ETA News Release: [Sept 30, 2005]
Contact Name: David James Mike Volpe
Phone Number: 202-693-4676 202-693-3984
U.S. Department of Labor Releases Trade Adjustment Assistance Funds
Final Release of FY 2005 Funds to Assist States
Training Trade-Affected Workers for New Careers
WASHINGTON - The U.S. Department of Labor today announced the release of nearly $59.3 million to aid states in providing job training, job search and relocation assistance to workers who lose their jobs for trade-related reasons. These leftover fiscal year 2005 funds come from a reserve account the department set up under the Trade Adjustment Assistance (TAA) program. They will be distributed immediately along with initial allotments for fiscal year 2006, which begins October 1.
"The nearly $60 million we are making available today in Trade Adjustment Assistance Program grants will help workers impacted by trade to get access to critical training programs so they can find new opportunities and start new career paths," said Secretary of Labor Elaine L. Chao.
Congress allocates approximately $220 million annually for TAA training. In 2004, the Labor Department's Employment and Training Administration (ETA) began a new system for disbursing the allocations using a formula that aligns resources with state training needs. Each year, 75 percent of available TAA funds, or $165 million, is released on October 1. The remaining 25 percent of funds is reserved for qualifying states experiencing large, unexpected layoffs during the year. States may request additional money from the reserve account after they have spent at least 50 percent of initial allocated formula funds.
Because of the sustained performance of the U.S. economy and needs-based management of funds, the department is able to distribute nearly $59.3 million in fiscal year 2005 funds to the states, which includes funds for job search and relocation assistance. Last year, for the first time in recent history, $28.5 million from the new reserve account was distributed at the end of the fiscal year.
"A strong economy combined with a new system of allocating funds is paying off for states, ensuring that no worker is denied reemployment services during the difficult period following a layoff," said Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco. "We have worked with states to align the public workforce investment system with the demands of business so that trade-impacted workers can access training for careers in growing industries."
For more information on the Trade Adjustment Assistance program, please visit http://www.dol.gov/dol/topic/training/tradeact.htm
Note: A list, by state, of the fiscal year 2005 TAA funds being released is attached.
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