49–010 

Calendar No. 75 

114TH CONGRESS REPORT " ! SENATE 1st Session 114–44 

AN ORIGINAL BILL TO EXTEND THE TRADE ADJUSTMENT 

ASSISTANCE PROGRAM, AND FOR OTHER PURPOSES 

MAY 12, 2015.—Ordered to be printed 

Mr. HATCH, from the Committee on Finance, 

submitted the following 

R E P O R T 

[To accompany S. 1268] 

Including cost estimate of the Congressional Budget Office 

The Committee on Finance, having considered an original bill (S. 

1268) to extend the trade adjustment assistance program, and for 

other purposes, having considered the same, reports favorably 

thereon without amendment and recommends that the bill do pass. 

CONTENTS 

Page 

I. REPORT AND OTHER MATERIALS OF THE COMMITTEE .................... 2 

A. Report of the Committee on Finance .................................................. 2 

B. Summary of Congressional Consideration of the Bill ........................ 2 

1. Background ..................................................................................... 2 

2. Committee Consideration .............................................................. 2 

C. Trade Adjustment Assistance Programs ............................................ 2 

1. Trade Adjustment Assistance for Workers .................................. 2 

2. Trade Adjustment Assistance for Firms and Farmers ............... 3 

D. General Description of the Bill ............................................................ 4 

TITLE I: EXTENSION OF THE TRADE ADJUSTMENT ASSISTANCE PROGRAM .............................................................. 4 

II. BUDGETARY IMPACT OF THE BILL .......................................................... 9 

III. VOTES OF THE COMMITTEE ...................................................................... 20 

IV. REGULATORY IMPACT OF THE BILL ....................................................... 21 

V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 22 


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I. REPORT AND OTHER MATERIALS OF THE COMMITTEE 

A. REPORT OF THE COMMITTEE ON FINANCE

The Committee on Finance, having considered an original bill 

(S.1268) to extend the trade adjustment assistance program, and 

for other purposes, having considered the same, reports favorably 

thereon without amendment and recommends that the bill do pass. 

B. SUMMARY OF CONGRESSIONAL CONSIDERATION OF THE BILL

1. Background 

On April 16, 2015 Senator Collins introduced S.1003 on behalf of 

herself and Senator Wyden. On April 16, Senator Wyden introduced S.1005. 

2. Committee consideration 

The Senate Committee on Finance met in open executive session 

on April 22, 2015 to consider the Chairman’s Mark to reauthorize 

the TAA program and to amend provisions of the program. The 

Committee also considered an extension and modification of the 

Health Coverage Tax Credit (HCTC). The proposal the Committee 

considered was based on S.1003 and S.1005. During the Committee’s consideration of the bill, one amendment was offered and was 

not agreed to. The Committee approved the proposal by a vote of 

17 ayes and 9 nays. 

C. TRADE ADJUSTMENT ASSISTANCE PROGRAMS

TAA programs are intended to mitigate concentrated negative effects that may be experienced by certain industries and workers 

that face increased competition as a result of expanded international trade policies. The program benefits and services that are 

available to individual workers are administered by the states 

through agreements between the Secretary of Labor and each state 

Governor. TAA was created as part of the Trade Expansion Act of 

1962 in order to help companies and workers that would be harmed 

by increased international trade. Throughout the years, Congress 

amended the TAA programs several times. 

1. Trade Adjustment Assistance for workers 

TAA for workers is the largest TAA program. It directly supports 

displaced workers by providing funding for retraining and income 

support while the worker is enrolled in training, unless an eligible 

worker is provided a waiver. Other benefits and services may also 

be available, including wage supplements for older workers. TAA 

for workers is administered by the U.S. Department of Labor 

(DOL). 

TAA for workers was established by the Trade Expansion Act of 

1962 (P.L. 87–794). To counter higher program costs in the early 

1980s, the Omnibus Budget Reconciliation Act of 1981 cut benefits 

and emphasized reemployment measures. The program’s 1988 reauthorization restructured the program to increase emphasis on retraining. In the 1990s, the core TAA program was supplemented 

with a separate program that supported workers who were adVerDate Sep 11 2014 06:07 May 16, 2015 Jkt 049010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\SR044.XXX SR044

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versely affected by increased competition as the result of the North 

American Free Trade Agreement (NAFTA-TAA). 

The Trade Act of 2002 (P.L. 107–210) reauthorized and amended 

TAA alongside other trade laws. The 2002 reauthorization merged 

NAFTA-TAA with the main program and expanded eligibility to 

secondary firms (e.g. component parts) that were indirectly affected 

by trade. The 2002 law established the HCTC, a refundable tax 

credit equal to 65% of qualified premium costs for TAA-eligible 

workers who purchased qualified health insurance. 

In 2009, TAA was amended as part of the American Recovery 

and Reinvestment Act (ARRA, P.L. 111–5). The ARRA provisions 

expanded TAA eligibility to include service-sector workers who face 

an increase in competitive imports or a shift in production to any 

country, in addition to countries with which the U.S. has a free 

trade agreement. Prior to ARRA, TAA was limited to workers who 

produced ‘‘articles.’’ ARRA also increased funding for TAA-sponsored training, increased the maximum duration of income support, 

and raised the HCTC to 80% of eligible health coverage expenses. 

The ARRA provisions of TAA expired in February 2011 and the 

program reverted back to the levels authorized under the Trade 

Act of 2002. The Trade Adjustment Assistance Extension Act, enacted in October 2011 (TAAEA, Title II of P.L. 112–40) reinstated 

many eligibility and benefit provisions to near-ARRA levels. Under 

the provisions enacted in 2011, the HCTC was limited to 72.5% of 

qualified expenses and was scheduled to sunset at the end of calendar year 2013. 

TAAEA specified that the TAA program would operate under the 

provisions enacted in 2011 through calendar year 2013. The program would then revert to a more narrow set of provisions. The 

changes were implemented as scheduled beginning January 1, 

2014. 

In accordance with the termination provisions in TAAEA, the 

TAA for Workers program was scheduled to be phased out beginning January 1, 2015. However, the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113–235) provided full funding for the program and continued operation of the program, including the certification of new workers, through September 2015. 

