Chapter 6: Trade Adjustment Assistance

Trade Adjustment Assistance Introduction and Overview

Introduction

Trade Adjustment Assistance (TAA) is a group of programs that target federal assistance to workers, firms, farmers, and communities that have been adversely affected by foreign trade. TAA was created by the Trade Expansion Act of 1962 (P.L. 87-794) and has been reauthorized and expanded several times in subsequent years, most prominently as part of the Trade Act of 1974 (P.L. 93-618), the Trade Act of 2002 (P.L. 107-210), the Trade and Globalization Adjustment Assistance Act of 2009, and the Act to extend the Generalized System of Preferences, and for other purposes (including Title II, the Trade Adjustment Assistance Extension Act of 2011) (P.L. 112-40).

The largest TAA program, TAA for Workers (TAAW) provides federal assistance to workers who have been separated from their jobs because of increased imports or because their jobs moved to a foreign country.  The largest components of the TAAW program are (1) training funds to prepare workers for a new occupation and (2) income support for workers who are enrolled in an eligible training program and have exhausted their unemployment compensation.  The TAAW program is administered by the Department of Labor (DOL).  DOL also administers the Trade Adjustment Assistance Community College and Career Training (TAACCCT) grant program.  This program provides competitive grants to institutions of higher education to develop, improve, or offer training programs that can be completed in two years or less and are appropriate for workers who are eligible for the TAAW program.

TAA programs are also available to firms and farmers that have been adversely affected by international competition.  TAA for Firms, administered by the Department of Commerce, supports trade-impacted businesses by providing technical assistance in developing business recovery plans and by providing matching funds to implement those plans.  TAA for Farmers, administered by the Department of Agriculture, provides technical support and cash benefits to producers of agricultural commodities and fisherman who are adversely affected by increased imports.

All TAA programs are authorized by the Trade Act of 1974, as amended. The programs for workers, firms, and farmers were most recently reauthorized by the Trade Adjustment Assistance Extension Act of 2011 (Title II of P.L. 112-40).  The authorizations of appropriations for these three programs are scheduled to expire December 31, 2014.  The TAACCCT program was funded with four years of advance appropriations, beginning in FY2011.  FY2014 is the final year of scheduled funding for TAACCCT grants.

An annual report, required by statute, is due to Congress for each of the TAA programs.  Although due to Congress no later than February 15, 2014, DOL provided its TAAW FY2013 Annual Report to Congress on October 3, 2014.  Because this report was not provided to Congress in a timely manner, this chapter of the Green Book only contains data for TAAW through FY2012.   Furthermore, DOL has not met its statutory deadline for providing its required annual report for the TAACCCT program, due to Congress no later than December 15, 2013.  Therefore, this chapter of the Green Book only contains data for this program through FY2012.

Chapter Overview

This chapter of the Green Book includes a series of Congressional Research Service (CRS) Reports, one of which provides a legislative history of TAA and the others discuss TAA programs. A subsequent section lists all Tables and Figures contained in these CRS reports, and includes Additional Tables and Figures related to TAA. The chapter also includes Links to Additional Resources.

This page was prepared on August 14, 2014 for the 2014 version of the House Ways and Means Committee Green Book.

Trade Adjustment Assistance Congressional Research Service (CRS) Reports

The House Ways and Means Committee is making available selected reports by the Congressional Research Service (CRS) for inclusion in its 2014 Green Book website.  CRS works exclusively for the United States Congress, providing policy and legal analysis to Committees and Members of both the House and Senate, regardless of party affiliation.

Legislative History of TAA

R41922: Trade Adjustment Assistance and Its Role in U.S. Trade Policy

TAA Programs

R42012: Trade Adjustment Assistance for Workers

R42661: Trade Adjustment Assistance Community College and Career Training Grants

RS20210: Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues

R40206: Trade Adjustment Assistance for Farmers

This page was prepared on August 6, 2014 for the 2014 version of the House Ways and Means Committee Green Book.

Trade Adjustment Assistance Tables and Figures in CRS Reports

The following tables and figures related to TAA can be found in the CRS reports section of this Green Book chapter.

R41922: Trade Adjustment Assistance (TAA) and Its Role in U.S. Trade Policy

Appendix. TAA Reauthorization, 1962-2011

R42012: Trade Adjustment Assistance for Workers

Table 1. TAA Group Certification Requirements in Effect During Different Time Periods Under the Provisions Adopted in the Trade Adjustment Assistance Extension Act of 2011

Table 2. TAA Benefits in Effect During Different Time Periods Under the Provisions Adopted in the Trade Adjustment Assistance Extension Act of 2011

Table 3. Applicable Periods of Trade Adjustment Assistance Legislation

Table 4. Petitions and Certifications, FY2003-FY2012

Table 5. Trade Adjustment Assistance Participation, FY2003-FY2014

Table 6. Employment Outcomes for TAA Exiters, FY2009-FY2012

R42661: Trade Adjustment Assistance Community College and Career Training Grants

Table 1. Authorization Levels and Appropriations for the Community College and Career Training Grants Program: FY2009-2014

RS20210: Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues

Table 1. Firm TAA Authorizations and Appropriations, FY2001-FY2014

Table 2. Characteristics of Technical Assistance in APs: FY2013

Table 3. Trade Adjustment Assistance for Firms, Select Program Indicators for FY2004-FY2013

Figure 1. Three Stages of TAAF: Process and Interaction among Firms, TAACs, and EDA

R40206: Trade Adjustment Assistance for Farmers

Table 1. TAAF Funding, and Spending by Type of Activity, FY2003-FY2014

Table 2. Activity Under Trade Adjustment Assistance for Farmers Program, FY2003-FY2014

Table 3. Certified TAAF Petitions, FY2004-FY2011This page was prepared on August 14, 2014 for the 2014 version of the House Ways and Means Committee Green Book.

This page was prepared on August 6, 2014 for the 2014 version of the House Ways and Means Committee Green Book.

Trade Adjustment Assistance Legislative History

For the legislative history of the Trade Adjustment Assistance program, please see:

R41922: Trade Adjustment Assistance (TAA) and Its Role in U.S. Trade Policy

This page was prepared on August 14, 2014 for the 2014 version of the House Ways and Means Committee Green Book.

Trade Adjustment Assistance Links to Additional Resources

TAA for Workers FY 2012 Annual Report

TAA for Firms FY 2013 Annual Report

TAA for Firms FY 2012 Annual Report

TAA for Farmers FY 2011 Annual Report

TAA Community College and Career Training Grants FY 2012 Annual Report

DOL has not met its statutory deadline for providing its required annual report for the TAACCCT program, due to Congress no later than December 15, 2013.  Funding for TAAF expired in 2010, making FY 2011 the last statutorily required report. 

This page was prepared on October 4, 2014 for the 2014 version of the House Ways and Means Committee Green Book.