ETA News Release: [July 28, 2004]
Contact Name: Lorette Post
Phone Number: 202-693-3984
U.S. Labor Secretary Elaine L. Chao Announces $2.8 Million
In Aid to Transitioning Workers in Ohio
WASHINGTON - U.S. Secretary of Labor Elaine L. Chao today announced more than $2.8 million in aid to help trade-affected workers in Ohio. A National Emergency Grant (NEG) of nearly $1.6 million will help about 2,000 workers with health insurance premiums, while $1.2 million in Trade Adjustment Assistance (TAA) reserve funds will cover training costs for approximately 1,200 trade-certified workers.
"The President and I want to ensure that these trade-related 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. "These two grants totaling over $2.8 million will provide these workers up to 104 weeks of training and will pay up to 65 percent of health insurance premiums until they are able to access the tax credit to which they are entitled."
In addition to the 104 weeks of occupational training and assistance with health insurance premiums, additional benefits for trade certified workers are available through the Trade Readjustment Assistance (TRA) program. "Under TRA, trade-certified workers may be eligible for income support during the two-year training period, child-care assistance, a job search allowance and relocation expenses when suitable employment is unavailable in the worker's commuting area. And if the worker is over the age of 50 and gets a new job that pays less then their old job, the Government will pay 50% of their wage differential for up to two years," said Chao.
The NEG grant of nearly $1.6 million will be used to make "gap-filler" payments of qualified health insurance premiums for trade-affected individuals eligible for the Health Coverage Tax Credit program. These payments will cover the time it takes the Internal Revenue Service to enroll, process and pay a candidate's first premium under the program. The tax credit is equal to 65 percent of the monthly premium for qualified health insurance coverage.
The remaining $1.2 million grant is being made available from the TAA reserve account. Congress capped TAA training funds at $220 million. To assist states with management of these resources, the Labor Department's Employment and Training Administration this year began allocating funds differently - 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.
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