TAA for Workers is supported by mandatory appropriations. The 

appropriation level is impacted by statutory caps and expected program use. Depending on actual program use, outlays may vary substantially from appropriation levels. In fiscal year 2015, total funding for all DOL-administered components of the program was 

$710.6 million. 

2. Trade Adjustment Assistance for firms and farmers 

In addition to the TAA for workers program, the Trade Act of 

1974, as amended, also authorized programs for firms and farmers. 

The TAA for Firms and TAA for Farmers programs are typically 

reauthorized alongside the larger TAA for workers program. Both 

were reauthorized by TAAEA in 2011. 

The Trade Adjustment Assistance program for Firms (TAAF) was 

established alongside the Workers program in 1962. The Firms program, administered by the U.S. Department of Commerce Economic Development Administration (EDA), currently provides technical assistance to help trade-impacted firms make strategic adVerDate Sep 11 2014 06:07 May 16, 2015 Jkt 049010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR044.XXX SR044

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justments that may allow them to remain competitive in a global 

economy. The technical assistance is provided through 11 regional 

Trade Adjustment Assistance Centers (TAACs), which operate 

under cooperative agreements with EDA. Funding for TAAF in fiscal year 2015 was $13 million. 

TAA for Farmers was established by the Trade Act of 2002 (P.L. 

107–210). It is administered by the U.S. Department of Agriculture 

(USDA) and is authorized to provide technical support and cash 

benefits to producers of agricultural commodities and fishermen 

who are adversely affected by increased imports. TAA for Farmers 

last received funding in the first quarter of fiscal year 2011. 

D. GENERAL DESCRIPTION OF THE BILL

TITLE I: EXTENSION OF THE TRADE ADJUSTMENT ASSISTANCE

PROGRAM

Section 1—Short title 

Sec. 1. This section contains the short title of the bill, the ‘‘Trade 

Adjustment Assistance (TAA), and for other purposes Act of 2015.’’ 

Section 2—Application of provisions relating to Trade Adjustment 

Assistance 

On January 1, 2014, the TAA program largely reverted to the 

provisions in place prior to the Trade and Globalization Adjustment 

Assistance Act of 2009 (TGAAA). These provisions, which are current law, are referred to as ‘‘Reversion 2014.’’ 

Reversion 2014 maintains the same number of allowable weeks 

for Trade Readjustment Assistance (TRA), but has a different eligibility criteria and funding level for worker training. For instance, 

to be eligible for TRA a worker must enroll in training within 8 

weeks of certification or 16 weeks of layoff, whichever is later. 

Moreover, funding for worker training is capped at $220 million 

with an additional 15% for state-based administration. Additional 

funds are available for job search and relocation allowances; however, case management and employment services are not included. 

Currently, a manufacturing sector worker is eligible for TAA benefits, and that worker must demonstrate a nexus between their job 

loss and a country with which the U.S. has a free trade agreement. 

This section repeals the sunset provision—section 233 of the 

TAAEA of 2011—and reinstates prior law as of December 31, 2013 

as the date of enactment. 

Repealing this provision allows for Section 233 to snap-back to 

benefit and service levels as amended in the TAAEA of 2011. Without repealing this provision, benefit and service levels would apply 

according to Reversion 2014. This amendment contains technical 

and conforming changes to bring the bill into compliance with the 

intended level of benefits and services. 

Section 3—Extension of Trade Adjustment Assistance Program 

Authorization for TAA lapsed on December 31, 2013 and the program has been operating under Reversion 2014. The Consolidated 

and Further Continuing Appropriations Act, 2015 provided funding 

for the TAA for Workers program through fiscal year 2015. 


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This section modifies the authorization termination date for TAA 

for Workers, TAA for Firms, TAA for Farmers, and the Reemployment TAA programs from December 31, 2013 to June 30, 2021. 

The bill would amend section 236(a)(2)(A) of the Trade Act to cap 

total annual funding for training, employment and case management services (section 235), job search allowances (section 237), 

and relocation allowances (section 238) at $450 million for fiscal 

years 2015 through 2021. 

Because the bill reinstates the amendments from the TAA Extension Act of 2011, the following requirements apply to the $450 million cap: (i) no more than 10% of the amount provided may be 

spent for Administration; (ii) no less than 5% of the amount provided may be spent for case management and employment services; 

(iii) the Department of Labor (DOL) may recapture from the states 

funds remaining unobligated after two or three years and distribute such funds to states in need of funds. In addition, the modification eliminates individual entitlement to job search and relocation allowances, instead granting States the discretion to offer such 

allowance based on fund availability. 

The bill would amend section 246(b)(1) to extend the termination 

date for the Reemployment Trade Adjustment Assistance (RTAA) 

from December 31, 2013 to June 30, 2021. 

The bill would amend sections 245(a), 255(a), and 298(a) to modify the authorization of appropriations for TAA for Workers 

through June 30, 2021, and for TAA for Firms and Farmers, respectively, through fiscal year 2021. 

This section reflects an agreement for a 7-year extension of the 

TAA program for Workers, Firms and Farmers. This is a longerterm extension compared to the TAAEA of 2011 (34 months); the 

AARA of 2009 (12 months); and the Trade Act of 2002 (5 years). 

The 7-year extension captures the projected impact of increased imports or the outsourcing of jobs to a foreign country from the anticipated conclusion of on-going and future negotiations, including the 

Trans Pacific Partnership (TPP) and the Transatlantic Trade and 

Investment Partnership (T–TIP) negotiations. 

The training cap of $450 million is an increase compared to the 

$220 million cap in 2002; however, the cap is a decrease compared 

to 2009 (over $600 million) and 2011 ($575 million). 

Section 4—Performance measurement and reporting 

Under current law, section 239(j) of the Trade Act of 1974 dictates the TAA data reporting requirements for a cooperating state. 

A comprehensive performance accountability report shall be made 

to the Secretary of Labor on a quarterly basis which consists of 

core indicators of performance, the identification of additional indicators designed to ensure accuracy and verifiability of such data, 

and a description of efforts made to improve outcomes for workers 

under the TAA program. 

Under current law, section 239(j)(2) of the Trade Act of 1974 dictates the core indicators to be used for reporting data by a cooperating state. Core indicators of performance include (i) percentage of 

workers receiving benefits who are employed during the first or 

second calendar quarter after the worker ceases receiving TAA benefits; (ii) the percentage of workers employed during the 2 calendar 

quarters following the earliest calendar quarter during which the 


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worker was employed; (iii) the average earnings of such workers 

who are employed during the 2 calendar quarters; and (iv) the percentage of workers who obtain a recognized postsecondary credential. 

