If You Lose Your Job Because of a Trade Agreement — Should the Gov't Retrain You for New Jobs? (H.R. 1892)

What is H.R. 1892?

(Updated February 6, 2019)

This bill would reauthorize the Trade Adjustment Assistance (TAA) — a program that offers job training and assistance to U.S. workers who lose their jobs to trade agreements. The program tries to lessen the blow of jobs being outsourced to other countries by connecting U.S. workers with other opportunities. 

U.S. workers in industries ranging from small businesses, agriculture, fishing, or service and manufacturing can be impacted by trade agreements. Employees from all of these sectors (and more) would continue to be eligible for training in new career skills if their jobs are farmed out of the country. 

This bill would also offer a tax credit to TAA covered workers to help them afford health insurance. The TAA would be reauthorized through 2021, and it would otherwise be set to expire at the end of the 2015 fiscal year.

Argument in favor

When U.S. workers lose their jobs because of trade — through no fault of their own — it should be up to programs like the TAA to help those workers and their families transition into new careers to get back on their feet in the U.S. economy.

Argument opposed

Why should U.S. workers be retrained to accommodate trade agreements that are tanking the job market? The workers aren't the problem, the trade agreements are. Plus, this program is funded with budget gimmicks, and has proven to be ineffective.

Impact

Workers who lose their job as a result of international trade agreements, the Department of Labor.

Cost of H.R. 1892

The CBO analyzed this legislation and found that implementing this bill would decrease deficits by $88 million over the 2015-2025 period through offsetting changes in revenues and spending in 2020 and 2025. However, for 2015, the bill would increase spending by $636 million over the 2015-2015 period — assuming the money is authorized.

Additional Info

In-Depth: In 2013, the TAA program provided assistance to nearly 105,000 American workers (according to bill sponsors). 2010 figures have TAA helping closer to 228,000 workers.

The Senate version of this legislation was introduced on a bipartisan basis by Sen. Susan Collins (R-ME) and Sen. Ron Wyden (D-OR). Sen. Collins called the TAA: 

“a crucial lifeline for many employees in trade-impacted industries who have lost their jobs through no fault of their own.” 

Sen. Wyden praised this legislation for expanding TAA programs to “broad new segments of the workforce, including service workers and those in manufacturing, to receive training so they can better compete and win in the global economy.”

The Heritage Foundation published a research paper criticizing this legislation for using budgeting gimmicks to comply with requirements that the bill and it's reauthorization remain deficit neutral. The research paper also included a table based on Department of Labor data showing that TAA participants earn less and work less than comparable workers, despite closing the gap over the course of four years.

Data collection and reporting requirements under this bill would require reports on:

• The number of workers receiving TAA assistance, 
• Their incomes, 
• Education backgrounds, 
• And either unemployment benefits or other re-training programs they’ve participated in.

Media:

• Sponsoring Sen. Susan Collins (R-ME) Press Release (Senate Companion)
• CBO Cost Estimate
• Fox Business
  
• The Hill
  
• Politico
  
• National Journal
  
• National Law Review
  
• Heritage Foundation (Opposed)