Trade Adjustment Assistance (TAA) for Workers: Current Issues and Legislation

Trade Adjustment Assistance (TAA) for Workers: Current Issues and Legislation

Order Code RL34383
Trade Adjustment Assistance (TAA) for Workers:
Current Issues and Legislation
Updated October 1, 2008
John J. Topoleski
Analyst in Income Security
Domestic Social Policy Division

Trade Adjustment Assistance (TAA) for Workers:
Current Issues and Legislation
Summary
Trade Adjustment Assistance consists of several programs: Trade Adjustment
Assistance for Workers (TAA), Alternative Trade Adjustment Assistance (ATAA),
Trade Adjustment Assistance for Firms, Trade Adjustment Assistance for Farmers,
and a Health Coverage Tax Credit (HCTC). This report addresses the TAA and
ATAA programs, as well as the HCTC. TAA and ATAA provide income support
and other assistance to qualifying workers who lose their jobs directly due to
increased imports or shifts in production out of the United States. The HCTC
provides a refundable tax credit to offset 65% of the health insurance premiums of
TAA- and ATAA-eligible workers.
The Trade Adjustment Assistance programs were set to expire on September 30,
2007. Congress has not yet enacted legislation to reauthorize the programs. P.L.
110-89 extended the programs through December 31, 2007. P.L. 110-161, signed by
President George W. Bush on December 26, 2007, fully funded TAA and ATAA
through September 30, 2008. The Department of Labor indicated that this was
sufficient to continue the programs through the end of FY2008, including issuing
new certifications of eligible workers. The Consolidated Security, Disaster
Assistance, and Continuing Appropriations Act, 2009 (P.L. 110-329), signed by
President George W. Bush on September 30, 2008, also fully funds TAA and ATAA
through March 6, 2009, and specifies that the programs will continue through this
date.
This report provides background on TAA and ATAA, summarizes key issues
related to reauthorization, and briefly describes bills in the 110th Congress that affect
the TAA and ATAA programs. These bills are H.R. 3920, H.R. 2764, H.R. 4341,
H.R. 3375, H.R. 3943, H.R. 3801, H.R. 910, S. 1848, S. 122, H.R. 1729, S. 1652, S.
1739, H.R. 3589, H.R. 3843, and H.R. 6442. This report will be updated as
legislative activity warrants.

Contents
Background on Trade Adjustment Assistance (TAA) and
Alternative Trade Adjustment Assistance (ATAA) . . . . . . . . . . . . . . . . . . . . 1
TAA and ATAA Reauthorization Issues in the 110th Congress . . . . . . . . . . . . . . . 3
Extension of Eligibility to Service Workers . . . . . . . . . . . . . . . . . . . . . . . . . 3
Production Shifts to Non-Trade Agreement Countries . . . . . . . . . . . . . . . . . 3
Training Funding Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Training Funding Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
FY2008 Training Funds Base Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Administrative and Employment Services Expenses . . . . . . . . . . . . . . . . . . . 5
Integration with Other Programs for Displaced Workers . . . . . . . . . . . . . . . 5
Training Deadline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Higher Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Wage Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Merit-Based Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Health Coverage Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
TAA and ATAA Legislation in the 110th Congress . . . . . . . . . . . . . . . . . . . . . . . . 8
Bills to Temporarily Extend TAA and ATAA . . . . . . . . . . . . . . . . . . . . . . . . 8
Bills to Reauthorize TAA and ATAA in the House . . . . . . . . . . . . . . . . . . . 8
Bills to Reauthorize TAA and ATAA in the Senate . . . . . . . . . . . . . . . . . . . 9
Other Related Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Trade Adjustment Assistance (TAA) for
Workers: Current Issues and Legislation
Background on Trade Adjustment Assistance (TAA)
and Alternative Trade Adjustment Assistance
(ATAA)
Trade Adjustment Assistance for Workers (TAA) provides extended income
support as well as training, job search, and relocation benefits to qualifying workers
who become unemployed for trade-related reasons. To be eligible for TAA, workers
must have become unemployed for one of three reasons: (1) their jobs moved to a
country with which the United States has a free trade agreement or to certain other
countries; (2) their job losses can be attributed to increased imports that contributed
importantly to an actual decline in sales or production; or (3) their job losses resulted
from the loss of business with a primary firm because of a trade-related reason.
TAA-eligible workers who are age 50 or older may be able to opt for Alternative
Trade Adjustment Assistance (ATAA), which provides a wage supplement in lieu of
TAA benefits.1 In addition, workers can claim a refundable Health Coverage Tax
Credit (HCTC). The HCTC was established to help both TAA- and ATAA-eligible
workers pay for health insurance.2 These programs are administered by the
Employment and Training Administration (ETA) in the Department of Labor
(DOL).3
TAA provides two primary benefits: Trade Readjustment Allowances (TRA)
and training, job search, and relocation benefits. TRA provides up to 130 weeks of
income support equal to workers’ weekly unemployment benefits for TAA-eligible
workers who are participating in approved training programs. TRA is a mandatory
spending program funded out of general revenues. In FY2007, $572 million was
appropriated for TRA benefits. Because TRA benefits are provided to all individuals
who meet the eligibility requirements, under current financing provisions, no workers
would lose TRA income support benefits because of increases in the number of
1 For further information on the TAA for Workers program, see CRS Report RS22718,
Trade Adjustment Assistance for Workers (TAA) and Alternative Trade Adjustment
Assistance for Older Workers (ATAA), by John J. Topoleski.
2 For further information on the HCTC, see CRS Report RL32620, Health Coverage Tax
Credit Authorized by the Trade Act of 2002, by Bernadette Fernandez.
3 Other adjustment assistance is available under the TAA for Firms and the TAA for
Farmers programs, which are administered by the Department of Commerce and the
Department of Agriculture, respectively. For further information on the TAA for Firms
program, see CRS Report RS20210, Trade Adjustment Assistance for Firms: Economic,
Program, and Policy Issues, by J. F. Hornbeck.

