TEGL_18-19.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION Trade Adjustment Assistance CORRESPONDENCE SYMBOL OTAA DATE April 28 2020RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 18-19TO STATE WORKFORCE AGENCIES STATE WORKFORCE LIAISONS AFFILIATE AMERICAN JOB CENTER MANAGERS COMPREHENSIVE AMERICAN JOB CENTER MANAGERS STATE WORKFORCE ADMINISTRATORS STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS STATE LABOR COMMISSIONERS RAPID RESPONSE COORDINATORS TRADE ADJUSTMENT ASSISTANCE LEADS FROM JOHN PALLASCH Assistant Secretary SUBJECT Initial Allocation of Fiscal Year FY 2020 Trade Adjustment Assistance TAA Program Training and Other Activities TaOA Funds and Process for Requesting TAA Reserve Funds 1.Purpose. To assist State Workforce Agencies or agencies designated by Governors as Cooperating State Agencies CSAs also jointly referred to as states by 1 identifying the FY 2020 Initial Allocation of TaOA funding amounts to states 2 describing the formula methodology used by the Department of Labor Department to calculate these amounts and 3 providing the process for states to request TAA Program reserve funds for TaOA. TaOA includes training job search allowances relocation allowances employment and case management services and related state administration. 2.Action Requested. States are required to implement the guidance set forth herein and must continue to administer the TAA Program in accordance with applicable regulations and administrative guidance. States must inform all appropriate staff of the contents of this guidance. 3.Summary and Background. a Summary The information provided herein sets out the national aggregate amount of FY 2020 TAA Program funds and describes the allocation of funds including the derivation of state amounts and the process states must use to request reserve funds for TaOA expenditures. States are encouraged to consult their Unemployment Insurance UI Annual Funding Agreements and appropriate Regional Office staff for instructions on the process for accessing FY 2020 Training Readjustment Allowances 2 TRA Alternative Trade Adjustment Assistance ATAA and Reemployment Trade Adjustment Assistance RTAA funds. In addition the Department advises states to refer to Training and Employment Guidance Letter TEGL No. 1 7-1 9 which announces the TaOA grant funding process for the FY 2020 funding cycle. TEGL No. 1 7-19 also provides guidance on submitting the Standard Form-424 Application for Federal Assistance via www.grants.gov which is required for receipt of FY 2020 TaOA funds. b Background The Trade Act of 1974 Pub. L. No. 93-618 as amended the Trade Act codified at 19 U.S.C. 22T1 et seq. Title II Chapter 2 established the TAA ATAA and RTAA programs. These programs collectively referred to as the TAA Program provide assistance to workers who have been adversely affected by foreign trade. The curther Consolidated Appropriations Act of 2020 Pub. L. 11S-94F 2020 Appropriations ActF enacted on December 20 2019 appropriates FY 2020 funds to carry out the TAA Program. It includes an appropriation of A680 million within the Department s Federal Unemployment Benefits and Allowances FUBA account spread across three program activities TaOA 450 million TRA A20U million and ATAA RTAA 22 million .1 In addition states may use TaOA funds to provide benefits and services to members of worker groups covered by a certification under the 2002 Program the 2009 Program the 2011 Program and the 2015 Program in accordance with the requirements of the TAA law in effect at the time of filing of such petition for certification. Funds provided under the FY 2020 FUBA appropriation for TaOA are available for expenditure for three fiscal years i.e. FY 2020 FY 2021 and FY 2022 . The expenditure period for funds provided under the FY 2020 FUBA appropriation for TRA ATAA and RTAA is one fiscal year i.e. through September 30 2020 . States may refer to the FY 2020 TAA Annual Funding Agreement and Notice of 1 The statutory text in the Further Consolidated Appropriations Act 2020 that appropriates FUBA funds provides as follows For payments during fiscal year 2020 of trade adjustment benefit payments and allowances under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 and section 246 of that Act and for training employment and case management services allowances for job search and relocation and related state administrative expenses under part II of subchapter B of chapter 2 of title II of the Trade Act of 1974 and including benefit payments allowances training employment and case management services and related state administration provided pursuant to section 231 a of the Trade Adjustment Assistance Extension Act of 2011 and section 405 a of the Trade Preferences Extension Act of 2015 680 000 000 together with such amounts as may be necessary to be charged to the subsequent appropriation for payments for any period subsequent to September 15 2020 Provided That notwithstanding section 502 of this Act any part of the appropriation provided under this heading may remain available for obligation beyond the current fiscal year pursuant to the authorities of section 245 c of the Trade Act of 1974 19 U.S.C. 2317 c . 