Letter to Barack Obama, President of the United States - Trade Adjustment Assistance

Letter

Dear President Obama:

We share the goal of your National Export Initiative to double U.S. exports and are looking forward to working with you on implementing a strong trade and competitiveness strategy. We are writing to support your decision to insist that Congress agree to extend Trade Adjustment Assistance (TAA), including a long term extension of the 2009 bipartisan reforms, before you submit the pending trade agreements with South Korea, Colombia, and Panama. We recognize, as you do, that such a deal will be challenging to secure because it requires significant bipartisan commitments in both chambers of Congress to vote in favor of a TAA extension. The challenge is worth it. We agree with you that strengthening the safety net for the middle class by extending TAA should be a prerequisite for the consideration of new trade agreements.

TAA has been a core pillar of U.S. trade policy. The program ensures that workers who lose their jobs and financial security as a result of globalization have an opportunity to transition to new jobs and emerging sectors of the economy. Important reforms were made to TAA in 2009, which have helped streamline the program and make it more efficient for beneficiaries. In 2009, Congress also expanded eligibility to all workers whose jobs have been moved offshore, regardless of whether the United States has a trade agreement with the particular country. It also recognized the important role of the service industry in the U.S. economy by bringing service workers into TAA.

The program also improved and expanded access to TAA's Health Coverage Tax Credit (HCTC) -- an initiative that promotes private health insurance access for recipients, and makes health insurance coverage more affordable to workers who lose their jobs due to trade and offshoring. In the absence of this program, more Americans would need public assistance and more individuals nearing retirement would be forced to use the emergency room as their sole source of health care.

These bipartisan reforms to the TAA program help hundreds of thousands of workers, in every state, by moving workers more quickly from government support to private sector jobs. Since new TAA began in May 2009, the program has assisted 185,000 Americans who may have otherwise been ineligible for services, with usage in some states increasing by more than 40 percent. The 2009 reforms also help ensure accountability and results by requiring data on performance and worker outcomes, enabling Congress to identify where improvements are needed. Unfortunately, these critical TAA reforms expired on February 12, 2011. Just this month, the Department of Labor denied the first three petitions filed by groups of workers seeking TAA assistance under pre-2009 eligibility. The continued denial of critical training will impede private sector employment in emerging sectors of the economy.

While we the undersigned may have differing views on elements of the trade agenda -- with some of us looking forward to supporting the pending trade agreements with South Korea, Colombia, and Panama, and others skeptical of the impact of the agreements --we are unified in our belief that the first order of business, before we should consider any FTA, is securing a long-term TAA extension.

We look forward to working with you to extend and implement TAA as part of broader trade and competitiveness strategy that creates jobs and builds the middle class.

Additional Background:

In May of 2009, Rockefeller sent a letter to Department of Labor Secretary Hilda Solis regarding the importance of quickly processing TAA applications in light of changes to the Recovery Act. That letter highlighted the importance of TAA benefits for West Virginia and referenced layoffs at Severstal that impacted hundreds of West Virginia employees who were recently awarded TAA benefits.

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