Trade Assistance Expansions Set to Expire; Future Uncertain

As part of the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5), the Trade and Globalization Adjustment Assistance Act of 2009 (TGAAA) updated and restructured multiple elements of the Trade Adjustment Assistance Program (TAA), and provided a $352 million increase in its annual funding cap. Most of the program modifications and the funding cap increase are set to expire on December 31, 2010.  On December 15, 2010, the House passed a bill (H.R. 6517) to extend these provisions until September 30, 2012. The Senate has not yet taken up the bill. 

Since the funding level for TAA remains uncertain, the Department of Labor’s (DOL) Employment and Training Administration (ETA) issued guidance to states that outlines state allocations in federal fiscal year (FY) 2011 under two scenarios. In addition, ETA notified states that it will use the FY 2010 formula for allocating FY 2011 funds.

The guidance, released on November 17, 2010, is available at: http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2959