Page 1 GAO-19-85R Economic Adjustment Assistance

441 G St. N.W.

Washington, DC 20548

March 5, 2019

The Honorable Christopher A. Coons

Ranking Member

Subcommittee on Financial Services and General Government

Committee on Appropriations

United States Senate

The Honorable Shelley Moore Capito

United States Senate

Economic Adjustment Assistance: Federal Programs Intended to Help Beneficiaries 

Adjust to Economic Disruption

Individuals, businesses, and communities in the United States have had to change how they 

work or operate because their jobs or economies were affected by external forces such as trade 

agreements or defense or energy policy changes. The nation's workforce has also undergone 

rapid, widespread change due to other economic forces such as emerging technologies and 

shifting business models, a dynamic that is expected to continue. Federal economic adjustment 

assistance (EAA) programs were established to help workers, businesses, and communities 

respond to these disruptions and the potential dislocation precipitated by specific economic 

events. 

The federal government provides economic adjustment assistance both through programs and 

through tax expenditures.1 Some economic adjustment assistance is funded directly, such as 

through grants, cooperative agreements, or formula funding to public or nonprofit entities that 

then provide services to beneficiaries.2 The federal government also assists with economic 

adjustment in an indirect way. For example, it funds demonstration grants and technical 

assistance and training for program personnel to enhance the services provided by the program 

or agency. 

Developing an inventory of EAA programs is a first step in assessing the scope of the federal 

government’s involvement in this area, as well as determining whether these programs are 

effective, efficient, and able to meet current and future needs.3

 An inventory can also be the 

 1

A tax expenditure is a revenue loss attributable to a provision of the federal tax laws that (1) allows a special 

exclusion, exemption, or deduction from gross income or (2) provides a special credit, preferential tax rate, or deferral 

of tax liability. These expenditures include exemptions and exclusions from taxation, deductions, credits, deferral of 

tax liability, and preferential tax rates.

2

Grants provide federal funding, sometimes through a pass-through entity, to a non-federal entity to carry out a public 

purpose. Cooperative agreements are similar to grants, but they provide for substantial involvement between the 

federal agency awarding the grant, or the grant pass-through entity, and the entity carrying out the grant. Grants can 

also be provided through formula funding, which uses a formula to determine the amount each recipient receives. 

3

GAO, Federal Programs: Information Architecture Offers a Potential Approach for Development of an Inventory, 

GAO-17-739 (Washington, D.C.: Sept. 28, 2017).
Page 2 GAO-19-85R Economic Adjustment Assistance

first step in identifying the extent to which programs might overlap, be duplicative, or be 

fragmented.4

You asked us to assess EAA programs that help workers, businesses, and communities 

prepare for and adjust to economic disruption. In this report, we describe the federal programs 

and tax expenditure we identified that support economic adjustment, including their objectives, 

eligibility requirements, beneficiaries, obligations, and expenditures.5

 

We addressed our objective in three general steps: (1) development of criteria for program and 

tax expenditure inclusion in this review, (2) identification of the programs and tax expenditures 

that met our criteria, and (3) collection of program data through agency surveys. To develop 

criteria for the programs and tax expenditures to be included in our inventory, we first developed 

a definition of EAA. This began with determining which aspects of EAA were important to 

policymakers. After determining the key aspects of EAA to include, we reviewed select literature 

on two important strands of economic research to further inform our definition: the effects 

associated with China entering the World Trade Organization and the impact of technological 

changes on the U.S. workforce. After developing a draft definition, we asked agency officials to 

provide feedback and incorporated their comments as appropriate.6 We also solicited input from 

internal GAO experts. Using the information we collected, we developed the following EAA 

definition for the purposes of this report:7

Economic adjustment assistance programs and tax expenditures are those 

whose primary purpose includes helping or preparing workers, businesses/firms, 

or communities to adjust to economic disruption, where disruption is defined as 

significant changes in the economy that reduce the demand for certain workers. 

Examples of these changes include, but are not limited to, U.S. or international 

policy decisions related to trade, defense, or energy, and other economic forces 

that drive changes in immigration, globalization, automation, or cause a 

prolonged cyclical downturn. 

In addition to this EAA definition, we applied the following criteria for identifying programs and 

tax expenditures, regardless of their size: the program or tax expenditure must have (1) been in 

effect in fiscal year 2017 and (2) provided either direct or indirect assistance to individuals, 

businesses, or communities. To capture the full federal EAA investment, we also included 

agency activities such as demonstration grants and training and technical assistance designed 

to enhance the services provided by the program or agency. 

We excluded programs and tax expenditures that might have provided income or other support 

to individuals during times of economic disruption or hardship, but whose primary purpose did 

not include assisting or preparing individuals, businesses, or communities to respond to 

 4

Inclusion of a program in this inventory is not an assessment of its effectiveness or its potential to overlap, be 

duplicative, or be fragmented with regard to other programs. 

5

Obligations are a definite commitment that creates a legal liability of the government for the payment of goods and 

services ordered or received, or a legal duty on the part of the United States that could mature into a legal liability by 

virtue of actions on the part of the other party beyond the control of the United States. Payment may be made 

immediately or in the future. Expenditures are the actual spending of money; an outlay. 

6

We met with officials from the Departments of Agriculture, Commerce, Defense, Labor, and the Treasury as well as 

officials from the Appalachian Regional Commission, Delta Regional Authority, Denali Commission, and the Northern 

Border Regional Commission. 

7

It is important to note that the number of such programs identified will vary with the definition used, and that the 

application of any definition can entail subjective judgment.
Page 3 GAO-19-85R Economic Adjustment Assistance

economic disruptions by adopting alternative courses of action. For example, we excluded 

programs primarily designed to:

• assist low-income individuals (e.g., Supplemental Nutrition Assistance Program);8

• provide general economic development to areas that have been distressed (1) for 

reasons other than economic disruption or (2) as the result of an economic disruption at 

one time but are now experiencing more systemic economic challenges (e.g., some 

programs provided through the regional commissions);9

• assist workers who lost their jobs but are not required to acquire new skills or move to 

new industries as a result of program participation or benefit (e.g., unemployment 

insurance programs);10 and

• respond to natural disasters because these programs generally alleviate the damage, 

loss, hardship, or suffering caused by a disaster incident rather than effect change in 

response to the economic disruption. 

Using these criteria, we identified EAA programs and tax expenditures by: 

• interviewing agency officials;

• conducting a comprehensive keyword search of the Catalog of Federal Domestic 

Assistance (CFDA);

11

• conducting a comprehensive keyword search of tax expenditure documents from the 

Office of Management and Budget, Joint Committee on Taxation, and Congressional 

Research Service.12

Once we identified programs that met our criteria, we collected program data through agency 

surveys.13 We developed a program survey, pretested it with relevant agency officials, and 

 8

The Supplemental Nutrition Assistance Program offers nutrition assistance to eligible low-income individuals and 

families. 

9

We interviewed officials from four regional commissions: the Appalachian Regional Commission, the Delta Regional 

Authority, the Denali Commission, and the Northern Border Regional Commission. 

10The Federal-State Unemployment Insurance Program, overseen by the Department of Labor and administered by 

the states, provides unemployment benefits to eligible workers who become unemployed through no fault of their own 

and meet certain other eligibility requirements. Claimants who file for unemployment benefits may be directed to 

register for work with their State Employment Service so they can receive assistance in finding employment.

11The CFDA is a database of all federal programs available to state and local governments (including the District of 

Columbia); federally-recognized Indian tribal governments; territories and possessions of the United States; domestic 

public, quasi-public, and private and nonprofit organizations and institutions; and specialized groups and individuals. 

Since our search, the CFDA has been moved to “Assistance Listings,” a beta site administered by the General 

Services Administration. See https://beta.sam.gov/. 

12Office of Management and Budget, Analytical Perspectives, Budget of the United States Government, Fiscal Years 

2009, 2012, and 2019; Joint Committee on Taxation, Estimates of Federal Tax Expenditures for Fiscal Years 2007-

2011 (JCS-3-07; Sept. 24, 2007), 2010-2014 (JCS-3-10; Dec. 15, 2010), and 2017-2021 (JCX-34-18; May 25, 2018); 

and Committee on the Budget, United States Senate, Tax Expenditures: Compendium of Background Material on 

Individual Provisions, Prepared by the Congressional Research Service, 24-030 (Washington, D.C.: December 

2016).

13We defined programs by CFDA number unless agency officials indicated we should do otherwise (e.g., they 

considered multiple CFDA numbers as components of one program). 
Page 4 GAO-19-85R Economic Adjustment Assistance

made modifications as appropriate. We asked agencies to confirm or provide information on 

program objectives, eligibility requirements, beneficiaries, obligations, and expenditures. 

We reviewed the completed surveys and clarified information with agency officials as 

necessary. We edited the responses for clarity, as appropriate, and asked the agencies to 

review the revisions. In some cases, we also obtained information from agency websites and 

agency and congressional documents to explain certain terms or concepts. In cases where 

program objectives or eligibility requirements changed during the years included in our review 

(2007, 2010, and 2017), we reported current program information. 

In the surveys, we collected 3 non-consecutive years of data, as available, for each identified 

program or tax expenditure. Because program expenditures or numbers served could change in 

response to demand from potential beneficiaries, we collected program data for 2007 and 2010 

to reflect changes in the national unemployment rate both before and after the Great Recession. 

To reflect current program information, we collected program data for 2017, or the most recent 

year available. There may be a lack of comparability of the number of beneficiaries served 

across programs because of different objectives and types of assistance, ranging from 

disseminating information to delivering services with substantial economic value to 

beneficiaries.

To assess the reliability of the data provided by the agencies, we asked officials to identify the 

databases and information sources they used to respond to our survey questions and any 

limitations of the data they provided. We discussed with agency officials any identified data 

limitations and, if unresolved issues remained, we annotated the data as appropriate. In some 

limited circumstances we decided not to report the data due to limitations that might have made 

the data misleading given our scope and context. For the data we included, we found them 

sufficiently reliable for the purposes of this report. 

We did not independently verify the information provided by the agencies or conduct a legal 

analysis to confirm the various descriptions of the programs in this report, including information 

on their objectives, eligibility requirements, budgetary obligations, and expenditures. Further, in 

developing this report, we did not review or analyze financial data or materials prepared by the 

agencies in connection with the annual budget and appropriations process. 

Enclosure I to this report provides detailed information on these programs. The information is 

presented alphabetically by agency and then by program name as listed in Table 1. Enclosure II 

provides a detailed description of our scope and methodology. 

We conducted this performance audit from September 2017 to March 2019 in accordance with 

generally accepted government auditing standards. Those standards require that we plan and 

perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our 

findings and conclusions based on our audit objectives. We believe that the evidence obtained 

provides a reasonable basis for our findings and conclusions based on our audit objectives.

Results in Brief

GAO identified 15 programs and 1 tax expenditure that met its EAA definition. These programs 

and tax expenditure are each administered by one of the following six agencies or commissions: 

the Appalachian Regional Commission (ARC) and the Departments of Agriculture (USDA), 

Commerce (Commerce), Defense (DOD), Labor (DOL), and the Treasury (Treasury). Programs 

differed in size. For example, according to DOL officials, in fiscal year 2017 a DOL program 

expended about $974 million in formula-funded grants to states to assist workers who had lost 

their jobs become reemployed; whereas, according to DOD officials, a DOD program expended 

about $354,000 on grants designed to conduct research and provide technical assistance to 

communities affected by defense-related activities. In addition to programs, a tax expenditure 
Page 5 GAO-19-85R Economic Adjustment Assistance

administered by the Treasury assisted trade-affected workers with the cost of health insurance. 

See table 1. 

Table 1: Federal Programs and Tax Expenditure Identified by GAO That Provide Economic Adjustment 

Assistance and Types of Beneficiaries

Agencies and programs/tax 

expenditure

Beneficiaries

Individuals Businesses Communities Other 

beneficiariesa

Department of Agriculture – Agricultural Marketing Service

Economic Adjustment Assistance 

Program

—  — —

Appalachian Regional Commission

Partnerships for Opportunity and 

Workforce and Economic Revitalization 

(POWER) Initiative 

  b —

Department of Commerce – Economic Development Administration

Assistance to Coal Communities — — c —

Economic Adjustment Assistance — — c —

Trade Adjustment Assistance for Firms —  — —

Department of Defense – Office of Economic Adjustment

Community Economic Adjustment 

Assistance for Advance Planning and 

Economic Diversification

  d —

Community Economic Adjustment 

Assistance for Realignment or Closure 

of a Military Installation

— — e —

Community Economic Adjustment 

Assistance for Reductions in Defense 

Industry Employment

  d —

Economic Adjustment Assistance for 

State Governments

  d —

Research and Technical Assistance — — f —
Page 6 GAO-19-85R Economic Adjustment Assistance

Department of Labor – Employment and Training Administration

Health Coverage Tax Credit (HCTC) 

Infrastructure National Dislocated 

Worker Grants

— — — 

National Dislocated Worker Grant 

Programg

 — — 

Trade Adjustment Assistance for 

Workers

 — — —

Trade Adjustment Assistance 

Community College and Career 

Training 

   —

Workforce Innovation and Opportunity 

Act (WIOA) Dislocated Worker Formula 

Program

 — — —

Department of the Treasury – Internal Revenue Service and Office of Tax Policyh

Tax Credit for Health Insurance 

Purchased by Certain Displaced and 

Retired Individualsi

 — — —

Legend: [] = type of beneficiary of the program, [—] = not a beneficiary of the program

Source: GAO analysis of data from survey responses and agency, commission, and congressional documents, as confirmed by agency and commission officials. │ GAO-19-

85R

a

Other beneficiaries can include agency or state personnel through, for example, technical training and assistance services or 

demonstration grants.

b

According to Appalachian Regional Commission officials, the definition of community for this program is determined by the grantee 

and is generally a geographic area, but could also be used to describe groups with common interests, characteristics, social 

systems, or business sectors.

c

According to Department of Commerce (Commerce) officials, for this program grantees may define community as census tracts, 

cities, regions, counties, or economic development districts.

d

According to Department of Defense (DOD) officials, for these programs community is defined by each grant in terms of the area of 

defense impact. A community could be one county with several cities, multiple counties, or a region/Metropolitan Statistical Area.

e

According to DOD officials, for this program community can be defined as: (1) an entity of state or local government or (2) a local 

redevelopment authority recognized by the Office of Economic Adjustment.

f

According to DOD officials, for this program community can be defined as: (1) one county with several cities, (2) multiple counties; 

or (3) a region or Metropolitan Statistical Area.

g

According to DOL officials, this program includes three subcomponents: (1) WIOA National Dislocated Worker Grants, (2) WIOA 

Dislocated Worker National Reserve Demonstration Grants, and (3) WIOA Dislocated Worker National Reserve Technical 

Assistance and Training.

h

The Department of the Treasury also administers Recovery Zone Economic Development Bonds. These bonds were created by the 

American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5) to promote economic development in economicallydistressed areas. State and local governments could issue the bonds in 2009 and 2010. The authority to issue the bonds expired on 

December 31, 2010. While these bonds continue to be a source of estimated revenue losses, we did not include them in our list of 

current tax expenditures because estimates after December 2010 represent the refundable tax credits generated by the outstanding 

bonds rather than the issuance of new bonds.
Page 7 GAO-19-85R Economic Adjustment Assistance

i

This tax credit is also known as the Health Coverage Tax Credit.

