TEGL_15-21.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 June 15 2022 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 15-21TO 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 BRENT PARTON Acting Assistant Secretary SUBJECT Initial Allocation of Fiscal Year FY 2022 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 2022 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 2022 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 instructionsfor 2 on the process for accessing FY 2022 Training Readjustment Allowanc e 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. 14 -21 which announces the TaOA grant funding process for the FY 2022 funding cycle. TEGL No. 14 -21 also provides guidance on submitting the Standard Form-424 Application for Federal Assistance via www.grants.gov which is required for receipt of FY 2022 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. 2271 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 Consolidated Appropriations Act 2022 Division H Pub. L. 117-103 enacted March 15 2022 appropriates FY 2022 funds to carry out the TAA Program. It includes an appropriation of 540 million within the Department s Federal Unemployment Benefits and Allowances FUBA account spread across three program activities TaOA 255 million TRA 272 million and ATAA RTAA 13 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 2022 FUBA appropriation for TaOA are available for expenditure for three fiscal years i.e. FY 2022 FY 2023 and FY 2024 . The expenditure period for funds provided under the FY 2022 FUBA a ppropriation for TRA ATAA and RTAA is one fiscal year i.e. through September 30 2022 . States may refer to the FY 2022 TAA Program Annual Funding Agreement and Notice of 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. 1 The statutory text in the Consolidated Appropriations Act 2022 that appropriates FUBA funds provides as follows For payments during fiscal year 2022 of trade adjustment benefit payments and allowances under part I of subchapter B of chapter 2 of title II of the Trade Act 15 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 sections 405 a 24 and 406 of the Trade Preferences Extension Act of 2015 25 and section 285 a 2 of the Trade Act of 1974 amended by section 406 a 7 of the Trade Preferences 2 Extension Act of 2015 540 000 000 together with such amounts as may be necessary to be charged to the subsequent appropriation for payments for any period subsequent to September 15 2022 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 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 2022 of 5.7 percent in budget authority for direct spending sometimes referred to as mandatory programs which includes the TAA Program. The full appropriated amount of 540 million is reduced by 5.7 percent or 30 780 000 leaving a total appropriated amount of 509 220 000 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 30 780 000 reduction due to sequestration to the funds available for TaOA rather than applying reductions to each payment of TRA ATAA or RTAA. This results in a FY 2022 national aggregate amount of 224 220 000 available for distribution to states for TaOA. b.FY 2022 National Aggregate TaOA Amount Due to the timing of the FY 2022 appropriation the Department combined the Initial Allocation described in 20 CFR 618.910 and Second Distribution provided for in 20 CFR 618.930 to make a single allocation of 90 percent of the FY 2022 TaOA funds which in this guidance is referred to as the Initial Allocation. States must use funding allocated in the Initial Allocation to carry out TaOA consistent with TAA Program statutory requirements regulations and guidance. In determining the national aggregate amount available for TaOA the Department considered the funds appropriated to continue the full operation of Reversion 2021 during three quarters of FY 2022 and one quarter beginning July 1 2022 when absent the enactment of legislation to reauthorize TAA the program will enter a phased termination and the application of sequestration. Taking into account each of the foregoing factors the national aggregate amounts for TaOA have been determined as follows 224 220 000 is the FY 2022 national aggregate amount available for expenditures for training job search allowances relocation allowances employment and case management services and related state administration. States must adhere to the requirements in Section 235A of the Trade Act that limit expenditures for related state administration and set out a minimum expenditure requirement for employment and case management services. The Section 235A expenditure requirements are as follows oOf the TaOA funds made available to a state for the fiscal year not more than 10 percent may be used for related state administration. This amount represents the maximum amount of FY 2022 TaOA 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 FY 2022 TaOA allocation for costs related to state administration. However if needed a state may use a portion of the funds available for state administration for training provided the funds are not needed for state administration. 