What is the Trade Adjustment Assistance Program?
Trade Adjustment Assistance (TAA) is a federal program of the United States Department of Labor (USDOL) that provides reemployment services to workers who have been adversely impacted by increased imports or by a shift in production or services to another country.
TAA Services and Benefits
The goal of the TAA program is to help workers become reemployed in a suitable job as quickly as possible. Available services and benefits include:
• Job Search Allowances
• Job Relocation Allowances
• Training
• Trade Readjustment Allowances (TRA)
• Reemployment Trade Adjustment Assistance (RTAA) wage subsidy
• Health Coverage Tax Credit (HCTC)
Job Search Allowances
Job search allowances cover a portion of the expenses incurred in seeking employment outside one's normal commuting distance. Up to one hundred percent (100%) of necessary and reasonable travel expenses to conduct confirmed job interviews may be available. There are time restrictions pertaining to application and an individual must apply and obtain approval before traveling to any pre-arranged job interview. The maximum reimbursement allowed is $1,500.
If offered a job outside one's normal commuting distance, job relocation allowances are available to assist in relocating for employment. Individuals may receive up to one hundred percent (100%) of the necessary and reasonable expenses of moving family members and household goods to the new location. In addition, a lump sum payment equal to three times the former weekly salary may be received, up to a maximum of $1,500. There are time restrictions pertaining to application and an individual must apply and obtain approval prior to relocating.
Training may be necessary to upgrade skills or obtain new occupational skills for re-employment purposes. Training can be approved if all six of the following criteria are met:
• There is no suitable employment;
• The individual would benefit from appropriate training;
• There is reasonable expectation of employment following completion of training;
• Training is reasonably available to the individual;
• The individual is qualified to undertake and complete training; and,
• Training is suitable for the individual and available at a reasonable cost.
Trade Readjustment Allowances (TRA) are weekly income support payments that may be available after all rights to Unemployment Insurance are exhausted. There are specific eligibility requirements and application deadlines. This financial assistance is provided while participating in training. If waived from the training requirement, an individual may still receive TRA payments for a limited time while conducting an intensive job search.
Reemployment Trade Adjustment Assistance (RTAA) offers a wage supplement program for individuals age 50 or older. If an individual obtains a job (within 2 years of the expiration of his/her UI benefits) which pays less than what was earned with the trade-affected employer, RTAA will pay the individual 50% of the difference between the wages of the new job and the wages earned in the trade-affected employment. The RTAA wage supplement may be paid up to a maximum of $12,000 or for two years, whichever occurs first.
Health Coverage Tax Credit (HCTC)
Health Coverage Tax Credit (HCTC) is a federal tax credit that pays 80% of a qualified health plan premium paid by eligible individuals. The credit may be claimed at the end of the year when filing one's tax return or claimed in advance on a monthly basis as health premiums become due. To be eligible for HCTC, an individual must be:
• Receiving Trade Readjustment Allowance (TRA) or Unemployment Insurance (UI);
• Receiving Alternative Trade Adjustment Allowance (ATAA);
• Receiving Reemployment Trade Adjustment Assistance (RTAA); or,
• Receiving benefits from the Pension Benefit Guarantee Corporation (PBGC).
Qualified health plans for HCTC include:
• COBRA continuation coverage
• Spousal coverage plans where the spouse's employer pays for less than 50% of the premium (This option is available only as a year-end tax credit)
• Individual (non-group) health coverage that began at least 30 days prior to separation from employment
• South Carolina Health Insurance Pool administered by Blue Cross Blue Shield. For more information on this plan, call BC/BS at 1-800-868-2500, Ext. 46401.
For more information on TAA services and benefits, contact a local one-stop career center or contact:
State TAA Coordinator
Phone: (803) 737-2670
Fax: (803) 737-2119
TAA Petitions
TAA State Instruction Letters