50760 Federal Register / Vol. 71, No. 165 / Friday, August 25, 2006 / Proposed Rules 

DEPARTMENT OF LABOR 

Employment and Training 

Administration 

20 CFR Parts 617, 618, 665, 671 

RIN 1205–AB32 

Trade Adjustment Assistance for 

Workers, Workforce Investment Act; 

Amendment of Regulations 

AGENCY: Employment and Training 

Administration, Labor. 

ACTION: Notice of Proposed Rule Making 

(NPRM). 

SUMMARY: On August 6, 2002, President 

Bush signed into law the Trade 

Adjustment Assistance Reform Act of 

2002 (the Reform Act), which amended 

the Trade Act of 1974, as amended (Act 

or Trade Act). The Reform Act 

reauthorized the Trade Adjustment 

Assistance (TAA) program through 

fiscal year 2007 and made significant 

amendments to the TAA program, 

which generally took effect on 

November 4, 2002. The Employment 

and Training Administration (ETA) of 

the United States Department of Labor 

(Department or DOL) is publishing this 

proposed rule to implement the 

amended TAA program. 

DATES: The Department invites written 

comments on this proposal. Comments 

must be submitted by October 24, 2006. 

ADDRESSES: You may submit written 

comments, identified by the proposed 

rule’s Regulatory Identification Number 

(RIN) 1205–AB32, on the proposed rules 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: regulations.TAA@dol.gov. 

Include RIN 1205–AB32 in the subject 

line of the message. Your comment must 

be in the body of the e-mail message; do 

not send attached files. 

• Fax: (202) 693–3584 (this is not a 

toll-free number). Only comments of ten 

or fewer pages (including a Fax cover 

sheet and attachments, if any) will be 

accepted by Fax. 

• Mail: Submit comments (preferably 

with three copies) to Erica Cantor, 

Director, Division of Trade Adjustment 

Assistance, ETA, U.S. Department of 

Labor, Room C–5311, 200 Constitution 

Avenue, NW., Washington, DC 20210. 

Because of security-related concerns, 

there may be a significant delay in the 

receipt of submissions by United States 

Mail. You must take this into 

consideration when preparing to meet 

the deadline for submitting comments. 

Instructions: All submissions received 

must include the agency name and the 

RIN for this rulemaking: RIN 1205– 

AB32. If commenters transmit 

comments by Fax or through the 

Internet and also submit a hard copy by 

mail, please indicate that it is a 

duplicate copy of the Fax or Internet 

transmission. 

All comments will be available for 

public inspection and copying during 

normal business hours at the Division of 

Trade Adjustment Assistance, ETA, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Room C–5311, 

Washington, DC 20210. Copies of the 

proposed rule are available in 

alternative formats of large print and 

electronic file on computer disk, which 

may be obtained at the above-stated 

address. The proposed rule is available 

on the Internet at the Web address 

http://www.doleta.gov. 

FOR FURTHER INFORMATION CONTACT: 

Erica Cantor, Director, Division of Trade 

Adjustment Assistance, ETA, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Room C–5311, 

Washington, DC 20210. Telephone: 

(202) 693–3560 (voice) (this is not a tollfree number); 1–800–326–2577 (TDD); 

facsimile: (202) 693–3584; e-mail: 

regulations.TAA@dol.gov. 

SUPPLEMENTARY INFORMATION: The 

Reform Act expanded the scope of the 

TAA program and increased benefit 

amounts available under that program, 

repealed the North American Free Trade 

Agreement Transitional Adjustment 

Assistance (NAFTA–TAA) program, 

provided a health coverage tax credit 

(HCTC) administered by the Internal 

Revenue Service (IRS) to subsidize 

private health insurance costs for 

qualified workers, and enacted a pilot 

program for Alternative Trade 

Adjustment Assistance for older 

workers (ATAA). These amendments 

were designed to augment and improve 

the delivery of benefits and services to 

certain workers adversely affected by 

foreign trade. 

To incorporate into regulations the 

substantial changes to the TAA 

program, including the introduction of 

ATAA, the Department proposes 

creating a new 20 CFR Part 618. The 

proposed Part 618 consists of nine 

subparts: subpart A—General; subpart 

B—Petitions and Determinations of 

Eligibility to Apply for Trade 

Adjustment Assistance [Reserved]; 

subpart C—Delivery of Services through 

the One-Stop Delivery System; subpart 

D—Job Search Allowances; subpart ERelocation Allowances; subpart F— 

Training Services; subpart G—Trade 

Readjustment Allowances (TRA); 

subpart H—Administration by 

Applicable State Agencies; and subpart 

I—Alternative Trade Adjustment 

Assistance for Older Workers 

[Reserved]. Because of the complexity of 

the subject matter and the States’ need 

for definitive instructions on providing 

TAA benefits, the rulemaking for Part 

618 is divided into three parts. This 

Notice of Proposed Rulemaking covers 

the general provisions (subpart A) and 

TAA benefits portions (subpart C 

through subpart H) of the regulations. 

Separate notices of proposed 

rulemaking (RIN 1205–AB40 covering 

subpart I and RIN 1205–AB44 covering 

Subpart B) will be published at a later 

date. 

Consistent with the Reform Act, the 

Department proposes that the TAA 

regulations codified at 20 CFR Part 617 

be amended to apply only to adversely 

affected workers whose certifications of 

eligibility to apply for TAA are based on 

petitions filed before the effective date 

of the amendments, whether the 

certifications were issued before or after 

that date. However, eligible workers 

covered by Part 617 will be able to use 

the HCTC, and the Department proposes 

to amend Part 617 to require the States 

to advise adversely affected workers 

covered by that Part of the qualifying 

requirements for the HCTC and related 

health insurance assistance. The 

Department also proposes revising the 

regulations governing Statewide 

Workforce Investment Activities, and 

National Emergency Grants, 20 CFR 

Parts 665 and 671, respectively. These 

revisions will incorporate into the 

Workforce Investment Act of 1998 

(WIA) regulations the new statutory 

requirement that States provide rapid 

response assistance to workers as soon 

as they have filed petitions, or petitions 

have been filed on their behalf, for 

certification of eligibility to apply for 

TAA. A new section will be added to 

Part 671 to incorporate the new 

statutory authority for the use of funds 

made available under WIA to make 

grants to provide health insurance 

coverage assistance to certain adversely 

affected workers under the Trade Act 

and others. 

This preamble is divided into five 

sections. Section I provides general 

background information on the TAA 

program. Section II describes the 

changes that the Reform Act made to the 

TAA program. Section III discusses the 

Department’s guiding principles for 

implementing reform of the TAA 

program through the proposed rule. 

Section IV discusses the proposed rule. 

Section V discusses administrative 

requirements for this proposed 

rulemaking, as mandated by statute and 

executive order. 


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I. Background 

The Reform Act amended chapter 2 of 

title II of the Trade Act of 1974 (Pub. L. 

93–618), as amended. The TAA 

program, established by the Act in 1974 

to provide improved assistance for 

workers injured or threatened with 

injury from increased imports, was 

changed extensively by amendments in 

1981 (title XXV of Pub. L. 97–35), 1984 

(sections 2671 and 2672 of Pub. L. 98–

369), 1986 (Part 1 of subtitle A of title 

XIII of Pub. L. 99–272), 1988 (Part 3 of 

subtitle D of title I of Pub. L. 100–418), 

and 1993 (section 506 of Pub. L. 103–

182). 

Before the TAA program’s most recent 

amendment in August 2002, the 

Department conducted a fact-finding 

investigation in response to its receipt of 

a petition for TAA from a group of 

workers (or their representative). If the 

investigation resulted in the finding that 

a group of workers of a firm (or 

subdivision) had been adversely 

affected by import competition, then an 

ETA certifying officer issued a 

certification stating that workers in the 

identified worker group were eligible to 

apply for TAA benefits with the 

Cooperating State Agency (CSA). 

Then, as now, State agencies 

administered the TAA program as 

agents of the federal government 

through agreements signed by the 

Secretary and Governors of the States. 

State agencies notified certified workers 

of potential TAA benefits and services, 

made eligibility determinations for 

individuals, and delivered benefits and 

services. Individual workers who were 

members of the certified worker group 

applied for benefits and services at a 

local office of the State’s One-Stop 

delivery system. 

Individual workers who met the 

qualifying criteria could receive up to 

104 weeks of job training, generally up 

to 52 weeks of income support in the 

form of Trade Readjustment Allowances 

(TRA), job search allowances, and 

relocation allowances. In addition, all 

workers covered by a certification were 

eligible for basic reemployment 

services, including assistance in writing 

resumes, job referrals, and participation 

in job clubs. 

On December 8, 1993, the President 

signed into law the NAFTA 

Implementation Act of 1993, which 

created the NAFTA–TAA program 

(section 250 of subchapter D of chapter 

2 of title II of the 1974 Act). 

Certifications of worker groups under 

the NAFTA–TAA program were made 

only if imports from Canada and/or 

Mexico caused the import impact, or if 

the workers’ firm shifted production of 

an article to either Canada or Mexico. 

Workers (or their representatives) filed 

petitions with the Governor of the State 

in which they were employed, not 

directly with the Department. The State 

performed a preliminary investigation 

upon receipt of a NAFTA–TAA petition. 

If the workers appeared to be impacted 

by imports from Canada or Mexico or a 

shift of production to Canada or Mexico 

and the firm’s (or subdivision’s) sales or 

production decreased absolutely, then 

the State undertook rapid response 

activities under WIA. The State 

transmitted all information gathered in 

its preliminary investigation to DOL, 

which issued the final determination on 

whether to certify the group of workers 

as eligible to apply for NAFTA–TAA 

benefits. In order to qualify for TRA, a 

worker certified under the NAFTA–

TAA program had to be enrolled in 

approved training within specific time 

limits; no waivers from this requirement 

were allowed. However, the TAA 

program allowed waivers of ‘‘basic’’

TRA (i.e., the first 26 weeks of TRA) if 

training was ‘‘not feasible or 

appropriate’’ for the worker. 

As part of its passage of the NAFTA 

Implementation Act, Congress approved 

the Administration’s Statement of 

Administrative Action (SAA). NAFTA, 

H.R. Doc. No. 103–159, vol. 1, at 10 

(1993). The SAA committed the 

Department to provide assistance under 

the Job Training Partnership Act (and, 

after the repeal of that act, under WIA) 

to ‘‘secondary’’ workers who lost their 

jobs as a result of the loss of business 

with a primary firm that was directly 

affected by imports, but who were not 

directly impacted by trade with Canada 

or Mexico. See id. at 450 (1993). 

Workers would receive assistance if 

their firm supplied components to, or 

performed finishing operations for, a 

firm that was directly impacted by trade 

with Canada or Mexico. These 

‘‘secondary workers’’ either filed a 

petition for certification under both the 

TAA program and the NAFTA–TAA 

program or filed a petition just under 

the NAFTA–TAA program. The 

Department initiated an investigation 

into their eligibility under the SAA if 

their certification was denied following 

the investigation of a NAFTA–TAA 

petition. The Department determined 

whether the worker group was impacted 

indirectly or ‘‘secondarily’’ by imports 

from Canada and/or Mexico or a shift of 

production to Canada or Mexico. If the 

Department made an affirmative 

determination, then workers in the 

group were eligible to apply for benefits 

and services delivered through the 

dislocated worker program, even though 

they did not qualify for assistance under 

the NAFTA–TAA program. 

II. How the Reform Act Changed the 

TAA Program 

The TAA program has been a required 

partner in the workforce investment 

system since the enactment of WIA in 

1998. The Reform Act expressly 

directed the Secretary and the States to 

coordinate the TAA program with the 

workforce investment system created 

under WIA to help adversely affected 

workers return to the workforce as 

quickly as possible. 

The Reform Act expanded the 

coverage of the TAA program and 

increased the benefits provided to 

adversely affected workers, in part by 

consolidating the TAA program and the 

NAFTA–TAA program. As a result, 

there is a uniform set of requirements 

that replaces the often different and 

confusing sets of rules and procedures 

that applied to the two programs when 

they were separate. Before the 

enactment of the Reform Act, only 

workers whose firms (or subdivisions) 

were directly affected by increased 

imports could be certified as eligible to 

apply for TAA. Eligibility requirements 

for the NAFTA–TAA program were 

more inclusive. Workers whose firms (or 

subdivision) were directly affected by 

either increased imports from or a shift 

in production to Mexico or Canada of an 

article that is like or directly 

competitive with the article their firm 

(or subdivision) produced could be 

certified as eligible to apply for 

NAFTA–TAA benefits. The Reform Act 

expanded eligibility even further by 

retaining the TAA program’s eligibility 

for workers who were directly affected 

by increased imports from any country 

and adding provisions to include 

workers who lose their jobs when their 

firms (or subdivisions) shifted 

production to: a country that is a party 

to a free trade agreement with the 

United States (such as, but not limited 

to, NAFTA); a country that is a 

beneficiary under certain specified 

legislation enacted by Congress 

involving trade relations; or to any other 

foreign country when there has been or 

there is likely to be an increase in 

imports of articles that are like or 

directly competitive with the articles 

produced by their firm (or subdivision). 

