on the Joint Committee Reductions for Fiscal
Year 2021, February 10, 2020, https://www.whitehouse.gov/wp-content/uploads/2020/02/JC-
Congressional Research Service

4

link to page 5 link to page 5 Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

FY2021 Appropriation
In FY2021, Congress appropriated $633.6 mil ion for the TAA for Workers programs.18 Of this
amount, $406.6 mil ion was for training and other activities and the remaining $227 mil ion was
for income support and wage insurance.19 The entire $633.6 mil ion appropriation was subject to
5.7% sequestration ($36.1 mil ion). DOL opted to apply the entirety of the sequestration to the
training and reemployment services funding, reducing the funding for training and reemployment
services from $406.6 mil ion to about $370.5 mil ion and leaving the $227 mil ion for income
support and wage insurance unchanged.20
Eligibility and Application Process
Obtaining TAA benefits is a two-stage process. First, a group of workers or their representative
(e.g., firm, union, or state) must petition DOL to establish that their job loss was attributable to
foreign trade and met statutory criteria. Once a group has been certified by DOL, individual
workers covered by the group’s petition apply for state-administered benefits at local American
Job Centers (AJCs; also known as One-Stop Career Centers). TAA is available to workers in the
50 states, the District of Columbia, and Puerto Rico.
This section describes eligibility criteria scheduled to be in effect through June 30, 2021. After
that date, eligibility criteria are scheduled to revert to the narrower eligibility criteria that were in
place between January 1, 2014, and the enactment of TAARA. See the “Sunset Provisions and
Scheduled 2021 Changes” section for more detail.
TAA Group Eligibility Criteria
To be eligible for TAA group certification, a group of workers from a firm (or a subdivision of a
firm) must have become total y or partial y separated from their employment or have been
threatened with becoming total y or partial y separated.21 Private sector workers who produce
goods (“articles” in the law) or supply services are eligible for TAA. Beginning July 1, 2021, new
petitions from service workers wil no longer be eligible.
The petitioning workers must establish that foreign trade contributed importantly to their
separation.22 The role of foreign trade can be established in one of several ways:

sequestration_report_FY21_2-10-20.pdf.
18 See Division H of the Consolidated Appropriations Act, 2021 (P.L. 116-260); and Department of Labor, T raining
and Employment Guidance Letter No. 14-20: “ Initial Allocation for Fiscal Year (FY) 2021 T rade Adjustment
Assistance (T AA) T raining and Other Activities and the Process for Requesting T AA Reserve Funds,” January 19,
2021, https://wdr.doleta.gov/directives/attach/TEGL/T EGL_14-20.pdf .
19 T he previously cited T EGL 14-20 did not specify the calculation of the total FY2021 funding level for training and
other activities, but the funding level appears to approximate the sum of prorated amounts under the current law
provisions and the reversion provisions that are scheduled to take effect July 1, 2021.
20 See Section 4, “Allocation and Process Details,” of T EGL 14-20.
21 Partial separation is defined as hours of work and wages being reduced to less than 80% of a worker’s weekly
average. See 20 C.F.R. §618.110.
22 T he term contributed importantly means a cause that is important but not necessarily more import ant than any other
cause. See 19 U.S.C. §2272(c)(1).
Congressional Research Service

