[Congressional Record (Bound Edition), Volume 150 (2004), Part 15]
[Senate]
[Pages 20730-20731]
[From the U.S. 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 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

[[Page 20731]]

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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