Pending Changes to Trade Adjustment Assistance Programs
 
January 24, 2002
 

The Department of Labor (DOL) is proposing to consolidate and streamline the Trade Adjustment Assistance and the North American Free Trade Agreement (NAFTA)-Transitional Adjustment Assistance programs. The programs provide training benefits and income maintenance to workers whose job loss can be certified as resulting from trade. DOL's consolidated program would apply to all workers adversely affected by imports from any country or by a shift in production of their firms from the United States to any country that enters into a free trade agreement with the United States. DOL is also seeking to require that affected workers enroll in training within a specified timeframe, to permit employers to receive subsidies to cover the cost of hiring and training affected workers, and to provide for waivers from the training requirement only under specified circumstances. DOL's plans are dependent on Congressional renewal of both programs, which expired on September 30, 2001. The House already has passed a bill, (H.R. 3008) reauthorizing the two trade adjustment assistance programs. In the Senate, however, Majority Leader, Senator Daschle (D-SD) and Finance Committee Chairman, Senator Baucas (D-Mont.) are seeking a major expansion of the trade adjustment assistance programs. The Senators have pledged to hold passage of Trade Promotion Authority (TPA) hostage to a bill (S. 1209) that makes income maintenance under the trade adjustment assistance programs available for two years instead of one, offers wage insurance to compensate for income lost through moving to lower-paying jobs, and provides a 75-percent subsidy of displaced worker's health insurance payments.