3 Award for additional information on the expenditure period for TaOA funds and the UI Annual Funding Agreement for additional information on TRA ATAA and RTAA expenditure periods. 4. Allocation and Process Details . a Application of Sequestration The Balanced Budget and Emergency Deficit Control Act of 1985 BBEDCA as amended by the Budget Control Act of 2011 BCA requires a reduction for FY 20 20 of 5.9 percent in budget authority for direct spending sometimes referred to as mandatory programs which includes the TAA Program. The full appropriated amount of 680 000 000 is reduced by 5.9 percent or 40 120 000 leaving a total appropriated amount of 639 880 000 available for distribution to the states. As has been done in previous years using the flexibility under the BBEDCA the Department is applying the entire 40 120 000 reduction due to sequestration to the funds available for TaOA rather than applying reductions to each payment of TRA ATAA or R TAA. This results in a FY 2020 national aggregate amount of 409 880 000 available for distribution to states for TaOA. b FY 2020 National Aggregate TaOA Amount States must use funding allocated in the Initial Allocation to carry out TaOA consistent with TAA Program requirements and guidance. In determining the national aggregate amount available for TaOA the Department has taken into account both the funds appropriated to continue the full operation of these programs and the application of sequestr ation which results in the national aggregate amounts for TaOA as follows 409 880 000 is the FY 2020 national aggregate amount available for expenditures for training job search allowances relocation allowances employment and case management service s and related state administration. 2 States must adhere to the requirements in Sec tion 235A of the Trade Act that limit expenditures for related state administration and set out a minimum expenditure requirement for employment and case management service s. The Sec tion 235A expenditure requirements are as follows o Of the TaOA funds made available to a state for the fiscal year not more than 10 percent may be used for related s tate administration. This amount represents the maximum amount of FY 2020 TaO A funds that a state is allowed to use for expenditures for related state administration. Note A state may NOT use more than 10 percent of its F Y 2020 TaOA allocation for costs related to state administration. 2 On a national aggregate basis up to 40 988 000 or 10 percent of 409 880 000 of FY 2020 TaOA funds may be expended on relat ed state administration and a minimum of 20 494 000 or 5 percent of 409 880 000 must be used for TAA employment and case management services. 4 However if needed a state may use a por tion of the funds available for state administration for train ing provided the funds are not needed for state administration. o Of the TaOA funds made available to a state for the fiscal year not less than 5 percent shall be used for TAA employment and c ase management services. The amount that constitutes 5 percent of the state s TaOA funds for FY 2020 is the minimum amount that a state must use to provide employment and case management services to TAA Program participants certified under the 2009 Progra m the 2011 Program and the 2015 Program. 3 This 5-percent minimum for employment and case management services ensures that TAA funds are available to provide the employment and case management services to which workers under those programs that provide f or such services are entitled . Note A state may use more than the 5-percent minimum of the amount allocated to it for TaOA to provide TAA -funded employment and case management services if the state determines that more funds are needed to provide such services to adversely affected workers in its state. c FY 2020 Initial Allocat ion State Amounts of TaOA Funds The Department determines the FY 2020 Initial Allocation of TaOA funds to states based on the regulations at 20 CFR 618.910 through 618.940. These regulations provide for an Initial Allocation for a fiscal year to total 65 percent of