In addition, the Reform Act expanded 

TAA program eligibility to include two 

categories of secondary workers in the 

stream of commerce: those who perform 

work upstream in the production of a 

trade-impacted article and those who 

perform work downstream in that 

production. The first category covers 

workers who perform activities for a 


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firm (or subdivision of a firm) that 

supplies component parts for the article 

produced by a ‘‘primary firm’’ (i.e., a 

firm that employed a certified group of 

workers). The Act requires that, if a 

significant number or proportion of 

such secondary workers have been 

separated (or threatened with 

separation), then they will be certified 

as eligible to apply for TAA if either the 

component parts sold to the primary 

firm constituted at least 20 percent of 

the sales of the supplier, or the loss of 

business with the primary firm 

contributed importantly to the loss of 

jobs at the supplying firm. 

The second category of secondary 

workers includes workers employed by 

‘‘downstream producers,’’ defined as 

firms (or subdivisions) providing 

additional, value-added production 

processes, such as finishers or final 

assemblers of articles produced by a 

primary firm. These workers will be 

certified as eligible to apply for TAA 

when: workers of the primary firm were 

TAA-certified due to increased imports 

from or shifts in production to Mexico 

or Canada of the articles that were the 

basis for the TAA certification; a 

significant number or proportion of the 

workers in the secondary workers’ firm 

(or applicable subdivision) were 

separated or threatened with separation; 

and the secondary workers’ firm’s (or 

subdivision’s) loss of business from the 

primary firm (or appropriate 

subdivision) contributed importantly to 

their separation (or threatened 

separation). Both the upstream 

‘‘supplier’’ and the ‘‘downstream 

producer’’ categories of secondary 

workers, although not covered by the 

NAFTA–TAA program, may have been 

eligible under the SAA to receive 

adjustment assistance initially through 

the Job Training Partnership Act and 

later through WIA. 

The Reform Act made a number of 

changes in administrative requirements 

under the TAA program. One-Stop 

operators, One-Stop partners, including 

certain State agencies as well as 

employers of workers, are specifically 

added to the categories of entities who 

may file a petition, though previously 

these entities could have filed petitions 

only if they were duly authorized 

representatives of a group of workers. 

To inform workers more quickly of the 

availability of assistance and to facilitate 

reemployment, rapid response 

assistance under WIA is now triggered 

by the concurrent submission of a 

petition to the Governor and the 

Secretary. The Department must now 

make a determination on whether a 

petition for certification meets the 

approval criteria within 40 days instead 

of 60 days from the date of filing of the 

petition. 

To promote adjustment and accelerate 

reemployment, the Reform Act provides 

that eligibility for TRA, which is 

additional income support after 

unemployment insurance (UI) is 

exhausted, will be contingent on a 

worker’s enrollment in training not later 

than 16 weeks after separation from 

employment or 8 weeks after the 

petition for eligibility has been 

approved, whichever date is later. In 

extenuating circumstances, these 

deadlines for enrollment in training may 

be extended up to 45 days; and a waiver 

of the enrollment in training 

requirement to receive basic TRA may 

be issued only under limited and 

specified conditions. The Reform Act 

also increased the length of time that 

TRA is available to an adversely affected 

worker who is in training by increasing 

the availability of ‘‘additional’’ TRA 

from 26 to 52 weeks and by further 

adding up to 26 additional weeks of 

TRA if a worker is enrolled in a course 

of remedial education. The primary 

purpose of this extended income 

support is to minimize workers’

financial hardship until they complete 

training. By requiring that workers 

expeditiously enroll in training as a 

condition of receiving TRA, the Reform 

Act amendments provide that workers 

will be more likely to complete the 

training within the duration of that 

income support. 

The Reform Act also established 

ATAA, a pilot program designed to 

encourage the rapid reemployment of 

workers aged 50 or older. Petitioners 

seeking ATAA certification for a group 

of workers on whose behalf TAA 

certification is sought should make their 

request on the TAA petition form they 

submit to the Department. In 

determining whether to certify a group 

of workers as eligible to apply for 

ATAA, the following criteria must be 

considered: (1) Whether a significant 

number of workers in the workers’ firm 

are 50 years of age or older; (2) whether 

the workers in the workers’ firm possess 

skills that are not easily transferable; 

and (3) the competitive conditions 

within the workers’ industry. 

A qualified worker in a group 

certified as eligible to apply for ATAA 

may choose to receive payments of 50 

percent of the difference between their 

pre-layoff wages and their 

reemployment wages in lieu of all other 

benefits available under the TAA 

program except the HCTC. A worker 

may receive payments for up to a twoyear period, but the maximum amount 

paid may not exceed $10,000. In order 

to qualify, a worker must be at least 50 

years of age, become reemployed within 

26 weeks of separation, and be 

reemployed at annual wages of less than 

$50,000 in a full-time job that is not the 

job from which he or she was laid off. 

The termination date for ATAA is 

August 6, 2008, five years after the date 

of its implementation. However, 

participants may continue to receive the 

balance of the payments for which they 

were eligible after the termination date. 

The Reform Act amended the Internal 

Revenue Code (IRC) to authorize the 

HCTC for certain eligible individuals in 

the new and old TAA programs and in 

the NAFTA–TAA program. The Reform 

Act added a new section 35 to the IRC, 

establishing the HCTC which is a tax 

credit covering 65 percent of the cost 

paid by the individual for coverage of 

the individual and the individual’s 

qualified family members under 

qualified health insurance. Potentially 

eligible individuals fall into three 

groups: (1) ‘‘eligible TAA recipients,’’

meaning individuals who are receiving 

TRA or who would be eligible to receive 

TRA if they had exhausted their UI; (2) 

‘‘eligible alternative TAA recipients,’’

meaning individuals who are receiving 

a benefit under the ATAA program; and 

(3) ‘‘eligible PBGC pension recipients,’’

meaning individuals who are at least 

age 55 and receiving pension benefits 

paid, at least in part, by the Pension 

Benefit Guaranty Corporation (PBGC). 

The credit has been available on an 

advance basis since August 1, 2003. 

With respect to advance payments of the 

credit, the Reform Act requires the 

Secretary of Labor to certify an 

individual as an eligible TAA recipient, 

eligible ATAA recipient, or eligible 

PBGC pension recipient to enable 

potentially eligible recipients to seek the 

credit from the IRS. The IRS then 

determines whether the other HCTC 

eligibility criteria have been met. The 

Department is coordinating 

administration of this responsibility and 

other aspects of the HCTC with the 

Department of the Treasury, the 

Department of Health and Human 

Services, the PBGC, and the CSAs 

administering the TAA program. 

The Reform Act also added two new 

aspects to the National Emergency Grant 

(NEG) program administered by the 

DOL under WIA to assist the States in 

providing health insurance coverage 

assistance to eligible individuals. One 

type of NEG is available primarily to 

provide health insurance coverage 

assistance to eligible individuals and to 

pay the administrative and startup costs 

of enrolling such individuals, which 

includes the processing of the eligibility 

certificates necessary for the tax credit. 

The other type of NEG is available 


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primarily to provide interim health 

insurance coverage assistance and 

supportive services (such as 

transportation, child and dependent 

care, and income assistance) to 

individuals eligible for the tax credit, 

including eligible TAA recipients under 

the old TAA and NAFTA–TAA 

programs. 

The Reform Act also amended the 

Employee Retirement Income Security 

Act, the Public Health Service Act, and 

the IRC to allow a temporary 60-day 

extension of the period during which 

individuals who are ‘‘TAA-eligible 

recipients’’ may elect Consolidated 

Omnibus Budget Reconciliation Act 

(COBRA) continuation coverage under 

the layoff employer’s health insurance 

plan. The temporary extension provided 

under the Reform Act begins on the day 

the individual first meets the TAA 

eligibility requirements. The TAAeligible worker must elect to receive the 

temporary extension within six months 

after the date of the TAA-related loss of 

coverage, which the statute defines as 

the loss of health benefits coverage 

associated with the separation of the 

TAA-eligible individual from 

employment. If a worker elects to 

receive the extension, then either the tax 

credit or the NEG would be available to 

assist the worker to make the payments 

for the continuation coverage. 

Aspects of the tax credit that are 

administered by the Internal Revenue 

Service and the Department of the 

Treasury are not addressed in the 

proposed regulations. However, the 

Department proposes amendments to 

WIA regulations at 20 CFR Part 671 to 

reflect the new tax credit-related 

changes to the NEG programs. Funds 

made available to States under WIA 

section 174 will be used to provide 

health insurance coverage assistance to 

eligible TAA recipients, eligible ATAA 

recipients and eligible PBGC pension 

recipients under WIA section 173(f) and 

(g). 

The Reform Act also created a 

separate TAA for Farmers program. 

Eligibility determinations for that 

program are the responsibility of the 

Secretary of Agriculture. Agricultural 

commodity producers entitled to cash 

benefits under that program are entitled 

to the same basic reemployment 

services and training as other workers 

covered by the TAA program, but they 

may not receive TRA, job search or 

relocation allowances, or the HCTC. The 

Department of Labor provides funding 

for the employment services and the 

Secretary of Agriculture oversees the 

payment of cash assistance (up to 

$10,000 per year) provided to eligible 

agricultural commodity producers 

under the Department of Agriculture’s 

certification. The Secretary of 

Agriculture issued regulations 

implementing the Department of 

Agriculture’s function in the TAA for 

Farmers program on August 20, 2003 

(68 FR 50048) and November 1, 2004 

(69 FR 63317–01). 

III. Guiding Principles for the TAA 

Program Under Proposed 20 CFR Part 

618 

The Secretary seeks to ensure that 

States use effective strategies to assist 

adversely affected workers in rapidly 

obtaining sustainable employment 

through the operation of the TAA 

program and the demonstration ATAA 

program for older workers. State 

agencies must increase their focus on 

early intervention, upfront assessment 

and reemployment services for 

adversely affected workers. The 

initiation of rapid response activities 

upon the filing of a petition for 

certification of eligibility to apply for 

TAA allows State agencies the 

opportunity to provide workers with 

early assessment and identification of 

their marketable skills. A CSA’s first 

priority should be to provide job search 

assistance and other reemployment 

services to improve the likelihood of 

these workers obtaining sustainable 

employment quickly. Where training is 

appropriate, it should be designed to 

return the worker to employment as 

quickly as is consistent with the 

worker’s training goals. 

Career centers in the One-Stop 

delivery system will become the main 

point of participant intake and delivery 

of benefits and services by the States. 

This approach encourages coordination 

among workforce investment and other 

One-Stop partner programs including 

the TAA program, which will better 

serve workers and promote efficiencies 

in the workforce investment system. 

Fiscal integrity and performance 

accountability will be monitored to 

ensure that the money allocated for 

TAA and ATAA is used to assist 

workers and thereby strengthen the 

economy. Improved participant 

outcome measures for the program will 

assist the Department and the States in 

reaching these goals. 

IV. Summary and Discussion of 

Regulatory Provisions 

The rules proposed in this NPRM, 

covering TAA program benefits and 

administration, are based largely on the 

current regulations codified at 20 CFR 

Part 617 (Trade Adjustment Assistance 

for Workers under the Trade Act of 

1974). The proposed Part 618 

regulations also incorporate 

amendments to the TAA program 

effectuated by the Reform Act, and 

simplify the language adopted from the 

current regulations in compliance with 

the Presidential directive that Federal 

agencies write new regulations in plain 

language (63 FR 31885, June 10, 1998). 

In accordance with the Reform Act, the 

claims of workers covered by petitions 

filed before November 4, 2002 continue 

to be governed by the rules of the TAA 

and NAFTA–TAA programs prior to 

that date. These rules will continue to 

be codified at 20 CFR Part 617. In 

addition, the NAFTA–TAA operating 

instructions previously issued by DOL, 

General Administrative Letter No. 7–94 

(59 FR 3871, January 27, 1994) and 

changes 1, 2, and 3 (69 FR 60898, 

October 13, 2004; 69 FR 67963–03, 

November 22, 2004) will continue to 

apply to eligible participants of the TAA 

and NAFTA–TAA programs until 

superseded by these regulations. 