5

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

 An increase in competitive imports. The sales or production of the petitioning
firm have decreased absolutely and imports of articles or services like or directly
competitive with those produced by the petitioning firm have increased.
 A shift in production to a foreign country. The workers’ firm has moved
production of the articles or supply of services that the petitioning workers
produced or supplied to a foreign country or the firm has acquired, from a foreign
provider, articles or services that are directly competitive with those produced by
the workers.
 Adversely affected secondary workers. The petitioning firm is a supplier or a
downstream producer23 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.
 USITC workers. Workers separated from firms that have been publicly
identified by the United States International Trade Commission (USITC) as
injured by a market disruption or other qualified action.
The TAA eligibility criteria are designed to target workers who lose their jobs due to increased
international trade and increased imports. The structure of the eligibility criteria mean that the
program may not be available to workers who are adversely affected by reductions in
international trade or declines in exports.
TAA Group Petition and Certification Process
To establish TAA eligibility, a group of workers (or their representative, such as a union, firm, or
state) must complete a two-page petition and submit it, along with any supporting documentation,
to DOL.24 An additional copy of the TAA petition must also be filed with the governor of the state
in which the affected firm is located.25 After receiving the petition, DOL investigates to determine
if the petition meets any of the criteria outlined in the previous subsection of this report.
Determinations of TAA petitions are published in the Federal Register and on the DOL website.
If a petition is certified, DOL wil also determine an impact date on which trade-related layoffs
began or threatened to begin.26 This date can be as early as one year prior to the petition. A
certified petition wil cover al workers laid off by the firm (or applicable subdivision of the firm)
between the impact date and two years after the certification of the petition. For example, if a
petition is certified on November 1, 2015, and the impact date is found to be March 1, 2015, al
members of the certified group laid off between March 1, 2015, and November 1, 2017, would be
eligible for TAA benefits.
If a petition is denied, the group may request administrative reconsideration by DOL.27
Reconsideration requests must be mailed within 30 days of the publication of the initial denial in

23 19 U.S.C. §2272(c)(3) defines a downstream producer as “a firm that performs additional, value -added production
processes or services directly for another firm.”
24 Petition is available at http://www.doleta.gov/tradeact/docs/RevisedPetition.pdf.
25 Upon receiving the petition, the governor shall ensure that rapid response workforce services are made available to
the petitioning workers. Rapid response services are provided by the state agency that administers federal Workforce
Innovation and Opportunity Act funds.
26 “T hreatened to begin” means “in the context of impending total or partial separations, the date on which it could
reasonably be predicted that separations were imminent.” See 20 C.F.R. §618.110.
27 See 20 C.F.R. §618.245 for detailed information on the reconsideration process.
Congressional Research Service

6

link to page 5 link to page 5 Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

the Federal Register. Workers who are denied certification may seek judicial review of DOL’s
initial petition denial or denial following administrative reconsideration. Appeals for judicial
review must be filed with the U.S. Court of International Trade within 60 days of Federal
Register publication of the initial denial or the administrative reconsideration denial.
TAA Individual Eligibility
After DOL certifies a group of workers as eligible, the individual workers covered by the
certification then apply to their local AJCs for individual benefits. To be eligible for Trade
Readjustment Al owance payments, a worker must meet al of the following conditions: (1)
separation from the firm on or after the impact date specified in the certification, but within two
years of DOL certification, (2) employment with the affected firm in at least 26 of the 52 weeks
preceding layoff, (3) entitlement to state unemployment compensation (UC) benefits, and (4) no
disqualification for extended unemployment benefits. Additional y, workers must be enrolled in
an approved training program or have received a waiver from training.28
Group-certified workers who are denied individual benefits can appeal the decision. The
determination notice that individual workers receive after filing their applications for each benefit
explains their appeal rights and time limits for filing appeals.
Benefits for Certified Workers
TAA benefits for individual workers include training and reemployment services and income
support for workers who have exhausted their UC benefits and are enrolled in training. Workers
age 50 and over may participate in the Reemployment Trade Adjustment Assistance (RTAA)
wage insurance program. Certified workers may also be eligible for a tax credit for a portion of
the premium costs for qualified health insurance.
This section describes benefits available to workers eligible under certified petitions filed through
June 30, 2021. After that date, the universe of available benefits wil remain broadly similar, but
the funding cap for training wil be reduced and modified. See the “Sunset Provisions and
Scheduled 2021 Changes” section for more detail.
Training and Reemployment Services
TAA-certified workers may receive several types of benefits and services to aid them in preparing
for and obtaining new employment. The largest reemployment benefit from a budgetary
standpoint is training assistance. Workers may also receive case management services and
reimbursements for qualified job search and relocation expenses.
TAARA caps annual funding for training and reemployment services at $450 mil ion per year.
Training and reemployment services funds are granted to state workforce agencies via formula.29

