[Congressional Record Volume 150, Number 124 (Tuesday, October 5, 2004)]
[Senate]
[Pages S10429-S10430]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROGRESS ON TAA
Mr. GRASSLEY. Mr. President, I rise to address the progress that's
been made in how the Trade Adjustment Assistance, or TAA, program
operates. You may recall that in 2002, I worked with Senator Baucus to
shepherd landmark TAA reforms through Congress. President Bush
acknowledged the role of TAA as an important part of his comprehensive
trade agenda when he signed these reforms into law in August of that
year. The reform legislation made a number of changes to TAA,
including, for the very first time, the addition of a new health
coverage tax credit, or HCTC, and a new wage insurance provision, as
well as a doubling of the funds available for retraining workers
dislocated by trade. Given the number and significance of the changes
made to TAA, I joined Senator Baucus in asking the Government
Accountability Office, or GAO, to study how the TAA Reform Act is being
implemented. Separately, we asked GAO
[[Page S10430]]
to study how the health coverage tax credit is being implemented. The
GAO report on TAA came out last month, and while it's clear some of the
details of implementation merit further study, overall the report shows
a marked improvement in the way TAA is administered.
The GAO report notes that the Department of Labor has reduced its
average petition-processing time from 107 days in 2002 to 38 days in
2003, and the percentage of petitions processed in 40 days or less
increased from 17 percent in 2002 to 62 percent in 2003. Certified
workers are enrolling in training services more quickly than in prior
years. More broadly, it is evident that the funds available under TAA
are beginning to be administered more effectively. One of the hurdles
that Labor officials had to overcome was a perception, at least in some
states, that all TAA-eligible workers are entitled to training.
According to GAO, that perception contributed to problems with managing
TAA training funds.
In response, the Labor Department has encouraged, States to take
steps to better administer TAA funds. The Labor Department has also
improved the way it disburses training funds so that State officials
can better target the funds that are available to workers who are truly
in need of training. These efforts are starting to pay off; in fact,
after the GAO report came out, we learned that thanks to improved
administration by the Labor Department, $28.4 million dollars was
available at the end of the 2004 fiscal year for supplemental
distribution. Last week my home State of Iowa received an additional
$559,626 dollars in additional TAA training, job search; and relocation
funds. These funds will help ensure that trade-impacted Iowans will
receive the benefits they are entitled to under the program. The same
is true for States across the country. I think we can all agree that it
is good to see our taxpayer dollars being spent more wisely.
Unfortunately, the GAO report fails to capture the full breadth of
the improvements made by the Labor Department. The report States that
19 states temporarily discontinued enrolling TAA-eligible workers in
training at some point between fiscal years 2001 and 2003 because they
lacked adequate training funds. However, GAO collected only aggregate
data, so it is unclear how many States temporarily discontinued
enrollment before funding was doubled in the TAA Reform Act of 2002,
versus after. That information would have been helpful. The report does
note that six States temporarily discontinued enrollment during fiscal
year 2004, which is quite puzzling given the fact that the TAA program
had funds left over at the end of the year. I think it is important to
note that Labor dispatched technical assistance teams to help those
States implement needed improvements so that workers could get access
to training. Since there wasn't any shortfall in funds, it seems those
6 States can work with Labor to administer the program more
effectively. So, while Labor's progress has been impressive, there's
certainly more work to be done.
The wage insurance provision known as alternative TAA for older
workers is a brand new program, so it is not surprising that
implementation has not been without hiccups. But things are improving.
According to the Labor Department, as of August 2004, 32 States had
already issued alternative TAA payments and another 11 States had the
capability to do so. In addition, 48 States reported that information
on the alternative TAA program is provided as part of their rapid
response activities. Approved petitions for alternative TAA increased
from 60 in fiscal year 2003 to 937 in fiscal year 2004. Importantly,
since alternative TAA went into effect in August 2003, well over 700
workers have received assistance from this new program.
As for the health coverage tax credit, it is also a brand new
program. The just-released GAO report shows that the HCTC was
implemented at record speed and is providing valuable health care
coverage to thousands of displaced workers and recipients of benefits
from the Pension Benefit Guaranty Corporation, or PBGC. While the
initial take-up rate may not be as high as was estimated at the time
the TAA Reform Act was passed, even GAO noted that determining an
actual rate of participation rate is difficult. Not all workers
initially identified as being eligible will meet all the requirements,
and of those that do it is not apparent how many have access to
healthcare coverage via their spouse. In addition, enrollment numbers
for the HCTC do not reflect all of the dependents who also benefit from
the HCTC.
The Labor Department has reached out to educate the public about
these and other aspects of the TAA Reform Act. Labor officials
conducted 15 training sessions with stakeholders across the country in
fiscal years 2002 and 2003. During fiscal year 2004, six regional
forums were held for workforce practitioners in which Labor began
focusing on policies and practices that integrate service delivery to
dislocated workers in need of services. Labor administers a wide array
of programs for trade affected workers, including both TAA and the
Workforce Investment Act, or WIA. In the past, these programs have been
splintered, leading to inconsistent service delivery. Through
initiatives started by the current Department of Labor, workers are now
receiving a wider array of services in faster time. While it is clear
more work remains, the GAO reports do bear witness to the progress
that's been made.
I will continue working with Senator Baucus to monitor developments
and oversee implementation of the TAA Reform Act. We must continue to
assess how the program can be improved. For example, there is currently
no incentive for States to report the most accurate information
possible. We should consider ways to improve the data that is reported,
so the TAA program's true impact can be fully assessed. Additional
study by GAO may prove helpful in this and other areas. Labor started
its own 5-year rigorous impact evaluation of the TAA program this year,
and that should also prove helpful. But while there is room for
improvement, it is also true that much has been accomplished, and I
want to take this opportunity to thank the hard working officials at
the Department of Labor for their dedication in implementing the
significant changes brought about by the TAA Reform Act of 2002. I also
thank officials at the Internal Revenue Service, the Centers for
Medicare and Medicaid Services, and PBGC, along with those in State
agencies, who have worked so hard to implement the HCTC.
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