The proposed amendments to 20 CFR 

Part 617 and to the WIA regulations, 

codified at 20 CFR Parts 665 and 671, 

respectively, reflect both the Reform Act 

requirements for coordination between 

the workforce investment system and 

the TAA program and changes to the 

NEG program relating to the HCTC. 

Part 617—Trade Adjustment Assistance 

Under the Trade Act of 1974 for 

Workers Certified Under Petitions Filed 

Before November 4, 2002 

The proposed revisions to Part 617 

include changing the title to clearly 

identify that this Part applies only to 

workers certified as eligible to apply for 

trade adjustment assistance under 

petitions filed before the Reform Act 

changed the TAA program. Proposed 

§ 617.1 amends this section to provide 

further clarification that the provisions 

for TAA assistance under this Part 617 

will continue to apply after the effective 

date of Part 618 only to adjustment 

assistance, TRA, and other allowances 

available to adversely affected workers 

covered by certifications issued under 

petitions filed with the Secretary before 

November 4, 2002, the effective date of 

the Reform Act amendments to the TAA 

programs. Proposed § 617.10 adds a new 

paragraph (e) to that section to require 

CSAs to advise adversely affected 

workers subject to the requirements of 

the TAA program in effect before 

November 4, 2002 of the qualifying 

requirements for the health coverage tax 

credit (HCTC) and related health 

insurance assistance established by the 

Reform Act. 


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Part 618—Trade Adjustment Assistance 

Under the Trade Act of 1974 for 

Workers Certified Under Petitions Filed 

After November 3, 2002. 

Subpart A—General 

Subpart A describes the TAA program 

and the contents of all the subparts. In 

addition, it defines all relevant terms 

used in other subparts. (Several 

definitions related to subpart B 

(Petitions and Determinations of 

Eligibility to Apply for Trade 

Adjustment Assistance) are held in 

reserve for publication with subpart B.) 

Several definitions have been modified 

and simplified to clarify their meanings, 

or eliminated in response to statutory 

changes in the TAA program. In 

addition, definitions of new terms have 

been added to describe the amended 

TAA programs, including the new 

ATAA program. Use of these definitions 

in the NPRM is intended to facilitate the 

integration of the TAA programs into 

the One-Stop system under the WIA and 

to describe and implement new 

concepts introduced into the TAA 

programs by the Reform Act, such as the 

HCTC. Major changes include: 

• The goal of the program has been 

defined as providing workers, so as 

quickly as possible, with assistance to 

return them to work that will use the 

highest skill levels and pay the highest 

wages given the workers’ preexisting 

skill levels and education and the 

condition of the labor market. 

• The definition of adversely affected 

worker has been clarified to include the 

owner of a small business adversely 

affected by foreign trade. 

• A new definition of customized 

training has been added. 

• Definitions necessary for HCTC 

processing have been added. 

Proposed § 618.100 describes the 

purpose of the program, which the 

Department, based on past experience, 

has modified to reflect achievable 

outcomes for a worker. Under the 

current statement of purpose at 20 CFR 

617.2, the stated goal of the TAA 

program is to return workers to suitable 

employment as quickly as possible. In 

this context, ‘‘suitable employment’’

means that after the worker received 

services under the TAA program, the 

worker would be re-employed at 80 

percent of his or her former salary. 

While that goal has not changed, the 

Department has revised the wording of 

the goal to make it clear that finding 

‘‘suitable employment’’ is a goal, not a 

requirement of the Act. 

Although the ‘‘suitable employment’’

standard is a worthy goal, and one that 

the Department intends to continue to 

pursue, it is merely a goal and not a 

program requirement. Unfortunately, 

there are situations in which workers 

may be unable to obtain ‘‘suitable 

employment’’ either in the local labor 

market or as a result of training. This 

may occur because the workers are 

experienced workers for whom few jobs 

at their former wages are available, 

because of a depressed local labor 

market in which there are few available 

jobs, or because the workers have 

substantial barriers to reemployment. 

These factors significantly constrain the 

training opportunities that are available 

for these workers, and therefore, their 

employment prospects as well. Yet 

providing training, especially in a 

stagnant labor market, may significantly 

increase a worker’s chances for 

obtaining a decent job with career 

advancement prospects or of succeeding 

in the labor market. 

The Department’s goal is to provide 

the best possible outcome for each 

worker participating in the program. 

Therefore, the Department is committed 

to providing training that will allow a 

worker to compete for the highest 

paying employment achievable given 

the worker’s pre-existing skills, abilities, 

and education, and the current job 

market. The proposed purpose section 

accurately reflects the Department’s 

goal. 

Proposed § 618.105 sets forth the 

effective dates for various aspects of the 

TAA program, the ATAA program, and 

HCTC, as provided by the Reform Act. 

Until these regulations at Part 618 take 

effect, Training and Employment 

Guidance Letter (TEGL) No. 11–02 and 

its changes will continue to govern 

determinations on certifications and 

benefits for workers covered under 

petitions filed after November 3, 2002. 

Similarly, TEGL No. 2–03, and its 

changes, continue to govern 

determinations on ATAA certifications 

and benefits made before the effective 

date of this Part 618. Part 617 will 

continue to apply to the operational and 

benefit provisions of the TAA program 

for petitions filed before November 4, 

2002 and certifications granted under 

those petitions. General Administrative 

Letter (GAL) No. 7–94 (59 FR 3871, 

January 27, 1994) and its changes (69 FR 

60898–60903, October 13, 2004) 

continue to apply to NAFTA–TAA 

petitions filed before November 4, 2002, 

even when determinations on those 

petitions are issued after that date. 

The terms defined in proposed 

§ 618.110 apply to both the petition 

process and the benefit provisions of the 

TAA program. They derive from six 

basic sources: the Act prior to the 

Reform Act amendments, the Reform 

Act, 20 CFR Part 617, 29 CFR Part 90, 

the WIA and its implementing 

regulations at 29 CFR Part 652, et seq. 

Several definitions used in 20 CFR Part 

617 and 29 CFR Part 90 have been 

modified and simplified to clarify their 

meanings, amended to reflect current 

TAA statutory language or eliminated in 

response to TAA statutory changes. 

The particular definitions are 

explained as they appear in this section, 

in alphabetical order, as follows. 

Act—The citation for the Trade Act in 

the proposed definition is updated from 

the citations in 29 CFR Part 90 and 20 

CFR 617.3(a) to include all amendments 

to the Act through the date of 

publication of this notice. 

Additional compensation—This 

proposed term was included in the 

description of unemployment 

compensation in 20 CFR 617.3(oo). The 

proposed definition of this term is the 

same as § 617.3(oo)(2). 

Adversely affected employment—This 

proposed definition is based on the 

statutory definition, which was codified 

in 20 CFR 617.3(a), and, although the 

definition has been revised for clarity, 

no substantive change from that 

definition is intended. 

Adversely affected worker—This 

proposed definition modifies the 

definition in 20 CFR 617.3(c) to clarify 

the Department’s interpretation of this 

statutory term. Under this proposed 

definition, an employer may be 

considered an adversely affected worker 

when the employer is also an employee 

of a business that closes or experiences 

a reduction in operation. In this 

circumstance, if the employer becomes 

totally or partially separated from his or 

her employment, the employer is an 

‘‘adversely affected worker.’’ The 

proposed definition also changes the 

definition in 20 CFR 617.3(c) to include 

the applicable periods during which the 

worker’s separation must occur in order 

for that worker to be eligible to apply for 

TAA, or TAA and ATAA: the period 

from the impact date to two years after 

the date on which the certification is 

signed or earlier if the certification is 

terminated before it expires after two 

years. 

Agent State—This proposed 

definition is substantively unchanged 

from the definition and description of 

agent State codified in 20 CFR 

617.3(aa)(2) and 617.16(e). 

Alternative Trade Adjustment 

Assistance, Alternative TAA or ATAA—

This proposed term refers to the 

assistance provided under the 

demonstration program introduced by 

the Reform Act to provide an alternate 

path for adversely affected workers over 

the age of 50 years to elect to receive 

benefits under the Act, as discussed in 


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subpart I (reserved for publication at a 

later date). 

Applicable State law—This proposed 

definition is substantially the same as in 

20 CFR 617.16. The wording has been 

changed slightly to make the definition 

more easily understood, and the 

separate paragraph addressing adversely 

affected workers entitled to UI under the 

Railroad Unemployment Insurance Act 

(RRUI) has been dropped because it is 

duplicative of paragraph (a)(2) of this 

definition in 20 CFR 617.16, which also 

applies to adversely affected workers 

entitled to UI under the RRUI. 

Average weekly hours—This proposed 

definition is the same as in 20 CFR 

617.3(e). 

Average weekly wage—This proposed 

definition is substantively the same as 

in 20 CFR 617.3(f). However, it replaces 

the phrase ‘‘the individual’s appropriate 

week’’ with the phrase ‘‘the week in 

which the individual’s first separation 

occurred.’’ This change eliminates the 

definition of ‘‘appropriate week,’’ which 

was referenced only one time in the 

definition of ‘‘average weekly wage’’ at 

20 CFR 617.3(f). Therefore, the 

Department proposes to remove the 

term ‘‘appropriate week,’’ as defined at 

20 CFR 617.3(d), from this proposed 

Part 618. This definition otherwise did 

not change substantively. 

Benefit period—This proposed 

definition is the same as in 20 CFR 

617.3(h). 

Bona fide application for training—

This proposed definition is the same as 

the definition in 20 CFR 617.3(i), except 

that it no longer includes the direction 

to the CSA that the form must be signed 

and dated upon receipt and the form 

used is not required to contain the local 

office number of the CSA. Instead, 

proposed § 618.605(b)(2) directs a 

representative of the CSA to sign and 

date the application upon receipt. 

Access to CSAs and their contact 

information via telephone directories 

and information assistance and the 

Internet obviates the need for a bona 

fide application for training to contain 

the local office telephone number, 

which may soon be outdated. 

Certification—This proposed 

definition modifies the definition in 

§ 617.3(j)(1) to include a reference to 

ATAA. The procedures for obtaining a 

certification will be described in the 

proposed subpart B [reserved]. 

Certification period—This proposed 

definition is the same as in 20 CFR 

617.3(j)(2). 

Certifying officer—This proposed 

definition is updated from the definition 

in 20 CFR Part 617 by changing ‘‘Office’’

to ‘‘Division’’ and ‘‘Part 90’’ to ‘‘Part 

618.’’

Co-enrollment—This proposed term 

refers to an individual who is 

participating in a TAA program and is 

also enrolled in another program 

administered through a State’s WIA 

One-Stop delivery system. 

Commuting area—This proposed 

definition is the same as in 20 CFR 

617.3(k). 

Confidential business information—

This proposed definition replaces the 

definition at 29 CFR 90.33(a), and 

provides a more precise statutory basis, 

under the Trade Secrets Act, 18 U.S.C. 

1905, for withholding from disclosure 

commercial and financial data received 

by the Department during its 

investigation of petitions for 

certification of worker eligibility to 

apply for TAA, or TAA and ATAA. 

Section 90.33(a) identifies the Freedom 

of Information Act, 5 U.S.C. 552 (FOIA), 

and the Department’s regulations 

implementing FOIA, 29 CFR Part 70, as 

the bases for designating confidential 

commercial information as ‘‘privileged 

or confidential.’’ FOIA exemption (b)(4) 

exempts from mandatory disclosure 

under FOIA certain commercial or 

financial information that is the subject 

of a FOIA request. The Trade Secrets 

Act affirmatively prohibits the 

disclosure of confidential business or 

commercial information, in the absence 

of legal authority. The term 

‘‘confidential business information’’ is 

used in connection with disclosure of 

information by the Department and by 

the States, as in proposed § 618.865(b). 

Cooperating State agency or CSA—

This proposed term is added to 

accurately identify the agency or 

agencies at the State level that carry out 

provisions of the Act because of the new 

emphasis on coordination between the 

TAA programs and the One-Stop 

delivery system. While the proposed 

definition includes the ‘‘State agency,’’

as that term was defined in 20 CFR 

617.3(ii), it also includes the State 

Workforce Agency and other State or 

local agencies that cooperate in the 

administration of the TAA programs 

under an agreement between the 

Governor and the Secretary. 