28 19 U.S.C. §2291(c) defines three waiver requirements: (1) a worker is unable to participate in training due to health
reasons, (2) suitable training is not available, or (3) enrollment in training is not available within 60 days.
29 For more information on the formula and allotment process, see 19 U.S.C. §2296(a)(2) and 20 C.F.R. §§618.900 to
618.950.
Congressional Research Service

7

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

Training Assistance
Eligible workers request training assistance through their local AJCs.30 Statute specifies that
training for a worker shal be approved if al of the following conditions are met:
 there is no suitable employment available for an adversely affected worker,31
 the worker would benefit from appropriate training,
 there is a reasonable expectation of employment following completion of such
training,
 training approved by the Secretary is reasonably available to the worker from
either governmental agencies or private sources,
 the worker is qualified to undertake and complete such training, and
 such training is suitable for the worker and available at a reasonable cost.32
Once approved, training can be paid on the worker’s behalf directly to the service provider or
through a voucher system. The range of approved training includes a variety of governmental and
private programs.33 There is no federal limit on the amount of training funding an individual can
receive, though some states have a cap.
A concise summation of TAA training programs is difficult to provide due to the range of
acceptable activities and the decentralized nature of approval and training. Data from DOL,
however, offer some insight into the nature and duration of TAA-sponsored training programs. In
FY2019, approximately 81% of TAA training participants received what DOL describes as
occupational skil s training: training in a specific occupation, typical y provided in a classroom
setting. The remainder of training was classified as remedial, prerequisite, on-the-job, or other
customized training.34
Among program participants who exited the TAA program in FY2019 and participated in
training, 75% completed their program of training.35 Among the training participants who
completed their training programs in FY2019, the average duration of enrollment in the program
was 459 days and the average training cost was $15,087.36

30 American Job Centers are locally run facilities providing workforce services to individuals and serve as the local arm
of the state workforce system. T here are approximately 2,500 centers nationwide. For more information on AJCs, see
http://jobcenter.usa.gov/.
31 19 U.S.C. §2296(e) defines suitable employment as “work of a substantially equal or higher skill level than the
worker’s past adversely affected employment, and wages for such work at not less than 80 percent of the worker’s
average weekly wage.”
32 T he “reasonable cost” determination considers the cost of similar training from a different provider and the cost of
training relative to the expected employment outcome. See 19 U.S.C. §2296(a)(1) for legislative language and 20
C.F.R. §618.610(f)(2) and 20 C.F.R. §618.650 for expanded definitions of terms.
33 Eligible programs include (but are not limited to) employer-based training, any training program provided by a state
under T itle I of the Workforce Innovation and Opportunity Act of 2014, any program of remedial education, any
program of prerequisite education or coursework required to enroll in an approved training program, any training
program or coursework at an accredited institution of higher education, or any other training program approved by the
Secretary of Labor. See 19 U.S.C. §2296(a)(5) for legislative language.
34 U.S. Department of Labor, “Trade Adjustment Assistance for Workers Program: Fiscal Year 2019,” T able 11,
https://www.dol.gov/sites/dolgov/files/ET A/tradeact/pdfs/AnnualReport19.pdf.
35 Ibid., T able 14.
36 Ibid., T able 14 and T able 16.
Congressional Research Service

