ETA News Release: [September 29, 2004]
Contact Name: Ed Frank
Phone Number: (202) 693-4676
Labor Department Releases $28.4 Million to States to Help Workers Affected by Trade
WASHINGTON - The U.S. Department of Labor is releasing $28.4 million to help states provide job training, job search and relocation assistance to workers who lost their jobs for trade-related reasons. The funds, available under the Trade Adjustment Assistance (TAA) program, are from a reserve account established this year as part of a new way of allocating trade training funds to the states. This marks the first time in recent history that these funds have been available through the end of a fiscal year.
"The President and I want to ensure that workers who have been dislocated by trade have every opportunity to get the training and other assistance they need to prepare for new and better careers," said Secretary of Labor Elaine L. Chao. "This $28.4 million in funds will ensure that workers found eligible for TAA assistance can receive up to two years of training, as well as job search assistance and relocation expenses. Trade-certified workers are also eligible to receive up to two years of income support," continued Secretary Chao. "The government will also pay up to 65 percent of health insurance premiums. And, if workers are over the age of 50 and qualify for the Alternative TAA program, the government will pay 50 percent of the wage differential if they get a new job that pays less than their old job."
Congress allocates $220 million annually for TAA training. In Fiscal Year 2004, the Labor Department's Employment and Training Administration began a new system of planning estimates to disburse the allocation. Using a set formula that aligned resources with need, 75 percent of available TAA training funds, or $165 million, was released to states on Oct. 1, 2003. The remaining 25 percent of funds, or $55 million, was reserved for states in case they experienced large, unexpected layoffs during the year. States could request additional money from the reserve account based on need after they used at least 50 percent of initial allocated formula funds.
In addition to releasing remaining reserve funds, the Labor Department also made early announcement today of state job training allotments for trade-certified workers for Fiscal Year 2005 which begins Oct. 1. The $28.5 million in FY 2004 reserve funds is being distributed immediately. The FY 2005 allocations will be made on Oct. 1, 2004.
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Note: A list of the Fiscal Year 2004 TAA funds being released by state and Fiscal Year 2005 TAA initial allocations by state is attached.
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U.S. Labor Department releases are accessible on the Internet at http://www.dol.gov. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request. Call (202) 693-7773 or TTY (202) 693-7755.