USDA Provides Funds to Help Cotton Users Make Capital Investments in Land and Equipment

USDA’s Agricultural Marketing Service administers a program designed to help the U.S. textile 

industry remain competitive by limiting market losses, plant closures, and declines in 

employment. Established in 2008,14 the Economic Adjustment Assistance Program provides 

assistance to domestic users of upland cotton, such as textile mills.15 This assistance can be 

used only for capital investments into land, plant/facilities, equipment, or machinery.16

ARC Administers a Program to Help Communities Affected by Coal Industry Decline

ARC, a regional economic development agency,17 administers the Partnerships for Opportunity 

and Workforce and Economic Revitalization (POWER) Initiative, which is intended to help 

communities and regions affected by job losses in coal mining, coal power plant operations, and 

coal-related supply chain industries due to the changing economics of energy production. 

Commerce’s Programs Are Designed to Assist Communities Experiencing Adverse Economic 

Changes and Businesses Affected by Trade

Commerce’s Economic Development Administration has three programs designed to assist 

communities experiencing adverse economic changes or businesses affected by trade. First,

the Economic Adjustment Assistance program provides a wide range of technical, planning, and 

public works and infrastructure assistance in regions experiencing adverse economic changes 

that may occur suddenly or over time. Second, the Assistance to Coal Communities (ACC) 

program is designed to assist communities severely affected by the declining use of coal by 

supporting economic diversification, job creation, capital investment, workforce development, 

and re-employment opportunities.18 Third, the Trade Adjustment Assistance for Firms (TAAF) 

program provides technical assistance to businesses or firms19 experiencing declining sales and 

employment where increased imports of similar goods and services contributed importantly to 

such declines.

20 

 14Food, Conservation, and Energy Act of 2008, Pub. L. No. 110-246. This law is commonly referred to as the 2008 

Farm Bill. 

15Upland cotton is a type of cotton that is considered “short staple.” In the United States, cotton is considered upland 

if its staple length is less than three-eighths of an inch. 

16More specifically, payments can only be used for capital investments to acquire, construct, install, modernize, 

develop, convert, or expand land, plant, equipment, facilities, or machinery. 

17ARC was established in 1965 to address the economic problems in the Appalachian region. It is composed of the 

governors of the 13 Appalachian states and a federal co-chair, who is appointed by the President. It allocates funds 

appropriated by Congress among its member states. The governors draw up annual state strategies and select 

projects for approval by the federal co-chair. 

18According to Commerce officials, the ACC program is part of the Economic Development Administration’s 

Economic Adjustment Assistance program, but ACC receives a separate appropriation and officials said they 

consider it a separate program. 

19For this purposes of this report, GAO used the terms businesses and firms synonymously.

20Funds are not provided directly to firms. TAAF uses a national network of 11 Trade Adjustment Assistance Centers 

where eligible U.S. firms affected by imports can receive assistance to create and implement targeted business 

recovery plans. The Trade Adjustment Assistance Centers provide funds, which match the costs for third-party 
Page 8 GAO-19-85R Economic Adjustment Assistance

DOD Works with Communities Experiencing Defense Industry Employment Reductions and 

Base Realignments or Closures

DOD’s Office of Economic Adjustment (OEA) administers five programs that met GAO’s EAA 

criteria. OEA works with local and regional communities that are facing potential economic 

impacts due to changes within DOD or the defense industry. These changes can include base 

closures or realignments, as well as budget cuts and layoffs that may accompany changes such 

as the cancellation of a DOD contract or weapon system program. 

DOL’s Programs Are Intended to Help Dislocated Workers, Including Those Affected by Trade

DOL’s Employment and Training Administration administers five programs that assist workers 

affected by trade or layoffs. The WIOA Dislocated Worker Formula Program is designed to help 

dislocated workers become reemployed by providing job search assistance, career services, 

and/or training to build their skills.21 In addition to this program, DOL oversees the National 

Dislocated Worker Grant Program, which, through the three National Reserve subcomponents, 

is designed to (1) temporarily expand service capacity at state and local levels in response to 

significant dislocation events that cannot be reasonably accommodated within the operations of 

the formula-funded dislocated worker program; (2) fund demonstration projects; and (3) provide 

state and local staff with training and technical assistance.22

The Trade Adjustment Assistance (TAA) for Workers program is intended to provide workers 

adversely affected by trade with opportunities to obtain the skills, credentials, resources, and 

support necessary to return to the workforce in an in-demand industry. The Trade Adjustment 

Assistance Community College and Career Training (TAACCCT) program was aimed at helping 

community colleges increase their capacity to provide education and training programs for indemand jobs.23 Health Coverage Tax Credit (HCTC) Infrastructure National Dislocated Worker 

Grants provides funding to state workforce agencies to ensure they have the infrastructure to 

provide HCTC assistance and support related services to eligible TAA, Alternative Trade 

Adjustment Assistance (ATAA) and Reemployment Trade Adjustment Assistance (RTAA) 

recipients.24 

 consultants to help firms expand markets, strengthen operations, and increase competitiveness. Firms contribute a 

matching share to create and implement their respective recovery plan. 

21According to DOL officials, dislocated workers include (1) workers who have lost their job, are eligible for 

unemployment insurance, and who are unlikely to return to their previous industries or occupations; (2) workers who 

have lost their job as a result of plant closings or mass layoffs (i.e., a business has at least 50 initial claims for 

unemployment insurance filed against it during a 5-week period) and who are unlikely to return to their previous 

industries or occupations; (3) formerly self-employed individuals; and (4) displaced homemakers who depend on the 

income of another family member, but who are no longer supported by that income. Priority of services is given to 

veterans and other covered persons. WIOA requires that states reserve not more than 25 percent of the funds 

allotted under the Dislocated Worker Formula Program to be used for rapid response activities, which provide 

information on and access to employment and training activities for dislocated workers in the case of a plant closing, 

mass layoff, or natural disaster. 

22According to DOL officials, the three subcomponents are: (1) WIOA National Dislocated Worker Grants, (2) WIOA 

Dislocated Worker National Reserve Demonstration Grants, and (3) WIOA Dislocated Worker National Reserve 

Technical Assistance and Training.

23According to DOL officials, TAACCCT was funded for 4 years, with grants awarded from 2011 through 2014 and 

active from 2011 through 2018.

24ATAA and RTAA program benefits are offered under the regular TAA for Workers program. Participation in these 

programs allows workers aged 50 years old or older and who do not earn more than $50,000 annually in their new 

employment, to accept reemployment at a lower wage and receive a wage supplement. ATAA/RTAA payments may 
Page 9 GAO-19-85R Economic Adjustment Assistance

Treasury-Administered Tax Expenditure Designed to Assist Dislocated Workers Affected by 

Trade

Treasury administers the Tax Credit for Health Insurance Purchased by Certain Displaced and 

Retired Individuals (also known as the Health Coverage Tax Credit or HCTC), a tax expenditure

that assists individuals who lose their jobs due to trade.25 HCTC reduces these individuals’ 

after-tax cost of health insurance coverage and enables some to maintain or acquire coverage.

Agency Comments

We provided a draft of this product to USDA, ARC, Commerce, DOD, DOL, the Treasury, and 

the Internal Revenue Service (IRS) for review and comment. Commerce, DOD, DOL, and the 

IRS provided us with technical comments, which we incorporated as appropriate. USDA, ARC, 

and the Treasury did not provide comments. 

______

We are sending copies of this report to the appropriate congressional committees, the Federal 

Co-Chair of the Appalachian Regional Commission; the Secretaries of the Departments of 

Agriculture, Commerce, Defense, Labor, and the Treasury; the Commissioner of the IRS; and 

other interested parties. In addition, the report is available at no charge on the GAO website at 

http://www.gao.gov.

If you or your staff have any questions about this report please contact me at (202) 512-7215 or 

brownbarnesc@gao.gov. Contact points for our Offices of Congressional Relations and Public 

Affairs may be found on the last page of this report. GAO staff who made key contributions to

this report are listed in enclosure III.

Cindy S. Barnes

Director, Education, Workforce, and Income Security

Enclosures – 3

 total 50 percent of the difference between the old and new wages, with a maximum of $10,000 paid over a period of 2 

years.

25In addition to individuals who lose their jobs due to trade, HCTC assists those who receive pension benefits from 

the Pension Benefit Guaranty Corporation. These individuals did not meet GAO’s EAA criteria and were not included 

in the scope of this report. 
Page 10 GAO-19-85R Economic Adjustment Assistance

Enclosure I: Economic Adjustment Assistance Programs 

This enclosure inventories the economic adjustment assistance programs that we identified. We 

sent surveys to agency officials and asked them to confirm or provide information on program 

objectives, eligibility requirements, beneficiaries, obligations, and expenditures. In some cases, 

we also obtained information from agency websites and agency and congressional documents 

to explain certain terms or concepts. In cases where program objectives or eligibility 

requirements changed during the years included in our review (2007, 2010, 2017), we reported 

current program information.

To assess the reliability of the data provided by agencies, we asked officials to identify the 

databases and information sources they used to respond to our survey questions and any 

limitations of the data they provided. We discussed with agency officials any identified data 

limitations and, if unresolved issues remained, we annotated the data as appropriate. In some 

limited circumstances we decided not to report the data due to limitations that might have made 

the data misleading given our scope and context. For the data we included, we found them 

sufficiently reliable for the purposes of this report. 

We did not independently verify the information provided by the agencies or conduct a legal 

analysis to confirm the various descriptions of the programs in this enclosure, such as 

information on their objectives, eligibility requirements, budgetary obligations, and expenditures. 

Further, in developing this report, we did not review or analyze financial data or materials 

prepared by the agencies in connection with the annual budget and appropriations process.

Department of Agriculture - Agricultural Marketing Service

Economic Adjustment Assistance Program

Objectives: To provide economic assistance to mills involved in spinning, paper-making, or 

processing non-woven cotton fabric from bales of upland cotton. This economic 

assistance is intended to keep the domestic cotton milling industry competitive 

internationally.

Year Authorized: 2008

Obligations and Expenditures: See table 2 for the program’s reported obligations and 

expenditures. 

Table 2: USDA Economic Adjustment Assistance Program Obligations and Expenditures for Fiscal Years 

(FY) 2007, 2010, and 2016

Dollars in millions

FY 2007 FY 2010 FY 2016a

Obligations Program did not exist $74.2 $53.9

Expenditures Program did not exist $74.2 $50.5

Source: Officials from the U.S. Department of Agriculture (USDA), Agricultural Marketing Service. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.
Page 11 GAO-19-85R Economic Adjustment Assistance

a

According to USDA officials, FY 2016 data were the most recent data available at the time of our review and expenditures were

lower than obligations because of sequestration. Payments to individual companies were reduced by 6.8 percent, according to 

officials. 

Applicant Eligibility: A person regularly engaged in the business of opening bales of 

eligible upland cotton for the purpose of spinning, paper-making, or processing of nonwoven cotton fabric in the United States, and who has entered into an agreement with 

the Commodity Credit Corporation to participate in the program.1

Beneficiary Eligibility: A person regularly engaged in the business of opening bales of 

eligible upland cotton for the purpose of spinning, paper-making, or processing of nonwoven cotton fabric in the United States, and who has entered into an agreement with 

the Commodity Credit Corporation to participate in the program.

Beneficiaries Served: See table 3. 

Table 3: Number of Beneficiaries Who Received USDA Economic Adjustment Assistance Program Benefits 

or Services in Program Years (PY) 2007, 2010, and 2016

PY 2007 PY 2010 PY 2016a

Businesses served Program did not exist 56 42

Source: Officials from the U.S. Department of Agriculture (USDA), Agricultural Marketing Service. │ GAO-19-85R

Note: The program year is October 1 through September 30.

a

According to USDA officials, PY 2016 data were the most recent program data available at the time of our review.