Customized training—This proposed 

term is newly defined to identify a type 

of training previously not referenced in 

the Act. While the Reform Act generally 

did not amend the job retraining 

provisions of the Act, it changed the 

reference to ‘‘on-the-job training’’ to 

‘‘employer-based training, including (i) 

on-the-job training and (ii) customized 

training.’’ The proposed definition of 

customized training refers to 

§ 618.635(b) which describes 

customized training similarly to the 

definition for such training under WIA. 

Date of certification—This proposed 

term means the same as the term ‘‘date 

of issuance’’ in 29 CFR 90.2, but has 

been expanded and renamed to avoid 

any suggestion that the date on which 

the certification is signed may be 

different from the date on which the 

certification is issued. The phrase ‘‘for 

a group of adversely affected workers at 

a firm or subdivision’’ is added to the 

proposed definition to indicate that the 

certification will identify the group of 

workers to whom it applies. 

Date of filing—This proposed 

definition is modified from the 

definition in 29 CFR 90.2. The current 

office handling petitions under the TAA 

programs, DTAA, is substituted. The 

definition also makes clear that a 

petition is only considered filed on the 

date on which DTAA receives a 

complete petition. 

Date of separation—This proposed 

definition is intended to have the same 

meaning as 20 CFR 617.3(l), but is 

rephrased slightly for clarity and is 

stated in the disjunctive to make it clear 

that the three situations listed are 

alternatives. 

Department of Labor or Department or 

DOL—This proposed term identifies the 

Department of Labor. The abbreviations 

are added to simplify references to the 

agency. 

Director—This proposed definition 

differs from the definition in 29 CFR 

90.2 by using the term Division rather 

than Office to reflect the current ETA 

organizational structure, and by 

including any person who is designated 

to act in the place of the Director. 

Division of Trade Adjustment 

Assistance or DTAA—This proposed 

definition refers to the name of the 

organization within the Employment 

Training Administration of the 

Department with responsibility for 

administering the TAA programs. CSAs 

work under the direction of DTAA to 

provide services and benefits under the 

TAA programs. 

Eligible ATAA recipient, Eligible 

PBGC pension recipient and Eligible 

TAA recipient—These proposed 

definitions incorporate the definitions 

the categories of persons who may be 

eligible to qualify for the health 

coverage tax credit under section 35 of 

the Internal Revenue Code and health 

insurance coverage assistance under 

section 173(g) of the WIA, 29 U.S.C. 

2918, as amended by the Reform Act. 

These categories are defined in sections 

35(c)(3), 35(c)(4) and 35(c)(2) of the 

Internal Revenue Code, 26 U.S.C. 

35(c)(3), (c)(4) and (c)(2). The CSA must 

send a list of eligible ATAA and TAA 

recipients to the Internal Revenue 

Service (IRS). However, only the IRS 


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can make a determination that an 

individual who is on that list is eligible 

to receive the HCTC. 

Employer—This proposed definition 

is the same as in 20 CFR 617.3(n). 

Employment—This proposed 

definition is the same as in 20 CFR 

617.3(o). 

Extended compensation or Extended 

Benefits or EB—This proposed term was 

included in the description of 

unemployment compensation in 20 CFR 

617.3(oo). The proposed definition of 

this term has been revised to simplify 

and update § 617.3(oo)(3). 

Family—This proposed definition is 

the same as the definition of this term 

in 20 CFR 617.3(q), which is based on 

the Internal Revenue Code definition, 

except for updating the date of the 

Internal Revenue Code from ‘‘1954’’ to 

‘‘1986.’’

Federal student financial assistance—

This proposed term is added to describe 

the various types of student financial 

assistance authorized by title IV of the 

Higher Education Act of 1965, as 

amended (20 U.S.C. 1070 et seq.) and 

Bureau of Indian Affairs student 

assistance programs which may be 

available to adversely affected workers. 

Federal supplemental 

compensation—This proposed term was 

included in the description of 

unemployment compensation in 20 CFR 

617.3(oo). The proposed definition of 

this term has been revised to simplify 

and update the language used in 

§ 617.3(oo)(4). 

Firm—This proposed definition is 

substantially the same as in 29 CFR 

90.2. The definition is intended to be 

broad enough to encompass all kinds of 

organizations and to include closely 

related or affiliated organizations. The 

definition is, however, limited by basic 

rules of corporate and organizational 

law to entities that share the indicia of 

common ownership or control. 

First benefit period—This proposed 

definition is substantively the same as 

in 20 CFR 617.3(r). To achieve 

consistency in proposed Part 618, the 

term ‘‘worker’’ is used instead of 

‘‘individual,’’ which is used in this 

definition in Part 617. 

First qualifying separation—This 

proposed definition is substantially 

changed from 20 CFR 617.3(t)(3), which 

defines this term one way for purposes 

of determining the weekly and 

maximum amounts of basic TRA, and 

another way for all the other purposes 

of Part 617. For simplification, the 

proposed definition of this term applies 

solely for the purpose of determining 

the weekly and maximum amounts of 

basic TRA and is substantively the same 

as at 20 CFR 617.3(t)(3)(ii). The other 

purpose for which this term is used in 

20 CFR 617.3(t)(3)(i) is now covered in 

the proposed definition of ‘‘qualifying 

separation’’ at proposed § 618.110. 

First separation—This proposed 

definition is the same as in 20 CFR 

617.3(t)(1), except that the cross 

reference has been deleted as 

unnecessary. 

Health Coverage Tax Credit or 

HCTC—This proposed term is added to 

describe the tax benefit under section 35 

of the Internal Revenue Code of 1986 

(26 U.S.C. 35) that the Reform Act 

makes available to qualified TAA and 

ATAA recipients. 

Impact date—This proposed 

definition slightly revises the definition 

of this term at 20 CFR 617.3(v) for 

simplicity. The impact date is stated in 

the certification for eligibility of covered 

workers to apply for TAA. As required 

by section 223(b)(1) of the Act, the 

impact date may not be more than one 

year before the date of the petition on 

which such certification was granted. 

Individual employment plan (IEP)—

This is a new definition. Generally, an 

IEP is prepared after conducting a 

comprehensive assessment of the 

worker’s employment goals and 

strategies to achieve those goals. An IEP 

means an ongoing strategy jointly 

developed by the participant and the 

case manager that identifies the 

participant’s employment goals, the 

appropriate achievement objectives, and 

the appropriate combination of services 

for the participant to achieve the 

employment goals. 

Job finding club—This proposed 

definition is the same as the definition 

of this term in 20 CFR 617.3(y). 

Job search program or JSP—This 

proposed definition is the same as the 

definition of this term in 20 CFR 

617.3(w). 

Job search workshop—The proposed 

wording of this term varies slightly from 

20 CFR 617.3(x) to provide a clearer 

description, but the meaning is intended 

to be the same. 

Lack of work—This term is used in 

the definitions of ‘‘adversely affected 

worker’’ in section 247(2) of the Act, as 

well as in the definitions of ‘‘adversely 

affected worker’’ and ‘‘layoff’’ in these 

proposed regulations. Thus, the term is 

defined here to clarify its meaning. The 

definition includes situations where the 

employer is downsizing the workforce 

by attrition or offering severance 

benefits to encourage workers to leave 

the workforce voluntarily, and where a 

worker’s hours of employment have 

been reduced because sufficient work to 

maintain that worker’s customary hours 

of work is not available. A worker who 

is separated from employment under 

these circumstances may be covered as 

an ‘‘adversely affected worker’’ and be 

eligible to receive TAA, or TAA and 

ATAA. It should be noted that some 

workers will meet this definition of a 

‘‘lack of work’’ separation, but will be 

disqualified for UI under State 

voluntary quit provisions. The UI 

disqualification will make these workers 

ineligible for TRA, although they may 

qualify for other forms of TAA. 

Layoff—This proposed definition 

follows the definition in 20 CFR 

617.3(z) and contains two minor 

changes to the definition of this same 

term in 29 CFR 90.2. The phrase 

‘‘suspension or separation from 

employment’’ used in § 617.3(z) is 

adopted instead of the phrase 

‘‘suspension from pay status’’ used in 

the definition of this term in § 90.2 

because the Department intends for 

‘‘layoff’’ to include persons separated 

from employment who receive 

severance pay and therefore may be 

considered to be in a pay status. This 

definition may be an issue for some 

States, and some workers will be able to 

get TAA services other than TRA, for 

which they may be disqualified based 

upon the receipt of severance pay. The 

Department proposes using the phrase 

‘‘expected to be for a definite or 

indefinite period of not less than seven 

(7) consecutive days’’ from 20 CFR 

617.3(z) rather than the phrase 

‘‘expected to last for no less than seven 

(7) consecutive calendar days,’’ which is 

used in the definition of this term in 29 

CFR 90.2. Use of the Part 617 language 

will remove any ambiguity about 

whether a suspension or separation 

from employment may be for a definite 

or indefinite period and still be a 

‘‘layoff’’ for TAA purposes. 

Additionally, use of the Part 617 

language will notify CSAs that they 

must continue to measure the duration 

of a suspension or separation from 

employment as they have been under 

Part 617. 

Liable State—This proposed 

definition follows 20 CFR 617.3(aa) but 

is revised for simplicity. The term 

‘‘Agent State’’ is now separately defined 

at proposed § 618.110. 

One-Stop delivery system—This 

proposed term refers to the system of 

entities within a State operating under 

WIA and its implementing regulations 

to provide employment and training 

activities, including coordination of 

services to eligible dislocated workers as 

defined under section 101(9) of WIA. 

WIA section 121(b)(1)(B)(viii) requires 

the TAA program to be a partner in the 

One-Stop delivery system. 

On-the-job training (OJT)—This 

proposed definition, unlike the 


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definition in 20 CFR 617.3(bb), defines 

this term by reference to the on-the-job 

training provision at proposed 

§ 618.635(a)(1) (enrollment in on-the-job 

and customized training). 

Partial separation—This proposed 

definition combines the slightly 

different definitions of this term in 20 

CFR 617.3(cc) and 29 CFR 90.2. The 

definition of this term in § 90.2 applies 

to separations ‘‘at the firm or 

appropriate subdivision thereof,’’

referring to workers who have not yet 

been certified as eligible to apply for 

TAA. After they have been determined 

to be eligible to apply for TAA, the 

workers’ ‘‘partial separation’’ is referred 

to in § 617.3(cc) as being ‘‘in adversely 

affected employment,’’ the term that the 

Trade Act uses in section 247(6) of the 

Act to describe the two measures of 

‘‘partial separation.’’ The proposed 

combined definition retains the 

statutory criteria of ‘‘partial separation’’

to refer to both workers on whose behalf 

a petition has been filed and workers 

who are covered by a certification. The 

proposed definition also clarifies the 

meaning of the term by specifying that, 

in order for the worker to be counted as 

partially separated from adversely 

affected employment, the reduction of 

hours must have occurred during a 

week ending on or after the impact date 

specified in a certification. 

Program of remedial education—This 

new proposed term is used to refer, as 

the Reform Act does, to education 

designed to upgrade the basic 

knowledge of adversely affected workers 

through such courses as adult basic 

education, basic math and literacy, 

English-as-a-second-language, and high 

school equivalency. 

Qualifying separation—This term, as 

defined at 20 CFR 617.3(t)(2), is used to 

determine whether an individual 

qualifies as an adversely affected worker 

and for basic TRA. Under the proposed 

definition of this term, it applies for 

both those purposes as well as for 

determining the 16-week period for 

enrollment in approved training and the 

basic TRA eligibility period. 

For the purpose of determining the 

basic TRA eligibility period under 

proposed § 618.745(a), an adversely 

affected worker’s eligibility for basic 

TRA ends at ‘‘the close of the 104-week 

[or, under the Reform Act amendments, 

if necessary to complete an approved 

training program that includes remedial 

education, the 130-week] period 

beginning with the first week following 

the week in which the adversely 

affected worker’s most recent qualifying 

separation (defined in proposed 

§ 618.110) occurred.’’ Thus, every time 

an adversely affected worker has a 

‘‘qualifying separation,’’ he or she 

begins a new basic TRA eligibility 

period, as provided in section 233(a)(2) 

of the Act. 

This ‘‘movable basic TRA eligibility 

period’’ is the same under proposed Part 

618 as it is under Part 617 because the 

Reform Act did not amend it. However, 

the Part 618 regulations achieve the 

same result in a simpler fashion. Section 

617.15(a) of 20 CFR provided a 104- 

week ‘‘eligibility period.’’ This term is 

defined at 20 CFR 617.3(m)(1)(ii) in 

reference to the ‘‘first total qualifying 

separation,’’ which is a ‘‘first qualifying 

separation’’ under 20 CFR 

617.3(t)(3)(i)(B). However, the definition 

of ‘‘eligibility period’’ in Part 617 

provides that if an individual has a 

‘‘subsequent total qualifying separation 

within the certification period of the 

same certification,’’ that individual 

would have a new 104-week eligibility 

period. Thus, the Part 617 regulations 

provide for a movable basic TRA 

eligibility period, through several steps 

by running the eligibility period from 

the ‘‘first total qualifying separation,’’

and then restarting it where the 

adversely affected worker had a 

‘‘subsequent total qualifying 

separation.’’ The Part 618 regulations 

achieve the same result, but more 

simply, by running the eligibility period 

from the most recent ‘‘qualifying 

separation’’ (defined as, among other 

things, a total separation). 