4 oOf the TaOA funds made available to a state for the fiscal year not less than 5 percent shall be used for TAA employment and case management services. The amount that constitutes 5 percent of the state s TaOA funds for FY 2022 is the minimum amount that a state must use to provide employment and case management services to TAA Program participants certified under the 2009 Program the 2011 Program and the 2015 Program. This 5-percent minimum for employment and case management services ensures that TAA funds are available to provide such services to TAA Program participants in accordance with the program under which the petition covering the workers was certified. 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 2022 Initial Allocation State Amounts of TaOA Funds For FY 2022 due to the delay in the FY 2022 appropriation the Department combined the Initial Allocation and Second Distribution to make a single allocation of 90 percent of the FY 2022 TaOA funds. The Department determines the amount of FY 2022 TaOA funds to states based on the regulations at 20 CFR 618.910 through 618.940. After the FY 2022 Initial Allocation approximately 10 percent of FY 2022 TaOA funds will remain available to states that require reserve funds in accordance with Section 4.d.B below and 20 CFR 618.920. After all acceptable reserve requests have been funded the Department will distribute any funds that remain in a final distribution to the states. Specifically for FY 2022 the amounts to be provided in the Initial Allocation are determined by applying the following provisions Ninety percent of the fiscal year funds available or 201 798 000 will be distributed by formula under this allocation with the remaining 10 percent of the FY 2022 appropriated TaOA funds held in reserve for distribution by the end of the fiscal year or to be provided to states in need of reserve funds as provided in 20 CFR 618.920 and described below The hold-harmless provision minimum allocation for the Initial Allocation provided for at 20 CFR 618.910 c is applied to ensure that a state receives at least 25 percent of the combined Initial Allocation and Second Distribution that was made available to that state for the previous fiscal year and 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 Process for Requesting Reserve Funds The attachment to this TEGL provides the amounts of FY 2022 TaOA funds that will be distributed in the Initial Allocation by state. These amounts were determined under the TAA funding formula as described in 20 CFR 618.910 f and summarized below 5 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 calendar 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 established using the most recent four quarters FY 2021 Quarter 2 through FY 2022 Quarter 1 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 quarter. 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 2021 Quarter 2 through FY 2022 Quarter 1 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 calculated 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 training expenditures for the most recent four quarters by the average number of training participants for the same period. Once each of the four factors have been determined for each state under 20 CFR 618.910 f 3 all four factors will be assigned an equal weight. For FY 2022 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 6 is less than 100 000 the allocation amount will be removed from the calculation as described below and the statutory 25-percent hold harmless provision will be applied resulting in the adjusted FY 2022 amounts for the remaining states. In instances where the formula approach would give a state 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 allocation. Those states may request TAA Program reserve funds in accordance with the procedures described below in Section 4.d.B. B. Process for Requesting TaOA Reserve Funds States may request TaOA reserve funds in accordance with 20 CFR 618.920 b at any time during the fiscal year although under 20 CFR 618.930 the Department will first fund all acceptable requests for reserve funds filed before June 1 of the fiscal year. States must use the Trade Adjustment Assistance TAA for Workers Funding Request Form ETA-9117 OMB No. 1205-0275 at https www.dol.gov sites dolgov files ETA tradeact pdfs ETA-9117.pdf 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 current fiscal year and the two preceding fiscal years have been expended in accordance with 20 CFR 618.920 b 1 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 through the end of the fiscal year and in accordance with 20 CFR 618.920 c must base its estimate on an analysis that includes at least the following the average cost of training in the state the expected number of participants in training through the end of the fiscal year and the remaining 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 in which the funds were provided to the state and reallot those funds to 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. Please direct inquiries to the appropriate Regional Office. 