Appalachian Regional Commission

Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) 

Initiative

Objectives: As part of its overall authority, the Appalachian Regional Commission (ARC) 

administers the POWER Initiative. POWER is designed to assist communities that have 

been adversely affected by the recent decline in the coal industry. 

Year Authorized: 20162 

Obligations and Expenditures: See table 4 for the program’s reported obligations and 

expenditures. 

 1

The Commodity Credit Corporation is a government-owned and operated entity that was created to stabilize, 

support, and protect farm income and prices. 

2

According to ARC officials, the commission’s Appalachian Area Development program was authorized in 1965. 

Under this program, the POWER Initiative was launched in 2016, pursuant to language in the agency’s appropriation, 

according to officials. 
Page 12 GAO-19-85R Economic Adjustment Assistance

Table 4: ARC Partnerships for Opportunity and Workforce and Economic Revitalization Initiative Obligations 

and Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations Program did not exist Program did not exist $59.4

Expenditures Program did not exist Program did not exist $9.9

Source: Officials from the Appalachian Regional Commission (ARC). │ GAO-19-85R

Notes: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to 

ARC officials, ARC receives a “no-year” appropriation, which is an appropriation that is available for obligation for an indefinite 

period, and so obligations and associated expenditures may not track directly within specific fiscal years. In addition to direct 

obligations and expenditures, ARC occasionally transfers money to other federal agencies for administering ARC-approved grants, 

according to ARC officials. According to the officials, as of August 2018, ARC had transferred Partnerships for Opportunity and 

Workforce and Economic Revitalization (POWER) Initiative funds that were obligated in fiscal year 2017 to the Department of

Commerce, Economic Development Administration ($3,448,673); Department of Housing and Urban Development ($750,000); and 

the Department of Agriculture, Rural Development ($1,971,843). ARC included these transfers in the total obligations amount 

provided, but did not include them in the total expenditures amount provided because the commission did not know the extent to 

which those funds were expended by the other agencies, according to officials. 

Applicant Eligibility: Eligible applicants are states, their subdivisions and 

instrumentalities, and private nonprofit agencies.

Beneficiary Eligibility: Eligible beneficiaries are state, local, and nonprofit organizations.

Beneficiaries Served: See table 5. 

Table 5: Number of Beneficiaries Receiving ARC Partnerships for Opportunity and Workforce and Economic 

Revitalization Initiative Benefits or Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010 PY 2017

Individuals served Program did not exist Program did not exist 49,034a

Businesses served Program did not exist Program did not exist 3,760b

Communities served Program did not exist Program did not exist 384c

Source: Officials from the Appalachian Regional Commission (ARC). │ GAO-19-85R

Notes: According to ARC officials, beneficiaries served are estimates from grantees for Partnerships for Opportunity and Workforce 

and Economic Revitalization (POWER) Initiative projects. Before a project is approved and implemented, ARC staff review grant

application estimates to determine if they are consistent with the measures ARC generally tracks. ARC also provides grantees 

technical assistance on developing accurate performance measures and the ARC website provides additional guidance and 

examples. The program year is October 1 through September 30.

a

According to ARC officials, this includes 26,116 students served by an education project; 10,910 workers/trainees served by a 

training project; 6,323 participants in projects such as a planning process, leadership program, or health promotion activity; and 

5,685 patients receiving clinical services as the result of a health project.

b

According to ARC officials, this represents the number of businesses served or created as a result of POWER Initiative projects. 

The types of services received by the businesses include: access to capital (e.g., angel funds, revolving loan funds); access to 

business incubators; business site development (e.g., infrastructure); data network support; strategies to assist specific sectors; 

tourism development; workforce training; career and technical education; and a range of business technical assistance. 
Page 13 GAO-19-85R Economic Adjustment Assistance

c

According to ARC officials, community is defined by the grantee and is generally defined as a geographic area, but could also

describe groups with common interests, characteristics, social systems, or business sectors.

Department of Commerce – Economic Development Administration

Assistance to Coal Communities

Objectives: To assist communities severely affected by the declining use of coal through 

activities and programs that support economic diversification, job creation, capital 

investment, workforce development, and re-employment opportunities.

Year Authorized: 20153

Obligations and Expenditures: See table 6 for the program’s reported obligations and 

expenditures. 

Table 6: Commerce Assistance to Coal Communities Obligations and Expenditures for Fiscal Years (FY) 

2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations Program did not exist Program did not exist $30.7

Expenditures Program did not exist Program did not exist $5.3

Source: Officials from the Department of Commerce, Economic Development Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.

Applicant Eligibility: Eligible applicants for financial assistance include a(n): (1) district 

organization of a designated economic development district; (2) Indian tribe or a 

consortium of Indian tribes; (3) state, county, city, or other political subdivision of a state, 

including a special purpose unit of a state or local government engaged in economic or 

infrastructure development activities, or a consortium of political subdivisions; (4) 

institution of higher education or a consortium of institutions of higher education; or (5) 

public or private non-profit organization or association acting in cooperation with officials 

of a political subdivision of a state. Individuals and for-profit entities are not eligible for 

economic adjustment assistance under the Assistance to Coal Communities program. 

Beneficiary Eligibility: Eligible beneficiaries are communities or regions that have been 

affected by, or can reasonably demonstrate that they will be affected by, coal mining or 

coal power plant employment loss, or employment loss in the supply chain industries of 

either.

 3

According to Department of Commerce officials, the Assistance to Coal Communities (ACC) program is part of the 

Economic Development Administration’s Economic Adjustment Assistance program. Fiscal year 2015 was the first 

year funds were appropriated for the Assistance to Coal Communities program as a separate budget line item, 

according to officials.
Page 14 GAO-19-85R Economic Adjustment Assistance

Beneficiaries Served: See table 7. 

Table 7: Number of Beneficiaries Who Received Commerce Assistance to Coal Communities Benefits or 

Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010 PY 2017

Communities serveda Program did not exist Program did not exist 37

Source: Officials from the Department of Commerce (Commerce), Economic Development Administration. │ GAO-19-85R

Note: The program year is October 1 through September 30.

a

According to Commerce officials, grantees may define “community” as a census tract, city, region, county, or economic 

development district. As such, officials said they reported the number of grantees as a proxy for the number of communities served.

Economic Adjustment Assistance

Objectives: To address the needs of distressed communities experiencing adverse 

economic changes that may occur suddenly or over time, and generally result from 

industrial or corporate restructuring, new federal laws or requirements, reduction in 

defense expenditures, depletion of natural resources, or natural disasters. Economic 

Adjustment Assistance grants are intended to enhance a distressed community's ability 

to compete economically by stimulating private investment in targeted areas. Current 

investment priorities include proposals that focus on (1) recovery and resilience, (2) 

critical infrastructure, (3) workforce development and manufacturing, and (4) exports and 

foreign direct investment.

Year Authorized: 1965

Obligations and Expenditures: See table 8 for the program’s reported obligations and 

expenditures. 

Table 8: Commerce Economic Adjustment Assistance Obligations and Expenditures for Fiscal Years (FY) 

2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations $51.3 $44.0 $42.3

Expenditures $43.1 $47.3 $33.1

Source: Officials from the Department of Commerce (Commerce), Economic Development Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. Amounts do not 

include funds obligated and expended under the Assistance to Coal Communities (ACC) program because Commerce officials said 

they consider ACC to be a separate program. Therefore, information on the ACC program is presented separately in this report.

Applicant Eligibility: Under the Public Works and Economic Development Act of 1965 

(PWEDA), eligible applicants for investment assistance include a state,4 city, county, or 

 4

“State” includes the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the 

Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of 

Micronesia, and the Republic of Palau.
Page 15 GAO-19-85R Economic Adjustment Assistance

other political subdivision of a state, including a(n): (1) district organization; (2) Indian 

tribe or a consortium of Indian tribes; (3) state, city, or other political subdivision of a 

state, including a special purpose unit of a state or local government engaged in 

economic or infrastructure development activities, or consortium of such political 

subdivisions; (4) institution of higher education or a consortium of such institutions; or (5) 

public or private non-profit organization or association acting in cooperation with officials 

of a political subdivision of a state. Projects eligible for program assistance also include 

those located in regions that meet “Special Need” criteria. 

For-profit, private sector entities do not qualify for economic adjustment assistance 

under PWEDA; therefore, the program does not provide grants directly to individuals or 

for-profit entities. These entities may refer requests for assistance to state or local 

agencies, or to non-profit economic development organizations.

Beneficiary Eligibility: Eligible beneficiaries are communities who satisfy one or more 

criteria related to economic distress and/or “Special Need.” Communities may use funds 

to revitalize, expand, or upgrade their economic development assets to attract new 

industry, encourage business expansion, diversify their local economies, and generate 

or retain long-term private sector jobs and capital investments.

Beneficiaries Served: See table 9. 

Table 9: Number of Beneficiaries Who Received Commerce Economic Adjustment Assistance Benefits or 

Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010 PY 2017

Communities serveda 122 81 64

Source: Officials from the Department of Commerce (Commerce), Economic Development Administration. │ GAO-19-85R

Notes: The program year is October 1 through September 30. Beneficiaries do not include those who received assistance under the 

Assistance to Coal Communities (ACC) program because Commerce officials said they consider ACC to be a separate program. 

Therefore, information on the ACC program is presented separately in this report.

a

According to Commerce officials, grantees may define “community” as a census tract, city, region, county, or economic 

development district. As such, officials said they reported the number of grantees as a proxy for the number of communities served.

Trade Adjustment Assistance for Firms

Objectives: To help economically distressed U.S. businesses build strategies to increase 

their global competitiveness.5 The program provides technical assistance to U.S. 

businesses experiencing declining sales and employment where increased imports of 

similar goods and services contributed importantly to such declines. Technical 

assistance is provided through a nationwide network of 11 Economic Development 

Administration-funded Trade Adjustment Assistance Centers. If the total adjustment 

assistance provided is $30,000 or less, the Trade Adjustment Assistance for Firms 

(TAAF) program pays up to 75 percent of the cost of the assistance provided by privatesector consultants and contractors for operational improvements at certified businesses.

If the total adjustment assistance provided is more than $30,000, TAAF pays up to 50 

percent of the cost of the assistance. 

 5

For the purposes of this report, we used the terms businesses and firms synonymously.
Page 16 GAO-19-85R Economic Adjustment Assistance

Year Authorized: 19626

Obligations and Expenditures: See table 10 for the program’s reported obligations and 

expenditures. 

Table 10: Commerce Trade Adjustment Assistance for Firms Obligations and Expenditures for Fiscal Years 

(FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations $15.6 $15.6 $13.3

Expenditures $15.0 $14.8 $10.8a

Source: Officials from the Department of Commerce (Commerce), Economic Development Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.

a

According to Commerce officials, expenditures for 2017 are estimated because grantees received extensions on their FY 2017 

awards until April 30, 2019; therefore, end-of-year budget reports were not yet due at the time of our review.

Applicant Eligibility: Grants may be awarded to intermediary organizations, including 

Trade Adjustment Assistance Centers, to provide assistance to trade-injured 

businesses.

Beneficiary Eligibility: Only businesses certified by the Economic Development 

Administration on behalf of the Secretary of Commerce are eligible for assistance. 

Businesses must demonstrate that increased imports of similar goods and services have 

contributed importantly to decreased sales and employment. 

Beneficiaries Served: See table 11. 

Table 11: Number of Beneficiaries Who Received Commerce Trade Adjustment Assistance for Firms Benefits 

or Services in Fiscal Years (FY) 2007, 2010, and 2017

FY 2007 FY 2010 FY 2017

Businesses served 174 1,068 676

Source: Officials from the Department of Commerce (Commerce), Economic Development Administration. │ GAO-19-85R

Notes: According to Commerce officials, businesses may receive assistance in preparing their petitions, developing their recovery 

plans, and/or implementing their recovery plans. Businesses can receive assistance for up to 5 years following approval of their 

business recovery plan, according to officials. For example, businesses with recovery plans approved in 2002 could receive 

assistance in FY 2007. 

 6

According to Commerce officials, TAAF was authorized in 1962 but the program did not take on its current form until 

1975.
Page 17 GAO-19-85R Economic Adjustment Assistance

Department of Defense - Office of Economic Adjustment

Community Economic Adjustment Assistance for Advance Planning and Economic 

Diversification

Objectives: To assist state and local governments to reduce an area's dependence on 

defense expenditures by preparing economic diversification strategies, and contingency 

strategies and schematic land use plans for the potential redevelopment of a military

installation prior to closure or realignment decisions.

Year Authorized: 1981

Obligations and Expenditures: See table 12 for the program’s reported obligations and 

expenditures. 

Table 12: DOD Community Economic Adjustment Assistance for Advance Planning and Economic 

Diversification Obligations and Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligationsa $0.2 $0.7 $1.7

Expendituresb $0.2c $0.7c $0.6

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to

DOD officials, these obligations and expenditures are related to budget reductions and economic diversification. Obligations and 

expenditures for advance planning related to base realignment and closure were awarded under the Community Economic 

Adjustment Assistance for Realignment or Closure of a Military Installation program, officials said.

a

According to DOD officials, all grant funds were obligated in the year the grants were awarded.

b

According to DOD officials, the expenditure amounts reported include all expenditures for grants obligated in the year indicated, 

even if the funds were actually expended in another year.

c

According to DOD officials, expenditures are estimated because the Office of Economic Adjustment no longer maintains the data 

system it used in fiscal years 2007 and 2010. As a result, the amount that might have been de-obligated at the end of a grant’s 

lifecycle could not be easily confirmed; however, these grants did not often have funds de-obligated because grantees were able to 

correctly predict the financial needs of the grants in advance, officials said. 