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TAA-eligible workers. Increases in TRA expenditures would be paid for — like all
mandatory funding in the absence of surplus revenues — through some combination
of borrowing, increased revenues, or spending cuts.
TAA training assists adversely affected workers who lack marketable skills to
return to suitable full-time employment. Allowable types of training include
classroom training, on-the-job training, customized training designed to meet the
needs of a specific employer or group of employers, and basic or remedial education.
In addition, workers are eligible for reimbursement of 90% of their reasonable and
necessary job search and relocation expenses (up to a maximum of $1,250 for each
expense category). In contrast to TRA, the training, job search, and relocation
assistance package of benefits is a capped entitlement. The Trade Act of 2002 limits
training expenditures to $220 million per fiscal year. In FY2007, $6.6 million was
appropriated for job search and relocation expenses.
Alternatively, older workers may be eligible for ATAA, which pays 50% of the
difference between the wages received at the time of separation and the wages
received from reemployment. Workers must be 50 years or older at the time of
reemployment and earn $50,000 or less. Individuals’ ATAA benefits are limited to
$10,000 or two years since the start of qualifying reemployment (whichever comes
first). In FY2007, $23.5 million was appropriated for ATAA benefits. The HCTC,
available to workers receiving TAA or ATAA benefits, is a refundable tax credit
equal to 65% of workers’ monthly health insurance premiums.
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. Most recently, the Trade Act of 2002 (P.L. 107-210)
established ATAA and reauthorized and expanded TAA. The TAA and ATAA
programs, which were set to expire on September 30, 2007, were extended for three
months by P.L. 110-89. P.L. 110-89 was signed by President George W. Bush on
September 28, 2007. On December 11, 2007, the House passed another three-month
extension (H.R. 4341) by a voice vote. As of October 2, 2008, the Senate has not
acted on the measure. The Consolidated Appropriations Act, 2008 (P.L. 110-161,
signed by President George W. Bush on December 26, 2007) contained an
appropriation for the TAA for Workers and ATAA programs that fully funded the
programs for FY2008. A letter from the Assistant Secretary for Employment and
Training at DOL to the Senate Finance Committee as well as Training and
Employment Guidance Letter (TEGL) No. 15-07, issued by DOL, indicated that full
operation of the programs, including issuing new certifications for eligibility, would
continue through FY2008.4 The Consolidated Security, Disaster Assistance, and
Continuing Appropriations Act, 2009, fully funds the TAA and ATAA programs
through March 6, 2009, and specifies that the programs will continue through this
date.
4 The letter to the Senate Finance Committee is available at [http://www.senate.gov/
~finance/press/Bpress/2007press/prb121907e.pdf]. The TEGL is available online from the
Department of Labor at [http://wdr.doleta.gov/directives/corr_doc.cfm?docn=2567].

