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ETA News Release: [12/21/2004]
Contact Name: Mike Volpe
Phone Number: (202) 693-4676 or x7909

ETA News Release: U.S. Secretary of Labor Elaine L. Chao Awards Over $2 Million To Assist Trade-Affected Workers in Michigan

WASHINGTON—U.S. Secretary of Labor Elaine L. Chao has announced the release of $2,070,782 to assist approximately 2,069 trade-affected workers in Michigan. The funding, provided through the Trade Adjustment Assistance (TAA) program, will enable the state to provide training to workers certified as eligible to receive TAA benefits.

“The President and I want to ensure that these trade dislocated workers are given the opportunity to get the training and other assistance they need to prepare for new and better careers,” said U.S. Secretary of Labor Elaine L. Chao. “This grant for $2,070,782 ensures that workers found eligible for TAA assistance can receive up to 104 weeks of training as part of that preparation. In addition to the job training benefits, workers certified for TAA may also be eligible to receive up to two years of income support and other help such as job search and relocation expenses,” continued Secretary Chao. “The government will also pay up to 65 percent of qualified health insurance premiums. 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.”

The funds are being made available from the TAA reserve account. Congress has capped TAA training funds at $220 million. To assist states with management of these limited resources, the Labor Department's Employment and Training Administration (ETA) began allocating funds differently in FY 2004 – 75 percent of the total, or $165 million, was distributed by formula to the states, and the remaining 25 percent was kept in a reserve fund for unexpected layoffs that might occur during the year. In FY 2005, ETA will continue to use the formula distribution method implemented in FY 2004.

The Michigan Department of Labor and Economic Growth is the entity responsible for the administration of the TAA program. Michigan will receive $6,393,047 under the FY 2005 formula distribution. The amount released to Michigan today will be made available from the TAA reserve account and is the first request for FY 2005. A state may request additional funding after it has expended at least 50 percent of its initial allocation for that year.

Additional information on the TAA program can be found at www.doleta.gov/tradeact.

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