the TaOA funds available for that fiscal year. After this distribution approximately 35 percent of FY 2020 TaOA funds will remain available which the Department will distribute in subsequent distributions and to states that require reserv e f unds described in Section 4.d.B . Specifically for FY 2020 the amounts to be provided in the Initial Allocation are determined by applying the following provisions Sixty -five percent of the fiscal year funds available or 266 422 000 will be distr ibuted by formula under this allocation with the remaining 35 percent of the FY 2020 -appropriated TaOA funds held in reserve for distribution by July 15 2020 and the end of the fisc al year or to be provided to state s in need of reserve funds as provid ed in 20 CFR 618.920 and described below The hold -harmless provision minimum allocation for the Initial Alloc ation provided for at 20 CFR 618.910 c is applied to ensure that a state receives at least 25 percent of the Initial Allocation that was made available to that state for the previous fiscal year and 3 FY 2020 TaOA funds must not be used to provide employment and case management services to workers covered by petitions certified under the 2002 Program. 5 The formula factors the Department must consider in determining the apportionment of the Initial Allocation of funds specified in 20 CFR 618.910 f are further described below in Section 4.d.A. d Application of the Funding Formula and Proces s for Requesting Reserve Funds The attachment to this TEGL provides the amounts of FY 2020 TaOA funds that will be distributed in the Initial Allocation by state. These amounts were determined under the TAA funding f ormula as described in 20 CFR 618.910 f and summarized below A. TAA Formula Funds 1. Trend in number of workers covered by certifications during the most recent four consecutive calendar quarters for which data are available 2. Trend in number of workers participating in training during the most recent four consecutive cal endar quarters for which data are available 3. Number of workers estimated to be participating in training during the fiscal year and 4. Estimated amount of funding needed to provide approved training to such workers during the fiscal year. Factor 1 will be e stablished using the most recent four quarters FY 201 9 Quarter 1 through FY 201 9 Quarter 4 of data for certified workers by state and the quarters will be weighted 40 percent 30 percent 20 percent and 10 percent from the most recent to the earliest q uarter. This approach will establish a trend giving the most recent quarters a greater impact on the factor than earlier quarters. Factor 2 will be established using the most recent four quarters FY 201 9 Quarter 1 through FY 201 9 Quarter 4 of data for workers participating in training by state and the quarters will be weighted 40 percent 30 percent 20 percent and 10 percent from the most recent quarter to the earliest quarter. As with Factor 1 this approach will establish a trend giving the most recent quarters a greater impact on the factor than earlier quarters. Factor 3 will be determined by dividing the weighted average number of training participants for the state determined in Factor 2 by the sum of the weighted averages for all states. The next step in determining this factor is to multiply the resulting ratio by the projected national average of training participants for the fiscal year using estimates from the Department s most recent budget submission or update. Factor 4 will be calc ulated by multiplying the estimated number of participants in Factor 3 by the average training cost per participant in the state. The average training cost will be calculated by dividing total tra ining expenditures for the most recent four quarters by the average number of training participants for the same period. 6 Once each of the four factors have been determine d for each state under 20 CFR 618.910 f 3 all four factors will be assigned an equal weight. For FY 2020 the weight will be 25 percent of the total for each factor. The Department will determine each state s percentage of the national aggregate amount for each factor. Using each state s percentage of each of these weighted factors the unadjusted percentage that the state will receive of the amount available for Initial Allocations will be determined. Following 20 CFR 618.910 c through e if a state s allocation amount based upon this calculation is less than 100 000 the allocation amount will be removed from the calculation as des cri bed below and the statutory 25 -percent hold harmless provision will be applied resulting in the adjusted FY 2020 amounts for the