Trade Adjustment Assistance
Published on AidPage by
IDILOGIC on Jun 24, 2005
Purpose of this program:
To provide trade adjustment assistance to firms and industries adversely affected by increased imports.
Possible uses and use restrictions...
Under Chapter 3 of Title II, of the Trade Act of 1974, as amended, a firm may petition the Economic Development Administration (EDA) of the Department of Commerce for certification as being impacted by import competition. Interested firms that believe they meet this requirement may contact EDA or one of the EDA funded Trade Adjustment Assistance Centers (TAACs). TAACs will assist firms, at no cost, in completing and submitting a petition to EDA. Before a firm receives technical assistance under the program, the firm must have an adjustment plan approved by EDA. Usually the adjustment proposal, which includes an unbiased diagnostic of the firm's strengths, weaknesses, opportunities and threats, is prepared by the TAAC in cooperation with the firm. The adjustment proposal also identifies technical assistance tasks, which when implemented, will guide the firm toward economic recovery. The adjustment proposal must also demonstrate that the implementation of the technical assistance tasks has a reasonable chance helping the firm recover. The firm must pay at least 25 percent of the TAAC's cost of the preparation of the adjustment proposal. After a firm's adjustment proposal is accepted by EDA, the firm is authorized to apply for technical assistance to implement the recovery strategy. The technical assistance is usually provided by a private consultant, who is jointly hired by the certified firm and the TAAC. The certified firm and the TAAC each typically pay one half of the consultant's fee. The TAAC's total share of technical assistance for a firm, however, is generally limited to $75,000. Organizations representing trade-injured industries are eligible under the Trade Act to EDA for industry-wide assistance.
Who is eligible to apply...
The statute (19 U.S.C. ss 2343 (b)) provides that grants may be awarded to "intermediary organizations (including Trade Adjustment Assistance Centers)" to provide assistance to trade-injured firms. For an industry association or other organizations to be eligible for industry assistance, evidence must be submitted demonstrating that the industry faces import competition and includes a substantial number of Trade Act certified firms or worker groups.
Credentials/Documentation
The TAACs act as intermediaries for this program between EDA and the firm. Entities seeking industry wide assistance must contact PDA staff to discuss their needs, describe the import injury and determine if funding is available for industry wide projects.
Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.
About this section:
This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy.
For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree,
3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible.
Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they
must satisfy.
Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications
are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs,
the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.
How to apply...
Application Procedure:
The 12 TAACs apply each year for funding for the coming fiscal year. Industry associations or other organizations seeking industry assistance must submit an application Standard Form 424, if invited to do so as a result of the meeting with EDA representatives.
Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.
Award Procedure:
Awards to TAACs are made based upon applications and previous performance. Awards to industries are made based on conformance with program requirements and availability of funds.
Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check.
Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office,
or by an authorized county office. The assistance may pass through the initial applicant for further distribution by
intermediate level applicants to groups or individuals in the private sector.
Deadlines and process...
Deadlines
There are no deadlines, as long as the application allows enough time for processing to receive fiscal year funds.
Note:
When available, this section indicates the deadlines for applications to the funding agency which will
be stated in terms of the date(s) or between what dates the application should be received.
When not available, applicants should contact the funding agency for deadline information.
Range of Approval/Disapproval Time
EDA's decision on a firm's petition for certification is usually made within 60 days of its receipt. Decisions on adjustment proposals are typically made within two to three weeks of receipt by EDA. Decisions on TAAC applications or industry wide assistance requests are normally made within two months of receipt of a full and complete application by EDA.
Preapplication Coordination
This program is excluded from coverage under E.O. 12372.
Note:
This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units
prior to the submission of a formal application to the federal funding agency.
Appeals
There is no appeal procedure.
Note:
In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission
of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or
applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).
Renewals
TAAC investments are usually renewed; industry grants usually are not renewed.
Note:
In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.
Who can benefit...
Only manufacturing and producing firms certified by EDA on behalf of the Secretary of Commerce are eligible for trade adjustment assistance under the program. Industries that can demonstrate they have been injured by imports and have a substantial number of Trade Act certified firm or worker groups may also benefit.
Beneficiaries
About this section:
This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.
What types of assistance...
Project Grants
The funding, for fixed or known periods, of specific projects. Project grants can include fellowships, scholarships, research grants, training grants, traineeships, experimental and demonstration grants, evaluation grants, planning grants, technical assistance grants, survey grants, and construction grants.
How much financial aid...
Range and Average of Financial Assistance
TAAC investments in FY 03 ranged from approximately $721,294 to $1,250,289.