This bill amends section 239(j) of the Trade Act of 1974 in order 

to align it with the performance accountability measures and reporting requirements under similar federally funded job training 

programs, such as those implemented under the Workforce Innovation and Opportunity Act (WIOA). 

This section requires cooperating states and the Secretary of 

Labor to prepare performance reports on an annual basis, which 

must be available in an easily understandable format through electronic means, and requires the Department of Labor to make available certain performance data. 

This bill amends section 249(B) of the Trade Act of 1974 to make 

technical and conforming changes to information on workers for the 

collection and publication of data and reports. 

This bill amends section 247 of the Trade Act of 1974 to include 

a new definition for a recognized postsecondary credential, which 

includes industry-recognized certificates/certification, a certificate 

of completion of an apprenticeship, a license recognized by a state 

or Federal Government, or an association or baccalaureate degree, 

which also aligns with similar provisions in WIOA. 

In a 2012 U.S. Government Accountability Office (GAO) Report, 

several state workforce officials noted that data from performance 

measures did not adequately reflect the program’s effect on its participants, and further commented that these measures were not 

particularly useful for improving program management. 

Valuable information on TAA and its impact was not captured by 

the criteria set forth in the current data reporting requirement. 

This, in turn, inhibited Congress’ ability to perform its oversight 

responsibilities, to refine and improve the program, its performance, and worker outcomes. The modification to the reporting requirement seek to remedy this problem. Additionally, the new reporting requirement enhances the accountability of the TAA program by making available all performance measures collected annually. 

Section 5—Applicability of Trade Adjustment Assistance provisions 

This section establishes the applicable provisions of TAA for 

Workers who file petitions on or after January 1, 2014 and prior 

to the date of enactment of this bill. Such gap-period workers who 

were denied benefits are to be reconsidered for and, if qualified, receive benefits and services in accordance with this bill. Pending applicants that fall within this gap-period will also be considered 

under the provisions of this bill. The section also narrows the eligibility window for certified workers to 90 days after the date of the 

enactment of this bill. 

In addition, this section provides similar eligibility determination 

and reconsideration rules for firms under the TAA for Firms program. 

Section 6—Sunset provisions 

This section creates a sunset provision requiring the TAA program to revert to the January 1, 2014 parameters after June 30, 


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1Sec. 35. Qualifying family members are the individual’s spouse and any dependent for whom 

the individual is entitled to claim a dependency exemption. Any individual who has certain specified coverage is not a qualifying family member. Except where otherwise specified, for purposes 

of this explanation of section 7 of H.R. 1892, all section references are to the Internal Revenue 

Code of 1986, as amended (the ‘‘Code’’). 2The bill generally also provides for extension of certain expired provisions of the Trade Act 

of 1974, Pub. L. No. 93–618, as amended, including provisions related to individuals eligible for 

trade adjustment assistance. 

2021. This bill amends section 231(c) of the Trade Act of 1974 reverting the TAA for Workers, Alternative Trade Adjustment Assistance (ATAA), TAA for Firms, and TAA for Farmers programs back 

to the level in effect January 1, 2014 as of July 1, 2021. 

While beneficiaries certified for benefits prior to July 1, 2021 will 

continue to receive benefits to the extent funds are available and 

the recipient is eligible to receive benefits. The authorization for 

TAA for Workers, ATAA, TAA for Firms, and TAA for Farmers will 

terminate on June 30, 2022. 

Section 7: Extension and modifications of the Health Coverage Tax 

Credit 

In the case of an eligible individual, an advanceable, refundable 

tax credit is provided for 72.5 percent of the individual’s premiums 

for qualified health insurance of the individual and qualifying family members for each eligible coverage month beginning in the taxable year.1 The credit is commonly referred to as the Health Coverage Tax Credit (HCTC). The credit is available only with respect 

to amounts paid by the individual for the qualified health insurance. 

Eligibility for the credit is determined on a monthly basis. In 

general, an eligible coverage month is any month if (1) the month 

begins before January 1, 2014, and (2) as of the first day of the 

month, the individual is an eligible individual, is covered by qualified health insurance, the premium for which is paid by the individual, does not have other specified coverage, and is not imprisoned under Federal, State, or local authority. In the case of a joint 

return, the eligibility requirements are met if at least one spouse 

satisfies the requirements. 

An eligible individual is an individual who is (1) an eligible TAA 

recipient, (2) an eligible alternative TAA recipient, or (3) an eligible 

Pension Benefit Guaranty Corporation (PBGC) pension recipient. 

The provision amends the definition of eligible coverage month 

for HCTC purposes to include months beginning before January 1, 

2020, if the requirements for an eligible coverage month are otherwise met.2

In order to coordinate eligibility for the premium assistance credit with eligibility for the HCTC, under the provision, to be eligible 

for the HCTC for any eligible coverage month during a taxable 

year, the eligible individual must elect allowance of the HCTC. 

Further, except as the Secretary of Treasury may provide, the election applies for that coverage month and all subsequent eligible 

coverage months during the taxable year. The election also must be 

made no later than the due date, with any extension, for filing his 

or her income tax return for the year, and is irrevocable. Further, 

the period for assessing any deficiency attributable to the election 

(or revocation of the election, if permitted) does not expire before 

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3Section 6511(a). 

fied of the election (or revocation). The taxpayer is not entitled to 

the premium assistance credit for any coverage month for which 

the individual elects the HCTC. 

The provision eliminates the 30-day requirement as a requirement for individual health insurance to be qualified health insurance for purposes of the HCTC, but the provision adds a requirement that the individual health insurance not be purchased 

through an American Health Benefit Exchange, pursuant to the Affordable Care Act. The provision otherwise extends pre-2014 law 

for qualified health insurance with regard to the Health Coverage 

Tax Credit, including the rules for State-based coverage, and the 

treatment of COBRA continuation coverage and coverage under 

certain Voluntary Employees’ Beneficiary Associations as qualified 

health insurance. 