The definition of ‘‘qualifying 

separation’’ is used also for the purpose 

of determining the 16-week period for 

enrollment in approved training as a 

condition of TRA, a deadline added by 

the Reform Act. Proposed 

§ 618.720(b)(2) establishes this deadline 

as the ‘‘last day of the 16th week after 

the adversely affected worker’s most 

recent qualifying separation as defined 

in § 618.110,’’ thus establishing a 

‘‘movable’’ 16-week period for 

enrollment in approved training, as 

provided in section 231(a)(5)(A)(ii)(I) of 

the Act. 

As noted in the preamble explanation 

of the definition of ‘‘first qualifying 

separation’’ at proposed § 618.110, that 

definition applies only for the purposes 

of determining the weekly and 

maximum amount of basic TRA. The 

proposed definition of ‘‘qualifying 

separation’’ also modifies the 20 CFR 

617.3(t)(2) definition by eliminating 

outdated provisions. 

Regional Administrator—This 

proposed definition is substantively 

unchanged from 20 CFR 617.3(dd). 

Regular compensation—This 

proposed term was included in the 

description of unemployment 

compensation in 20 CFR 617.3(oo). The 

proposed definition of this term is the 

same as § 617.3(oo)(1). 

Secretary—This proposed term, used 

to refer to the Secretary of Labor, United 

States Department of Labor, is the same 

as in 20 CFR 617.3(ff). 

State—This proposed definition is the 

same as the definition of this term in 20 

CFR 617.3(hh). 

State agency—This proposed 

definition revises the definition of this 

term used in Part 617 by incorporating 

the statutory definition of ‘‘the agency of 

the State which administers the State 

law.’’ The proposed definition of ‘‘CSA’’

in proposed § 618.110 is the same as the 

20 CFR 617.3(ii) definition of ‘‘State 

agency,’’ except that current 

terminology is used instead of ‘‘State 

Employment Security Agency.’’

State law—This proposed definition 

is the same as in 20 CFR 617.3(jj), 

except that the reference to the Internal 

Revenue Code has been updated. 

Suitable employment—The proposed 

definition of ‘‘suitable employment’’

comes from section 236(e) of the Act, 

defining it as ‘‘work of a substantially 

equal or higher skill level than the 

worker’s past adversely affected 

employment, and wages for such work 

at not less than 80 percent of the 

worker’s average weekly wage.’’ That 

section expressly states that its 

definition of this term applies for 

purposes of section 236. Section 236 

uses the term ‘‘suitable employment’’

only in section (a)(1)(A) (the first 

criterion for the approval of training), 

providing for approval where ‘‘there is 

no suitable employment * * * available 

for an adversely affected worker.’’

The term ‘‘suitable employment’’ also 

is used in section 231(c)(1)(B) of the Act 

to permit waiver of the training 

requirement for receiving TRA where an 

adversely affected worker has 

marketable skills for ‘‘suitable 

employment’’ and there is a reasonable 

expectation of employment at 

equivalent wages in the foreseeable 

future. Section 231 of the Act neither 

incorporates the definition of ‘‘suitable 

employment’’ in section 236(e) of the 

Act nor provides a different definition 

of the same term. The Department has 

determined that it is appropriate to 

apply the section 236(e) definition of 

the term in implementing section 231 of 

the Act because these provisions are 

interrelated. Where ‘‘suitable 

employment’’ is available for an 

adversely affected worker, approval of 

training will be denied under section 

236(a)(1)(A) of the Act. However, the 

worker may need income support while 

looking for that ‘‘suitable employment,’’

which may depend upon a waiver of the 

training requirement. Using the same 


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definition of ‘‘suitable employment’’ for 

purposes of section 231(c)(1)(B) of the 

Act allows CSAs to decide whether to 

deny training and to grant waivers on 

the same basis. 

Sections 237(a)(2)(B) and 238(a)(2)(B) 

of the Act require, as conditions for 

receipt of job search and relocation 

allowances, that ‘‘the worker cannot 

reasonably be expected to secure 

suitable employment in the commuting 

area in which the worker resides.’’ In 

implementing these provisions, the 

Department proposes in subparts D and 

E to use the same definition of the term 

‘‘suitable employment.’’ This is a 

departure from the current regulations 

at 20 CFR 617.32(a)(4) (on job search 

allowances) and 617.42(a)(6) (on 

relocation allowances) which interpret 

‘‘suitable employment’’ to mean 

‘‘suitable work’’ as defined in 20 CFR 

617.3(kk)(1) and (2), whichever is 

applicable to the individual. ‘‘Suitable 

employment’’ is generally work at 

higher skill levels and wage rates than 

is ‘‘suitable work.’’ By changing the 

interpretation of ‘‘suitable employment’’

to have the same meaning for purposes 

of eligibility for relocation and job 

search allowances that it has in 

proposed subpart F of Part 618 on 

training, the Department intends to 

encourage workers to use these benefits 

in a manner consistent with the purpose 

of the program to encourage workers to 

seek new jobs with compensation levels 

near the levels of those jobs from which 

they were separated. This proposed 

regulatory change may increase the 

number of workers who qualify for job 

search allowances in areas where 

‘‘suitable employment’’ opportunities 

are limited. On the other hand, using 

‘‘suitable employment’’ in the eligibility 

criteria for relocation allowances could 

restrict the jobs for which relocation 

allowances may be paid. 

The Department invites comment on 

whether it should instead define 

‘‘suitable employment’’ for purposes of 

job search and relocation allowance 

eligibility as a job at lower wages than 

‘‘suitable employment’’ as defined in 

section 236(e) of the Act for job training 

approval. A lower standard for ‘‘suitable 

employment’’ would have the beneficial 

effect of increasing the number of jobs 

for which a worker might obtain a job 

search or relocation allowance. On the 

other hand, approval for either of these 

allowances requires that there be no 

reasonable expectation of securing 

‘‘suitable employment’’ in the 

commuting area. Therefore, a lower 

standard would make it more likely that 

a disqualifying ‘‘suitable employment’’

would be available locally. The 

Department also invites comment on 

what level would be appropriate, and 

why. 

The proposed definition of ‘‘suitable 

employment’’ differs slightly from the 

definition in 20 CFR 617.22(a)(1)(i) by 

expressly requiring the CSA to take into 

consideration the value of fringe 

benefits, including health insurance, in 

determining whether the level of wages 

for work is at least 80 percent of the 

adversely affected worker’s average 

weekly wage in the adverse employment 

from which the worker was separated. 

The broad definition of the term 

‘‘wages’’ in 20 CFR 617.3(pp) and 

proposed paragraph 618.110, which 

includes ‘‘all compensation for 

employment for an employer, including 

commissions, bonuses, and the cash 

value of all compensation in a medium 

other than cash,’’ is the basis for 

emphasizing to the CSAs that they must 

consider fringe benefits as part of the 

total wage package factor in making 

determinations as to whether ‘‘suitable 

employment’’ is available to an 

adversely affected worker. Comments on 

this change in definition are specifically 

requested. 

Suitable work—The definition 

proposed for Part 618 is the same as the 

definition of this term in 20 CFR 

617.3(kk)(1) and (2), that is, either as 

suitable work as defined in the 

applicable State law for claimants for 

regular compensation, or suitable work 

as defined in applicable State law 

provisions consistent with section 

202(a)(3) of the Federal-State Extended 

Unemployment Compensation Act 

(EUCA) of 1970. State unemployment 

insurance laws define ‘‘suitable work’’

in terms of a worker’s job prospects. The 

better the job prospects, the higher the 

level of work considered suitable. 

Further, where a worker’s job prospects 

are not good, the EUCA considers any 

work within the worker’s capabilities to 

be suitable. Lastly, the proposed 

definition, as well as the Part 617 

definition, excludes self-employment or 

employment as an independent 

contractor. Thus, if self-employment or 

employment as an independent 

contractor is the only available 

employment in the worker’s commuting 

area, the worker may be eligible for a job 

search or relocation allowance as he or 

she will not be disqualified for this 

reason. 

Supportive services—This proposed 

new term is used to refer to such 

services as transportation, childcare, 

dependent care, and housing that are 

needed to enable an individual to 

participate in activities authorized 

under the Act. 

Total separation—This proposed 

definition combines the definitions 

currently codified in 20 CFR 617.3(ll) 

and 29 CFR 90.2. The definition of 

‘‘total separation’’ in 29 CFR Part 90 

refers to an individual’s layoff or 

severance ‘‘from a firm or an 

appropriate subdivision thereof;’’ the 20 

CFR Part 617 definition refers to an 

individual’s layoff or severance from 

‘‘employment with a firm in which, or 

in a subdivision of which, adversely 

affected employment exists,’’ and 

therefore refers to a determination that 

the individual is covered by a 

certification of eligibility to apply for 

TAA. The proposed definition 

recognizes that a ‘‘total separation’’ is 

the same whether or not the worker 

group involved is covered by a 

certification. 

Trade adjustment assistance or 

TAA—The proposed definition of TAA 

has been revised to refer to the services 

and allowances to help adversely 

affected workers become reemployed. 

They include TRA, training and other 

reemployment services, job search 

allowances and relocation allowances, 

and HCTC. 

Trade adjustment assistance for 

Farmers program or TAA for Farmers 

program—This term is added to refer to 

the program of adjustment assistance 

added to the Act by subtitle C of the 

Reform Act to provide benefits and 

services to agricultural commodity 

producers through a certification 

process administered by the United 

States Department of Agriculture under 

regulations codified at Part 1580 of title 

7 of the Code of Federal Regulations. 

Employment services and training 

under the TAA program are available to 

agricultural commodity producers 

determined by the Department of 

Agriculture to be eligible to receive a 

cash benefit under that program. 

Trade readjustment allowance or 

TRA—This proposed definition is 

substantively unchanged from 20 CFR 

617.3(nn). 

Unemployment insurance or UI—This 

proposed definition has been revised to 

simplify, update and clarify the 

language in 20 CFR 617.3(oo). The four 

types of UI defined in 20 CFR 617.3(oo) 

(regular compensation, additional 

compensation, extended compensation 

or extended benefits or EB, and Federal 

supplemental compensation) are 

separately defined in this section. 

Wages—This proposed definition is 

the same as the definition of this term 

in 20 CFR 617.3(pp). 

Wagner-Peyser Act—This new 

proposed term refers to the WagnerPeyser Act, as amended (29 U.S.C. 49 et 

seq.). 


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Week—This proposed definition is 

the same as the definition of this term 

in 20 CFR 617.3(qq). 

Week of unemployment—The 

proposed definition follows the 

definition of this term in the Act, and 

differs from the definition but not the 

meaning of this term in 20 CFR 617.3(rr) 

by using the phrase ‘‘Federal 

unemployment insurance law’’ instead 

of ‘‘Federal unemployment 

compensation law’’ to accord with the 

proposed definition of UI in paragraph 

(b)(80) of § 618.110. 

Workforce Investment Act or WIA—

This proposed term refers to the 

Workforce Investment Act of 1998, 

under which the Department provides 

States and local Workforce Investment 

Areas with funds for employment and 

training activities for adults and 

dislocated workers and for youth 

activities. 

Subpart C—Delivery of Services 

Through the One-Stop Delivery System 

Proposed subpart C is an entirely new 

subpart that sets forth requirements for 

CSAs to assist individuals who are 

covered by a petition but not yet 

certified, as well as adversely affected 

workers. This subpart provides a road 

map for CSAs of their responsibility for 

providing reemployment services, 

whether they are provided through the 

TAA program, through the WIA OneStop delivery system, or through any 

other federal law. It covers rapid 

response assistance and access to WIA 

core and intensive services, as well as 

supportive and other services. It 

emphasizes the integration of the TAA 

program into the WIA One-Stop 

delivery system. Subpart C is added in 

response to amendments made by the 

Reform Act, so it does not have an exact 

counterpart in Part 617 of the DOL 

regulations. Major points include: 

• CSAs must ensure that their TAA 

program administration complies with 

the One-Stop partnership requirements. 