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TAA and ATAA Reauthorization Issues
in the 110th Congress

Since the previous TAA reauthorization (the Trade Act of 2002, P.L. 107-210),
Congress has considered a number of issues, discussed below, that have arisen in the
context of TAA and ATAA reauthorization.
Extension of Eligibility to Service Workers
Currently, only workers who make articles are eligible for TAA. In determining
whether a firm produces an article, the Department of Labor relies on the
Harmonized Tariff Schedule of the United States (HTS), published by the United
States International Trade Commission. The HTS is the list of tariffs charged for all
products imported into the United States. DOL statistics indicate that only 10% of
the U.S. workforce are in manufacturing occupations and thus potentially eligible for
TAA benefits. Under current law, service industry and public sector workers who
become unemployed for trade-related reasons are not eligible to receive TAA
benefits. As the United States has shifted to a more service-based economy and as
concern over “outsourcing” has increased, there have been increasing calls to extend
TAA benefits to service workers (for example, to call-center workers whose jobs
have shifted to India).5 Congress has considered amending the Trade Act of 1974 to
extend TAA eligibility to service and public sector workers. Related provisions are
included in the following bills: H.R. 3920, H.R. 3943, H.R. 3801, S. 1848, S. 122,
H.R. 3589, and H.R. 6442. See the “TAA and ATAA Legislation in the 110th
Congress” section of this report for more information on these bills.
Production Shifts to Non-Trade Agreement Countries
Only workers in firms that have shifted production to countries with which the
United States has a free-trade agreement or those that are named as beneficiary
countries under the Caribbean Basin Economic Recovery Act (P.L. 98-67), the
Andean Trade Preference Act (P.L. 102-182), or the African Growth and Opportunity
Act (P.L. 106-200) are eligible for TAA, unless the workers can demonstrate that
there has been or is likely to be an increase in imports of articles that are like or
directly competitive with articles that were produced by the firm.
For example, if a firm shifts production to Canada or Mexico, the workers in the
U.S. plant would be eligible for TAA because Canada and Mexico are both parties
to the North American Free Trade Agreement (NAFTA, P.L. 103-182). However,
if the firm shifts production to China, the workers in the U.S. plant might not be
eligible for TAA because the United States does not have a free-trade agreement with
China. In contrast, workers in U.S. manufacturing facilities may be eligible for TAA
if they become unemployed due to increased imports from any country, regardless of
5 For more information, see CRS Report RS22761, Extending Trade Adjustment Assistance
(TAA) to Service Workers: How Many Workers Could Potentially Be Covered?, by John J.
Topoleski, and CRS Report RL32292, Offshoring (a.k.a. Offshore Outsourcing) and Job
Insecurity Among U.S. Workers, by Linda Levine.

