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November 5, 2008    DOL Home > Newsroom > Other News Releases   

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OPA News Release: [03/20/2002]
Contact Name: Sue Hensley

Labor Secretary Elaine L. Chao Announces President Will Recommend Reversal of Dislocated Worker Program Rescission
President’s Supplemental Appropriations Proposal Will Provide
$750 Million for Worker Assistance

WASHINGTON -- U.S. Secretary of Labor Elaine L. Chao announced today that President George W. Bush’s supplemental appropriations proposal will reverse a rescission of $110 million in dislocated worker program funds that are currently being held by the states as well as provide $640 million in new funds.

Chao has worked with the President over the past several weeks to ensure that the rescinded funds were not reclaimed by the federal government, as mandated by Public Law 107-20. In addition to being able to keep these funds, the states will be able to apply for an additional $550 million in National Emergency Grant funds to provide employment and training assistance to workers in areas that are suffering from high unemployment.

“I have seen first-hand the good work states have been doing to bring our country out of this recent recession, and I did not want that work to stop—I wanted to build on the momentum,” said Chao. “The President and I feel it is vital that America’s governors have continued and expanded access to these funds for programs that are successfully re-training and placing workers in great jobs.”

Another part of the President’s proposal will provide $50 million for targeted high growth job training and $40 million for community adjustment assistance. These programs will leverage community and private sector resources to promote job creation and high demand job skills training.

Every state will benefit from being able to keep the funds that would have been captured by the rescission. The State of California and the State of New York are the two biggest beneficiaries, keeping over $23 million and over $17 million, respectively.

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