8

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

TAA does not require training programs to lead to a degree or other credential. In its FY2019
annual report, DOL reported that 88% of workers who completed training earned an industry-
recognized credential, or a secondary school diploma or equivalent.37
Interaction of TAA Training Funding and Other Forms of Assistance
TAA funding may be the only source of funding for a worker’s training costs. Statute addresses
scenarios in which other resources are used in the pursuit of TAA-funded training.
In determining if the cost of a training program is reasonable, an administering state agency may
consider public and private non-TAA funding available to the worker. For example, a worker may
voluntarily offer to pay for a portion of a program with personal funds so that an agency may
approve a program for which the costs would not otherwise be reasonable. An administering state
agency may not require a TAA-certified worker to contribute personal funds or apply for other
assistance as a condition of approving a TAA training program.38
A key exception to the policy of administering state agencies considering non-TAA aid is that the
Higher Education Act specifies that certain types of federal student aid (including Pel Grants )39
“shal not be taken into account in determining the need or eligibility of any person for benefits or
assistance, or the amount of such benefits or assistance, under any Federal, State, or local
program financed in whole or in part with Federal funds.”40 As such, a TAA-certified worker’s
training benefit could not be reduced on the basis of that worker’s access to a Pel Grant.
Guidance from DOL notes that this policy “al ows a worker to use student financial assistance for
living expenses instead of tuition and thus provides the worker income support during long-term
training.”41
Case Management and Employment Services
TAARA specifies that, through the administering state agencies and AJC system, DOL shal
provide a series of case management and employment services to al TAA-certified workers.
These services include a comprehensive assessment of a worker’s skil s and needs, assistance in
developing an individual employment objective and identifying the training and services
necessary to achieve that goal, and guidance on training and other services for which a worker
may be eligible.42 Under TAARA, states are required to use at least 5% of their reemployment
services al otments for case management and employment services.
Job Search and Relocation Allowances
States may use their reemployment services funding to provide job search and relocation
al owances.43 These al owances target workers who are unable to obtain suitable employment

37 Ibid., T able 15.
38 See 19 U.S.C. §2296(a)(9).
39 Pell Grants are the primary form of federal grant aid awarded to students with financial need who are enrolled in
postsecondary education. For more information, see CRS Report R45418, Federal Pell Grant Program of the Higher
Education Act: Prim er.
40 See Section 479B of the Higher Education Act (20 U.S.C. §1087uu).
41 T EGL 5-15, Operating Instructions for Implementing the T rade Adjustment Assistance Reauthorization Act of 2015,
Section D.5.2, https://wdr.doleta.gov/directives/attach/TEGL/T EGL_05-15_Attachment1_Acc.pdf.
42 Full requirements are outlined in 19 U.S.C. §2295.
43 Under T AARA, states have discretion whet her or not to offer job search and relocation allowances. If states opt to
offer these benefits, the allowances are funded out of the state’s training and reemployment services grants.
Congressional Research Service

9

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

within their commuting areas. Certified workers can receive an al owance equal to 90% of each
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.
 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.
Trade Readjustment Allowance
Trade Readjustment Al owance (TRA) is a weekly income support payment to certified workers
who have exhausted their UC benefits and who are enrolled in training.44 To be eligible for TRA,
a worker must be enrolled in training within 26 weeks of separation from the worker’s job or
within 26 weeks of TAA certification, whichever is later. In limited circumstances, a worker may
obtain a training waiver.45
The sunset provisions scheduled to take effect July 1, 2021, do not make substantial changes to
the maximum duration or amount of TRA benefits.
TRA is funded by the federal government and administered by the states through their
unemployment insurance systems. TRA is an individual entitlement and not subject to an annual
funding cap. Appropriation levels are based on estimated usage and unused funds are returned to
the Treasury at the end of the fiscal year.
Individual TRA benefit levels are equal to a worker’s final UC benefit. UC benefit levels are
based on earnings during a base period of employment (typical y, the first four of the last five
completed calendar quarters). UC benefits typical y replace a portion of a worker’s wages up to a
statewide maximum. Since states each administer their own UC programs, there is some variation
in benefit levels. In July 2019, the highest maximum weekly UC benefit for a worker with no
dependents was $795 in Massachuset s and the lowest maximum weekly benefit was $240 in
Arizona.46