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whether the country has a free-trade agreement with the United States. Congress has
considered eliminating the requirement that production shifts be to countries with
which the United States has free-trade agreements. Related provisions are included
in the following bills: H.R. 3920, H.R. 3801, H.R. 910, S. 1848, S. 122, and H.R.
1729/S. 1652. See the “TAA and ATAA Legislation in the 110th Congress” section
of this report for more information on these bills.
Training Funding Level
Training funding is a capped entitlement, currently set at $220 million per fiscal
year. Some policymakers maintain that the current funding level, which has been in
place since FY2003, may be inadequate as some states have had to ration training
benefits to eligible workers.6 Because of the effects of inflation, $220 million
purchased less training in FY2007 compared to FY2003. Moreover, if TAA benefits
are extended to service and public sector workers, the current level of funding would
likely be exhausted more quickly, resulting in training being available to a smaller
percentage of TAA-eligible workers. Congress has considered at least doubling the
amount of training funds available. Related provisions are included in the following
bills: H.R. 3920, H.R. 3801, S. 1848, and S. 122. See the “TAA and ATAA
Legislation in the 110th Congress” section of this report for more information on
these bills.
Training Funding Allocations
The Department of Labor allocates 75% of the annual $220 million of training
funds available to states on the basis of a state’s accrued training expenditures and
the number of training participants over the previous two and one-half years. The
higher a state’s level of prior years’ accrued expenditures and number of training
participants, the higher the following year’s initial allocation of the state’s training
funds. The remaining funds are held in reserve to be used on an “as-needed” basis.7
Given the episodic nature of layoffs, states could need much greater funding than
allocated based on previous years’ experience if they experience large layoffs of
TAA-eligible workers. Conversely, states could have large amounts of unused
training funds if the number of layoffs is substantially lower than in prior years.
Congress has considered providing states with lower initial allocations of training
funds, requiring that funds be allocated more evenly throughout the fiscal year, and
requiring that additional criteria be used to allocate the training funds to states.
Related provisions are included in the following bills: H.R. 3920, H.R. 3943, H.R.
6 Two Government Accountability Office (GAO) reports address concerns about training
funding levels and allocations to states. See GAO-07-702, Trade Adjustment Assistance:
Changes to Funding Allocation and Eligibility Requirements Could Enhance States’ Ability
to Provide Benefits and Services, available at [http://www.gao.gov/new.items/d07702.pdf],
and GAO-08-165, States Have Fewer Training Funds Available than Labor Estimates When
Both Expenditures and Obligations Are Considered, available at [http://www.gao.gov/
new.items/d08165.pdf].
7 For more information on the funding formula, see Training and Employment Guidance
Letter No. 8-07 (TEGL 8-07) issued by the Employment & Training Administration,
available at [http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2539].

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3801, and S. 1848. See the “TAA and ATAA Legislation in the 110th Congress”
section of this report for more information on these bills.
FY2008 Training Funds Base Allocations
On September 27, 2007, DOL announced FY2008 State Base Allocations in
Training and Employment Guidance Letter (TEGL) No. 08-07.8 CRS received data
from DOL that indicated a possible mistake in the application of the formula
contained in the TEGL. DOL acknowledged that a technical mistake had been made
that resulted in approximately $522,527 of the $165 million (0.32%) formula base
allocation funds being incorrectly distributed. DOL indicated that they will correct
this mistake at the end of FY2008.9 Further details in the form of a Congressional
Distribution Memorandum are available from the author of this report
(jtopoleski@crs.loc.gov; 7-2290).

Administrative and Employment Services Expenses
States provide TAA-eligible workers with a variety of employment services
such as the evaluation of training needs and case management. The Trade Act does
not allocate funds for these expenses. DOL and Congress have customarily provided
states with administrative funds equal to 15% of the training allocation they receive.
These services are often provided through state one-stop career centers using funds
from other programs, such as the Workforce Investment Act (WIA). Congress has
considered providing funding to states for employment services provided to TAA-
eligible workers. Related provisions are included in H.R. 3920. See the “TAA and
ATAA Legislation in the 110th Congress” section of this report for more information
on this bill.
Integration with Other Programs for Displaced Workers
To streamline the operation of the TAA program, the Education and Training
Administration (ETA) has been integrating TAA services with the services provided
at state one-stop career centers under WIA. However, TAA-eligible workers may
require more specialized attention because they tend to be older and have more
specialized skills than other displaced workers. Congress has considered ways to
more efficiently provide intake, assessment, and other employment services to TAA-
eligible workers, who may also be eligible for other Department of Labor programs.
Related provisions are included in H.R. 3920 and H.R. 3943. See the “TAA and
ATAA Legislation in the 110th Congress” section of this report for more information
on these bills.
8 TEGL No. 08-07 is available at [http://wdr.doleta.gov/directives/attach/TEGL08-07.pdf].
9 At the end of each fiscal year, DOL distributes any unallocated training funds to the states
that have received funds during the fiscal year. States have three years in which to spend
their allocation of training funds.

