Trade Adjustment Assistance
Trade Adjustment Assistance A federal program that provides aid to workers, businesses, farmers, and communities that have been adversely affected by foreign trade, offering benefits like job training, relocation allowances, healthcare subsidies, and technical assistance.
Latest Update (March 2025)
Bipartisan legislation has been introduced to reauthorize and modernize the TAA program with expanded eligibility for workers in digital services and expanded training options for in-demand occupations.
Read Legislative UpdateWhat It Means
Trade Adjustment Assistance (TAA) is a safety net program that helps workers and businesses negatively impacted by foreign competition. Think of it as a specialized unemployment program that provides extra support—like job retraining, extended benefits, and relocation assistance—specifically for those who lose jobs or business due to increased imports or production moving overseas.
Program Components
TAA for Workers
Supports workers whose jobs were lost due to trade impacts
- Job training & education funding
- Extended unemployment benefits
- Relocation & job search allowances
- Health Coverage Tax Credit
TAA for Firms
Aids businesses harmed by import competition
- Matching funds for business improvements
- Technical assistance & consulting
- Marketing & export development
- Operational efficiency improvements
TAA for Farmers
Assists agricultural producers affected by imports
- Technical assistance
- Cash benefits for income recovery
- Marketing & diversification planning
- Business development guidance
TAA for Communities
Supports areas with significant trade impact
- Strategic planning assistance
- Infrastructure development
- Economic diversification support
- Regional competitiveness initiatives
Eligibility Process
Petition Filing
Workers/firms/farmers file petitions showing how foreign trade contributed to job losses or sales decline
Investigation
Department of Labor (for workers) or Commerce (for firms) investigates the trade connection
Certification
If approved, a certification is issued making applicants eligible for benefits
Benefit Administration
State workforce agencies (for workers) or TAA Centers (for firms) provide the actual assistance
Historical Timeline
Initial Establishment
Trade Expansion Act creates the first TAA program for workers and firms
Major Expansion
Trade Act of 1974 broadens eligibility and increases benefits significantly
NAFTA Adjustment Assistance
Special program created for workers affected by trade with Canada and Mexico
TAA Reform Act
Consolidates programs and adds health coverage tax credit for displaced workers
TAA Expansion
American Recovery and Reinvestment Act significantly expands eligibility to service sector workers
Program Reauthorization
TAA for Workers reauthorized through June 30, 2022, then reverted to more limited 2015 version
Real-World Example
Case Study: TAA Support for Displaced Manufacturing Workers
Background
Precision Parts Manufacturing, a mid-sized auto parts manufacturer in Michigan, announced the closure of its facility employing 180 workers. The company cited "insurmountable competitive pressure from low-cost imports" as the primary reason for the closure.
TAA Petition Process
Step 1: Petition Filing
The local union representative filed a TAA petition with the Department of Labor, providing data showing a 45% increase in imported competing products over the previous year.
Step 2: Investigation
The DOL conducted an investigation, including reviewing industry import data and interviewing company management, confirming that imports contributed importantly to the job losses.
Step 3: Certification
Within 40 days, the DOL issued a certification, making all workers laid off within the prior year eligible for TAA benefits.
Worker Benefits Utilized
| Benefit Type | Usage Statistics | Outcomes |
|---|---|---|
| Job Training | 142 workers (79%) | 87% completion rate |
| Extended Benefits | 128 workers (71%) | Average 32 weeks utilized |
| Relocation Allowance | 18 workers (10%) | Average $4,200 per worker |
| Health Coverage Credit | 95 workers (53%) | Average annual savings $3,800 |
Training Programs Selected
CNC Programming
48 workers
Healthcare Technician
36 workers
IT Support Specialist
21 workers
Long-term Outcomes
Reemployment Rate
Within 18 months, 83% of participants secured new full-time employment, compared to 62% for similar non-TAA participants in the region
Wage Recovery
Average wage recovery of 94% of previous earnings, with CNC program graduates averaging 103% of previous wages
Industry Transition
65% of workers successfully transitioned to different industries (healthcare, IT, advanced manufacturing), reducing vulnerability to future trade disruptions
While the program required significant investment (approximately $22,000 per worker), the combination of training, income support, and placement assistance created significantly better outcomes than would have occurred without intervention. The local economic development agency estimated this prevented approximately $3.2 million in social services costs.
TAA Eligibility Checker
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