The Secretaries of the Treasury, Health and Human Services, 

and Labor and the Director of Pension Benefit Guaranty Corporation are directed to carry out programs of public outreach, including on the Internet, to inform potential HCTC eligible individuals 

of the extension of HCTC availability and the availability of the 

election to claim such credit retroactively for coverage months beginning after December 31, 2013. 

The legislation extends the HCTC through 2019 so that health 

coverage continues to be affordable for eligible TAA recipients, alternative TAA recipients, and PBGC recipients, as under pre-2014 

law. 

The provision is generally effective for coverage months beginning after December 31, 2013. For any taxable year beginning after 

December 31, 2013, but before the date of enactment of the provision, the election to claim the HCTC may be made any time on or 

after the date of enactment and before the expiration of the 3-year 

period of limitation with respect to such taxable year,3 and may be 

made on an amended income tax return. The requirement that, in 

order to be qualified health insurance, individual health insurance 

not be purchased through an American Health Benefit Exchange, 

pursuant to the Affordable Care Act, is effective for coverage 

months in taxable years beginning after December 31, 2015. 

Section 8: Customs user fees 

Under current law, the authority to collect merchandise processing fees will expire at the end of fiscal year 2024. The legislation 

would permit these fees to be collected during the period beginning 

July 29, 2025, and ending September 30, 2025. For merchandise 

imported from July 15, 2025, through September 30, 2025, the bill 

would raise the merchandise processing fee from 0.21 percent to 

0.3464 percent of the value of the goods. 

Under current law, authority to collect Customs COBRA (Consolidated Omnibus Budget Reconciliation Act) fees will expire after 

September 30, 2024. These fees are charged for the entry into the 

United States of certain vehicles, vessels, persons, and other entities and items. 


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Section 9: Child tax credit not refundable for taxpayers electing to 

exclude foreign earned income from tax 

Under current law, a refundable child tax credit of up to $1,000 

per qualifying child is available to taxpayers, with the amount of 

the credit phasing out for individuals with income above certain 

thresholds. The legislation would provide that taxpayers who elect 

to exclude from gross income for a taxable year any amount of foreign earned income or foreign housing costs may not claim the refundable portion of the child tax credit for the taxable year. 

Section 10: Time for payment of corporate estimated taxes 

The bill would shift payments of corporate estimated taxes be- tween fiscal years 2020 and 2021. For corporations with at least $1 

billion in assets, the bill would increase the portion of corporate estimated payments due from July through September in 2020. JCT 

estimates that those changes would increase revenues by $2.0 billion in 2020 and reduce revenues by the same amount in 2021. 

Section 11: Coverage and payment for renal dialysis services for individuals with acute kidney injury 

Under current Medicare law, freestanding dialysis facilities—including facilities owned by a hospital—may treat patients with 

end-stage renal disease, but not people with acute kidney injury 

(AKI). Those free-standing facilities are paid an average of about 

$240 per dialysis treatment. 

Under current law, Medicare beneficiaries with AKI may receive 

dialysis services from hospital outpatient departments (which are 

distinct from hospital-owned dialysis facilities). Those facilities are 

paid according to the hospital-outpatient prospective payment and 

the cost is about $600 per dialysis treatment. 

Under the bill, freestanding facilities would be allowed to treat 

beneficiaries with AKI, and would be paid at the rate for freestanding facilities. 

Section 12: Modification of the Medicare sequester for fiscal year 

2024 

Under current law, the Medicare sequestration for fiscal year 

2024 is ¥4.0 percent for April 2024 through September 2024 and 

zero percent for October 2024 through March 2025 (In Medicare, 

sequestration is applicable to spending on an April through March 

basis, resulting in half of the spending reductions occurring in the 

following fiscal year). 

The bill would modify sequestration of Medicare spending for the 

second half of fiscal year 2024 (October 2024 through March 2025) 

by changing the sequester from 0.0 percent to ¥0.25 percent. 

II. BUDGETARY IMPACT OF THE BILL 

TAA 

COMMITTEE ESTIMATES

In compliance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate, the following statement is made concerning 

the estimated budget effects of the revenue provisions of the bill as 

reported. 


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4Pub. L. No. 93–344. 

The bill, as reported, is estimated to have the following effect on 

Federal budget receipts for fiscal years 2015–2025: 

BUDGET AUTHORITY AND TAX EXPENDITURES

Budget authority 

In compliance with section 308(a)(1) of the Congressional Budget 

and Impoundment Control Act of 1974 (‘‘Budget Act’’),4 the Committee states that the [revenue] provisions of the bill as reported 

involve no new or increased budget authority. 

Tax expenditures 

In compliance with section 308(a)(1) of the Budget Act, the Committee states that the provision of the bill relating to the Health 

Coverage Tax Credit involves increased tax expenditures and the 

provision of the bill relating to the child tax credit involves reduced 

tax expenditures (see revenue table in part A., above). 

MAY 5, 2015. 

Hon. ORRIN G. HATCH, Chairman, Committee on Finance, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for the Trade Adjustment Assistance Reauthorization Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Christina Hawley Anthony. 

Sincerely, 

KEITH HALL. 

Enclosure. 

S. 1268—Trade Adjustment Assistance Reauthorization Act of 2015 

Summary: The Trade Adjustment Assistance Reauthorization Act 

of 2015 would temporarily expand coverage of Trade Adjustment 

Assistance (TAA) for Workers through June 2021, and reauthorize 

the program through June 2022. The bill also would authorize appropriations for other trade adjustment assistance programs for 

farmers and firms through 2021. Additionally, the bill would extend the health coverage tax credit (HCTC) through 2019. Finally, 

it would extend the authority to collect and increase the rate of certain customs user fees, and make changes to the Medicare program. 

CBO and the staff of the Joint Committee on Taxation (JCT) estimate that enacting the bill would increase direct spending by $7 

million in 2015 and $1.8 billion over the 2015–2020 period, but 

would reduce direct spending by $174 million over the 2015–2025 

period. Enacting the bill also would decrease revenues by $86 million over the 2015–2025 period, JCT estimates. 

On net, CBO and JCT estimate that enacting the bill would reduce deficits by $88 million over the 2015–2025 period. Pay-as-yougo procedures apply because enacting the legislation would affect 

direct spending and revenues. 


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The bill would increase spending subject to appropriation by $636 million over the 2015–2015 period, assuming appropriation of 

the authorized amounts. 