• Individuals covered by a petition 

must be offered rapid response 

assistance and WIA core and intensive 

services. 

• A needs assessment is required for 

each TAA applicant and a 

comprehensive assessment for any 

recipient entering training. 

• CSAs must make every reasonable 

effort to secure for adversely affected 

workers counseling, testing, and 

placement services as well as supportive 

and other services provided for under 

any other Federal law. 

• Co-enrollment is encouraged as a 

strategy for delivering services. 

• CSAs are required to prepare an 

individual employment plan (IEP). 

• Worker benefit eligibility is 

protected by requiring CSAs to take 

timely action on training waivers when 

appropriate. 

• CSAs are required to provide 

employment services to individuals 

entitled to cash benefits under the TAA 

for Farmers program administered by 

the U.S. Department of Agriculture. 

Proposed § 618.300 discusses the 

scope of this new subpart, which 

focuses on the requirement that TAA 

program benefits and services be 

integrated to the extent possible with 

the reemployment services provided 

through the WIA-funded One-Stop 

delivery system. Consistent with the 

Reform Act, Subpart C is intended to 

provide individuals with a seamless 

delivery of services necessary for each 

to return to employment as quickly as 

possible by requiring and promoting the 

integration activities and services 

described below. 

The Act requires cooperating State 

agencies to provide reemployment 

services to two classes of participants: 

(1) Individuals covered by a petition for 

TAA filed by, or on behalf of, a group 

of workers and, (2) adversely affected 

workers who are covered by a petition 

that has already been certified. Under 

section 221(a)(2)(A) of the Act, the 

Governor must offer individuals covered 

by a petition rapid response assistance 

and WIA core and intensive services. 

Adversely affected workers must be 

offered core and intensive services, 

including counseling, testing and 

placement services and supportive and 

other services provided for under any 

other Federal law, including the 

Wagner-Peyser Act and the WIA. This 

requirement is based on new language 

in section 235, 239(a), (e) and (g) of the 

Act and the Congressional Declaration 

of Policy in section 125(a) of the Reform 

Act. These services must be coordinated 

with workforce activities and services 

under Title I of WIA. Section 239(e) and 

(g) provides the Secretary with the 

authority to establish the 

responsibilities and requirements for 

such coordination. 

Proposed § 618.305 requires CSAs to 

ensure that the TAA program, as a 

required partner in the One-Stop 

delivery system, complies with OneStop partnership requirements such as 

sharing staff, materials, and/or financial 

resources. The partnership activities 

help ensure the seamless delivery of 

necessary services, including a 

comprehensive array of appropriate 

services not funded under the Trade 

Act, to both individuals covered by 

petitions and adversely affected 

workers. 

Proposed § 618.310 explains the 

CSAs’ responsibilities for delivering 

employment services not funded by the 

Act. Proposed paragraph (a) addresses 

such employment services that CSAs 

must make available to workers covered 

by a petition. It implements section 

221(a)(2)(A) of the Act, which requires 

that, upon the filing of a petition for 

TAA, the Governor ensure that covered 

workers have available to them WIA 

rapid response activities (as described 

in 20 CFR 665.300 and 665.310) and 

WIA core and applicable intensive 

services not funded under the Act. The 

timely provision of core and intensive 

services is an important step toward 

improving both the efficiency and the 

effectiveness of TAA. Further, 

immediately beginning the process of 

employment needs assessment improves 

participation rates and allows workers 

covered by a petition, whether or not 

the petition is certified, more time to 

consider all of the options available to 

them. Early intervention services that 

will benefit covered workers and 

adversely affected workers may include 

orientation; initial assessment of skill 

levels, aptitudes, and abilities; provision 

of labor market information; job search 

assistance; financial management 

workshops; and other services. 

Proposed § 618.310(b) lists services 

that CSAs must make every reasonable 

effort to provide to workers after TAA 

certification, as required under section 

235 of the Act. Because the TAA 

program does not fund a comprehensive 

program of reemployment services, it 

must be supplemented by services 

provided through the One-Stop delivery 

system: (1) Wagner-Peyser Act labor 

exchange system services described at 

20 CFR 651.3 to facilitate the matching 

of workers seeking jobs and employers 

seeking to fill jobs; and (2) WIA core 

and intensive services such as 

assessment, vocational testing, 

employment counseling, case 

management, placement and follow-up 

services, and development of individual 

employment plans (IEPs), as well as 

supportive services such as 

transportation and child care assistance. 

Proposed § 618.310(c) implements 

section 235 of the Act by requiring CSAs 

to make every reasonable effort to 

ensure the provision of services for 

adversely affected workers under other 

Federal laws. This provision comports 

with Congress’ statutory design not to 

duplicate efforts by requiring the 

Secretary and CSAs to seek other 

available funding streams for the 

provision of reemployment services to 

adversely affected workers. 

Proposed § 618.310(d) permits 

adversely affected workers to receive 


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employment services from another 

program if they meet the eligibility 

requirements of that program, even if 

that program is funded under the 

Wagner-Peyser Act or WIA, or the 

program is not exclusively federallyfunded, in accordance with the 

descriptions of One-Stop partners in 20 

CFR 662.200 and 20 CFR 662.210. CSAs 

should explore the wide variety of 

services available through such OneStop partners as economic development 

agencies, and community-based and 

faith-based organizations in developing 

a comprehensive service strategy for 

workers. 

Proposed § 618.310(e) reminds CSAs 

of the availability of two funding 

sources for reemployment services for 

adversely affected workers: WIA 

Dislocated Worker funds for an 

adversely affected worker who meets 

the dislocated worker definition at WIA 

section 101(9); and WIA-funded Adult 

programs for adversely affected workers 

who remain partially employed and 

therefore do not meet the WIA 

definition of a dislocated worker. When 

providing services to partially employed 

workers, the CSAs should assess the 

likelihood of restoring full employment 

and any other of the workers’

circumstances to develop appropriate 

IEPs. 

Proposed § 618.315 describes 

reemployment services which may be 

paid for with Trade Act funds. Proposed 

paragraph (a) implements section 239(f) 

of the Act by requiring CSAs to provide 

information to individuals about TAA, 

as detailed in proposed § 618.820. 

Proposed paragraph (b) follows 20 CFR 

617.20(b) in describing the 

responsibilities that a CSA has for the 

delivery of reemployment services. 

However, since proposed paragraph (b) 

only lists those responsibilities funded 

under the Act, paragraphs (b)(2), (b)(5), 

and (b)(13) of 20 CFR 617.20 are 

inapplicable because TAA funds are not 

used to provide those services. 

Paragraph (a) of 20 CFR 617.20 also is 

inapplicable under the seamless system 

envisioned under the Act. The 

paragraph is also updated to eliminate 

a reference to now-inapplicable Title III 

of the Job Training Partnership Act by 

substituting a reference to the WagnerPeyser Act and the WIA at proposed 

§ 618.315(b)(12). 

Proposed § 618.320 implements the 

new requirement, at section 221(a)(2)(A) 

of the Act, that the Governor, upon 

receipt of a petition for TAA 

certification, must ensure the 

availability of WIA rapid response 

assistance (described as ‘‘rapid response 

activities’’ in 20 CFR 665.300 and 20 

CFR 665.310) and appropriate core and 

intensive services to workers covered by 

the petition. Under 20 CFR 665.300(a), 

which the Department also proposes to 

amend to address the broadened State 

responsibility to covered workers, 

regular rapid response activities follow 

either a permanent closure or mass 

layoff, or a natural or other disaster 

resulting in a mass job dislocation. 

Proposed § 618.320(a) provides some 

flexibility for the Governor in providing 

rapid response activities to workers 

covered by a TAA petition where rapid 

response activities were already 

provided to those workers. In such 

cases, the Governor must review the 

rapid response activities already 

provided and determine whether it is 

necessary to provide additional 

information or assistance once the TAA 

petition is filed. The Governor may 

establish protocols and procedures for 

CSA and rapid response staff to ensure 

they use the most effective methods to 

notify workers about any additional 

benefits available to them under the 

TAA program. This advance 

collaboration becomes useful when the 

State learns of the filing of a petition at 

some time after the layoff has occurred. 

Proposed § 618.320(b) encourages 

Governors to ensure access to 

appropriate core and intensive services 

(as described in WIA section 134(d)(2) 

and (3)) for workers covered by a TAA 

petition by using rapid response activity 

funding. During rapid response 

activities, the State rapid response staff, 

in coordination with the local One-Stop 

delivery system, assesses the needs of 

the individuals in the petition group, as 

well as the local and State resources 

available to support the workers. Use of 

rapid response activity funding to help 

individuals access core and intensive 

services can encourage a more rapid 

return to employment. In addition, 

where there are insufficient partner and 

other resources to provide the necessary 

complementary services to these 

individuals, the rapid response activity 

staff may participate in analyzing the 

information gathered through the needs 

assessment to help develop an 

application and secure WIA national 

emergency grant (NEG) funding to bring 

additional reemployment services into 

the area to support a more rapid return 

to employment. 

Proposed § 618.325 discusses 

strategies to ensure the availability of a 

comprehensive array of services for 

adversely affected workers. Proposed 

paragraph (a) requires the CSA to 

collaborate with local workforce 

investment boards and other One-Stop 

partners, in accordance with the Reform 

Act, which requires the Secretary to use 

services provided under any other 

Federal law, ‘‘including the services 

provided through [O]ne-[S]top delivery 

systems described in section 134(c)’’ of 

the WIA. This regulation also 

encourages collaboration with other 

available programs, such as local faithand community-based programs that 

may not be One-Stop partners, to 

increase the availability of services to 

adversely affected workers. This 

integration of service strategies arises 

from the requirement in section 235 of 

the Act that every reasonable effort be 

made to secure employment services, 

such as counseling, testing, placement 

services, and supportive and other 

services for adversely affected workers. 

Proposed § 618.325(b) introduces the 

topic of co-enrollment of workers in 

both TAA and WIA-funded programs. 

The Department believes that coenrollment is the best means to 

accomplish integration of services, 

although the Department leaves the 

programmatic mechanism to accomplish 

this requirement to State and local 

program design. CSAs may enhance and 

expand co-enrollment to include 

multiple enrollments with a broader 

range of service delivery partners and 

programs. Multiple enrollment 

resources may include Wagner-Peyser 

activities, vocational rehabilitation 

services, and veterans’ programs such as 

those provided by the Department’s 

Veterans Employment and Training 

Service. Properly implemented, coenrollment or multiple-enrollment of 

trade-impacted workers in the programs 

offered through the One-Stop delivery 

system, as well as early provision of 

rapid response services, will further the 

adjustment process and promote the 

most rapid possible return to 

employment for all workers. Coenrollment or multiple-enrollment also 

allows covered individuals and 

adversely affected workers to receive 

supportive services that may assist them 

in a quicker transition to work. 

Proposed § 618.330 requires CSAs to 

design an assessment process that 

affords workers enough time and 

information to consider, request, and 

enroll in training or obtain a waiver of 

the training requirement for TRA before 

expiration of the 8-week and 16-week 

deadlines for enrollment in training 

provided under section 231(a)(5)(A) of 

the Act. 

Proposed § 618.335 discusses the 

requirements for an initial assessment of 

adversely affected workers; the first step 

in the process to determine whether the 

worker will need employment services 

and training and may meet the 

requirements for HCTC and ATAA. It 

should be noted that benefit information 

provided by the CSA to all adversely 


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affected workers as discussed in 

proposed § 618.820(f), should be no 

later than at the time of the initial 

assessment of the adversely affected 

worker. However, the CSA may provide 

this information earlier, to a worker 

covered by a petition upon its receipt by 

the Department and the Governor. 

Proposed § 618.335(a) lists factors that 

must be considered to find the best 

approaches to reemployment that are 

tailored to a worker’s particular 

circumstances. A review of the local 

labor market conditions will help the 

CSA determine if any jobs are available 

in the local area for which the worker 

could apply. A review of the workers’

skills from previous jobs will help the 

CSA determine whether the worker will 

be able to use those skills in new 

available jobs, or whether the worker’s 

skills are too specialized to be able to be 

transferred to other available jobs. A 

review of any significant barriers to 

employment that may prevent the 

worker from obtaining employment will 

help the CSA identify available training, 

such as remedial training to get a high 

school equivalency degree or to provide 

English language training, to address 

barriers to employment. 