Applicant Eligibility: Eligible applicants are states, counties, municipalities, other political 

subdivisions of a state, special purpose units of a state or local government, and tribal 

nations where a substantial portion of economic activity or population of the applicant's 

geographic area is dependent on defense expenditures. The Office of Economic 

Adjustment must determine, in consultation with the affected state or community, that a 

substantial portion of the economic activity or population of the geographic area subject 

to the planning under this program is dependent on Department of Defense (DOD) 

expenditures. For purposes of eligibility determination, an area is considered defensedependent if it can demonstrate that (1) direct military and civilian employment totals at 

least one and a half times the national level of defense employment as a percent of the 

total U.S. labor force or (2) defense-related expenditures comprise at least one and a 

half times the defense percent of gross domestic product.
Page 18 GAO-19-85R Economic Adjustment Assistance

Beneficiary Eligibility: Eligible beneficiaries are states and communities, including 

workers, businesses, and other community interests that could be affected by defense 

budget reductions and base closures/realignments.

Beneficiaries Served: See table 13. 

Table 13: Number of Beneficiaries Who Received DOD Community Economic Adjustment Assistance for 

Advance Planning and Economic Diversification Benefits or Services in Program Years (PY) 2007, 2010, and 

2017

PY 2007 PY 2010 PY 2017

Individuals served 0a 20 225

Businesses served 0a 74b 996c

Communities servedd 1e 5f 23g

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Notes: According to DOD officials, the number of beneficiaries receiving benefits or services is estimated from grant applications. An 

estimate of impact is not an eligibility requirement for this program; therefore, estimates in grant applications can vary by grantee 

and are not verified by the agency. A majority of the grant applications focused on organizing, analyzing data, and developing a 

strategic plan to respond to impacts from changes in defense policy. These efforts built communities’ capacity to make economic 

adjustments, but individual beneficiaries may not be captured consistently in reporting, according to officials. The program year is 

October 1 through September 30.

a

According to DOD officials, no requests for program assistance were received from individuals or businesses in this year.

b

According to DOD officials, 74 businesses received outreach or information.

c

According to DOD officials, this is the minimum number of businesses that received services (920 businesses received outreach or 

information and 76 received direct technical assistance). Twenty workshops were also provided to businesses.

d

According to DOD officials, they attempted to reduce instances of double-counting the number of communities served (e.g., cities 

with counties, counties with regions, etc.); however, some possibility of double-counting exists. Community is defined by each grant, 

which focused on the area of defense impact, and could be one county with several cities, multiple counties, or a Metropolitan 

Statistical Area/region, according to officials.

e

According to DOD officials, one grant served one region.

f

According to DOD officials, two grants served five cities.

g

According to DOD officials, 3 grants served 9 cities, 13 counties, and 1 Metropolitan Statistical Area/region.
Page 19 GAO-19-85R Economic Adjustment Assistance

Community Economic Adjustment Assistance for Realignment or Closure of a Military 

Installation

Objectives: To assist states and local governments to plan and carry out adjustment 

strategies; engage the private sector to plan and undertake community economic 

development and base redevelopment; and partner with the military departments in

response to the proposed or actual realignment or closure of a military installation by the 

Department of Defense (DOD).

Year Authorized: 19887

Obligations and Expenditures: See table 14 for the program’s reported obligations and 

expenditures. 

Table 14: DOD Community Economic Adjustment Assistance for Realignment or Closure of a Military 

Installation Obligations and Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligationsa $20.2 $15.8 $4.9

Expendituresb $20.2c $15.8c $2.3

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to

DOD officials, in January 2018 a new program, Community Economic Adjustment Assistance for Establishment or Expansion of a 

Military Installation, was established to address base establishment and expansion. Information on grants related to base expansion 

or establishment awarded under the Community Economic Adjustment Assistance for Realignment or Closure of a Military 

Installation is not included as it did not meet our definition of economic adjustment assistance.

a

According to DOD officials, all grant funds were fully obligated in the year the grants were awarded.

b

According to DOD officials, the expenditure amounts reported include all expenditures for grants obligated in the year indicated, 

even if the funds were actually expended in another year.

c

According to DOD officials, expenditures are estimated because the Office of Economic Adjustment no longer maintains the data 

system it used in fiscal years 2007 and 2010. As a result, the amount that might have been de-obligated at the end of a grant’s 

lifecycle could not be easily confirmed, but officials estimated that less than 10 percent of the funds were de-obligated. 

Applicant Eligibility: Eligible applicants are states, counties, municipalities, other political 

subdivisions of a state, special purpose units of a state or local government, and tribal 

nations if it is likely that a proposed or actual realignment or closure of a military 

installation will have a direct and significant adverse consequence on the affected 

community. Where multiple jurisdictions may be affected, one program of assistance will 

be available and the affected jurisdictions will need to combine their efforts into one 

responsive program.

Beneficiary Eligibility: Eligible beneficiaries are states and communities, including 

workers, businesses, and other community interests that are affected by DOD base 

closures and realignments.

 7

According to DOD officials, this was the year the program was created in the Catalog of Federal Domestic 

Assistance (CFDA) and the legal authority for the program predates the CFDA.
Page 20 GAO-19-85R Economic Adjustment Assistance

Beneficiaries Served: See table 15. 

Table 15: Number of Beneficiaries Who Received DOD Community Economic Adjustment Assistance for 

Realignment or Closure of a Military Installation Benefits or Services in Program Years (PY) 2007, 2010, and 

2017

PY 2007 PY 2010 PY 2017

Communities serveda 49b 37c 12d

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Notes: According to DOD officials, the number of beneficiaries receiving benefits or services is estimated from grant applications. 

The program year is October 1 through September 30.

a

According to DOD officials, city, county, regional, or state communities can be: (1) an entity of state or local government or (2) a 

local redevelopment authority recognized by DOD’s Office of Economic Adjustment.

b

According to DOD officials, 49 grants served 43 regional communities, 3 states, and 3 counties.

c

According to DOD officials, 37 grants served 32 regional communities, 4 states, and 1 county.

d

According to DOD officials, 12 grants served 10 regional communities, 1 county, and 1 city.

Community Economic Adjustment Assistance for Reductions in Defense Industry 

Employment

Objectives: To assist states and local governments to plan and carry out community 

adjustment and economic diversification activities in response to reductions in defense 

industry employment.

Year Authorized: 1981

Obligations and Expenditures: See table 16 for the program’s reported obligations and 

expenditures. 

Table 16: DOD Community Economic Adjustment Assistance for Reductions in Defense Industry 

Employment Obligations and Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligationsa $0b $1.0 $6.8

Expendituresc $0b $1.0d $1.1

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.

a

According to DOD officials, all grant funds were fully obligated in the year the grants were awarded.

b

According to DOD officials, no requests for program assistance were received in this year.

c

According to DOD officials, the expenditure amounts reported include all expenditures for grants obligated in the year indicated, 

even if the funds were actually expended in another year.
Page 21 GAO-19-85R Economic Adjustment Assistance

d

According to DOD officials, expenditures are estimated because the Office of Economic Adjustment no longer maintains the data

system it used in fiscal years 2007 and 2010. As a result, the amount that might have been de-obligated at the end of a grant’s 

lifecycle could not be easily confirmed, but officials estimated that between five and seven percent of the funds were de-obligated. 

Applicant Eligibility: Eligible applicants are states, counties, municipalities, other political 

subdivisions of a state, special purpose units of a state or local government, and tribal 

nations if there is: (1) a publicly-announced, planned major reduction in Department of 

Defense (DOD) spending; (2) the closure or significantly-reduced operations of a 

defense facility as the result of the merger, acquisition, or consolidation of the defense 

contractor operating the defense facility;(3) the cancellation or termination of a DOD 

contract; or (4) the failure to proceed with an approved major weapon system program if 

these actions will have a direct and significant adverse impact on a community or its 

residents. To be considered for this assistance, the local action must result in the loss of 

2,500 or more employee positions, in the case of a Metropolitan Statistical Area (MSA); 

1,000 or more employee positions, in the case of a labor market area outside of an MSA; 

or 1 percent of the total number of civilian jobs in that area.

Beneficiary Eligibility: Eligible beneficiaries are states and communities, including 

workers, businesses, and other community interests, that may be affected by defense 

actions.

Beneficiaries Served: See table 17. 

Table 17: Number of Beneficiaries Who Received DOD Community Economic Adjustment Assistance for 

Reductions in Defense Industry Employment Benefits or Services in Program Years (PY) 2007, 2010, and 

2017

PY 2007 PY 2010 PY 2017

Individuals served 0a 0a 630b

Businesses served 0a 74c 526d

Communities servede 0a 1f 74g

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Notes: According to DOD officials, the number of beneficiaries receiving benefits or services is estimated from grant applications 

and estimates of program beneficiaries vary in grant applications. A majority of grants focused on organizing, analyzing data, and 

developing a strategic plan in response to defense-related impacts. These efforts built a community’s capacity to make economic 

adjustments, but beneficiaries may not be captured consistently in reporting, officials said. The program year is October 1 through 

September 30.

a

According to DOD officials, no requests for program assistance were received in this year.

b

According to DOD officials, these individuals were workers affected by defense-related impacts.

c

According to DOD officials, the businesses and workforce of East Hartford, Connecticut, were assessed to determine the impact of 

reductions in defense spending.

d

According to DOD officials, this is the minimum number of businesses that received services (362 businesses received outreach or 

information and 93 received direct technical assistance). Seventy-one workshops were also provided to businesses.

e

According to DOD officials, each grant focused on an area affected by defense-related impacts. An area could be one county with 

several cities, multiple counties, or a Metropolitan Statistical Area/region. Officials said they made an effort to reduce instances of 

double-counting the number of communities served (e.g., cities with counties, counties with regions, etc.); however, some possibility 

of double-counting exists.

 

f

According to DOD officials, one grant served one region.
Page 22 GAO-19-85R Economic Adjustment Assistance

g

According to DOD officials, 5 grants served 39 cities, 34 counties, and 1 Metropolitan Statistical Area/region.

Economic Adjustment Assistance for State Governments

Objectives: To provide technical and financial assistance that enhances the capacities of a 

state, or an entity of state government, to assist communities, businesses, and workers 

affected by defense program activity to plan and carry out community adjustment and 

economic diversification activities; support local adjustment and diversification efforts; 

and stimulate cooperation between statewide and local adjustment and diversification 

efforts.

Year Authorized: 20138

Obligations and Expenditures: See table 18 for the program’s reported obligations and 

expenditures. 

Table 18: DOD Economic Adjustment Assistance for State Governments Obligations and Expenditures for 

Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligationsa Program did not exist Program did not exist $19.2

Expendituresb Program did not exist Program did not exist $6.1

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment Assistance. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.

a

According to DOD officials, all grant funds were fully obligated in the year the grants were awarded.

b

According to DOD officials, the expenditure amounts reported include all expenditures for grants obligated in the year indicated, 

even if the funds were actually expended in another year.

Applicant Eligibility: Eligible applicants are states, entities of states, Indian tribal 

governments, the District of Columbia, and U.S. territories and possessions.

Beneficiary Eligibility: Eligible beneficiaries are states, Indian tribal governments, and 

communities, including workers, businesses, and other community interests affected by 

defense budget reductions, base closures/realignments, and/or civilian encroachment 

that is likely to impair the continued operational utility of a military installation.

Beneficiaries Served: See table 19. 

 8

According to DOD officials, this was the year the program was created in the CFDA and the legal authority for the 

program predates the CFDA. 
Page 23 GAO-19-85R Economic Adjustment Assistance

Table 19: Number of Beneficiaries Who Received DOD Economic Adjustment Assistance for State 

Governments Benefits or Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010 PY 2017

Individuals served Program did not exist Program did not exist 990

Businesses served Program did not exist Program did not exist 5,094a

Communities servedb Program did not exist Program did not exist 75c

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Notes: According to DOD officials, the number of beneficiaries receiving benefits or services is estimated from grant applications. A 

majority of the grant applications focused on organizing, analyzing data, and developing a strategic plan to respond to defenserelated impacts. These efforts built communities’ capacity to make economic adjustments, but beneficiaries may not be captured 

consistently in reporting, officials said. The program year is October 1 through September 30.

a

According to DOD officials this is the minimum number of businesses that received services (4,080 businesses received outreach 

or information and 1,014 received direct technical assistance). Ninety-six workshops were also provided to businesses.

b

According to DOD officials, each grant focused on an area affected by defense-related impacts. An area could be one county with 

several cities, multiple counties, or a Metropolitan Statistical Area/region. Officials said they made an effort to reduce instances of 

double-counting the number of communities served (e.g., cities with counties, counties with regions, etc.); however, some possibility 

of double-counting exists.

 

c

According to DOD officials, 14 grants served 14 states, 48 counties, and 13 Metropolitan Statistical Areas/regions.

Research and Technical Assistance

Objectives: To make awards to, or conclude cooperative agreements with, states or local 

governments, or any nongovernmental or other private entity, for research and the 

provision of technical assistance related to community economic adjustment needs and 

assistance under 10 U.S.C. § 2391(c), or Executive Order 12788, as amended. Awards 

provided support to the Office of Economic Adjustment, as well as the Defense 

Economic Adjustment Program, by (1) developing and analyzing information for program 

and policy considerations and (2) undertaking special research.

Year Authorized: 1981

Obligations and Expenditures: See table 20 for the program’s reported obligations and 

expenditures. 