remaining states. In instances where the formula approach would give a st ate less than 100 000 20 CFR 618.910 e 2 i is applied. Under that regulation a state with an allocation calculated under the formula to be an amount less than 100 000 will not receive any Initial Allocation. Those states may request TAA Program reserve funds in accordance with the procedures de scribed below in Section 4. d.B. B. Process for Requesting TaOA Reserve Funds States may request TaOA reserve f unds in accordance with 20 CFR 618.920 b at any time during this fiscal year. States must use the Trade Adjustment Assistance TAA for Workers Funding Request Form ETA -9117 OMB No. 1205 -0275 Expiration Date September 30 2022 to request these funds. To be eligible for TaOA reserve funds a state must demonstrate that at least 50 percent of TaOA funds made available to that state in the cur rent fiscal year and the two preceding fiscal years have been expended or that the state needs additional funds to meet unusual or unexpected events. A state requesting reserve funds must also provide a documented estimate of expected funding needs throug h the end of the fiscal year. A state must base its estimate on an analysis that includes at least the following o The average cost of training in the state o The expected number of participants in training through the end of the fiscal year and o The rema ining funds the state has available for TaOA. e Recapture and Reallotment of TaOA Funds Section 245 c of the Trade Act provides authority for the Department to recapture unobligated TaOA funds from states that have not fully used their funding in the second and third fiscal year after the fiscal year i n which the funds were provided to the state and reallot those funds to 7 other states to provide and administer TaOA. The Department may implement Section 245 c by establishing procedures for recapture of these funds and realloting them to meet state funding needs for TaOA. 5. Inquiries. Direct inquiries regarding this guidance to the appropriate Regional Office. 6.References and Definitions. a References Further Consolidated Appropriations Act of 2020 2020 Appropriations Act Division B Title I Pub. L. 116-94 enacted on December 20 2019 Chapter 2 of Title II of the Trade Act of 1974 as amended Pub. L. 93-618 1974 Act as amended Trade Act Trade Adjustment Assistance Reform Act of 2002 Division A Title I Subtitle A of the Trade Act of 2002 Pub. L. 107-210 as amended by the Miscellaneous Trade and Technical Corrections Act of 2004 Pub. L. 108-429 TAARA Trade and Globalization Adjustment Assistance Act of 2009 Division B Title I Subtitle I of the American Recovery and Reinvestment Act of 2009 TGAAA Pub. L. 111-5 Trade Adjustment Assistance Extension Act of 2011 Pub. L. 112-40 TAAEA The Balanced Budget and Emergency Deficit Control Act of 1985 BBEDCA as amended by the Budget Control Act of 2011 BCA Trade Adjustment Assistance Reauthorization Act of 2015 Pub. L. 114-27 Title IV TAARA 2015 20 CFR 618 Trade Adjustment Assistance subpart I Unemployment Insurance Program Letter UIPL No. 18-19 Implementation of Sequestration under the Budget Control Act of 2011 BCA for Mandatory Unemployment Insurance Programs for Fiscal Year 2020 and TEGL No. 17-19 Fiscal Year FY 2020 Trade Adjustment Assistance TAA Training and Other Activities TaOA Grant Management Guidance. b Definitions The 2002 Program means the TAA Program carried out under Chapter 2 of Title II of the Trade Act of 1974 as amended by the TAARA and applies to workers covered by petitions filed before May 18 2009 and to workers covered by petitions filed on or after February 13 2011 and before October 21 2011 who receive benefits under this program under section 231 a 1 B of the TAAEA the election provision . The 2009 Program means the TAA Program carried out under Chapter 2 of Title II of the Trade Act of 1974 as amended by the TGAAA and applies to workers covered by petitions filed on or after May 18 2009 and on or before February 12 2011. The 2011 Program means the TAA Program carried out under Chapter 2 of Title II of the Trade Act of 1974 as amended by the TAAEA and applies to workers covered by petitions filed on or after February 13 2011 and on or before 8 December 31 2013 and to workers covered by petitions filed on or after February 13 2011 and before October 21 2011 who receive benefits under this program under section 231 a 1 B of the TAAEA the election provision . The 2015 Program means the TAA Program carried out under Chapter 2 of Title II of the Trade Act of 1974 as amended by the TAARA 2015 and applies to workers covered by petitions filed on or after January 1 