44 In cases where unemployment benefits beyond state UC are available, the worker must exhaust all unemployment
benefits before collecting T RA. Additional unemployment benefits offset T RA in the same manner as UC benefits.
Maximum benefit durations reflect t he combined total duration of unemployment benefits and T RA.
45 A worker may obtain a training waiver if (1) the worker is unable to participate in training due to a health condition,
(2) enrollment in a training program is available within 60 days, or (3) no suitable training is available. Workers who
receive a training waiver may only collect Basic T RA; they are not eligible for the Additional and Completion tiers of
T RA.
46 T hese benefit amounts precede any changes to UC calculations during the COVID-19 pandemic. For a more detailed
discussion of UC calculations and programs, see CRS Report RL33362, Unem ployment Insurance: Program s and
Benefits. For more information on pandemic-related provisions, see CRS Report R45478, Unem ployment Insurance:
Legislative Issues in the 116th Congress; and CRS In Focus IF11723, Unem ploym ent Insurance Provisions in the
Consolidated Appropriations Act, 2021 (Division N, Title II, Subtitle A, the Continued Assistance for Unem ployed
Workers Act of 2020).
Congressional Research Service

10

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

There are three stages of TRA:
 Basic TRA. The weekly basic TRA payment begins the week after a worker’s
UC 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 UC benefits. For example,
assuming a constant benefit level, a worker who received 20 weeks of UC
benefits would be eligible for 32 weeks 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. Additional TRA is limited to
workers who are enrolled in a training program; workers who have received a
training waiver are not eligible for additional TRA. TAA participants may only
collect additional TRA as long as they remain enrolled in a qualified training
program. In cases where a worker’s training program is shorter than the
maximum TRA duration, the worker is not entitled to the maximum number of
TRA weeks.
 Completion TRA. In cases where a worker has collected 117 weeks of combined
TRA and UC and is stil enrolled in a training program that leads to a degree or
industry-recognized credential, the worker may collect TRA for up to 13
additional weeks (130 weeks total) if the worker wil complete the training
program during that time.
Reemployment Trade Adjustment Assistance
RTAA is an entitlement that provides a wage supplement for workers age 50 and over who are
certified for TAA benefits and obtain reemployment at a lower wage. The program provides a
cash payment to an eligible worker equal to 50% of the difference between the worker’s wage at
the trade-affected job and the worker’s wage at his or her new job. The maximum benefit is
$10,000 over a two-year period. Workers may not receive TRA and RTAA benefits
simultaneously.47
To be eligible for RTAA, a worker must either (1) be reemployed on a full-time basis, as defined
by the law of the state in which the worker is employed or (2) be reemployed at least 20 hours a
week and be enrolled in a TAA-sponsored training program. Workers who receive RTAA
payments while enrolled in training and working less than full time may be subject to a reduced
benefit.48

47 A worker who receives RT AA payments after receiving T RA payments will have his or her maximum RT AA benefit
reduced on the basis of how long the worker collected T RA. Full calculation is at 19 U.S.C. §2318(a)(4)(B).
48 See 19 U.S.C. §2318(a)(6)(B) for full calculation.
Congressional Research Service

11

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

Health Coverage Tax Credit49
Workers who are receiving TRA, UC in lieu of TRA, or RTAA benefits may also be eligible for a
tax credit that covers a portion of eligible health insurance premiums.50 The Health Coverage Tax
Credit (HCTC) is equal to 72.5% of qualified health insurance premiums.
TAARA includes provisions specifying that a worker must elect between the HCTC and premium
credits under the Patient Protection and Affordable Care Act (ACA; P.L. 111-148, as amended).
Unlike other provisions of TAARA, which are in effect through June 30, 2021, the HCTC is
authorized through December 31, 2021.
Collection and Publication of Program Data
The Trade Act requires DOL to collect and publish specified data on TAA participation, benefits,
outcomes, and spending.51 Data to be collected and reported include (but are not limited to) the
following:
 Data on petitions filed, certified, and denied. These data include the number of
petitions filed, certified, and denied, as wel as the average processing time for
such petitions. Certified petitions must be disaggregated on the basis of
eligibility.
 Data on benefits received. These data include the number of workers receiving
TRA and other benefits as wel as the average duration for which workers
received benefits.
 Data on training. These data include the number of workers who participated in
training, the average duration of such training, and the average per-worker cost of
training.
 Data on outcomes. These data focus on program exiters.52 The data include the
percentage of program participants who are in unsubsidized employment during
the second calendar quarter after exit, the earnings of such workers, the
percentage of workers who are in unsubsidized employment in the fourth quarter
after exit, and the percentage of workers who received a recognized
postsecondary credential.
 Data on rapid response activities. These data include whether or not a state
provided rapid response services to each firm that petitioned for benefits.53