Table 20: DOD Research and Technical Assistance Obligations and Expenditures for Fiscal Years (FY) 2007, 

2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligationsa $0.6 $0.6 $0.7

Expendituresb $0.6c $0.6c $0.4

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.
Page 24 GAO-19-85R Economic Adjustment Assistance

a

According to DOD officials, all grant funds were fully obligated in the year the grants were awarded.

b

According to DOD officials, the expenditure amounts reported include all expenditures for grants obligated in the year indicated, 

even if the funds were actually expended in another year.

c

According to DOD officials, expenditures are estimated because the Office of Economic Adjustment no longer maintains the data 

system it used in fiscal years 2007 and 2010. As a result, the amount that might have been de-obligated at the end of a grant’s 

lifecycle could not be easily confirmed, but officials estimated that five percent of the funds or less were de-obligated. 

Applicant Eligibility: Eligible applicants are a state or local governmental or private entity. 

A “private entity” is defined for purposes of this listing as any entity that is 

nongovernmental.

Beneficiary Eligibility: Eligible beneficiaries are states and communities, including 

workers, businesses, and other community interests that may be affected by DOD 

activity.

Beneficiaries Served: See table 21. 

Table 21: Number of Beneficiaries Who Received DOD Research and Technical Assistance Benefits or 

Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010a PY 2017a

Communities served 55b 53c 49d

Source: Officials from the Department of Defense (DOD), Office of Economic Adjustment. │ GAO-19-85R

Note: The program year is October 1 through September 30.

a

According to DOD officials, the number of communities receiving benefits or services in PY 2010 and PY 2017 is estimated from

grant applications.

b

According to DOD officials, grantees developed a technical assistance program for state governments responding to base 

realignment and closure. The program provided information to all 50 states and 5 territories. In addition, an internal Joint Land Use 

Study program identified evaluation options, but this program did not provide benefits or services directly to communities. Some 

communities that benefited indirectly from this program may have also been included in the number of communities that benefited 

from the Community Economic Adjustment Assistance for Realignment or Closure of a Military Installation and the Community 

Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies programs.

c

According to DOD officials, grantees conducted an economic indicators evaluation that provided technical assistance to 52 

communities and 1 territory (Guam) affected by base closure or growth. While base growth was not within our scope, officials said 

they were not able to separate growth communities from those that experienced closure. Some communities that benefited indirectly 

from this program may have also been included in the number of communities that benefitted from the Community Economic 

Adjustment Assistance for Realignment or Closure of a Military Installation program, officials said.

d

According to DOD officials, this program evaluated 49 Office of Economic Adjustment defense-industry program grantees. 

Grantees could be one county with several cities, multiple counties, or a Metropolitan Statistical Area/region. As such, there was 

overlap in the benefits the grantees received, and potential overlap in benefits among the grantees’ indirect beneficiaries, such as 

individuals, businesses, or communities. Of the 49 grantees that were evaluated, 38 focused on assessing linkages between small 

and medium defense firms to help them fulfill DOD procurement needs as required; 36 focused on enhancing the capacity of the 

region/state to support their supply chain more effectively; 25 focused on helping small or medium defense companies diversify their 

products, customers, or markets; 23 engaged in planning activities to understand their strengths, weaknesses, opportunities, and 

threats or engage local/region/state partner organizations to support defense-dependent companies; 17 assisted with establishing 

new businesses to fill supply chain gaps or create new opportunities for dislocated defense workers through entrepreneurship; and 

16 provided workforce training or career planning to workers currently or previously employed in the defense industry. Some 

communities that benefited indirectly from this program may have also been included in the number of communities benefiting from 

the Community Economic Adjustment Assistance for Advance Planning and Economic Diversification, Community Economic 

Adjustment Assistance for Reductions in Defense Industry Employment, and Economic Adjustment Assistance for State 

Governments programs.
Page 25 GAO-19-85R Economic Adjustment Assistance

Department of Labor - Employment and Training Administration

Health Coverage Tax Credit (HCTC) Infrastructure National Dislocated Worker Grants

Objectives: To provide states with funds to ensure they have the infrastructure to provide 

HCTC assistance and support related services to eligible Trade Adjustment Assistance 

(TAA), Alternative Trade Adjustment Assistance (ATAA), and Reemployment Trade 

Adjustment Assistance (RTAA) recipients.

Year Authorized: 2002, 2009, 20159

Obligations and Expenditures: See table 22 for the program’s reported obligations and 

expenditures. 

Table 22: DOL Health Coverage Tax Credit Infrastructure National Dislocated Worker Grants Obligations and 

Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations Program did not exist $12.0 $1.3

Expenditures Program did not exist $4.7 —a

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.

a

According to DOL officials, expenditures in this year were $4,590, which were lower than obligations because grants were awarded 

late in the fiscal year leaving limited time for the expenditure of obligated funds.

Applicant Eligibility: Eligible applicants include states.10

Beneficiary Eligibility: Eligible beneficiaries include states.

Beneficiaries Served: See table 23. 

Table 23: Number of Beneficiaries Who Received DOL Health Coverage Tax Credit Infrastructure National 

Dislocated Worker Grants Benefits or Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010 PY 2017

States served Program did not exist 16a 6a

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: The program year is October 1 through September 30.

 9

According to DOL officials, the Health Coverage Tax Credit Infrastructure National Dislocated Worker Grants 

program has been authorized during the following time periods: 2002-2006, 2009-2013, and 2015-current.

10According to DOL officials, states may apply for Health Coverage Tax Credit Infrastructure National Dislocated 

Worker Grants to cover administrative costs, notifying workers, public education about the benefit, staff training, and 

outreach activities related to the reinstatement of the advance monthly payment option of the HCTC.
Page 26 GAO-19-85R Economic Adjustment Assistance

a

According to DOL officials, this number includes grants awarded in previous years that were still active as well as those awarded in 

the specified year.

National Dislocated Worker Grant Program 

Workforce Innovation and Opportunity Act (WIOA) National Dislocated Worker 

Grants 

Objectives: To temporarily expand service capacity at the state and local levels by 

providing time-limited funding assistance in response to significant dislocation events. 

Significant events are those that create a sudden need for assistance that cannot 

reasonably be expected to be accommodated within the ongoing operations of the 

formula-funded Dislocated Worker program, including the discretionary resources 

reserved at the state level.

Year Authorized: 199811

Obligations and Expenditures: See table 24 for the program’s reported obligations and 

expenditures.12

Table 24: DOL Workforce Innovation and Opportunity Act National Dislocated Worker Grants Obligations and 

Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations $57.1 $238.7 $120.1

Expenditures $54.9a $151.2 $175.4

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to 

DOL officials, this program was originally authorized under the Workforce Investment Act of 1998 (WIA) as the WIA National 

Emergency Grant program and was reauthorized under the Workforce Innovation and Opportunity Act (WIOA) in 2014 as the WIOA 

National Dislocated Worker Grants program.

a

According to DOL officials, expenditures for FY 2007 are estimated because some data are not available following the department’s 

move to a new accounting system. 

 11According to DOL officials, this program was originally authorized under the Workforce Investment Act of 1998 

(WIA) (Pub. L. No. 105–220) as the WIA National Emergency Grant program and was reauthorized under the 

Workforce Innovation and Opportunity Act (WIOA) (Pub. L. No. 113-128) in 2014 as the WIOA National Dislocated 

Worker Grants program.

12According to DOL officials, funds for the three subcomponents of the National Dislocated Worker Grant Program 

are appropriated within the Dislocated Worker National Reserve. The three subcomponents are: (1) WIOA National 

Dislocated Worker Grants, (2) WIOA Dislocated Worker National Reserve Demonstration Grants, and (3) WIOA 

Dislocated Worker National Reserve Technical Assistance and Training, according to officials.
Page 27 GAO-19-85R Economic Adjustment Assistance

Applicant Eligibility: Entities that are eligible to receive National Dislocated Worker 

Grants addressing major economic dislocations include states; local workforce 

development boards; a consortium of local boards; an organization eligible to receive 

WIOA funding through the Native American Program provisions of WIOA; and a 

consortium of states. 

Other eligible entities include those determined to be eligible by the governor of the state 

involved, and any other entity that demonstrates to the Secretary of Labor the capability 

to effectively respond to the circumstances relating to particular dislocations. The entities 

eligible to receive a National Dislocated Worker Grant responding to a disaster are 

states, outlying areas, and Indian tribal governments.

Beneficiary Eligibility: Individuals who are eligible for assistance vary by type of National 

Dislocated Worker Grant project; however, they must meet the criteria provided in WIOA 

and the applicable regulations.13

Beneficiaries Served: See table 25. 

Table 25: Number of Beneficiaries Who Received DOL Workforce Innovation and Opportunity Act National 

Dislocated Worker Grants Benefits or Services in Program Years (PY) 2007, 2010, and 2016

PY 2007 PY 2010 PY 2016a

Individuals served 44,653b 61,566c 21,854d

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Notes: The program year is July 1 through September 30 of the following year. According to DOL officials, the reason for the 15-

month program year is to allow an extended opportunity for DOL to obligate program funds. The grant period of performance is 

specified in the grant award, and grants are made throughout the year as emergencies or dislocations arise. This program was 

originally authorized under the Workforce Investment Act of 1998 (WIA) as the WIA National Emergency Grant program and was 

reauthorized under the Workforce Innovation and Opportunity Act (WIOA) in 2014 as the WIOA National Dislocated Worker Grants 

program, officials said.

a

According to DOL officials, PY 2016 was the most recent year of program data available at the time of our review. There may be 

some limitations to these data because DOL implemented a new reporting system in PY 2016 and some states may still be updating 

their reporting systems to meet the new requirements, officials said.

b

According to DOL officials, 30 states received funds to provide services.

c

According to DOL officials, 50 states received funds to provide services.

d

According to DOL officials, 20 states received funds to provide services.

 13According to DOL officials, the applicable regulations are found in 20 C.F.R. Part 687.
Page 28 GAO-19-85R Economic Adjustment Assistance

National Dislocated Worker Grant Program 

WIOA Dislocated Worker National Reserve Demonstration Grants 

Objectives: To carry out demonstration and pilot projects for the purpose of developing and 

implementing techniques and approaches, and demonstrating the effectiveness of 

specialized methods, in addressing employment and training needs of dislocated 

workers.

Year Authorized: 199814

Obligations and Expenditures: See table 26 for the program’s reported obligations and 

expenditures.15

Table 26: DOL Workforce Innovation and Opportunity Act Dislocated Worker National Reserve 

Demonstration Grants Obligations and Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010a FY 2017a

Obligations $21.2 $0 $0

Expenditures $13.4b $20.9 $18.8

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to 

DOL officials, funding for Dislocated Worker National Reserve Demonstration Grants comes from the Dislocated Worker National 

Reserve program. Funding for demonstration grants is optional and can be used for other purposes, according to the officials. In 

some years DOL did not issue any Dislocated Worker National Reserve Demonstration Grants and, instead, allowed the funds to be 

used for other purposes, such as disaster recovery and worker layoffs, officials said. In addition, they said this program was 

originally authorized under the Workforce Investment Act of 1998 and was reauthorized under the Workforce Innovation and 

Opportunity Act in 2014.

a

According to DOL officials, the department did not obligate any funds for demonstration grants in FY 2010 or FY 2017. 

Expenditures during those years are from grants awarded and obligated during prior fiscal years.

b

According to DOL officials, expenditures for FY 2007 are estimated because some data are not available following the department’s 

move to a new accounting system.

Applicant Eligibility: Eligible applicants are defined by the particular announcement or 

solicitation and generally include state and local governments; private non-profit and forprofit organizations, including faith-based and community-based organizations; and 

educational institutions.

Beneficiary Eligibility: Project participants are dislocated workers, incumbent workers,16

and new entrants to the workforce.

 14According to DOL officials, this program was originally authorized under WIA in 1998 and was reauthorized under 

WIOA in 2014.

15According to DOL officials, funds for the three subcomponents of the National Dislocated Worker Grant Program 

are appropriated within the Dislocated Worker National Reserve. The three subcomponents are: (1) WIOA National 

Dislocated Worker Grants, (2) WIOA Dislocated Worker National Reserve Demonstration Grants, and (3) WIOA 

Dislocated Worker National Reserve Technical Assistance and Training, according to officials.
Page 29 GAO-19-85R Economic Adjustment Assistance

Beneficiaries Served: See table 27. 

Table 27: Number of Beneficiaries Who Received DOL Workforce Innovation and Opportunity Act Dislocated 

Worker National Reserve Demonstration Grants Benefits or Services in Program Years (PY) 2007, 2010, and 

2016

PY 2007 PY 2010 PY 2016a

States and local communities awarded grantsb 9c 0d 0d

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Notes: The program year is July 1 through June 30. According to DOL officials, this program was originally authorized under the 

Workforce Investment Act of 1998 and was reauthorized under the Workforce Innovation and Opportunity Act in 2014.

a

According to DOL officials, PY 2016 was the most recent year of program data available at the time of our review.

b

According to DOL officials, demonstration grants are to develop and implement techniques in addressing the employment and 

training needs of dislocated workers and demonstrate their effectiveness. Some projects serve workers directly while others are 

designed to expand capacity or test process improvements and other new interventions. Some of these demonstrations do not have 

unique participants; therefore, the number of dislocated workers directly served cannot be determined, officials said.

c

According to DOL officials, grants were awarded for the following projects: pipeline worker training in Alaska, a workforce 

development planning process in Iowa following the closure of a major employer, regional planning in response to a base 

realignment and closure in Oklahoma, and a test of the Career Advancement Accounts for military spouses in California, Colorado, 

Florida, Georgia, North Carolina, and Washington.

d

According to DOL officials, funding for Dislocated Worker National Reserve Demonstration Grants comes from the Dislocated 

Worker National Reserve program; however, funding for demonstration grants is optional and can be used for other purposes. While 

DOL did not fund demonstration grants in 2010 or 2017, it awarded grants in PY 2011, PY 2014, and PY 2015. Examples of funded

demonstration grants in these years included outreach and employment services for veterans, research on improving employment 

outcomes for youth, and development of innovative strategies to get young people from summer jobs into year-round work and on 

career pathways, officials said. 

