Resources For Workers

Trade Adjustment Assistance 

In 2002, Congress revamped the federal benefits available to workers who lost their jobs (or have less work) due to trade imports or exports, called Trade Adjustment Assistance (TAA). These 2002 changes, and the recent reforms made under the American Reinvestment and Recovery Act (ARRA), allow qualifying workers to receive career counseling, and in some cases, up to 156 weeks of subsidized training and income support. Additionally, certified workers are eligible for a refundable federal income tax credit covering 80% of the cost of health coverage through the Health Coverage Tax Credit.

To qualify for these benefits, a petition for certification of eligibility on behalf of a group of workers must be filed with the state's Dislocated Worker Unit and the U.S. Department of Labor (click here for the petition). A petition can be filed by as few as three affected workers, their union or employer, or a state One-Stop center. Previously (before ARRA), qualifying layoffs had to be related to imports of goods manufactured by the affected firm, or by a shift in overseas production of those goods. In some circumstances, companies that were indirectly impacted because they supplied goods or services to trade-impacted businesses could be certified as so-called secondary firms. Under ARRA, these eligibility criteria have been expanded; service workers and public workers can now also be certified due to trade impact.  

The American Recovery and Reinvestment Act (ARRA), signed into law by President Obama in February 2009, included significant amendments to the Trade Adjustment Assistance (TAA) program, changing it for the better. These amendments will apply to TAA petitions filed on or after May 18, 2009. Changes made to TAA are outlined below; please check our fact sheet for further details on these changes by clicking here.

Expanded Eligibility. TAA will now cover more workers, including those who work in the service and public sectors (not just those that are "article-producing" as before) and lost their jobs as their employers obtained similar services overseas. Workers whose firms shift production to non-Free Trade Agreement countries (such as China, India, or Europe) can now be covered under TAA. Additionally, component parts workers, who previously could qualify for TAA certification if they could show increased imports of the (essentially) same parts they were producing, now qualify if imports of items that incorporate the parts they produce have contributed to their loss of employment.  

Expanded Health Care Coverage. Under the 2002 changes, trade certified workers became eligible for a health insurance tax credit, based on 1040 tax returns, in which the Treasury Department reimbursed the insurer for a portion of a worker's premium. Recent amendments to the Health Coverage Tax Credit will make health care more affordable by increasing the 2002 subsidy level (from a 65 percent tax credit to an 80 percent tax credit). Additionally, the legislation provides expanded COBRA coverage for spouses and dependents, and provides funding to help states improve health insurance options. For more information about the health insurance tax credit, click here.

Creation of TAA for Communities Program. Communities affected by trade are eligible for $230 million in grants, to be used for programs such as strategic planning or career training.

Expanded Funds and Enrollment for Training. Workers now have more time to enroll in training (26 weeks after certification or layoff, whichever is later), and can start training if TAA certified but not yet laid off. Additionally, part-time workers who are also in training part-time can now participate in the program. Further changes to TAA under the ARRA increase the cap on TAA training funding and provide workers with case management and reemployment services.

Expanded Income and Job Search Support. Workers in long-term training can now receive an additional 26 weeks of income support in the form of Trade Readjustment Allowances. Workers can also receive $1,500 in job search and relocation allowances. Workers over 50 years of age, who previously could receive a partial wage subsidy (of half the difference between pre-layoff wages and wages in a new job, up to $10,000 over 2 years) will now receive a wage subsidy of up to $12,000 over the same period. Part-time workers are also now eligible for wage subsidies.

To File or Not to File? ARRA changes are effective May 18, 2009, and will apply to all TAA petitions filed on or after that date. Workers considering a TAA petition should weigh the advantages under the new law when compared to the impact of delaying a petition and getting workers into the program. When new certification rules can help (i.e., service or public employees or some component parts workers) or when a delay might prevent workers laid off longer than a year ago from accessing benefits. But, for most manufacturing workers, TAA certification rules remain largely identical. Where layoffs have already taken place, delays from waiting until May 18 probably furnish a good reason to go forward with petitions now. As May 18 gets closer, then reasons for waiting until May 18 to file will weigh more heavily.

For more information on these changes, please click here for our fact sheet on ARRA changes to the TAA program.

Additional Resources:

Click here for a manual prepared by the National Employment Law Project and the United Auto Workers which provides all the information needed to help eligible workers access the Trade Adjusment  Assistance program.

More information on the Trade Adjustment Assistance program is also available by contacting your state’s Dislocated Worker Unit.