TAA 2015: More Resources to More Workers

The Trade Adjustment Assistance (TAA) program currently being considered in the House is the best and possibly only chance for the foreseeable future to get more resources to a broader group of workers displaced by trade.

TAA is a federal program, in existence since 1974, administered by the U.S. Department of Labor that aims to assist U.S. workers adversely affected by international trade. Specifically, TAA provides training to earn other skills or credentials, income support, wage supplements for older workers, and other reemployment services to a specific set of individuals adversely affected by trade. Since 1975, the TAA program has served more than 2 million workers—including 85,000 in 2013. In 2009, Congress reauthorized TAA, increased its funding, and also expanded its mission. The program was again reauthorized in 2011. But on December 31, 2013, the authorization expired, and TAA’s funding and mission returned to its previous diminished state (known as sunset provisions). The TAA before the House is the best chance this year or in the foreseeable future to reverse the sunset cutbacks and provide more resources for more workers across the United States. If passed, the TAA bill currently being considered would:

1. Fully cover workers in the service economy, as well as goods producers. The sunset provisions currently in place only cover workers who produce goods—and excludes those who produce services. Tradable services are a major component of the U.S. economy, with over 1/3 of U.S. exports tied to services. Service workers are made eligible again through the 2015 TAA, a significant expansion of the program’s coverage. Nearly half of the certifications during the year before TAA sunset were comprised of service sector workers. Further, workers who are 50+ can continue to receive a wage supplement and now, also, receive trainings. Under the sunset provisions, those workers had to choose between receiving training and receiving a wage supplement.
2. Cover workers displaced by trade, no matter which country absorbed their job. The sunset provisions only allow TAA benefits for workers whose jobs were lost to the countries with which the United States has a free trade agreement. This excludes some of our largest trading partners, including China, India, and Germany with whom we do not have free trade agreements. The 2015 TAA would expand coverage to all countries—whether we had a trade agreement with them or not.
3. Be fully funded to June 2021, a time frame triple the length of the 2011 TAA deal. Previous iterations of TAA have lasted for shorter periods—in fact, the 2011 TAA was in force for only 2 years. With the 2015 version expanded to 6 years, there will be greater program stability and continuity for displaced workers as they find new work. Further, the current TAA would retroactively apply to all workers since the sunset period began 18 months ago.

The bottom line is that TAA 2015 delivers more resources to more workers now. Letting it revert to its diminished status hurts only one group of people—Americans seeking to find work.