49 For more information on the Health Coverage T ax Credit, see CRS Report R44392, The Health Coverage Tax Credit
(HCTC): In Brief.
50 More information on how workers may claim the credit is available from the IRS at https://www.irs.gov/credits-
deductions/individuals/hctc.
51 See 19 U.S.C. §2323 for full legislative language.
52 T he FY2019 T AA Annual Report defines a program exiter as a participant who “has not received a service funded by
the program or certain other services funded by a part ner program for 90 consecutive calendar days following the last
service and is not scheduled for future services.” See U.S. Department of Labor, T rade Adjustment Assistance for
Workers Program: FY2019 Annual Report,” https://www.dol.gov/sites/dolgov/files/ET A/tradeact/pdfs/
AnnualReport19.pdf.
53 Rapid response services are provided by state workforce systems after notification of a layoff. For more information,
see https://www.doleta.gov/layoff/workers.cfm.
Congressional Research Service

12

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

 Data on spending. These data include state and national payments for TRA
benefits, training, administration, and job search and relocation al owances.
The data required by the Trade Act are collected by the state agencies that administer the TAA
program. These data are submitted to DOL, which publishes the data and other relevant
information in annual reports.54 Since 2014, DOL has also published quarterly data and analysis
on its website.55
In addition to participation data, DOL maintains a database of individual firms’ TAA petitions.
Users can access firm-level information, including the firm’s full petition and DOL’s assessment
and determination of the petition.56

54 Annual reports since FY2009 are available at https://www.doleta.gov/tradeact/taa-data/. As of this writing, the most
recent report is for FY2019.
55 See https://www.doleta.gov/tradeact/taa-data/participants-data/.
56 T he database is at https://doleta.gov/tradeact/petitioners/taa_search_form.cfm.
Congressional Research Service

13

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

Appendix. Brief Program History57
Early History
The first TAA programs were enacted in 1962 but little used until the Trade Act of 1974 eased
eligibility requirements. Program use expanded through the 1970s and the number of certified
workers increased from about 59,000 in FY1975 to nearly 600,000 in FY1980. In light of rapidly
increasing program costs, the Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35) cut
spending by reducing benefits and emphasizing training and other reemployment services. TAA
participation levels fluctuated throughout the 1980s, but were mostly wel below the levels of the
1970s.
In 1988, the program was reauthorized through FY1993 by the Omnibus Trade and
Competitiveness Act of 1988 (P.L. 100-418). Among other changes, the 1988 reauthorization
expanded eligibility for TRA but also placed a new emphasis on training by making it a program
requirement.
1990s and NAFTA
The Omnibus Reconciliation Act of 1993 (P.L. 103-66) reauthorized TAA through 1998 with
reductions in training funding. The North American Free Trade Agreement (NAFTA)
Implementation Act of 1993 (P.L. 103-182) established a new component of TAA that offered
dedicated benefits to workers whose job loss was attributable to trade with Mexico and Canada.
Trade Act of 2002
The next major reauthorization of TAA was part of the Trade Act of 2002 (P.L. 107-210). This
law combined TAA, TPA, and other trade-related issues into a single piece of legislation. Among
other changes, the 2002 TAA reauthorization merged the NAFTA-TAA program into the general
TAA program and created the Health Coverage Tax Credit for TAA workers.
The Trade Act of 2002 reauthorized TAA through FY2007. Several short-term extensions
continued the program until it was reauthorized in February 2009.
American Recovery and Reinvestment Act
In February 2009, TAA was reauthorized and expanded by the American Recovery and
Reinvestment Act (ARRA; P.L. 111-5). Unlike other reauthorizations, which tended to be aligned
with expansionary trade policy or budget reconciliations, this reauthorization was aligned with
other domestic initiatives to spur economic activity during a time of above-average
unemployment.
The ARRA reauthorization of TAA expanded the program in several ways. Among other
provisions, it increased funding for training, increased the maximum number of weeks that a
worker could receive TRA, and extended eligibility to service sector and public sector workers
who had been displaced by trade.