National Dislocated Worker Grant Program 

WIOA Dislocated Worker National Reserve Technical Assistance and Training

Objectives: To support the coordination, development, and provision of appropriate 

training, technical assistance, staff development, and other activities. These activities 

include assisting states, local areas, and other entities involved in providing assistance 

to dislocated workers in replicating programs that have demonstrated effectiveness, as 

well as promoting the continuous improvement of assistance provided to dislocated 

workers under the Workforce Innovation and Opportunity Act.

Year Authorized: 199817

 16Workers who already have a job may be considered “incumbent workers,” a term each state board defines.

17According to DOL officials, this program was originally authorized under WIA in 1998 and was reauthorized under 

WIOA in 2014.
Page 30 GAO-19-85R Economic Adjustment Assistance

Obligations and Expenditures: See table 28 for the program’s reported obligations and 

expenditures.18

Table 28: DOL Workforce Innovation and Opportunity Act Dislocated Worker National Reserve Technical 

Assistance and Training Obligations and Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations $5.9 $17.2 $20.9

Expenditures $5.1a $14.8 $26.0

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to 

DOL officials, this program was originally authorized under the Workforce Investment Act of 1998 and was reauthorized under the 

Workforce Innovation and Opportunity Act in 2014.

a

According to DOL officials, expenditures for FY 2007 are estimated because some data are not available following the department’s 

move to a new accounting system. 

Applicant Eligibility: Eligibility is determined through a procurement process and may 

include state and local governments; private non-profit and for-profit organizations, 

including faith-based and community-based organizations; and educational institutions. 

Applicant eligibility may be restricted to one or more applicant classes under the 

particular announcement or solicitation.

Beneficiary Eligibility: Funds are used to promote the continuous improvement of 

assistance provided to dislocated workers.

Beneficiaries Served: See table 29. 

Table 29: Number of Beneficiaries Who Received DOL Workforce Innovation and Opportunity Act Dislocated 

Worker National Reserve Technical Assistance and Training Benefits or Services in Program Years (PY) 

2007, 2010, and 2016

PY 2007 PY 2010 PY 2016a

States awarded grants 2b 16c 4d

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: The program year is July 1 through June 30. According to DOL officials, this program was originally authorized under the 

Workforce Investment Act of 1998 and was reauthorized under the Workforce Innovation and Opportunity Act in 2014.

a

According to DOL officials, PY 2016 was the most recent year for which program data were available at the time of our review.

b

According to DOL officials, grants awarded in 2007 included providing funding to Minnesota for the www.CareerOneStop.org

website (a website designed to provide career information and online services to jobseekers, students, career counselors, and

 18According to DOL officials, funds for the three subcomponents of the National Dislocated Worker Grant Program 

are appropriated within the Dislocated Worker National Reserve. The three subcomponents are: (1) WIOA National 

Dislocated Worker Grants, (2) WIOA Dislocated Worker National Reserve Demonstration Grants, and (3) WIOA 

Dislocated Worker National Reserve Technical Assistance and Training, according to officials.
Page 31 GAO-19-85R Economic Adjustment Assistance

businesses) and to North Carolina for the Analyst Resource Center (a state consortium designed to develop, maintain, and update 

labor market information-related software tools and databases).

c

According to DOL officials, grants awarded in 2010 included funding for the www.CareerOneStop.org website, the Analyst 

Resource Center, and support for other technical assistance initiatives, such as partnering with apprenticeships and career 

pathways. Officials said grants were received by the following states and territories: Alabama, Kentucky, Maine, Massachusetts, 

Minnesota, Mississippi, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Virgin Islands,

Virginia, and West Virginia.

d

According to DOL officials, grants awarded in 2016 included, for example, funding for the www.CareerOneStop.org website, 

operation of the suite of O*NET tools, and implementation of performance reporting changes under the Workforce Innovation and

Opportunity Act. In 2016, Kansas, Maryland, Minnesota, and North Carolina received grants, according to officials.

Trade Adjustment Assistance for Workers

Objectives: To assist workers affected by foreign trade. Through the provision of a number 

of employment-related benefits and services, the Trade Adjustment Assistance (TAA) for 

Workers program provides trade-affected workers with opportunities to obtain the 

support, resources, skills, and credentials they need to return to the workforce in a good 

job in an in-demand industry. The program benefits and services include training, 

employment and case management services, job search allowances, relocation 

allowances, wage supplements for workers aged 50 and older, and Trade Readjustment 

Allowances.19

Year Authorized: 1975

Obligations and Expenditures: See table 30 for the program’s reported obligations and 

expenditures. 

Table 30: DOL Trade Adjustment Assistance for Workers Obligations and Expenditures for Fiscal Years (FY) 

2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations $260.0 $685.0 $391.4

Expenditures $ 222.0 $503.1 $228.9

Source: Officials from the Department of Labor, Employment and Training Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO.

Applicant Eligibility: Eligible applicants are states; local agencies or organizations 

(including state-designated lndian tribes, but excluding institutions of higher education 

and hospitals); small businesses of less than 500 employees; for-profit organizations; 

private non-profit institutions or organizations (including institutions of higher education 

and hospitals); and quasi-public nonprofit institutions or organizations; as well as other 

private institutions or organizations.

 19According to DOL, Trade Readjustment Allowances are income support payments to individuals whose jobs were 

affected by foreign imports, as determined by DOL, and who are participating in full-time training and have exhausted 

Unemployment Compensation. 
Page 32 GAO-19-85R Economic Adjustment Assistance

Beneficiary Eligibility: For a worker to be eligible to apply for TAA, the worker must be 

part of a group of workers that is the subject of a petition filed with the Department of 

Labor (DOL). Three workers of a company, a company official, a union or other duly 

authorized representative, or an American Job Center operator or partner may file the 

petition with the department. In response to the filing, DOL initiates an investigation to 

determine whether foreign trade was an important cause of the workers’ job loss or 

threat of job loss. If the department determines that the workers meet the statutory 

criteria for group certification of eligibility for the workers in the group to apply for TAA, 

the department issues a certification. 

Once covered by a certification, individual workers apply for benefits and services 

through American Job Centers. Most benefits and services have specific individual 

eligibility criteria that must be met, such as previous work history, unemployment 

insurance eligibility, and individual skill levels.

Beneficiaries Served: See table 31. 

Table 31: Number of Beneficiaries Who Received DOL Trade Adjustment Assistance for Workers Benefits or 

Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010 PY 2017

Individuals served Not availablea 65,008b 43,615c

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: The program year is October 1 through September 30.

a

According to DOL officials, data on the number of beneficiaries receiving benefits or services are not available for PY 2007; 

however, an estimated 147,052 workers were certified as eligible to apply for TAA benefits and services in PY 2007. Not all people 

who were eligible may have applied; therefore, the number of individuals served would be a subset of those who were certified as 

eligible to apply for benefits and services.

b

According to DOL officials, an estimated 287,063 workers were certified as eligible to apply for TAA benefits and services.

c

According to DOL officials, an estimated 94,017 workers were certified as eligible to apply for TAA benefits and services.

Trade Adjustment Assistance Community College and Career Training 

Objectives: To provide community colleges and other eligible institutions of higher 

education with funds to expand and improve their ability to deliver education and career 

training programs that (1) can be completed in two years or less, (2) are suited for 

workers who are eligible for training under the Trade Adjustment Assistance (TAA) for 

Workers program as well as other adults, and (3) prepare program participants for 

employment in high-wage, high-skill occupations. These multi-year grants helped to 

ensure that institutions of higher education assisted adults in acquiring the skills, 

degrees, and credentials needed for high-wage, high-skill employment while also 

meeting the needs of employers for skilled workers. DOL implemented the Trade 

Adjustment Assistance Community College and Career Training (TAACCCT) grant 

program in partnership with the Department of Education. 
Page 33 GAO-19-85R Economic Adjustment Assistance

Year Authorized: 200920

Obligations and Expenditures: See table 32 for the program’s reported obligations and 

expenditures. 

Table 32: DOL Trade Adjustment Assistance Community College and Career Training Obligations and 

Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations Program did not exist Program did not exista $0b

Expenditures Program did not exist Program did not exista $256.5

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Notes: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to 

DOL officials, the agency is not able to determine the percentage of Trade Adjustment Assistance Community College and Career

Training (TAACCCT) grant obligations and expenditures pertaining specifically to TAA-eligible participants because grants funded 

under TAACCCT did not pay for individual participant training costs (e.g., tuition). Rather, funds covered activities that benefited all 

participants, such as: (1) hiring and/or training additional instructors or staff to assist in the development and/or delivery of new 

curricula, (2) establishing internships, registered apprenticeships, or clinical/cooperative education programs at employer sites; and 

(3) purchasing or upgrading classroom supplies and equipment, and/or educational technologies; among other activities.

a

According to DOL officials, TAACCCT was authorized in 2009, but funds were not appropriated until 2011.

b

According to DOL officials, all funds were obligated from FY 2011 through FY 2014. As of September 30, 2018, all program grants 

had concluded, however, performance evaluations will be conducted through 2020.

Applicant Eligibility: Eligible institutions were institutions of higher education, which offer 

programs that can be completed in not more than 2 years.

Beneficiary Eligibility: Eligible beneficiaries were workers who are eligible for training 

under the TAA for Workers program, and other adults.

Beneficiaries Served: See table 33. 

Table 33: Number of Beneficiaries Who Received DOL Trade Adjustment Assistance Community College and 

Career Training Benefits or Services in Program Years (PY) 2007, 2010, and 2017

PY 2007 PY 2010 PY 2017

Individuals served Program did not exist Program did not exista 118,389b

Businesses served Program did not exist Program did not exista 820c

Communities served Program did not exist Program did not exista 269d

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: The program year is October 1 to September 30.

a

According to DOL officials, TAACCCT was authorized in 2009, but funds were not appropriated until 2011.

 20According to DOL officials, TAACCCT was funded for 4 years, with grants awarded from 2011 through 2014 and 

active from 2011 through 2018.
Page 34 GAO-19-85R Economic Adjustment Assistance

b

According to DOL officials, of the 118,389 participants served in fiscal year 2017, 71,243 were new participants and, of these, 1,580 

were TAA-eligible. Because performance data were provided in aggregate and there was not a data field for TAA-eligible 

participants who were retained in the program, officials said they could not determine how many of the total 118,389 participants 

were TAA-eligible. The Trade Adjustment Assistance Community College and Career Training (TAACCCT) grants targeted the 

specific needs of trade-affected workers, but a broader range of adult learners were served, including some who were also within 

the scope of GAO’s review, such as dislocated workers.

c

According to DOL officials, 820 is the minimum number of businesses served. Grantees identified 820 partnerships with employers 

in their grant application documents, however, many continued to pursue and develop additional partnerships throughout their 

periods of performance. DOL does not require grantees to report on the number of active employers in a given year, officials said. 

The partnerships with businesses are to expand the capacity of community colleges to develop education and career training 

programs that are relevant to the needs of employers, officials said.

d

According to DOL officials, some grants went to individual institutions of higher education and some went to institution consortiums. 

Colleges receiving these grants were located in 52 U.S. states and territories, including Puerto Rico and the District of Columbia. 

WIOA Dislocated Worker Formula Program

Objectives: To help dislocated workers become reemployed by providing them with job 

search assistance, career services, and/or training that builds their skills to meet labor 

market needs. Dislocated Worker services are targeted to workers who are unemployed 

and have lost a job through no fault of their own, or who have exhausted their 

unemployment compensation.

Year Authorized: 199821

Obligations and Expenditures: See table 34 for the program’s reported obligations and 

expenditures. 

Table 34: DOL Workforce Innovation and Opportunity Act Dislocated Worker Formula Program Obligations 

and Expenditures for Fiscal Years (FY) 2007, 2010, and 2017

Dollars in millions

FY 2007 FY 2010 FY 2017

Obligations $1,193.5 $1,174.6 $1,017.2

Expenditures $1,181.6a $1,829.4b $973.6

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: Obligations and expenditures were reported by agency officials and were not independently verified by GAO. According to 

DOL officials, this program was originally authorized under the Workforce Investment Act of 1998 and was reauthorized under the 

Workforce Innovation and Opportunity Act in 2014.

a

According to DOL officials, expenditures for FY 2007 are estimated because some data are not available following the department’s 

move to a new accounting system.

b

According to DOL officials, expenditures exceeded obligations because grant funds are available to grantees for 3 years, therefore, 

in each fiscal year expenditures may include grant funds obligated in prior fiscal years.

Applicant Eligibility: The entities eligible to receive formula-based funding are the 50 

states, Puerto Rico, the District of Columbia, and the outlying areas (American Samoa, 

Guam, the Commonwealth of the Northern Mariana Islands, the United States Virgin 

 21According to DOL officials, this program was originally authorized under WIA in 1998 and was reauthorized under 

WIOA in 2014.
Page 35 GAO-19-85R Economic Adjustment Assistance

Islands, and the Republic of Palau). Funds are allotted based on a statutory formula.22

States, in turn, allocate funds to local workforce development boards.

