[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[August 24, 1992]
[Pages 1412-1414]
[From the U.S. Government Publishing Office www.gpo.gov]



White House Fact Sheet: Worker Adjustment Initiative
August 24, 1992

    The President today announced a new, comprehensive $10 billion 
worker adjustment initiative to assure that American workers have the 
training and skills they need for employment security today and into the 
next century.
    The President's proposal features:
    Universal coverage. All dislocated workers would have access to 
basic transition assistance and training support.
    Skill grants. Vouchers of up to $3,000 would be available to help 
meet the costs of providing new skills and training for dislocated 
workers.
    $10 billion in Federal funding. The plan almost triples the 
resources currently devoted to skill training and worker adjustment--to 
$2 billion a year in each of the next 5 years. This level of funding is 
sufficient to ensure that workers anticipated to need these adjustment 
services will have access to those services.

The Problem

    Three related developments have created the need for a flexible, 
adaptable, well-trained, and highly-skilled workforce in the United 
States.

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    First, world trade is expanding and promises to continue to expand 
during the coming decade. The United States has been at the forefront of 
this effort through the Uruguay round GATT negotiations and the North 
American free trade agreement. Expanding trade brings with it great 
opportunities for exports and job creation. But, it also brings with it 
the need for adjustment as nations concentrate on what they do best.
    Second, the pace of technological change has accelerated. Computers 
and innovations in production technology have sharply increased 
manufacturing productivity. Technological advances are reducing the need 
for certain skills and increasing the need for others.
    Third, the end of the cold war provides the U.S. with an historic 
opportunity to reevaluate and revise its national security requirements. 
This development inevitably involves redeploying resources, including 
human resources, from the defense to the civilian economy.
    These changes create new opportunities; they also involve 
adjustments. Adult workers who lose their jobs need the training and 
skills that will allow them to adjust and adapt in a dynamic economy, to 
make the transition to new industries and occupations, and to compete 
successfully in the global marketplace.
    The problem and the challenge is how best to facilitate the 
development of a dynamic, well-trained workforce that will keep the U.S. 
globally competitive.

The President's Proposal

    In January, the President announced a comprehensive, streamlined 
Federal job training system that provides ``one-stop shopping'' for job 
training services in every community. This structure is designed to meet 
the Nation's workforce needs into the next century.
    Building on this plan, the President proposes to complete the 
restructuring of Federal job training programs by replacing the current 
dislocated worker adjustment programs under the Economic Dislocation and 
Worker Adjustment Assistance (EDWAA) and Trade Adjustment Assistance 
(TAA) Acts with a new $2 billion a year comprehensive retraining and 
transition assistance program.
    The Department of Labor's new Advancing Skills through Education and 
Training Services (ASETS) program will assist all dislocated workers, 
including those who may change jobs or careers as a result of the North 
American free trade agreement (NAFTA), as well as other workers in 
changing industries who need training in new skills.
    The President's proposal would serve: workers who have lost their 
jobs, workers who have been notified their jobs are being terminated, 
and workers employed in industries experiencing significant changes and 
work force adjustments who fear job loss in the future.
    Dislocated workers would be eligible to receive three types of 
assistance: transition assistance, to help them find and secure new 
employment. This includes: skills assessment, counseling, job search 
assistance and job referral services; training assistance, in the form 
of skill grants, for those workers who want and need retraining and 
skills development; transition income support, where necessary, for 
workers completing retraining.

Program Funding

    The President's program would be funded at $10 billion over the next 
5 years--$2 billion annually--and structured as a capped mandatory 
program to ensure continuity of funding. At this funding level, an 
estimated 1.2 million workers could be served annually. Two-thirds of 
the total annual funding ($1.3 billion) would be allocated to the 
States. These funds would more than triple the resources now available 
to States through EDWAA to respond to dislocations. States would provide 
basic transition assistance service and skill grants for training to 
dislocated workers regardless of the cause of dislocation, including 
trade and NAFTA-related employment changes, defense adjustments, etc. 
One-third of the total annual funding ($670 million) would be retained 
by the Secretary of Labor for discretionary allocation for uses of 
national priority. At least $335 million a year would be reserved 
specifically to respond to

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NAFTA-related dislocations. The balance would be reserved to respond to 
multi-state and industry-wide dislocations (e.g., defense-related 
layoffs and environmental impacts). This triples the existing funding 
for these programs. If NAFTA-related dislocations require more funding, 
the Secretary may shift the allocation to as high as the full $670 
million per annum. Likewise, if NAFTA dislocations require less, as is 
likely to be the case, the Secretary may shift those resources to other 
priority dislocations.

Transition Assistance

    Every dislocated worker would be eligible to receive basic 
transition assistance, including: an assessment of their current skills, 
counseling, help in resume preparation and interviewing skills, job 
search assistance and job referral services.

Skill Grants for Training

    In addition to basic transition assistance, many dislocated workers 
may need to develop additional skills or upgrade their current skills. 
The President's proposal would provide dislocated workers with a skill 
grant in the form of a voucher. Grants would be awarded in amounts up to 
$3,000 per year. Workers would be eligible for the grants for up to 2 
years. The grant could be redeemed at any qualified college, junior 
college, community college or public or private trade school or training 
institution. Workers would have the freedom and flexibility to choose 
the type of training that would best meet their needs and aspirations.
    Funding priority for individuals applying for the skill grants would 
be: (1) currently dislocated workers; (2) soon-to-be dislocated workers; 
(3) workers employed in industries experiencing significant work force 
adjustments who fear future dislocations.

Transition Income Maintenance

    Dislocated workers who enter training early in their unemployment, 
have exhausted their unemployment insurance benefits, and need income 
support to complete their training will be eligible to receive 
transitional income maintenance.