7 6. References and Definitions. a References Consolidated Appropriations Act 2022 Division H Pub. L. 117-103 enacted March 15 2022 Chapter 2 of Title II of the Trade Act of 1974 as amended Pub. L. 93-618 1974 Act as amended Trade Act The Balanced Budget and Emergency Deficit Control Act of 1985 BBEDCA as amended by the Budget Control Act of 2011 BCA 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 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. 14-21 Fiscal Year FY 2022 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 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 . 8 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. The Reversion 2021 Program means the TAA Program carried out under Chapter 2 of Title II of the Trade Act of 1974 as amended by the TAARA with some exceptions and applies to workers covered by petitions on and after July 1 2021. Training and Other Activities 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 ATAA 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 their 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 TRA and A RTAA to workers adversely affected by foreign trade. 7.Attachment s . Attachment I FY 2022 TAA Program TaOA Initial Allocation Amounts by State Attachment I Fiscal Year FY 2022 Trade Adjustment Assistance TAA Program Training and Other Activities TaOA Initial Allocation Amounts by State I-1 State 1 Initial Allocation Amounts State Admin . 10 2 Maximum Case Mg mt. 5 Min3 Alabama 4 850 110.00 485 011.00 242 505.50 Alaska 0.00 0.00 0.00 Arizona 665 538.00 66 553.80 33 276.90 Arkansas 3 933 206.00 393 320.60 196 660.30 California 6 475 297.00 647 529.70 323 764.85 Colorado 3 452 899.00 345 289.90 172 644.95 Connecticut 3 238 649.00 323 864.90 161 932.45 Delaware 210 922.00 21 092.20 10 546.10 District Of Columbia 0.00 0.00 0.00 Florida 2 187 443.00 218 744.30 109 372.15 Georgia 3 571 324.00 357 132.40 178 566.20 Hawaii 0.00 0.00 0.00 Idaho 638 752.00 63 875.20 31 9 37.60 Illinois 7 048 132.00 704 813.20 352 406.60 Indiana 7 992 317.00 799 231.70 399 615.85 Iowa 4 227 047.00 422 704.70 211 352.35 Kansas 11 755 890.00 1 175 589.00 587 794.50 Kentucky 2 911 744.00 291 174.40 145 587.20 Louisiana 978 097.00 97 809.70 48 904.85 Maine 219 348.00 21 934.80 10 967.40 Maryland 1 219 178.00 121 917.80 60 958.90 Massachusetts 5 374 944.00 537 494.40 268 747.20 Michigan 6 566 444.00 656 644.40 328 322.20 Minnesota 6 248 173.00 624 817.30 312 408.65 Mississippi 1 797 845.00 179 784.50 89 892.25 Missouri 4 458 852.00 445 885.20 222 942.60 Montana 0.00 0.00 0.00 Nebraska 1 097 510.00 109 751.00 54 875.50 Nevada 142 888.00 14 288.80 7 144.40 New Hampshire 283 423.00 28 342.30 14 171.15 New Jersey 2 662 022.00 266 202.20 133 101.10 New Mexico 2 815 110.00 281 511.00 140 755.50 New York 9 273 850.00 927 385.00 463 692.50 North Carolina 2 915 533. 00 291 553.30 145 776.65 North Dakota 222 314.00 22 231.40 11 115.70 Ohio 4 561 318.00 456 131.80 228 065.90 Oklahoma 3 340 730.00 334 073.00 167 036.50 Oregon 13 586 794.00 1 358 679.40 679 339.70 Pennsylvania 13 938 451.00 1 393 845.10 696 922.55 Puerto Rico 100 491.00 10 049.10 5 024.55 Rhode Island 0.00 0.00 0.00 South Carolina 2 309 870.00 230 987.00 115 493.50 South Dakota 1 261 040.00 126 104.00 63 052.00 Tennessee 2 106 212.00 210 621.20 105 310.60 Texas 15 205 531.00 1 520 553.10 760 276.55 Utah 2 074 712.00 207 471.20 103 735.60 Vermont 336 016.00 33 601.60 16 800.80 Virginia 4 733 830.00 473 383.00 236 691.50 Washington 18 906 453.00 1 890 645.30 945 322.65 West Virginia 3 901 348.00 390 134.80 195 067.40 Wisconsin 6 000 403.00 600 040.30 300 020.15 Wyoming 0.00 0.00 0.00 TOTAL 201 798 000.00 20 179 800.00 10 089 900.00 1 The Initial Allocation Amounts column sets out an initial allocation of TaOA funds for FY 2022 in accordance with 20 CFR 618.930 which requires the Department to distribute up to 90 percent of FY TaOA funds to the states no later than July 15 of the fiscal year. 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 management services 5-percent minimum Case Mgmt. 5 Minimum 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 employment and case management services. See 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 and Reversion 2021 Programs.