Proposed § 618.335(b) allows CSAs to 

use WIA initial assessments and 

assessments performed under other WIA 

partner programs, such as those 

performed under the UI profiling system 

to identify UI claimants who are likely 

to exhaust their UI benefits, as tools for 

providing an initial assessment, as long 

as these other assessments meet the 

specific requirements of paragraph (a) of 

this section. The use of partner 

programs’ assessments can increase 

efficiency, ensure that workers quickly 

receive appropriate reemployment 

services, and quickly identify those 

workers requiring a more 

comprehensive assessment of their 

skills. The Department recognizes that 

the lack of uniform requirements for 

assessments means that some 

assessments may not meet all of the 

TAA requirements for an initial 

assessment. In this case the CSA may be 

required to supplement those 

assessments to acquire sufficient 

information. 

Proposed § 618.335(c) explains the 

CSA’s options for service strategies 

based on the information it gathers from 

the initial assessment. If a CSA 

determines there is suitable 

employment for the worker, and the 

worker agrees with this determination, 

then it will provide WIA core and 

intensive services. However, if the 

worker disagrees with the 

determination, then the CSA must 

provide the worker with a 

comprehensive assessment under 

proposed § 618.345 to be certain that the 

initial assessment is correct. If the CSA 

determines that no suitable employment 

is available for the worker, the CSA 

must perform a comprehensive 

assessment to develop a comprehensive 

service strategy for the worker and 

provide reemployment services funded 

under the Act, as described in proposed 

§ 618.315. The CSA may also provide 

reemployment services not funded 

under the Act, as described in proposed 

§ 618.310. 

Proposed § 618.340 discusses the 

CSAs obligations to adversely affected 

workers not enrolled in training. 

Proposed paragraph (a) focuses on 

workers who are determined through an 

initial assessment to possess marketable 

skills for suitable employment and are 

reasonably expected to find 

employment at equivalent wages in the 

foreseeable future. This section 

recognizes that the ‘‘suitable 

employment’’ determination in the 

initial assessment took into account 

prevailing local labor market conditions, 

as required under proposed 

§ 618.335(a)(1). Also, the CSA must 

provide for the worker to obtain 

referrals to suitable work, as defined in 

proposed § 618.110, whichever is 

applicable to the worker depending on 

whether the worker is collecting regular 

UC or extended benefits (EB)/TRA. 

Actual referrals to suitable work are 

necessary to enable the worker to meet 

the EB work test, which is a condition 

of TRA eligibility under section 

231(a)(4) of the Act. The EB regulations 

appear at 20 CFR Part 615. 

Proposed § 618.340(b) requires the 

CSA to develop a strategy to review the 

assessments of workers who may not be 

successful in a job search for suitable 

employment, bearing in mind the 

deadlines for other TAA benefits and 

services, such as TRA and training, 

when a worker has not received a 

training waiver. The review may result 

in the CSA developing a strategy to 

provide the worker with additional 

services to facilitate the search for 

suitable employment without TRAapproved training. For those workers 

who received a training waiver for 

marketable skills, as provided under 

proposed § 618.725(b)(2), the review 

should be part of the periodic review of 

waivers issued under proposed 

§ 618.725(b) to determine whether the 

conditions for which the CSA issued the 

waivers continue to exist, which is 

required under paragraph (e) of that 

section. The review also may result in 

the CSA revoking a training waiver and, 

or initiating a comprehensive 

assessment in preparation for 

enrollment in training. 

Workshops provided through WIA or 

Wagner-Peyser Act programs can assist 

those workers with marketable skills to 

obtain the necessary job search skills. 

The TAA program also provides 

important cash assistance to help with 

this job search process, such as 

reimbursement for Job Search Program 

(JSP) expenses, and job search 

allowances for out of area job searches 

(described in subpart D, infra) and 

relocation allowances (described in 

subpart E, infra). Nonetheless, in 

scheduling services to be provided after 

their review of a worker’s assessment 

and progress in finding employment, 

CSAs must allow enough time to 

complete a comprehensive assessment, 

as well as any career counseling 

necessary for the worker to make an 

informed training decision and maintain 

eligibility for TRA. 

Proposed § 618.345 discusses the 

comprehensive assessment that the CSA 

must arrange for each worker seeking 

TAA approval of a training program. 

The comprehensive assessment must 

update determinations in the initial 

assessment regarding the worker’s skills, 

aptitudes, and abilities (including 

reading and math levels), and consider 

the worker’s interests as they relate to 

employment opportunities that are in 

demand either in the worker’s 

commuting area, as defined in proposed 

§ 618.110, or, where there is no 

reasonable expectation of employment 

in the commuting area, outside the 

commuting area if the worker is 

interested in relocating. The purpose of 

requiring the comprehensive assessment 

is to assure that cooperating State 

agencies gather relevant information 

that will help the worker in selecting 

appropriate training, thus increasing the 

worker’s chances of successfully 

completing training and finding 

sustainable employment afterwards. 

Proposed § 618.350 requires the CSA 

to prepare an IEP, as defined in 

proposed § 618.110, for any worker who 

receives a comprehensive assessment. 

The IEP must document the results of 

the comprehensive assessment and 

document a service strategy to provide 

the worker with needed services for 

reemployment, and it must also provide 

specific documentation on four specific 

items. Those four items are: (1) Whether 

the six criteria for training approval in 

§ 618.610(a) through (f) or for issuing a 

training waiver in proposed § 618.725 

have been met; (2) the type of training 

proposed, if any; (3) any additional 

services the worker needs to obtain 

employment, including intensive 

services, supportive services, and postVerDate Aug<31>2005 16:37 Aug 24, 2006 Jkt 208001 PO 00000 Frm 00013 Fmt 4701 Sfmt 4702 E:\FR\FM\25AUP2.SGM 25AUP2

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training and follow-up services, as 

required in proposed § 618.360(b); and 

(4) any financial prearrangements for 

the payment of approved training costs 

(as described in proposed § 618.625(c)), 

as well as any amendments to the 

training program and any subsistence or 

transportation payments, with the basis 

for its calculation. 

Proposed § 618.355 describes the 

knowledge and abilities that the staff 

performing the initial assessment 

should possess because the initial 

assessment is critical to proper 

functioning of the TAA program. These 

skills include: (1) An understanding of 

the local labor market; (2) knowledge of 

local employer skill demands and hiring 

prerequisites, such as educational 

requirements and professional 

certifications, and the sets of skills 

workers from various occupations are 

likely to possess; (3) the ability to 

identify transferable skills that a worker 

may possess that would be of interest to 

other local employers outside of the 

individual’s present occupational area; 

(4) the ability to quickly evaluate a 

worker’s knowledge of and ability to 

implement job search strategies with 

little or no assistance; and (5) the ability 

to identify a worker’s apparent 

employment barriers that will require 

additional training and counseling. 

Because of the importance that the 

Department places on the assessment 

process and its central role in providing 

effective and efficient services to 

adversely affected workers, the 

Department believes that having 

qualified and knowledgeable staff to 

perform the assessment function is 

critical to the proper functioning of the 

TAA program. 

Proposed 618.360 requires CSAs to 

continue to provide all workers enrolled 

in approved training programs access to 

the reemployment services available 

under proposed § 618.310 and proposed 

§ 618.315 to assist workers as they make 

the transition from trainee to employee. 

The CSAs also must provide follow-up 

services, including placement and other 

appropriate supportive services, to 

adversely affected workers upon their 

completion of training. Such follow-up 

services protect the large financial 

investment the program made in 

training the worker by helping workers 

in need of such services make the 

transition back into the workforce. 

Proposed § 618.365, which 

implements section 296(d) of the Act 

(19 U.S.C. 2401e(d)), requires the CSA 

to provide employment services to 

agricultural commodity producers who 

are entitled to cash benefits under the 

TAA for Farmers program administered 

by the U.S. Department of Agriculture. 

These individuals may receive training 

(including subsistence and 

transportation allowances), but they are 

not entitled to any other benefits under 

the TAA program. 

Subpart D—Job Search Allowances 

Subparts D and E address job search 

and relocation allowance provisions. 

Proposed subpart D keeps the 20 CFR 

Part 617 requirements intact concerning 

allowances for job searches outside the 

commuting area. For purposes of clarity, 

these subparts also contain various 

editorial and procedural changes, but 

most changes do not affect the 

substantive requirements in the current 

program regulations. Proposed subpart E 

covers relocation allowances available 

to individuals who obtain suitable 

employment outside their commuting 

area. Major changes in subparts D and 

E include: 

• Changes the eligibility requirement 

for both job search and relocation 

allowances that there be no ‘‘suitable 

work’’ (a state UI definition) available in 

the local area to the requirement that 

there be no ‘‘suitable employment’’ (a 

national TAA definition) available in 

the local area. Since ‘‘suitable 

employment’’ is generally work at 

higher skill levels and wage rates than 

is ‘‘suitable work,’’—meaning that a job 

is less likely to meet the higher 

‘‘suitable employment’’ standard and 

that such jobs will therefore less likely 

be available—the proposed change 

would make it easier to qualify for a job 

search allowance but possibly make it 

harder to qualify for a relocation 

allowance. 

• Increases the limit for job search 

allowance reimbursement per 

individual per certification from $800 to 

$1,250, as well as the lump-sum 

payment for relocation from $800 to 

$1,250. 

The first section of subpart D, 

proposed § 618.400, revises 20 CFR 

617.30 to reflect the goal of providing a 

job search allowance to help the worker 

secure ‘‘suitable employment,’’ as 

defined in section 236 of the Act, 

instead of merely assisting the worker in 

finding a job that is ‘‘suitable work.’’ As 

discussed earlier in this preamble, the 

Department believes that this change 

will meet the intent of the Act by 

encouraging workers to find better 

paying jobs. 

Proposed § 618.405 describes the 

application process but differs from the 

existing regulations at 20 CFR 617.31 on 

when to file an application. Under the 

current regulations, an individual who 

is covered under a petition and who is 

totally or partially separated may apply 

for a job search allowance before a 

certification is issued. Proposed 

§ 618.405 changes these procedures to 

require that applications for job search 

allowance be accepted only after a 

certification has been issued. Thus, all 

references in proposed subpart D are to 

‘‘adversely affected workers’’ and not to 

‘‘individuals’’ as in 20 CFR part 617, 

subpart D. This change is consistent 

with paragraph 237(a)(1) of the Act, 

which provides that ‘‘an adversely 

affected worker covered by a 

certification’’ may file an application for 

a job search allowance. The Department 

proposes to eliminate pre-certification 

applications for job search allowances to 

avoid unrealistic expectations for 

reimbursement. Further, because the 

Department has made great strides in 

reducing the time in which 

determinations are made on petitions, 

the Department believes there is less 

need to permit pre-certification 

applications. The Department has 

reduced the average processing time for 

petitions from 103 days in 2002 to less 

than 28 days presently. Thus, for most 

workers, requiring certification prior to 

filing a job search application will result 

in only a short delay in filing and no 

delay in payment because only 

adversely affected workers may receive 

a job search allowance. This approach is 

similar to that of many assistance 

programs that generally do not 

reimburse individuals for activities 

conducted with their own resources 

prior to the individual becoming eligible 

for assistance. 

Proposed § 618.405(c) also 

incorporates the one change that the 

Reform Act made to the time limits 

within which a worker must request a 

job search allowance. Prior to its 

amendment, section 237(b)(3) of the Act 

required that a worker apply for a job 

search allowance within 182 days after 

concluding training approved under the 

Act, and 20 CFR 617.31(c)(2) contains 

this time limit. However, the Reform 

Act amended this time limit by adding 

the condition: ‘‘unless the worker 

received a training waiver under section 

231(c).’’ The Department interprets this 

statutory amendment to mean that a 

worker who received a training waiver 

before entering an approved training 

program is not entitled to the 182-day 

period after the conclusion of approved 

training to apply for a job search 

allowance. Rather, the worker must file 

a job search allowance application 

within the same 365-day deadline 

applicable to other workers under 

section 237(a)(2)(C) of the Act. 

Proposed § 618.410 sets forth the 

eligibility requirements for job search 

allowances. The significant difference 

between this provision and 20 CFR 


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617.32 is that 20 CFR 617.32(a)(4) 

requires a CSA to determine that 

‘‘suitable work’’ is not available in the 

commuting area and that the worker has 

a reasonable expectation of obtaining 

suitable work of a long-term duration 

outside the commuting area. Proposed 

§ 618.410(a)(4) substitutes ‘‘suitable 

employment’’ (as defined in § 618.110) 

for ‘‘suitable work.’’ ‘‘Suitable 

employment’’ is generally work at 

higher skill levels and wage rates than 

is ‘‘suitable work.’’ The Department 

believes this change will increase the 

availability of job search allowances to 

adversely affected workers so that these 

workers will have the financial ability to 

conduct job searches outside their 

commuting area. The requirement in 20 

CFR 617.32(a)(3) is not included 

because proposed § 618.315(b) already 

requires CSAs to provide reemployment 

services and the Act does not contain 

this particular registration requirement 

for job search allowance eligibility. 