Note:
This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.
Obligations
(Cooperative Agreements) FY 03 $10,432,000; FY 04 est $11,874,000; and FY 05 est $11,800,000.
Note:
The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.
Account Identification
13-2050-0-1-452.
Note:
Note: This 11-digit budget account identification code represents the account which funds a particular program.
This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.
Examples of funded projects...
There are 12 funded Trade Adjustment Assistance Centers (TAACs), which cover the 50 States and the District of Columbia. The TAACs receive cooperative agreements to help firms become certified and receive trade adjustment assistance. Common types of technical assistance firms receive under the program include market research, quality assurance completion (ISO-9000 designation, for example) and management information systems guidance. Industries have been aided in developing new manufacturing machines and procedures, technological innovations, expanding exporting opportunities, marketing studies, product diversification, etc. No funds are currently available for the FAA for Industries program.
About this section
This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.
Program accomplishments...
In fiscal year 2003, the TAACs provided assistance to firms as follows: 207 firms were certified eligible to receive trade adjustment assistance; 162 adjustment proposals were accepted.
Criteria for selecting proposals...
TAAC funding priority is given to existing TAACs which have successfully carried out previous cooperative agreements. Industries must have a substantial number of TAA certified firms and have developed a proposal providing meaningful near-term benefit to their industry to receive assistance. EDA will invest in applicants who are entrepreneurial in spirit and in action. Potential investments will be analyzed using the following seven supplemental evaluation criteria of approximately equal weight: extent that proposed investments are market-based; extent that proposed investments are pro-active in nature and scope; extent that proposed investments look beyond the immediate economic horizon, anticipate economic changes, and diversify the local and regional economy; likelihood that proposed investments maximize the attraction of private sector investments and would not otherwise come to fruition absent EDA's investment; likelihood that proposed investments have a high probability of success; likelihood that proposed investments result in an environment where high skill, high wage jobs are created; and likelihood the proposed investments maximize Return on Taxpayer Investment.
Assistance considerations...
Length and Time Phasing of Assistance
Generally one year for TAAC investments and the amount of time needed to complete the project for industry grants. The Trade Adjustment Assistance program is a trade remedy program. It is designed to help firms, which have been injured by increased imports, in regaining their economic competitiveness. Unlike other EDA programs, there is no requirement that the area receiving assistance under the program be suffering from community wide economic distress.
Formula and Matching Requirements
Federal funds can be used by TAACs for up to 100 percent of administrative expenses in providing technical assistance to firms. The Federal share of implementation assistance to firms is usually 50 percent and normally does exceed $75,000 per firm. Generally, a minimum of 50 percent share (half of which must be in cash) is required for industry assistance cooperative agreements.
Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.
Post assistance requirements...
Reports
Periodic reporting of operating results and progress, financial statements, and summary of funds spent.
Note:
This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised June 24, 1997), recipients that are States, Local Government, Nonprofit Organizations (to include Hospitals), and Institutions of Higher Learning shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). Commercial organizations shall be subject to the audit requirements as stipulated in the award documents. States, local governments, and nonprofit governments that expend $300,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year.
Note:
This section discusses audits required by the Federal agency.
The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133.
These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year,
as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period,
rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).
Records
Records are required to be maintained for 3 years. All financial and programmatic records, supporting documents, statistical reports, and other records of grantees or subgrantees are required to be maintained by the terms of the agreement. The grantee must retain records for 3 years after completion of the project or submission of the final financial report, whichever is later, and have them readily available for inspection and audit.
Note:
This section indicates the record retention requirements and the type of records the Federal agency may require.
Not included are the normally imposed requirements of the General Accounting Office.
For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C.
For other programs, record retention is governed by the funding agency's requirements.
Regulations...
Authorization
Trade Act of 1974, Title II, Public Law 93-618, as amended, 88 Stat. 1978, 19 U.S.C. 2341-2343.
Note:
This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
Regulations, Guidelines, And Literature
Copies of pertinent regulations, guidelines, a TAA information package, and forms are available from the Planning and Development Assistance Division, the Trade Adjustment Assistance Centers (TAACs), or their website, www.taacenters.org. Allowable cost will be determined in accordance with OMB Circular A-87 for State and local governments and Indian Tribes; OMB Circular A-122 for nonprofit and for-profit organizations; OMB Circular A-21 for institutions of higher education; and 48 CFR Part 31 for commercial organizations. Financial assistance management will be in accordance with 15 CFR Part 14 for institutions of higher education, hospitals, and other non-profit and commercial organizations, and with 15 CRF Part 24 for state and local governments.