WASHINGTON, D.C. - H.R.1, the American Recovery and Reinvestment Act of 2009, passed by Congress and signed into law by President Barack Obama, reauthorizes and expands Trade Adjustment Assistance (TAA) Programs to help workers whose lives have been directly affected by the economic downturn and spur economic growth.
The bill significantly expands current TAA Programs to include trade-affected services sector workers and workers affected by offshoring or outsourcing to all countries, including China and India. It reauthorizes all TAA programs (which expired Dec. 31, 2007) through Dec. 31, 2010.
“While we continue shaping a new American trade policy to expand the benefits of trade more broadly, we also need to expand the assistance provided to those affected by trade and globalization," said Ways and Means Chairman Charles B. Rangel (D-NY). “Provisions included in the economic recovery bill represent a strong, bipartisan approach to modernizing our TAA programs to cover more workers and improve job training and other benefits so that our workers can continue to compete and win in the global economy."
“These difficult economic times require that we use every tool in the toolbox and an expanded trade adjustment program is vital in assisting workers as they transition to new good-paying jobs," said Subcommittee on Trade Chairman Rep. Sander Levin (D-MI). “This reform will assist many more workers impacted by globalization and provide much needed resources to states for training programs."
H.R. 1 also makes health care more affordable for workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports. The Health Care Tax Credit available to displaced workers under the TAA program will be increased from 65 percent to 80 percent and additional improvements are made to help streamline enrollment and related processes.
Summary of TAA Provisions:
The conference report includes provisions to expand the current TAA program. These provisions, which cost $1.6 billion, would, among other things:
Benefit More American Workers
· Ensure automatic eligibility for workers suffering from unfair trade and import surges;
· Cover workers whose firms shift production to all countries;
· Extend TAA benefits to service sector workers and firms;
· Expand TAA coverage for U.S. suppliers of component parts;
· Streamline eligibility criteria for TAA for Farmers and authorizes that program at $90 million
per fiscal year.
Streamline TAA Programs
· Increase training funds available to States to $575 million per fiscal year;
· Create a TAA for Communities program, authorized at $230 million per fiscal year;
· Improve training options for workers, including by expanding opportunities for longer term training and provide career counseling/case management;
· Increase authorization for TAA for Firms to $50 million per fiscal year;
· Correct technical hurdles to benefits.
Accessible Health Care Coverage for American Workers and Improved Wage Insurance Benefit
· Increase the Health Coverage Tax Credit to 80 percent;
· Make wage insurance more accessible and flexible with other benefits.