CBO has determined that the nontax provisions of the bill contain no intergovernmental mandates as defined in the Unfunded 

Mandates Reform Act (UMRA). Any costs incurred by state governments to administer trade adjustment assistance programs would 

result from participation in voluntary federal programs. 

CBO has determined that the nontax provisions of the bill contain private-sector mandates on entities required to pay merchandise processing fees. CBO estimates the aggregate cost of the mandates would exceed the annual threshold established in UMRA for 

private-sector mandates ($154 million in 2015, adjusted annually 

for inflation). JCT has determined that the tax provisions of the 

bill contain no intergovernmental or private-sector mandates. 

Estimated cost to the Federal Government: The estimated budgetary effects of the Trade Adjustment Assistance Reauthorization 

Act of 2015 are summarized in Table 1. The costs of this legislation 

fall within budget functions 350 (agriculture), 450 (community and 

regional development), 500 (education, training, employment, and 

social services), 550 (health), 570 (Medicare), 600 (income security), 

and 750 (administration of justice). 


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TABLE 1. SUMMARY OF ESTIMATED BUDGETARY EFFECTS OF THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015 

By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015– 2020 2015– 2025 

CHANGES IN DIRECT SPENDING a

Estimated Budget Authority ........................................................ 38 445 389 403 421 406 356 ¥11 ¥55 ¥66 ¥2,500 2,102 ¥174 

Estimated Outlays ....................................................................... 7 175 384 400 416 404 374 214 18 ¥66 ¥2,500 1,786 ¥174 

CHANGES IN REVENUES 

Estimated Revenues .................................................................... 0 ¥42 ¥25 ¥7 ¥7 1,975 ¥1,980 0 0 0 0 1,894 ¥86 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES 

Impact on Deficit ......................................................................... 7 217 409 407 423 ¥1,571 2,354 214 18 ¥66 ¥2,500 ¥108 ¥88 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ...................................................................... 0 106 106 106 106 106 106 0 0 0 0 530 636 Estimated Outlays ....................................................................... 0 6 25 83 102 106 106 100 81 23 4 322 636 

Note: For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative numbers indicate a reduction in revenues. a On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period of time. Because of interactions among the 

provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different. 


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Basis of estimate: CBO and JCT assume that the Trade Adjustment Assistance Reauthorization Act of 2015 will be enacted by 

July 1, 2015. Because provisions of this bill that would extend the 

authority to collect merchandise processing fees for a specific period 

of time would interact with similar provisions in two other bills approved by the Senate Committee on Finance on April 22, 2015, 

CBO assumes that the three bills will be enacted in the order that 

would extend those fees chronologically. If the bills are enacted in 

a different order, the estimated costs of this bill would be different. 

Direct spending 

CBO and the staff of the Joint Committee on Taxation estimate 

that enacting the bill would increase outlays by $7 million in fiscal 

year 2015 and $1.8 billion over the 2015–2020 period, but would 

reduce net direct spending by $174 million over the 2015–2025 period. Increased spending for TAA for Workers and the health coverage tax credit would be more than offset by: extensions to the authority to collect customs user fees (which are reflected in the federal budget as offsetting receipts and are treated as reductions indirect spending); changes in eligibility for the refundable portion of 

the child tax credit (the refundable portion of tax credits are treated as direct spending in the budget); a change in coverage for dialysis services paid for by Medicare; and a modification to sequestration for Medicare. (See Table 2). 

TAA for Workers. TAA for Workers provides job training, extended unemployment compensation, and wage insurance benefits 

to workers who lose their jobs because of international trade. Although the authorization for TAA for Workers expired at the end 

of December 2014, it continues to operate at the so-called ‘‘Reversion 2014’’ levels because the Congress provided a full-year appropriation for fiscal year 2015. Under CBO’s baseline, outlays for 

those benefits total $575 million in fiscal year 2015. Consistent 

with the rules for budget projections in section 257 of the Balanced 

Budget and Emergency Deficit Control Act of 1985, most of the 

costs of extending TAA for Workers at its current level are included 

in CBO’s baseline and are therefore not included in the costs attributable to the proposed legislation. The spending assumed to 

continue in CBO’s baseline totals $8.9 billion over the 2016–2025 

period. 

The bill would temporarily extend certain provisions of the TAA 

for Workers program that originally were enacted in 2009 and expired December 31, 2013. Among other things, the bill would extend coverage to workers in service industries. (Under current law, 

only workers involved in manufacturing can qualify for benefits 

under the TAA for Workers program, though service workers were 

temporarily covered through December 2013.) Beginning in January 2014, the program reverted to the way it operated before the 

2009 amendments were enacted. The bill would reinstate the expanded coverage that expired at the end of December 2013, and increase funding for training; those changes would extend through 

June 2021. Under the bill, TAA for Workers would then return to 

the level at which it currently operates for one year and expire at 

the end of June 2022. 


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TABLE 2. ESTIMATED EFFECTS OF THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015 

By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015– 2020 2015– 2025 

CHANGES IN DIRECT SPENDING 

Trade Adjustment Assistance for Workers: 

Estimated Budget Authority ............................................... 38 478 425 430 441 446 412 45 0 0 0 2,528 2,715 Estimated Outlays .............................................................. 7 208 420 427 436 444 430 270 73 0 0 1,942 2,715

Health Coverage Tax Credit: 

Estimated Budget Authority ............................................... 0 5 20 28 28 7 0 0 0 0 0 87 87 Estimated Outlays .............................................................. 0 5 20 28 28 7 0 0 0 0 0 87 87 

Customs User Fees a

Estimated Budget Authority ............................................... 0 0 0 0 0 0 0 0 0 0 ¥1,734 0 ¥1,734 Estimated Outlays .............................................................. 0 0 0 0 0 0 0 0 0 0 ¥1,734 0 ¥1,734 

Child Tax Credit: 

Estimated Budget Authority ............................................... 0 ¥38 ¥36 ¥35 ¥28 ¥27 ¥26 ¥26 ¥26 ¥26 ¥26 ¥165 ¥293 

Estimated Outlays .............................................................. 0 ¥38 ¥36 ¥35 ¥28 ¥27 ¥26 ¥26 ¥25 ¥26 ¥26 ¥165 ¥293 