Beneficiary Eligibility: Individuals eligible for assistance are workers who have lost their 

jobs, including those dislocated as a result of plant closings or mass layoffs23 and who 

are unlikely to return to their previous industry or occupation; formerly self-employed 

individuals; and displaced homemakers who depend on the income of another family 

member, but are no longer supported by that income. Priority is given to veterans and 

other covered persons.

Beneficiaries Served: See table 35. 

Table 35: Number of Beneficiaries Who Received DOL Workforce Innovation and Opportunity Act Dislocated 

Worker Formula Program Benefits or Services in Program Years (PY) 2007, 2010, and 2016

PY 2007 PY 2010 PY 2016a

Individuals served 396,158 1,287,207 467,508

Source: Officials from the Department of Labor (DOL), Employment and Training Administration. │ GAO-19-85R

Note: The program year is July 1 through June 30. According to DOL officials, all states (including the District of Columbia and the 

Commonwealth of Puerto Rico) and the outlying areas (American Samoa, Guam, the Commonwealth of the Northern Mariana 

Islands, the United States Virgin Islands, and the Republic of Palau) receive funding through an annual formula allotment. This 

program was originally authorized under the Workforce Investment Act of 1998 and was reauthorized under the Workforce 

Innovation and Opportunity Act in 2014, officials said.

a

According to DOL officials, PY 2016 was the most recent year of program data available at the time of our review. There may be 

some limitations to these data because DOL implemented a new reporting system in PY 2016 and some states may still be updating 

their reporting systems to meet the new requirements, officials said.

Department of the Treasury - Internal Revenue Service and Office of Tax Policy

Tax Credit for Health Insurance Purchased by Certain Displaced and Retired Individuals 

(also known as the Health Coverage Tax Credit)

Objectives: To assist certain individuals, such as those who lost their jobs due to trade and 

who meet other criteria, with the cost of health insurance coverage.24 The credit reduces 

individuals’ after-tax cost of health insurance and enables some to maintain or acquire 

coverage. It provides a refundable tax credit of 72.5 percent of the qualified health 

insurance premiums paid by these individuals for themselves and their family members. 

Year Authorized: 2002

 22According to DOL, in program year 2017 the formula weighted the following three factors equally: the state’s relative 

share of total unemployed, excess unemployed, and long-term unemployed. A state can receive no less than 90 

percent and no more than 130 percent of its relative share of funding in the previous year. 

23According to DOL, mass layoffs occur when a business has at least 50 initial claims for unemployment insurance 

filed against it during a 5-week period.

24In addition to individuals who lose their jobs due to trade, the Health Coverage Tax Credit also assists people aged 

55 or over who receive pension benefits paid for by the Pension Benefit Guaranty Corporation (PBGC). These 

individuals did not meet our economic adjustment assistance description and were not included in our scope.
Page 36 GAO-19-85R Economic Adjustment Assistance

Beneficiary Eligibility: Individuals eligible for the tax credit include those who are 

receiving (1) Trade Readjustment Allowances (TRA),25 or who would be eligible to 

receive a TRA except their state unemployment benefits are not yet exhausted, (2) an 

Alternative Trade Adjustment Assistance (ATAA) allowance for people aged 50 or over, 

or (3) a Reemployment Trade Adjustment Assistance (RTAA) allowance for people aged 

50 or over. In general, individuals who would otherwise be eligible for the tax credit 

cannot receive it if they are (1) enrolled in or have access to certain governmentprovided health insurance coverage; or (2) enrolled in or have access to health 

insurance coverage subsidized 50 percent or more by any employer (or former 

employer) of the individual or individual’s spouse. The Department of Labor provides a 

list of potentially eligible individuals to the Internal Revenue Service (IRS), which then 

determines whether an eligible individual qualifies for the tax credit.26

Beneficiaries Served: See table 36. 

Table 36: Number of Tax Returns that Received the Tax Credit for Health Insurance Purchased by Certain 

Displaced and Retired Individuals for Tax Years (TY) 2007, 2010, and 2016

TY 2007a TY 2010a TY 2016

Estimated number of tax returns 

that received the tax creditb 22,550c 16,174d 40,112e

Source: Officials from the Department of the Treasury—Internal Revenue Service (IRS) and Office of Tax Policy. │ GAO-19-85R

Note: This tax credit is also known as the Health Coverage Tax Credit or HCTC. Not all individuals who were eligible for the tax 

credit may have applied for or received it. This credit is potentially available to individuals eligible for Trade Adjustment Assistance 

(TAA) and those who receive pension benefits paid for by the Pension Benefit Guaranty Corporation (PBGC). While only the TAAeligible individuals met our definition of economic adjustment assistance, the IRS was not able to disaggregate the number of 

returns attributable to each group. IRS officials noted, however, that of the total 972,591 individuals who were eligible for HCTC in 

fiscal year 2017, 34,561 were enrolled in TAA and 938,030 had their pension benefits paid for by PBGC.

a

According to the IRS, the Trade Preferences Extension Act of 2015 (Pub. L. No. 114-27), enacted June 29, 2015, extended and 

modified the expired HCTC through 2019. Previously, those eligible for HCTC claimed it on their tax returns only if they were eligible 

to claim more than the HCTC advance payments made on their behalf by the IRS. As a result, the estimated number of returns 

claiming the HCTC may not reflect all taxpayers using the credit.

b

The information regarding the number of taxpayer returns that received the HCTC is based on IRS Statistics of Income (SOI) 

sample data. Because IRS SOI data are based on a sample, there is sampling imprecision associated with the estimates.

 

c

According to IRS officials, at the 95 percent confidence level the actual number of tax returns receiving HCTC in TY 2007 is 

between 14,311 and 30,789.

d

According to IRS officials, at the 95 percent confidence level the actual number of tax returns receiving HCTC in TY 2010 is 

between 8,553 and 23,795.

e

According to IRS officials, at the 95 percent confidence level the actual number of tax returns receiving HCTC in TY 2016 is 

between 28,005 and 52,219. 

 25Trade Readjustment Allowances (TRA) are available to provide income support while eligible participants are 

engaged in full-time training. The amount of each weekly TRA payment is based on the weekly unemployment 

insurance benefit amount that the participant has already received.

26The PBGC also sends a list of potentially eligible individuals to the IRS.
Page 37 GAO-19-85R Economic Adjustment Assistance

Enclosure II: Objective, Scope, and Methodology

This enclosure summarizes our work in describing the federal economic adjustment assistance 

(EAA) programs and tax expenditures1 we identified and their characteristics, including 

objectives, eligibility requirements, number of beneficiaries, obligations, and expenditures.2 We 

addressed this objective in three general steps: (1) establishment of criteria for EAA program 

and tax expenditure inclusion; (2) identification of programs and tax expenditures that met the 

established criteria; and (3) collection of data on the identified programs and tax expenditures 

by developing and conducting a survey of relevant agencies. We also interviewed agency 

officials, and reviewed relevant federal policies and past GAO reports.

To assess the reliability of the data provided by agencies, we asked officials to identify the 

databases and information sources they used to respond to our survey questions and any 

limitations of the data they provided. We then discussed with agency officials any identified data 

limitations and, if unresolved issues remained, annotated the data as appropriate. In some 

limited circumstances we decided not to report the data due to limitations that might have made 

the data misleading given our scope and context. For the data we included, we found them 

sufficiently reliable for the purposes of this report. 

We did not independently verify the information provided by the agencies or conduct a legal 

analysis to confirm the various descriptions of the programs, such as information on their 

objectives, eligibility requirements, budgetary obligations, and expenditures. Further, in 

developing this report, we did not review or analyze financial data or materials prepared by the 

agencies in connection with the annual budget and appropriations process. In some cases, we 

also obtained information from agency websites and agency and congressional documents to 

explain certain terms or concepts.

Establishing Criteria for EAA Program and Tax Expenditure Inclusion in GAO’s Review

To develop criteria for the programs and tax expenditures to be included in our inventory, we 

first developed a definition of EAA. This began with determining which aspects of EAA were 

important to policymakers. After determining the key aspects of EAA to include, we reviewed 

select literature on two important strands of economic research to further inform our definition: 

the effects associated with China entering the World Trade Organization and the impact of 

technological changes on the U.S. workforce. After developing a draft definition, we asked 

agency officials to provide feedback, and incorporated their comments as appropriate.3 We also 

 1

A tax expenditure is a revenue loss attributable to a provision of the federal tax laws that (1) allows a special 

exclusion, exemption, or deduction from gross income or (2) provides a special credit, preferential tax rate, or deferral 

of tax liability. These expenditures include exemptions and exclusions from taxation, deductions, credits, deferral of 

tax liability, and preferential tax rates.

2

Obligations are a definite commitment that creates a legal liability of the government for the payment of goods and 

services ordered or received, or a legal duty on the part of the United States that could mature into a legal liability by 

virtue of actions on the part of the other party beyond the control of the United States. Payment may be made 

immediately or in the future. Expenditures are the actual spending of money; an outlay.

3

We met with officials from the Departments of Agriculture, Commerce, Defense, Labor, and the Treasury as well as 

officials from the Appalachian Regional Commission, Delta Regional Authority, Denali Commission, and the Northern 

Border Regional Commission. 
Page 38 GAO-19-85R Economic Adjustment Assistance

solicited input from internal GAO experts. Using the information we collected, we developed the 

following EAA definition for the purposes of this report:4

Economic adjustment assistance programs and tax expenditures are those 

whose primary purpose includes helping or preparing workers, businesses/firms, 

or communities to adjust to economic disruption, where disruption is defined as 

significant changes in the economy that reduce the demand for certain workers. 

Examples of these changes include, but are not limited to, U.S. or international 

policy decisions related to trade, defense, or energy, and other economic forces 

that drive changes in immigration, globalization, automation, or cause a 

prolonged cyclical downturn.

In addition to this EAA definition, we applied the following criteria for identifying programs or tax 

expenditures, regardless of their size: the program or tax expenditure must have (1) been in 

effect in fiscal year 2017 and (2) provided either direct or indirect assistance to individuals, 

businesses, or communities. To capture the full federal investment in economic adjustment 

assistance, we also included agency activities such as demonstration grants and training and 

technical assistance designed to enhance the services provided by the program or agency.

We excluded programs and tax expenditures that might have provided income or other support 

to individuals during times of economic disruption or hardship, but whose primary purpose did 

not include assisting or preparing individuals, businesses, or communities to respond to 

economic disruptions by adopting alternative courses of action. For example, we excluded 

programs primarily designed to:

• assist low-income individuals (e.g., Supplemental Nutrition Assistance Program);5

• provide general economic development to areas that are distressed (1) for reasons other 

than economic disruption or (2) as the result of an economic disruption at one time but 

are now experiencing more systemic economic challenges (e.g., some programs 

provided through the regional commissions);6

• assist workers who lost their jobs but for whom there is no requirement that they acquire 

new skills or move to new industries as a result of program participation or benefit (e.g., 

unemployment insurance programs);7

• respond to natural disasters, because these programs generally alleviate the damage, 

loss, hardship, or suffering caused by a disaster incident rather than effect some change 

in response to the economic disruption.

Finally, our scope was limited to identifying and describing characteristics of federal EAA 

programs that help workers prepare for and adjust to economic disruption; inclusion of a 

 4

It is important to note that the number of such programs identified will vary with the definition used, and that the 

application of any definition can entail subjective judgment.

5

The Supplemental Nutrition Assistance Program offers nutrition assistance to eligible low-income individuals and 

families.

6

We interviewed officials from four regional commissions: the Appalachian Regional Commission, the Delta Regional 

Authority, the Denali Commission, and the Northern Border Regional Commission. 

7

The Federal-State Unemployment Insurance Program, overseen by the Department of Labor and administered by 

the states, provides unemployment benefits to eligible workers who become unemployed through no fault of their own 

and meet certain other eligibility requirements. Claimants who file for unemployment benefits may be directed to 

register for work with their State Employment Service so they can receive assistance in finding employment.
Page 39 GAO-19-85R Economic Adjustment Assistance

program in this inventory is not an assessment of its effectiveness or its potential to overlap, be 

duplicative, or be fragmented with regard to other programs. 

Identifying Applicable Federal Agency Programs and Tax Expenditures

Using the criteria provided above, we initially identified EAA programs and tax expenditures by 

reviewing previous GAO work, consulting with internal GAO experts, and interviewing agency 

officials. When we interviewed agency officials who administered the programs or tax 

expenditures on our initial list, we also asked them to identify any additional programs or tax 

expenditures that fit our criteria.

Developing the List of Keyword Search Terms and Searching Sources 

To conduct an electronic text search of the Catalog of Federal Domestic Assistance (CFDA) 

database8 and tax expenditure source documents, we developed a list of key search terms. To 

develop this list, we first created an initial list of key concepts relevant to our EAA program and 

tax expenditure criteria with the following steps:

1. Reviewed the EAA policy area to identify key terms and phrases: 

a. economic adjustment,

b. trade adjustment assistance,

c. economic disruption,

d. economic dislocation,

e. POWER Initiative for Coal Industry,

f. Defense Industry Adjustment,

g. emerging technologies,

h. disruptive business models, and

i. globalization.

2. Reviewed past GAO reports on programs that provide services to individuals, 

businesses, or communities that have experienced economic disruptions to identify key 

concepts:9

a. dislocated workers,

b. employment services, and

c. Trade Adjustment Assistance.

3. Incorporated key concepts from our EAA program criteria:

a. disruption, and

b. adjustment.

 8

The CFDA is a database of federal programs available to state and local governments (including the District of 

Columbia), federally-recognized Indian tribal governments, territories (and possessions) of the United States; 

domestic public, quasi-public, and private for profit and nonprofit organizations and institutions; and specialized 

groups and individuals. 

