Most TAA funding provides retraining, reemployment and job search services for qualified workers displaced by sending U.S. jobs to be performed outside the U.S. as a result of federal trade agreements.
A portion of TAA funds has historically been used as "income support," which is a weekly cash payment "available for 52 weeks after a (qualified) worker's unemployment benefit is exhausted," per the Department of Labor.
In 2009, TAA "income support" for workers was updated and expanded for two years as part of President Obama's economic stimulus package. (See specifics below.)
"In 2002, the TAA program cost about $500 million a year and benefited about 50,000 people... last year it cost $975 million and served some 234,000 workers," per the Wall Street Journal on July 1, 2011.
Why Is the TAA Program Controversial in 2011?
In February 2011, Congressional Republicans, led by Senate Republican Leader Mitch McConnell, forced expiration of all Obama updates and changes made to the Trade Adjustment Assistance program.
In a stunning turn-about on June 29, 2011, Sen. McConnell announced that Senate Republicans will not vote to pass three long-negotiated free trade agreements... with South Korea, Colombia and Panama... unless and until all TAA benefits for workers are stripped from the legislation.
The Los Angeles Times opined on June 30, 2011, "The three trade pacts are expected to pump $13 billion a year into the U.S. economy, making them much too important to be stalled by a relatively minor budget spat. Republicans will be snatching defeat from the jaws of victory if they don't back down."
Background
The Trade Assistance Adjustment (TAA) program was proposed by President John Kennedy in 1962 and authorized as part of the Trade Expansion Act of 1962.
President Kennedy declared when the TAA became law, "... an essential part of the new trade program (is) that companies, farmers and workers who suffer damage from increased foreign import competition be assisted in their efforts to adjust to that competition... those injured by that competition should not be required to bear the full brunt of the impact. Rather, the burden of economic adjustment should be borne in part by the Federal Government."
The TAA program was reauthorized and expanded by the Trade Act of 1974 to cover workers, farmers, companies and communities adversely affected by federal trade policies and agreements.
In 2009 as part of President Obama's economic stimulus package, TAA benefits to workers were updated and expanded for two years to include service industry workers, to increase weekly cash payments, and to include health insurance expenses.
In February 2011, Congressional Republicans forced updated and expanded TAA benefits to expire.
Who Runs the TAA Program?
The TAA program is administered in cooperation with the fifty states:
- For workers, by the U.S. Labor Department
- For farmers, by the U.S. Agriculture Department
- For companies and communities, by the U.S. Commerce Department