Coverage and Payment for Dialysis Services: 

Estimated Budget Authority ............................................... 0 0 ¥20 ¥20 ¥20 ¥20 ¥30 ¥30 ¥30 ¥40 ¥40 ¥80 ¥250 

Estimated Outlays .............................................................. 0 0 ¥20 ¥20 ¥20 ¥20 ¥30 ¥30 ¥30 ¥40 ¥40 ¥80 ¥250 

Medicare Sequestration: 

Estimated Budget Authority ............................................... 0 0 0 0 0 0 0 0 0 0 ¥700 0 ¥700 

Estimated Outlays .............................................................. 0 0 0 0 0 0 0 0 0 0 ¥700 0 ¥700 

Total Changes: 

Estimated Budget Authority ...................................... 38 445 389 403 421 406 356 ¥11 ¥55 ¥66 ¥2,500 2,102 ¥174 

Estimated Outlays ..................................................... 7 175 384 400 416 404 374 214 18 ¥66 ¥2,500 1,786 ¥174 

Note: Components may not sum to totals because of rounding. a On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period of time. Because of interactions among the 

provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different. 


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CBO estimates that the legislation would increase costs for TAA for Workers by $7 million in 2015 and $2.7 billion over the 2015– 

2025 period, relative to CBO’s baseline projections. The details of 

those costs are as follows: • Expanded Coverage. The bill would restore the eligibility criteria that expired on December 31, 2013. Most notably, the bill 

would allow individuals in the service sector who lose their jobs as 

the result of either increased imports of similar services or shifts 

in production of those services to apply for assistance. CBO estimates that the changes in coverage would increase the number of 

people certified as eligible to receive TAA for Workers by an average of 35,000 annually. Those certified workers would be eligible 

for extended unemployment benefits. Under CBO’s baseline, the 

cost of those benefits total $7.0 billion over the 2015–2025 period. 

Relative to CBO’s baseline projections, enacting the bill would increase direct spending for those extended unemployment benefits 

by $1.1 billion over the 2015–2025 period, CBO estimates. • Increased Funding for Training. Under current law, funding for the training benefits under TAA for Workers is capped at $220 

million annually. Uncapped funding is also available for administration and other benefits to assist affected workers with costs related to looking for work and for relocating, if necessary, for reemployment. Under CBO’s baseline, costs for training, administration, 

and other benefits total $2.8 billion over the 2015–2025 period. The 

bill would increase the cap on training benefits from $220 million 

annually to $450 million through June2021, thus allowing the people who would be newly certified under the bill to receive training 

benefits. Under the bill, administrative and other expenses would 

be subject to the new higher cap. Relative to CBO’s baseline projections, direct spending for training and administrative expenses 

would increase by $1.2 billion over the 2015–2025 period, CBO estimates. • Extended Wage Insurance. Trade Adjustment Assistance for 

Workers currently offers a wage insurance program as an alternative to the extended unemployment benefits offered under the 

regular TAA program. That alternative program pays a wage subsidy to workers who are age 50 or older and do not earn more than 

$50,000 annually in their new employment if they are reemployed 

at a lower wage. Benefit payments may total 50 percent of the difference between the old and new wages, with a maximum of 

$10,000 paid over a period of up to two years. Under CBO’s baseline, the wage insurance program will cost $45 million in 2015. 

Like the other programs authorized under TAA for Workers, the 

wage insurance program expired at the end of December, 2014, and 

is currently operating under a full-year appropriation through fiscal year 2015. However, under the rules that govern CBO’s baseline projections, and unlike the extended unemployment and training benefits, the costs of the wage insurance program fall out of 

CBO’s projections beginning in fiscal year 2016. By authorizing the 

wage insurance program through June 2022, the bill would increase direct spending by $0.4 billion over the 2015–2025 period, 

CBO estimates. 

Health Coverage Tax Credit. The bill would extend the health 

coverage tax credit, which expired on December 31, 2013, from January 1, 2014, through December 31, 2019. It would set the credit 


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rate at 72.5 percent of premiums paid for qualifying health insurance, and provide that a person cannot claim both the HCTC and 

the premium assistance credit provided for in section 36B of the Internal Revenue Code for the same coverage month. JCT estimates 

those changes would increase direct spending by $87 million over 

the 2015–2025 period. The changes also would decrease revenues, 

as discussed below under the heading ‘‘Revenues.’’ 

Customs User Fees. Under current law, the authority to collect 

merchandise processing fees will expire at the end of fiscal year 

2024. The legislation would permit these fees to be collected during 

the period beginning July 29, 2025, and ending September 30, 

2025. For merchandise imported from July 15, 2025, through September 30, 2025, the bill would raise the merchandise processing 

fee from 0.21 percent to 0.3464 percent of the value of the goods. 

CBO estimates those actions would increase offsetting receipts by 

about $700 million in 2025. To project collections of merchandise 

processing fees, CBO assumes that the fees collected in future 

years will grow at the same rate seen in recent years about 5 percent. In 2014 collections from the merchandise processing fees totaled $2.3 billion. By 2024, CBO estimates those collections will 

total about $2.7 billion under current law. CBO expects that the 

proposed increase in the fee rate would have a very minor effect 

on the value of goods entering the United States. 

Under current law, authority to collect Customs COBRA (Consolidated Omnibus Budget Reconciliation Act) fees will expire after 

September 30, 2024. These fees are charged for the entry into the 

United States of certain vehicles, vessels, persons, and other entities and items. The bill would extend the authority to collect those 

fees through September 30, 2025. CBO estimates that those 

changes would increase offsetting receipts by about $1 billion in 

2025. 

COBRA fees collected by Customs and Border Protection (CBP) 

are spent by the agency to fund certain operations. Under the rules 

CBO uses to set its baseline spending projections, authority for 

CBP to spend COBRA fees is assumed to continue after the expiration date for the fees in 2024. Those same baseline rules, however, 

do not provide for the corresponding assumption that the collection 

of the COBRA fees be assumed to continue beyond their expiration 

in 2024. Thus, extending the authority to collect COBRA fees reduces future deficits relative to CBO’s baseline projections. 