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Training Deadline
Workers who are eligible for TAA training benefits must be enrolled in training
by the later of eight weeks after a TAA petition for benefits was certified by DOL or
16 weeks after the layoff (the 8/16 rule). States report that this may be an insufficient
period of time to properly assess workers’ training needs.10 Congress has considered
extending the deadline for workers’ enrollment in training. Related provisions are
included in the following bills: H.R. 3920, H.R. 3943, H.R. 3801, H.R. 910, S. 1848,
and S. 122. See the “TAA and ATAA Legislation in the 110th Congress” section of
this report for more information on these bills.
Higher Education
Several provisions of current law may preclude TAA-eligible workers from
enrolling in some college degree programs. First, the 8/16 rule may prevent workers
laid off in February from enrolling in degree programs the following September.
Second, the two-year training limit and prohibition on workers contributing to the
costs of their own training may inhibit enrollment in four-year degree programs.
Finally, some states prohibit two- and four-year colleges from providing TAA
training. Congress has considered explicitly allowing higher education as a training
option. Related provisions are included in the following bills: H.R. 3920, H.R.
3943, H.R. 3801, and S. 1848. See the “TAA and ATAA Legislation in the 110th
Congress” section of this report for more information on these bills.
Wage Insurance
Alternative Trade Adjustment Assistance (ATAA) was established in 2002 as
a demonstration project to encourage workers aged 50 and older to quickly reenter
the workforce. Workers certified for ATAA receive 50% of the difference between
their former and current wages, up to a maximum of $10,000 over two years.
Current law requires separate petition and certification decisions for TAA and ATAA
benefits, requires that workers find qualified reemployment within 26 weeks of being
laid off, and limits wages in reemployment to $50,000. The separate ATAA
certification, the 26-week deadline for finding reemployment, and the $50,000 wage
limit are obstacles to greater participation in ATAA. Congress has considered
eliminating separate ATAA applications, raising the maximum benefit to $12,000
over two years, lowering the age requirement from age 50 to age 40, and raising the
limit on wages in reemployment for the purposes of qualifying for ATAA from
$50,000 to $60,000. Related provisions are included in the following bills: H.R.
3920, H.R. 3943, H.R. 3801, H.R. 910, S. 1848, and S. 122. See the “TAA and
ATAA Legislation in the 110th Congress” section of this report for more information
on these bills.
10 For more information, see GAO-07-702, Trade Adjustment Assistance: Changes to
Funding Allocation and Eligibility Requirements Could Enhance States’ Ability to Provide
Benefits and Services, available at [http://www.gao.gov/new.items/d07702.pdf].

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Merit-Based Employees
Currently, local one-stop career centers administer a number of programs for
unemployed workers, such as Unemployment Compensation (UC), Employment
Service (ES), TAA, and ATAA. Employees of state UC or ES agencies are required
to be state civil service workers; that is, appointed in a merit-based system. Current
law does not require that TAA and ATAA benefits be provided by state merit-based
employees. The Department of Labor has proposed regulations that would clarify
that merit staffing is not required for the provision of TAA and ATAA benefits and
services (except for merit-based standards that apply to employees of state UC or ES
agencies who perform functions under both TAA and UI/ES programs).11 P.L. 110-
161 (discussed in the “TAA and ATAA Legislation in the 110th Congress” section
of this report) prohibits the Department of Labor from finalizing this regulation. In
addition, Congress has considered requiring that determinations for TRA allowances
and training benefits be made only by state merit-based employees. Related
provisions are included in H.R. 2764/P.L. 110-161 and H.R. 3920. See the “TAA
and ATAA Legislation in the 110th Congress” section of this report for more
information on these bills.
Health Coverage Tax Credit
GAO has reported that the HCTC is claimed by only a small percentage of
eligible workers.12 Although the HCTC covers 65% of workers’ health insurance
premiums, participation may be limited because the high cost of premiums may
preclude workers from purchasing health insurance. In addition, there can be a delay
of several months between workers’ separation from employment and HCTC
approval, during which time workers must pay the full cost of their health insurance
premiums. Congress has considered increasing the HCTC from 65% to 85% of
workers’ health insurance premiums, allowing the HCTC to be applied retroactively,
and establishing a deadline for replacing the current program. Related provisions are
included in the following bills: H.R. 3920, H.R. 3943, H.R. 3801, H.R. 910, S. 1848,
S. 122, and S. 1739. See the “TAA and ATAA Legislation in the 110th Congress”
section of this report for more information on these bills.
11 See Department of Labor, “Notice of Proposed Rulemaking,” 71 Federal Register 165,
August 25, 2006, pp. 50760-50832.
12 For more information, see GAO-04-1029, Health Coverage Tax Credit: Simplified and
More Timely Enrollment Process Could Increase Participation, available at
[http://www.gao.gov/new.items/d041029.pdf].