57 For a more detailed history of the T AA program and its relationship with U.S. trade policy through 2013, see
archived CRS Report R41922, Trade Adjustm ent Assistance (TAA) and Its Role in U.S. Trade Policy (available to
congressional clients upon request ).
Congressional Research Service

14

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

The ARRA provisions of TAA were scheduled to expire after December 31, 2010. A short-term
extension continued the program through February 12, 2011. After that date, TAA reverted to the
more limited eligibility and benefit provisions that were in place prior to ARRA.
2011 Reauthorization: Trade Adjustment Assistance Extension Act
In October 2011, the Trade Adjustment Assistance Extension Act (TAAEA; Title II of P.L. 112-
40) was enacted. This reauthorization was aligned with the separate passage of three
implementing bil s of free trade agreements with Colombia, Panama, and South Korea.
TAAEA reinstated some, but not al , of the expansions that had been enacted under ARRA. Most
notably, it re-expanded eligibility to service sector (but not public sector) workers and increased
training funding to near-ARRA levels. TAAEA also curtailed benefits by reducing the eligible
reasons for training waivers from six to three.
Sunset and Termination Provisions of 2011 Reauthorization
The eligibility and benefit provisions initial y enacted by TAAEA were scheduled to remain in
place until December 31, 2013. Beginning January 1, 2014, the TAA program reverted to a more
limited set of eligibility and benefit provisions (“Reversion 2014 provisions”).58 Among other
changes, the Reversion 2014 provisions ended eligibility for service workers and reduced the cap
on training funding to the 2002 levels.
The Reversion 2014 provisions were scheduled to remain in place for one year before
authorization expired after December 31, 2014, and the program was scheduled to begin to be
phased out. The program did not, however, expire as scheduled at the end of 2014. Instead, the
Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235) provided funding
for full operation of the program under the Reversion 2014 provisions through FY2015.
2015 Reauthorization: Trade Adjustment Assistance
Reauthorization Act
TAA continued to operate under the Reversion 2014 provisions until the enactment of the Trade
Adjustment Assistance Reauthorization Act of 2015 (TAARA; Title IV of P.L. 114-27). This
reauthorization was aligned with the separate extension of the Trade Promotion Authority (TPA,
also known as “fast track”). Any agreements negotiated under TPA are subject to an “up or down”
vote in Congress.
TAARA reinstated many of the eligibility and benefit provisions that were enacted by TAAEA in
2011. TAARA reinstated eligibility for service workers and increased training funding to a level
between those of TAAEA and the Reversion 2014 provisions.
Sunset and Termination Provisions of 2015 Reauthorization
TAARA contains sunset provisions similar to those in TAAEA that took effect in 2014. Beginning
July 1, 2021, the TAA program is scheduled to revert to a more limited set of eligibility and
benefit provisions that are similar to the Reversion 2014 provisions. These provisions are
scheduled to remain in place for one year until authorization is set to expire after June 30, 2022,
and then the program is scheduled to begin to be phased out.

58 T hese provisions were similar, but not identical to, the provisions that were in place under the T rade Act of 2002.
Congressional Research Service

15

Trade Adjustment Assistance for Workers and the TAA Reauthorization Act of 2015

Author Information

Benjamin Collins

Analyst in Labor Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

Congressional Research Service
R44153 · VERSION 10 · UPDATED
16