Child Tax Credit. Under current law, a refundable child tax 

credit of up to $1,000 per qualifying child is available to taxpayers, 

with the amount of the credit phasing out for individuals with income above certain thresholds. The legislation would provide that 

taxpayers who elect to exclude from gross income for a taxable year 

any amount of foreign earned income or foreign housing costs may 

not claim the refundable portion of the child tax credit for the taxable year. JCT estimates that provision would reduce direct spending by $293 million over the 2015–2025 period. 

Coverage and Payment for Dialysis Services. Under current 

Medicare law, freestanding dialysis facilities—including facilities 

owned by a hospital—may treat patients with end-stage renal disease, but not people with acute kidney injury (AKI). Those freestanding facilities are paid an average of about $240 per dialysis 

treatment. 


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Under current law, Medicare beneficiaries with AKI may receive 

dialysis services from hospital outpatient departments (which are 

distinct from hospital-owned dialysis facilities). Those facilities are 

paid according to the hospital-outpatient prospective payment and 

the cost is about $600 per dialysis treatment. 

Under the bill, freestanding facilities would be allowed to treat 

beneficiaries with AKI, and would be paid at the rate for freestanding facilities. CBO estimates that allowing those lower-priced 

dialysis services to be furnished to beneficiaries with AKI would 

save about $250 million over the 2015–2025 period. 

Medicare Sequestration. The bill would modify sequestration 

of Medicare spending for fiscal year 2024. In Medicare, sequestration is applicable to spending on an April through March basis, resulting in half of the spending reductions occurring in the following 

fiscal year. Under current law, the Medicare sequestration for fiscal 

year 2024 is ¥4.0 percent for April 2024 through September 2024 

and zero percent for October 2024 through March 2025. The bill 

would change the second half of the fiscal year 2024 sequestration 

(October 2024 through March 2025) to ¥0.25 percent. CBO estimates that change would reduce direct spending by $700 million in 

fiscal year 2025. 

Revenues 

Enacting the Trade Adjustment Assistance Reauthorization Act 

of 2015 would increase revenues by $1.9 billion over the 2015–2020 

period and decrease them by $86 million over the 2015–2025 period. 

Health Coverage Tax Credit. As discussed above in the section on direct spending, the bill would extend the HCTC through 

December 31, 2019. JCT estimates those changes would decrease 

revenues by $86 million over the 2015–2025 period. 

Shift in Payment of Corporate Estimated Tax. The bill 

would shift payments of corporate estimated taxes between fiscal 

years 2020 and 2021. For corporations with at least $1 billion in 

assets, the bill would increase the portion of corporate estimated 

payments due from July through September in 2020. JCT estimates that those changes would increase revenues by $2.0 billion 

in 2020 and reduce revenues by the same amount in 2021. 

Spending subject to appropriation 

The trade Adjustment Assistance Reauthorization Act of 2015 

would authorize appropriations for TAA for Farmers and TAA for 

Firms for fiscal years 2016 through 2021. TAA for Farmers did not 

receive an appropriation for 2015, while TAA for firms received appropriations totaling about $13 million for 2015. 

TAA for Farmers. The bill would authorize the appropriation of 

$90 million a year over the 2016–2021 period to provide TAA for 

Farmers. CBO estimates this provision would cost $450 million 

over the 2016–2020 period, and $90 million after 2020, assuming 

appropriation of the authorized amounts. 

TAA for Farmers provides technical and financial assistance to 

certain eligible agricultural producers to develop and implement 

plans to improve the competitiveness and profitability of their businesses. Those eligible for the program have produced agricultural 


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commodities that have experienced a decline in market share or 

price because of imported commodities. 

TAA for Firms. The bill would authorize the appropriation of $16 million a year over the 2016–2021 period for TAA for Firms. 

CBO estimates that that implementing this provision would cost 

about $41 million over the 2016–2020 period and $55 million after 

2020, assuming appropriation of authorized amounts. 

TAA for Firms provides technical assistance to help U.S. firms 

become more competitive in the global market. The Economic Development Administration (EDA) within the Department of Commerce has entered into cooperative agreements with 11 regional 

Trade Adjustment Assistance Centers which provide assistance to 

firms to design and implement business recovery plans that the 

EDA must approve. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays and revenues that are subject to those pay-asyou-go procedures are shown in Table 3. 


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TABLE 3. CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015 AS ORDERED REPORTED BY THE SENATE COMMITTEE 

ON FINANCE ON APRIL 22, 2015 

By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015– 2020 2015– 2025 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT a

Statutory Pay-As-You-Go Impact ................................................. 7 217 409 407 423 ¥1,571 2,354 214 18 ¥66 ¥2,500 ¥108 ¥88 

Memorandum: 

Changes in Outlays ............................................................ 7 175 384 400 416 404 374 214 18 ¥66 ¥2,500 1,786 ¥174 

Changes in Revenues ......................................................... 0 ¥42 ¥25 ¥7 ¥7 1,975 ¥1,980 0 0 0 0 1,894 ¥86 

Note: For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative numbers indicate a reduction in revenues. a On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period of time. Because of interactions among the 

provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different. 


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Estimated impact on state, local, and tribal governments: CBO 

has determined that the nontax provisions of the bill contain no 

intergovernmental mandates as defined in UMRA. Any costs incurred by state governments to administer trade adjustment assistance programs would result from participation in voluntary federal 

programs. JCT has determined that the tax provisions of the bill 

also contain no intergovernmental mandates. 

Estimated impact on the private sector: CBO has determined 

that the nontax provisions of the Trade Adjustment Assistance Reauthorization Act of 2015 would impose private-sector mandates, as 

defined in UMRA, on entities required to pay merchandise processing fees. The bill would extend those fees through September 30, 

2025 and raise the fee rate beginning July 15, 2025 and ending 

September 30, 2025. CBO estimates that the aggregate costs of the 

mandates would exceed the annual threshold established in UMRA 

for private-sector mandates ($154 million in 2015, adjusted annually for inflation). 

JCT has determined that the tax provisions of the bill contain no 

private-sector mandates as defined in UMRA. 

Previous CBO estimate: On May 4, 2015, CBO transmitted a cost 

estimate of the budgetary effects of H.R. 1892, as ordered reported 

by the House Committee on Ways and Means on April 23, 2015. 

The costs of the Trade Adjustment Assistance Act of 2015 are the 

same as the costs shown in the estimate for H.R. 1892. 

