You asked for (1) a description of the federal Trade Adjustment Assistance (TAA) program and (2) whether the state could increase benefits under the program or if the federal government preempts such action.

SUMMARY

TAA is a federally created and funded program administered by state labor departments to provide a range of benefits for people who lose their jobs as a result of increased imports from, or shifts in production to, foreign countries. The program's goal is to help workers return to suitable employment as quickly as possible. Assistance includes cash benefits, relocation and job-search allowances, training services, and a health coverage tax credit.

While the federal law creating TAA does not preempt state action in this area, there are constraints on a state's ability to provide additional assistance. The federal law allows states to provide additional benefits for workers qualifying under the act as long as the state money used for the added benefits is not reimbursable by the federal government. If additional benefits are provided using money that is reimbursable, the federal government will reduce its TAA assistance by the amount of extra benefits.

STATE ABILITY TO SUPPLEMENT TAA ASSISTANCE

The TAA program is based on the principle that recipients will first exhaust all state-provided benefits before getting the federal assistance. From 1974, when Congress originally enacted TAA, until passage of the Trade Adjustment Assistance Reform Act of 2002 (TAARA), if a state provided extra benefits to an eligible worker under the program, the federal government reduced its assistance to that worker by the amount of the extra benefits the state provided.

Under TAA, a worker who has been certified as losing his job due to imports receives the cash benefit (income support) only after he exhausts his regular unemployment insurance benefit. At that point, he is eligible for 26 weeks of income support (and, possibly, another 52-week benefit extension) based on his weekly unemployment benefit. Before the 2002 act, if a state provided extra weeks of income support, the federal government reduced its support so the person received no more than the 26 weeks of benefits that followed his unemployment benefits.

TAARA specifies that states may, without losing federal dollars, provide additional benefits as long as the benefits are not reimbursed with federal funds (Public Law 107-210, § 114(a)).

TAA PROGRAM OVERVIEW

When a plant closes, threatens to lay off or lays off workers, the company, a union, or a group of three or more workers can apply to the U. S. and state labor department for certification that the affected employees are eligible for TAA benefits. In 2005, the state DOL approved 12 certifications for TAA assistance.

Once certification is granted, DOL sends eligibility notices to all affected employees or former employees. In order to receive benefits, the individuals must apply to DOL.

Available assistance includes:

• job training (classroom, on-the-job, or employer-sponsored);

• job search allowance (for costs of a job search outside the local area);

• relocation allowance for qualified workers moving out of state for new jobs;

• health coverage tax credits (for federal taxes);

• income support payments for up to 26 weeks, after exhausting unemployment insurance, if the person is enrolled or participating in a TAA-approved training course or program; and

• extended income support for an additional 52 weeks, after exhausting basic income support, if the person is enrolled or participating in a TAA-approved training course or program.

Weekly income support payments equal the amount the person received weekly in unemployment compensation. The employee must provide proof of training attendance when filing for income support payments or extended payments.

Several of the benefits have separate applications processes and requirements.

For more information on the TAA program or TAARA go to: http: //www. ctdol. state. ct. us/TradeAct/default. htm or

http: //www. doleta. gov/tradeact/2002act_index. cfm.

JM: dw