2014. Training and Other Ac tivities TaOA Funds means funds provided to the states for TAA Program participants who meet eligibility requirements for training job search allowances relocation allowances employment and case management services and related state administration. Trade Readjustment Allowance TRA Funds means funds provided to the states for TAA Program participants for income support available in the form of weekly cash payments to workers enrolled in full -time training. Alternative Trade Adjustment Assistance ATA A and Reemployment Trade Adjustment Assistance RTAA Program Funds A RTAA means funds provided to states for wage supplements provided to eligible TAA Program participants over the age of 50 that supplement a portion of the wage difference between thei r new wage and their old wage up to a specified maximum amount . TAA Program Funds means funds appropriated to carry out TAA Program activities authorized under Chapter 2 of Title II of the Trade Act of 1974 and include funds for the provision of TaOA T RA and A RTAA to workers adversely affected by foreign trade. 7. Attachment . Attachment I FY 2020 TAA Program TaOA Initial Allocation Amounts b y State Attachment I I-1 Fiscal Year FY 2020 Trade Adjustment Assistance TAA Program Training and Other Activities TaO A Initial Allocation Amounts b y State State Initial Allocation Amounts 1 State Admin. 10 Max imum 2 Case Management 5 Min imum 3 Alabama 1 619 190.00 161 919.00 80 959.50 Alaska 0.00 0.00 0.00 Arizona 903 954.00 90 395.40 45 197.70 Arkansas 3 582 015.00 358 201.50 179 100.75 California 26 028 304.00 2 602 830.40 1 301 415.20 Colorado 2 390 850.00 239 085.00 119 542.50 Connecticut 5 743 740.00 574 374.00 287 187.00 Delaware 0.00 0.0 0 0.00 District Of Columbia 0.00 0.00 0.00 Florida 4 275 848.00 427 584.80 213 792.40 Georgia 6 875 629.00 687 562.90 343 781.45 Hawaii 358 273.00 35 827.30 17 913.65 Idaho 1 512 030.00 151 203.00 75 601.5 0 Illinois 12 483 225.00 1 248 322.50 624 161.25 Indiana 8 554 908.00 855 490.80 427 745.40 Iowa 4 165 338.00 416 533.80 208 266.90 Kansas 2 407 434.00 240 743.40 120 371.70 Kentucky 5 760 015.00 576 001.50 288 000.75 Louisiana 433 113.00 43 311.30 21 655.65 Maine 885 562.00 88 556.20 44 278.10 Maryland 2 248 492.00 224 849.20 112 424.60 Massachusetts 9 453 509.00 945 350.90 472 675.45 Michigan 8 677 158.00 867 715.80 433 857.90 Minnesota 7 354 522.00 735 452.20 367 726.10 Mississippi 633 330.00 63 333.00 31 666.50 Missouri 8 077 374.00 807 737.40 403 868.70 Montana 270 113.00 27 011.30 13 505.65 Nebraska 1 366 243.0 0 136 624.30 68 312.15 Nevada 0.00 0.00 0.00 New Hampshire 743 072.00 74 307.20 37 153.60 New Jersey 4 534 706.00 453 470.60 226 735.30 New Mexico 1 515 638.00 151 563.80 75 781.90 New York 10 314 732.00 1 031 473.20 515 736.60 North Carolina 5 237 904.00 523 790.40 261 895.20 North Dakota 478 145.00 47 814.50 23 907.25 Ohio 16 914 708.00 1 691 470.80 845 735.40 Oklahoma 2 582 329.00 258 232.90 129 116.45 Or egon 19 726 178.00 1 972 617.80 986 308.90 Pennsylvania 22 315 587.00 2 231 558.70 1 115 779.35 Puerto Rico 241 130.00 24 113.00 12 056.50 Rhode Island 415 844.00 41 584.40 20 792.20 South Carolina 6 181 889.00 618 188.90 309 094.45 South Dakota 928 765.00 92 876.50 46 438.25 Tennessee 3 879 479.00 387 947.90 193 973.95 Texas 13 291 380.00 1 329 138.00 664 569.00 Utah 1 646 933.00 164 693.30 82 346.65 Vermont 624 227 .00 62 422.70 31 211.35 Virginia 7 542 607.00 754 260.70 377 130.35 Washington 11 219 534.00 1 121 953.40 560 976.70 West Virginia 6 135 192.00 613 519.20 306 759.60 Wisconsin 3 891 852.00 389 185.20 194 592.60 Wyoming 0.00 0.00 0.00 TOTAL 266 422 000.00 26 642 200.00 13 321 100.00 1 The Initial Allocation Amounts column sets out the TaOA Initial Allocation amount for each sta te in accordance with 20 CFR 618.910 which requires states to receive at least 65 percent of the FY allocation o f funds. 2 The related state administration 10-percent maximum State Admin . 10 Maximum column sets out the maximum amount from the TaOA funds each state receives in the Initial Allocation that may be used for related state administration by that state. 3 The employment and case m anagement services 5-percent minimum Case Management 5 Min imum column sets out the minimum available to each state from the TaOA funds each state receives in the Initial Allocation that must be used for the provision of emplo yment and case management services . See f ootnote 3 of Section 4.b. of this TEGL regarding the statutory restrictions on the use of TaOA funds to provide employment and case management services to workers covered by petitions certified under the 2002 Progr am.