Estimate prepared by: Federal Costs: Christina Hawley Anthony—Trade Adjustment Assistance for Workers; Mark 

Grabowicz—Customs User Fees; Lara Robillard and Jamease 

Miles—Dialysis Services; Lori Housman—Medicare Sequestration; 

Dave Hull—TAA for Farmers; Martin von Gnechten—TAA for 

Firms; Mark Booth and Pamela Greene—Federal Revenues; Impact 

on State, Local, and Tribal Governments: Jon Sperl; Impact on the 

Private Sector: Paige Piper/Bach. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

III. VOTES OF THE COMMITTEE 

In compliance with paragraph 7(b) of rule XXVI of the Standing 

Rules of the Senate, the following statements are made concerning 

the roll call votes in the Committee’s consideration of the bill. 

MOTION TO REPORT THE BILL

The original bill to extend the Trade Adjustment and Assistance 

(TAA) program, and for other purposes, and to amend the Internal 

Revenue Code of 1986 to expand and modify the credit for health 

insurance costs of certain eligible individuals, and for other purposes was ordered favorably reported by a roll call vote of 17 ayes 

and 9 nays on April 22, 2015. The vote, with a quorum present, 

was as follows (proxy votes are not counted in the total vote on a 

motion to order a bill reported): 

Ayes.—Senators Burr (proxy), Portman, Toomey, Coats, Heller, 

Wyden, Schumer, Stabenow, Cantwell, Nelson, Menendez, Carper, 

Cardin, Brown (proxy), Bennet, Casey (proxy), Warner. 

Nays.—Senators Hatch, Grassley, Crapo, Roberts, Enzi, Cornyn 

(proxy), Thune, Isakson, Scott (proxy). 


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VOTE ON AMENDMENT

(1) An amendment by Senator Brown (en bloc) to increase funding levels for TAA Workers to $575 million; expand TAA eligibility 

to public sector workers; increase funding levels for TAA Firms 

from $16 million to $50 million, was defeated by a roll call vote, 

13 ayes and 13 nays. 

Ayes.—Portman, Wyden, Schumer (proxy), Stabenow, Cantwell, 

Nelson, Menendez, Carper, Cardin, Brown, Bennet, Casey (proxy), 

Warner. 

Nays.—Hatch, Grassley, Crapo, Roberts, Enzi, Cornyn (proxy), 

Thune, Burr (proxy), Isakson, Toomey, Coats, Heller, Scott (proxy). 

IV. REGULATORY IMPACT OF THE BILL 

TRADE ADJUSTMENT ASSISTANCE

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact of the reported bill. 

The bill makes a number of amendments extending the trade adjustment assistance programs. Overall, the bill does not result in 

an increase in regulatory burdens for States, municipalities or business. 

Responsibilities for implementing the trade adjustment assistance program falls principally on the Federal Government, but regulatory burdens are also imposed on the States and, to a lesser extent, municipalities and business. 

States—States play a critical role in implementing the trade adjustment assistance program. Under existing law once a petition is 

certified by the Department of Labor’s Employment and Training 

Administration (ETA), state workforce agency staff members contact the employer of the adversely affected firm to offer services 

and obtain a list of affected workers. The state agency then contacts the workers on the list and invites them in for services and 

to make a determination of individual TAA eligibility. Services include: (i) training; (ii) trade readjustment allowances (TRA); (iii) 

waivers; (iv) alternative trade adjustment assistance for older 

workers (ATAA); (v) case management and reemployment services; 

and (vi) job search and relocation allowances. 

The reported bill allows for the continuation of the state’s role 

and imposes no additional regulatory burden. 

Municipalities—There is no regulatory impact of the bill on municipalities. 

Businesses—The reported bill will not increase the regulatory 

burden and does not impose additional paperwork requirements on 

businesses. 

Personal Privacy—The reported bill does not affect the personal 

privacy of individuals. 

Intergovernmental Mandates—The following information is provided in accordance with section 423 of the Unfunded Mandates 

Reform Act of 1995. (Pub. L. No. 104–4). The Committee has reviewed the provisions of S. 1003 as approved by the Committee on 

April 22, 2015. In accordance with the requirements of Pub. L. No. 

104–04, the Committee has determined that the bill does not contain intergovernmental mandates as defined in the UMRA. 


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5Pub. L. No. 104–4. 

6Pub. L. No. 105–206. 

HEALTH COVERAGE TAX CREDIT

Impact on individuals and businesses, personal privacy and paperwork 

The HCTC provisions of the bill are not expected to impose additional administrative requirements or regulatory burdens on individuals or businesses. The HCTC provisions of the bill do not impact personal privacy. 

Unfunded Mandates Statement 

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995.5

The Committee has determined that the HCTC provisions of the 

bill do not contain Federal mandates on the private sector. The 

Committee has determined that the HCTC provisions of the bill do 

not impose a Federal intergovernmental mandate on State, local, or 

tribal governments. 

Tax Complexity Analysis 

Section 4022(b) of the Internal Revenue Service Reform and Restructuring Act of 1998 (‘‘IRS Reform Act’’) 6 requires the staff of 

the Joint Committee on Taxation (in consultation with the Internal 

Revenue Service and the Treasury Department) to provide a tax 

complexity analysis. The complexity analysis is required for all legislation reported by the Senate Committee on Finance, the House 

Committee on Ways and Means, or any committee of conference if 

the legislation includes a provision that directly or indirectly 

amends the Internal Revenue Code and has widespread applicability to individuals or small businesses. For each such provision 

identified by the staff of the Joint Committee on Taxation a summary description of the provision is provided along with an estimate of the number and type of affected taxpayers, and a discussion regarding the relevant complexity and administrative issues. 

The staff of the Joint Committee on Taxation has determined 

that a complexity analysis is not required under section 4022(b) of 

the IRS Reform Act because the bill contains no provisions that 

amend the Internal Revenue Code and that have ‘‘widespread applicability’’ to individuals or small businesses, within the meaning 

of the rule. 

V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS 

REPORTED 

In the opinion of the Committee, in order to expedite the business of the Senate, it is necessary to dispense with the requirements of paragraph 12 of rule XXVI of the Standing Rules of the 

Senate (relating to the showing of changes in existing law made by 

the bill as reported by the Committee). 


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