9

Reports we reviewed included GAO, Defense Infrastructure: Communities Need Additional Guidance and 

Information to Improve Their Ability to Adjust to DOD Installation Closure or Growth, GAO-13-436 (Washington, D.C.: 

May 14, 2013); GAO, Trade Adjustment Assistance: Labor Awarded Community College Grants in Accordance with 

Requirements, but Needs to Improve Its Process, GAO-12-954 (Washington, D.C.: Sept. 28, 2012); GAO, Trade 

Adjustment Assistance: Changes to the Workers Program Benefited Participants, but Little is Known about 

Outcomes, GAO-12-953 (Washington, D.C.: Sept. 28, 2012); and GAO, Trade Adjustment Assistance: Commerce 

Program Has Helped Manufacturing and Services Firms, but Measures, Data, and Funding Formula Could Improve, 

GAO-12-930 (Washington, D.C.: Sept. 13, 2012). 
Page 40 GAO-19-85R Economic Adjustment Assistance

Using this list of EAA terms and concepts as a starting point, two analysts independently 

reviewed a list of 3,633 CFDA subject terms and developed a list of relevant search terms. To 

reach concurrence on the list of search terms, the analysts reviewed the terms on both lists to 

ensure all the terms were relevant, and reached agreement on which terms to include. If the 

analysts were undecided about a term, a GAO methodologist or economist was consulted. 

After a trial search of the CFDA, some terms were removed from the list for returning a large 

number of irrelevant results. In addition, we refined the initial search term list, including adding 

terms, to ensure the programs identified matched our definition of EAA programs and tax 

expenditures. 

The final list of search terms we used to search the CFDA and tax expenditure documents was:

• adjust

• adjustment assistance

• agriculture stabilization

• Appalachia regional 

development

• automation

• Base Realignment and 

Closure

• closure

• coal mine workers

• coal miners

• declining areas

• defense program changes

• dislocat*

• dislocated work

• disruption

• distress

• diversification

• early warning mass layoff

• economic adjustment

• economic adjustment 

assistance

• economic development

• economic injury

• employment adjustment 

allowance

• expanding economic 

opportunities

• green jobs training

• high unemployment areas

• import-caused 

unemployment, training

• import-caused, job 

placement

• rapid response

• realignment

• Sudden and Severe 

Economic Dislocation

• trade adjustment assistance

• training miners

• transition training

Identification of EAA Programs

After the development of the initial program and tax expenditure list as well as keyword search 

terms, we compiled our final list of EAA programs and tax expenditures by conducting 

comprehensive electronic text keyword searches of the CFDA and tax expenditure documents 

from the Office of Management and Budget, Joint Committee on Taxation, and Congressional 

Research Service.10

Specifically, we used the list of keyword search terms above to search the program objectives 

section in the CFDA database, which we downloaded from ftp://ftp.cfda.gov/ on February 22, 

 10Office of Management and Budget, Analytical Perspectives, Budget of the United States Government, Fiscal Years 

2009, 2012, and 2019; Joint Committee on Taxation, Estimates of Federal Tax Expenditures for Fiscal Years 2007-

2011 (JCS-3-07; Sept. 24, 2007), 2010-2014 (JCS-3-10, Dec. 15, 2010), and 2017-2021 (JCX-34-18; May 25, 2018); 

and Committee on the Budget, United States Senate, Tax Expenditures: Compendium of Background Material on 

Individual Provisions, Prepared by the Congressional Research Service, 24-030 (Washington, D.C.: December 

2016).
Page 41 GAO-19-85R Economic Adjustment Assistance

2018.11 In the tax expenditure source documents, we searched the complete documents. All 

searches were completed by October 1, 2018. An analyst reviewed each search term match 

and made a determination whether the program or expenditure fit our EAA criteria and another 

analyst verified these determinations. The analysts discussed any differences and reached 

concurrence. This process identified 15 programs and 1 tax expenditure.12 

Survey of Agencies with EAA Programs or Tax Expenditures

For all programs that met our selection criteria, we surveyed the responsible federal agency 

about the program’s objectives, eligibility requirements, number of beneficiaries, obligations, 

and expenditures. For the tax expenditure, we surveyed the responsible federal agency about 

the tax expenditure’s description, eligibility requirements, number of returns receiving the tax 

credit, and number of eligible individuals. 

For each program or tax expenditure meeting our criteria, we collected 3 years of data, as 

available. Because program expenditures or numbers served could change in response to 

demand from potential beneficiaries, we collected program data for 2007 and 2010 to reflect 

changes in the national unemployment rate both before and after the Great Recession. In 

addition, to reflect current program information, we collected program data for 2017, or the most 

recent year available. There may be a lack of comparability of the number of beneficiaries 

served across the programs because of different objectives and types of assistance, ranging 

from disseminating information to delivering services with substantial economic value to 

beneficiaries.

Survey Development

We developed a draft survey and pretested it with agency officials at four federal agencies and 

three regional commissions. We interviewed these officials to ensure that (1) the questions were 

clear and unambiguous, (2) the terminology was used correctly, (3) the survey did not place an 

undue burden on agency officials, (4) the information could feasibly be obtained, and (5) the 

survey was comprehensive and unbiased. The process of developing the program survey was 

an iterative process, where we used the results of our pretests with agency officials to modify 

the survey for the next pretest.

We prefilled the surveys, when possible, with information from the CFDA as well as from agency 

and congressional documents and websites before sending the surveys to the agencies. 

Prefilled information included:

• program name

• CFDA number (when applicable)

• program objectives (what the program is intended to accomplish or the goals to which 

the program is directed);

• applicant eligibility (who can apply to the government for the program); and 

• beneficiary eligibility (who can ultimately receive the benefits from the program). 

 11Since our search, the CFDA has been moved to “Assistance Listings,” a beta site administered by the General 

Services Administration, see https://beta.sam.gov/.

12We defined programs by CFDA number unless agency officials indicated we should do otherwise (e.g., they 

considered multiple CFDA numbers as components of one program). 
Page 42 GAO-19-85R Economic Adjustment Assistance

We distributed the surveys to agency officials for completion, requesting that they confirm or 

correct the prefilled information and provide other information related to number of beneficiaries 

(individuals, businesses, and communities) served, obligations, and expenditures. 

We also sent the agencies a blank survey form and asked officials to include additional 

programs, if any, they believed met our EAA criteria. No agencies submitted surveys on 

additional programs. For certain Department of Labor programs, we coordinated survey 

development and data collection with another GAO team that was collecting similar information 

for another review.

Survey Administration

We emailed the surveys to agency officials as an attached Microsoft Excel form that they could 

return electronically. For the programs and tax expenditures that were within our scope, all the 

corresponding surveys were completed and returned as expected. 

Because this was not a sample survey, it has no sampling errors. However, the practical 

difficulties of conducting any survey may introduce errors, commonly referred to as nonsampling 

errors. For example, difficulties in interpreting a particular question or the sources of information 

available to respondents can introduce unwanted variability into the survey results. We took 

steps in developing the surveys, collecting the data, and analyzing them to minimize such 

nonsampling error. For example, to minimize difficulties interpreting a particular survey question 

we incorporated the suggestions from an independent reviewer to add explicit instructions for 

how to use the pull down menus and consistently phrased requests for information. 

Survey Review

We reviewed the completed surveys and clarified information with agency officials as 

necessary. We edited the responses for clarity, as appropriate, and asked the agencies to 

review the revisions. In cases where program objectives or eligibility requirements changed 

during the years included in our review (2007, 2010, and 2017), we reported current program 

information.

We conducted this performance audit from September 2017 to March 2019 in accordance with 

generally accepted government auditing standards. Those standards require that we plan and 

perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our 

findings and conclusions based on our audit objectives. We believe that the evidence obtained 

provides a reasonable basis for our findings and conclusions based on our audit objectives.
Page 43 GAO-19-85R Economic Adjustment Assistance

Enclosure III: GAO Contact and Staff Acknowledgments

GAO Contact:

Cindy S. Barnes, brownbarnesc@gao.gov, (202) 512-7215

Staff Acknowledgments:

In addition to the contact named above, Meeta Engle (Assistant Director), Amy Anderson, Holly 

Dye, Alex Galuten, Michael Hoffman, Madeline Messick, Walter Vance, and John Yee made 

significant contributions to this report. In addition, key support was provided by Rachael 

Chamberlin, Linda Collins, Randolfo DeLeon, Kim Frankena, Kimberly Gianopoulos, Marshall 

Hamlett, Saida Hussain, Thomas James, Brian Lepore, Sheila R. McCoy, Christopher Murray, 

John Neumann, Mimi Nguyen, Corinna Nicolaou, Cady S. Panetta, Rhiannon Patterson, Carl 

Ramirez, Oliver Richard, Jessica K. Rider, Marylynn Sergent, William Shear, and Almeta 

Spencer. 
Page 44 GAO-19-85R Economic Adjustment Assistance

GAO Related Products

U.S. Manufacturing: Federal Programs Reported Providing Support and Addressing Trends. 

GAO-17-240. Washington, D.C.: March 28, 2017.

Defense Infrastructure: Communities Need Additional Guidance and Information to Improve 

Their Ability to Adjust to DOD Installation Closure or Growth. GAO-13-436. Washington, D.C.: 

May 14, 2013.

Private Health Insurance: Expiration of the Health Coverage Tax Credit Will Affect Participants’ 

Costs and Coverage Choices as Health Reform Provisions Are Implemented. GAO-13-147. 

Washington, D.C.: December 28, 2012.

Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and Services 

Firms, but Measures, Data, and Funding Formula Could Be Enhanced. GAO-13-166T. 

Washington, D.C.: November 14, 2012.

Trade Adjustment Assistance: Labor Awarded Community College Grants in Accordance with 

Requirements, but Needs to Improve Its Process. GAO-12-954. Washington, D.C.: September 

28, 2012.

Trade Adjustment Assistance: Changes to the Workers Program Benefited Participants, but 

Little Is Known about Outcomes. GAO-12-953. Washington, D.C.: September 28, 2012.

Trade Adjustment Assistance: One-Time Grants Awarded to Trade-Impacted Communities; 

Results Will Not Be Known until after 2013. GAO-12-993. Washington, D.C.: September 26, 

2012.

Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and Services 

Firms, but Measures, Data, and Funding Formula Could Improve. GAO-12-930. Washington, 

D.C.: September 13, 2012. 

Entrepreneurial Assistance: Opportunities Exist to Improve Programs’ Collaboration, DataTracking, and Performance Management. GAO-12-819. Washington, D.C.: August 23, 2012.

Trade Adjustment Assistance: USDA Has Enhanced Technical Assistance for Farmers and 

Fishermen, but Steps Are Needed to Better Evaluate Program Effectiveness. GAO-12-731. 

Washington, D.C.: July 12, 2012.

Multiple Employment and Training Programs: Providing Information on Colocating Services and 

Consolidating Administrative Structures Could Promote Efficiencies. GAO-11-92. Washington, 

D.C.: January 13, 2011.

Health Coverage Tax Credit: Participation and Administrative Costs. GAO-10-521R. 

Washington, D.C.: April 30, 2010.

Trade Adjustment Assistance: States Have Fewer Training Funds Available than Labor 

Estimates When Both Expenditures and Obligations Are Considered. GAO-08-165. Washington, 

D.C.: November 2, 2007.
Page 45 GAO-19-85R Economic Adjustment Assistance

Trade Adjustment Assistance: Industry Certification Would Likely Make More Workers Eligible, 

but Design and Implementation Challenges Exist. GAO-07-919. Washington, D.C.: June 29, 

2007.

Trade Adjustment Assistance: Changes Needed to Improve States’ Ability to Provide Benefits 

and Services to Trade-Affected Workers. GAO-07-995T. Washington, D.C.: June 14, 2007.

Trade Adjustment Assistance: Program Provides an Array of Benefits and Services to TradeAffected Workers. GAO-07-994T. Washington, D.C.: June 14, 2007.

Trade Adjustment Assistance: Changes to Funding Allocation and Eligibility Requirements 

Could Enhance States’ Ability to Provide Benefits and Services. GAO-07-702. Washington, 

D.C.: May 31, 2007.

Trade Adjustment Assistance: New Program for Farmers Provides Some Assistance, but Has 

Had Limited Participation and Low Program Expenditures. GAO-07-201. Washington, D.C.: 

December 18, 2006.

Trade Adjustment Assistance: Labor Should Take Action to Ensure Performance Data Are 

Complete, Accurate, and Accessible. GAO-06-496. Washington, D.C.: April 25, 2006. 

Trade Adjustment Assistance: Most Workers in Five Layoffs Received Services, but Better 

Outreach Needed on New Benefits. GAO-06-43. Washington, D.C.: January 31, 2006. 

Federal Programs with a Financial Eligibility Component. GAO-06-292R. Washington, D.C.: 

December 14, 2005. 

Military Base Closures: Updated Status of Prior Base Realignments and Closures. GAO-05-138. 

Washington, D.C.: January 13, 2005.

Health Coverage Tax Credit: Simplified and More Timely Enrollment Process Could Increase 

Participation. GAO-04-1029. Washington, D.C.: September 30, 2004. 

Trade Adjustment Assistance: Reforms Have Accelerated Training Enrollment, but 

Implementation Challenges Remain. GAO-04-1012. Washington, D.C.: September 22, 2004.

Economic Development: Multiple Federal Programs Fund Similar Economic Development 

Activities. GAO/RCED/GGD-00-220. Washington, D.C.: September 29, 2000.

(102339)
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