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TAA and ATAA Legislation in the 110th Congress
The following sections briefly describe legislation in the 110th Congress that
would makes changes to the TAA and ATAA programs.
Bills to Temporarily Extend TAA and ATAA
Signed Into Law
P.L. 110-329 (H.R. 2638). The Consolidated Security, Disaster Assistance, and
Continuing Appropriations Act, 2009, fully funds the TAA and ATAA programs
through March 6, 2009, and specifies that the programs will continue through this
date.
P.L. 110-161 (H.R. 2764). The Consolidated Appropriations Act, 2008
appropriates $888.7 million for TAA for FY2008. This includes the $220 million
authorized by P.L. 107-210 for training programs. The Department of Labor
considers the appropriations language sufficient to continue the operation of the TAA
for Workers and ATAA programs throughout FY2008, including issuing new
certifications for eligibility. This act prohibits any of the funds made available from
being used to finalize or implement any proposed regulation related to TAA until
TAA is reauthorized. President George W. Bush signed it into law on December 26,
2007.
P.L. 110-89 (H.R. 3375). Representative Wally Herger introduced this bill on
August 3, 2007, to extend the TAA and ATAA programs through December 31,
2007. President George W. Bush signed it into law on September 28, 2007.
Received Floor Action
H.R. 4341. This bill, introduced by Representative Sander Levin on December
10, 2007, would extend the TAA and ATAA programs through March 31, 2008.
H.R. 4341 was passed by the House by a voice vote on December 11, 2007. As of
October 2, 2008, the Senate has not acted on this bill.
Bills to Reauthorize TAA and ATAA in the House
Received Floor Action
H.R. 3920. Representative Charles Rangel introduced the Trade and
Globalization Assistance Act of 2007 on October 22, 2007. Among other provisions,
this bill would extend TAA eligibility to service and public sector workers; eliminate
the requirement that shifts in production be to countries with which the United States
has a free-trade agreement; allow for automatic approval of firms within an industry;
extend the deadline to enroll in training from the later of 8 weeks after the petition
was certified or 16 weeks after the layoff to the later of 26 weeks after certification
or layoff; allow participants to work part-time while enrolled in training; increase the
cap on training from $220 million to $440 million in FY2008 and FY2009 and $660
million in each fiscal year thereafter; require that TAA services be administered by

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state merit-based employees; require at least three distributions of training funds to
states each year with no more than 50% in the first distribution; require consideration
by the Secretary of Labor of a broad range of factors in the allocation of training
funds to states; provide states with funds for the administration of the TAA program;
increase the HCTC from 65% to 85% of workers’ health insurance premiums; sunset
the HCTC after December 31, 2009; eliminate separate ATAA applications; raise the
maximum ATAA benefit to $12,000 over two years; raise the limit on wages in
reemployment for the purposes of qualifying for ATAA from $50,000 to $60,000;
establish 24 manufacturing redevelopment zones that would be eligible for
redevelopment tax incentives; and reauthorize the programs through FY2012. H.R.
3920 was passed by the House on October 31, 2007, by a vote of 264 to 137.
Introduced
H.R. 3943. Representative Wally Herger introduced the Trade Adjustment
Assistance and Training Improvement Act of 2007 on October 23, 2007. Among
other provisions, this bill would expand TAA eligibility to include workers who
make intangible products such as software that are electronically distributed to
customers; require effective implementation of the requirement that adversely
affected workers be enrolled in WIA programs; extend the deadline to enroll in
training from the later of 8 weeks after the petition was certified or 16 weeks after the
layoff to the later of 13 weeks after certification or 39 weeks after the layoff; allow
participants to simultaneously work and receive training; require the Secretary of
Labor to establish a formula for apportioning training funds among the states;
reimburse a worker’s training costs of up to $4,000 per year, up to $8,000 over a
four-year period per TAA participant; replace the ATAA program with a wage
supplement program; and reauthorize the programs through FY2012.
H.R. 3801. Representative Adam Smith introduced the Trade Adjustment
Assistance Improvement Act on October 10, 2007. This bill is nearly identical to S.
1848 (described in the “Bills to Reauthorize TAA and ATAA in the Senate” section).
H.R. 910. Representative Phil English introduced the American
Competitiveness and Adjustment Act on February 8, 2007. Among other provisions,
this bill would eliminate the requirement that shifts in production be to countries with
which the United States has a free-trade agreement, extend certification to an entire
industry after three or more certifications within a six-month period, allow
certifications for production shifts to any foreign country, extend the deadline to
enroll in training from the later of 8 weeks after the petition was certified or 16 weeks
after the layoff to the later of 16 weeks after certification or 32 weeks after the layoff,
lower the age requirement for ATAA from age 50 to age 40, increase the HCTC from
65% to 75% of workers’ health care premiums, and reauthorize the programs through
FY2012.
Bills to Reauthorize TAA and ATAA in the Senate
Introduced
S. 1848. Senator Max Baucus introduced the Trade and Globalization
Adjustment Assistance Act of 2007 on July 23, 2007. Among other provisions, this

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bill would extend benefits to workers in service industries and the public sector,
eliminate the requirement that shifts in production be to countries with which the
United States has a free-trade agreement, expand eligibility to include workers within
an entire industry or occupation, allow training funds to be used for higher education
expenses, waive the training requirement for post-graduate degree holders, extend the
deadline to enroll in training from the later of 8 weeks after the petition was certified
or 16 weeks after the layoff to the later of 26 weeks after certification or layoff,
increase the HCTC from 65% to 85% of workers’ health care premiums, increase the
cap on training funds from $220 million to $440 million with a provision to increase
funding by 10% if at least 90% of the prior year’s authorized funds are obligated,
eliminate separate ATAA applications, lower the age requirement for ATAA from
age 50 to age 40, raise the maximum ATAA benefit to $12,000 over two years, raise
the limit on wages in reemployment for the purposes of qualifying for ATAA from
$50,000 to $60,000, and reauthorize the programs through FY2012.
S. 122. Senator Max Baucus introduced the Trade Adjustment Assistance
Improvement Act of 2007 on January 4, 2007. Among other provisions, this bill
would extend benefits to workers in service industries and the public sector,
eliminate the requirement that shifts in production be to countries with which the
United States has a free-trade agreement, expand eligibility to include workers within
an entire industry or occupation, require the Secretary of Labor to develop a formula
for the amount of training funds, extend the deadline to enroll in training from the
later of 8 weeks after the petition was certified or 16 weeks after the layoff to the
later of 20 weeks after certification or 26 weeks after the layoff, lower the age
requirement for ATAA from age 50 to age 40, and reauthorize the programs through
FY2012.
Other Related Bills
Introduced
H.R. 6442. Representative John Spratt introduced this bill on July 8, 2008.
This bill would extend eligibility for TAA benefits to workers who sell the articles
of a firm, if the workers work in a subdivision of a firm that has been certified for
TAA.
H.R. 3843. Representative Thomas Reynolds introduced the NEW JOBS Act
of 2007 on October 16, 2007. This bill would expand the New Markets Tax Credit
to spur investments into businesses that receive benefits under the TAA for Firms
program or employ TAA-eligible workers.13
H.R. 3589. Representative Peter King introduced this bill on September 19,
2007. This bill would extend TAA benefits to service industry workers who provide
“information technology or other high technology services.”
13 The New Markets Tax Credit was part of the Community Renewal Tax Relief Act of 2000
(H.R. 5662 in the 106th Congress), which was incorporated into the Consolidated
Appropriations Act, 2001 (P.L. 106-554).

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S. 1739. Senator Jay Rockefeller introduced the TAA Health Coverage
Improvement Act of 2007 on June 28, 2007. Among other provisions, this bill would
increase the HCTC from 65% to 95% of workers’ health insurance premium benefits
and offer TAA-eligible workers enrollment in the Federal Employees Health Benefits
Program.
H.R. 1729/S. 1652. Representative Robin Hayes introduced the Trade
Adjustment Assistance Reform Act on March 28, 2007, and Senator Elizabeth Dole
introduced an identical companion bill on June 19, 2007. These bills would
eliminate the requirement that shifts in production be to countries with which the
United States has a free-trade agreement and would extend TAA to textile and
apparel workers without regard to the group eligibility requirements.