Proposed § 618.410(a)(4) implements 

the new requirement that the worker has 

not previously received a relocation 

allowance under subpart E under the 

same certification to clarify that job 

search allowances are inappropriate 

following receipt of a relocation 

allowance since a worker has already 

obtained work to qualify for such 

relocation allowance. 

Proposed § 618.410(a)(5) allows an 

individual 30 calendar days within 

which to complete a job search, while 

20 CFR 617.32(a)(5) provides ‘‘a 

reasonable period not exceeding 30 days 

after the day on which the job search 

began’’ within which to conduct a job 

search outside the commuting area. This 

change is made to simplify and clarify 

the rules for completing job searches. 

Proposed § 618.410(a)(5) also adds 

language that the job search must begin 

after the date of certification, which 

corresponds to the change in proposed 

§ 618.405(b) regarding the application 

for job search allowances after issuance 

of a certification. 

Proposed § 618.410(b) describes when 

a job search is complete and comports 

with 20 CFR 617.32(b). A job search is 

not complete until the worker has 

obtained a job or has contacted each 

employer the worker planned to contact 

or to whom the worker was referred by 

the CSA or other One-Stop partner. 

Proposed § 618.415 describes the 

CSA’s responsibilities and introduces 

the terms ‘‘liable State’’ and ‘‘agent 

State’’ for delineating the 

responsibilities between CSAs with 

respect to job search allowances when a 

job search occurs in a different State. 

Because funding is limited, paragraph 

(a) requires that before approving a job 

search payment, a CSA must determine 

that job search funds are available for 

the fiscal year in which the job search 

activity takes place. The only proposed 

change under paragraph (b) is that it 

includes the employer contact 

verification requirement found at 20 

CFR 617.32(c), and thereby requires a 

CSA to verify the worker’s contracts 

with employers identified in both the 

worker’s own job search plan and 

through referrals. 

Proposed § 618.420 follows the 

current regulations at 20 CFR 617.34, 

but increases the maximum amount 

available for allowances from $800 to 

$1,250 based upon the 2002 

Amendments. Proposed § 618.420(b) 

limits reimbursement to the statutory 

dollar limit instead of a particular dollar 

amount so that, if Congress later 

increases the dollar amount, these 

regulations will not have to be 

amended. 

Proposed § 618.425, like 20 CFR 

617.35, requires a worker to provide 

supporting documentation in order for 

payment to be made upon completion of 

a job search and require the CSA to 

reimburse the worker promptly. 

Paragraph (a) of this proposed section 

changes the language in 20 CFR 

617.35(a) by eliminating temporal 

references because, under the changes 

in proposed § 618.405(b), the CSA will 

accept applications for job search 

allowances only after a certification is 

issued. Further, paragraph (a) clarifies 

that job search allowance 

determinations are subject to the 

requirements of § 618.825 

(determinations and notice) and 

§ 618.830 (appeals and hearings) and 

requires CSAs to include copies of job 

search allowance applications and 

determinations in the worker’s case file. 

Proposed § 618.425(c), like 20 CFR 

617.35(c), permits the CSA to advance 

up to 60 percent of the expected cost to 

be paid to the worker. 

Proposed § 618.430 implements the 

Reform Act amendment to section 

237(c) of the Act to allow an adversely 

affected worker participating in a job 

search program [JSP] approved by the 

Secretary reimbursement for necessary 

expenses, including transportation and 

subsistence allowances, related to their 

participation in an approved JSP within 

or outside their commuting area, subject 

to available funding. 

Subpart E—Relocation Allowances 

This proposed subpart covers 

relocation allowances available to 

workers who obtain suitable 

employment outside their commuting 

area. For purposes of clarity, this 

proposed subpart makes editorial and 

minor procedural changes, most of 

which do not affect substantive 

requirements. The proposed changes are 

discussed below. 

Proposed § 618.500 revises 20 CFR 

617.40 to reflect the goal of providing a 

relocation allowance to help the worker 

relocate to secure ‘‘suitable 

employment,’’ as defined in section 236 

of the Act, instead of merely assisting 

the worker in relocating to begin 

‘‘suitable work’’ outside the worker’s 

former commuting area (but inside the 

United States). As discussed earlier in 

this preamble, the Department believes 

that this change will meet the intent of 

the Act by encouraging workers to find 

better paying jobs. 

Proposed § 618.505 retains the general 

discussion of relocation allowances 

found in 20 CFR 617.40, but eliminates 

the reference to the ‘‘head of the 

family.’’ Instead, it authorizes payment 

to the adversely affected worker in the 

family who first applies for the 

relocation allowance, if otherwise 

eligible. The Department believes this 

minor change makes the test easier to 

administer by eliminating the need 

under the current regulations for the 

family to produce financial records 

indicating which family member 

maintains a home for the family by 

providing more than half the cost of 

maintenance. 

Proposed § 618.510 describes the 

application process for a relocation 

allowance but differs from 20 CFR 

617.41 on when to file an application. 

While proposed paragraph (a) is 

essentially unchanged from 20 CFR 

617.41(a), proposed paragraph (b) 

allows a worker to apply for a relocation 

allowance only after a certification 

covering that worker is issued. Thus, all 

references in proposed subpart E are to 

‘‘adversely affected workers’’ and not to 

‘‘individuals’’ as in 20 CFR Part 617, 

subpart E. This is consistent with 

section 238(a)(1) of the Act, which 

provides for ‘‘[a]n adversely affected 

worker covered by a certification * * * 

[to] file an application for a relocation 

allowance. * * *’’ A worker who is not 

covered by a certified petition may 

relocate using personal funds to take 

advantage of an opportunity outside the 

commuting area, but the worker will not 

be reimbursed for the costs of that 

relocation. As previously noted in the 

preamble discussion of proposed 

§ 618.405 (on job search allowances), 

the Department is concerned that 

permitting pre-certification applications 

will raise false expectations. Also, 

because of the substantial reduction in 

the average processing time for petitions 

noted in that discussion, there will only 


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be a short delay in workers being able 

to file applications. 

Proposed § 618.510 also contains the 

basic requirement that the relocation 

may only be approved after a worker 

files an application and before the 

relocation is undertaken. The time 

limits for filing an application in 

proposed § 618.510(c) are the same as in 

20 CFR 617.41(c), except that the 

Reform Act eliminated the second time 

limit for filing an application for a 

relocation allowance (as it did for filing 

an application for a job search 

allowance) for those workers who 

receive a training waiver. Prior to its 

amendment, section 238(a)(2) of the Act 

required that the individual must apply 

for the relocation allowance within 182 

days after concluding training, which is 

reflected in 20 CFR 617.41(c)(2). The 

Reform Act amended this requirement 

by adding the condition ‘‘unless the 

worker received a waiver [of the 

participation in training requirement] 

under section 231(c).’’ The Department 

interprets this statutory amendment to 

mean that a worker who received a 

training waiver before entering an 

approved training program is not 

entitled to the 182-day period after the 

completion of approved training to 

apply for a relocation allowance. Thus, 

whenever the CSA grants a training 

waiver to a worker under proposed 

§ 618.725, the worker must file for a 

relocation allowance within the 425-day 

time limit after the date of certification 

or the worker’s last total separation 

under § 618.510(c)(1). Eliminating the 

182-day period whenever the CSA 

grants a training waiver is consistent 

with the plain language of section 238(a) 

(2)(E)(ii) of the Act. 

Proposed § 618.515 on eligibility for a 

relocation allowance retains essentially 

the same requirements as 20 CFR 617.42 

(Eligibility) and 20 CFR 617.43 (Time of 

relocation) but combines these sections, 

edits them for clarity and makes three 

significant changes. The requirement in 

20 CFR 617.42(a)(5) is removed because 

proposed § 618.310 of subpart C now 

requires CSAs to provide reemployment 

services and the Act does not contain 

this particular for relocation allowance 

eligibility. 

There is an important difference 

between proposed § 618.515(a)(5) and 

20 CFR 617.42(a)(6) in the definition of 

eligibility. The proposed provision 

substitutes ‘‘suitable employment’’ (as 

defined at proposed § 618.110) for 

‘‘suitable work.’’ Therefore, before 

granting a relocation allowance, the 

CSA must determine that a worker has 

no reasonable expectation of securing 

‘‘suitable employment’’ in the 

commuting area. This is consistent with 

the treatment of job search allowances 

and is a higher standard than the 

‘‘suitable work’’ standard that is used in 

Part 617. Using ‘‘suitable employment’’

in the eligibility criteria for relocation 

allowances restricts the jobs for which 

a relocation allowance may be paid. 

Nevertheless, the change furthers the 

purpose of the TAA program, and the 

use of relocation allowances in 

particular, by improving the financial 

ability of workers to obtain new jobs 

with compensation and skill levels at or 

near those of the jobs from which they 

were separated. 

Two other significant differences 

between § 618.515 and current 

regulations involve the timing of 

relocations. First, proposed 

§ 618.515(a)(6) integrates 20 CFR 

617.42(a)(7) and 20 CFR 617.43 and 

simply states the two statutory 182-day 

time limits for beginning a relocation 

(instead of stating that a worker must 

begin a relocation ‘‘within a reasonable 

period’’). Paragraph (a)(6) continues to 

refer to a ‘‘reasonable period’’ for the 

time period for completing the 

relocation, while retaining the required 

factors found at 20 CFR 617.43(a) that a 

CSA must consider in determining 

whether a worker has completed the 

relocation within a reasonable time. 

The second significant difference 

involves the statutory 182-day time 

limit in which the relocation must 

occur. The Reform Act amended section 

238(c)(2) of the Act, which requires the 

worker’s relocation to occur within 182 

days after the conclusion of an approved 

training program, by adding at the end 

of the sentence the condition ‘‘if the 

worker entered a training program 

approved by the Secretary under section 

2296 [section 236 of the Act] (b)(1) and 

(2) [providing subsistence and 

transportation payments for workers in 

training outside the commuting area].’’

The Department interprets section 

238(c)(2) of the Act to mean that only 

a worker approved by the CSA, under 

proposed § 618.640(c) and (d), to receive 

subsistence and transportation 

payments for training at facilities 

outside the worker’s commuting area, 

may use the 182-day time limit after the 

conclusion of training within which to 

relocate. Workers not approved by the 

CSA to receive such subsistence and 

transportation payments, that is, 

workers who take their training within 

their commuting area, are ineligible for 

the additional 182-day time limit after 

the conclusion of training. Instead, their 

relocation must occur within the 182- 

day time limit after filing the 

application for a relocation allowance 

under § 618.515(a)(6)(i)(A). 

Proposed § 618.525 simplifies, edits 

and updates the requirements for 

determining the amount of relocation 

allowances under 20 CFR 617.45, 617.46 

and 617.47. In general, a relocation 

allowance includes 90 percent of the 

travel and subsistence costs of the 

worker and their family to reach their 

new home, 90 percent of the cost of 

moving household effects, and a lump 

sum payment equal to three times the 

worker’s average wage, not to exceed 

$1,250. This lump sum payment was 

raised from $800 by the Reform Act. 

Proposed § 618.525(a)(4), however, does 

not refer to a lump sum dollar amount. 

Instead, it simply provides the citation 

to section 237(b)(2) of the Act so that, 

if Congress later increases the amount, 

these regulations will not have to be 

amended. 

Proposed § 618.525 requires CSAs to 

follow the Federal Travel Regulations 

(FTR). Proposed § 618.525(a)(2) sets 

reimbursement amounts for the family’s 

meals and lodging at 90 percent of the 

lower of their actual meals and lodging 

costs or one-half the applicable 

prevailing per diem rates in the FTR. 

The current per diem rates can be found 

on the Internet at the following Web 

site: http://www.gsa.gov. Proposed 

paragraph (a)(1) refers to 41 CFR Parts 

301–311 (travel) and proposed 

paragraph (a)(3) refers to 41 CFR Part 

302 (movement of household goods). 

Proposed § 618.525(a)(3)(ii) increases 

the allowable amount of insurance 

coverage of such household goods and 

effects to $40,000 from the current 

$10,000 found in 20 CFR 617.47(a)(1). 

The Department notes that moving a 

house trailer or mobile home, as 

permitted under proposed 

§ 618.525(a)(3)(i), has special 

requirements under the FTR, at 41 CFR 

302–10, of which the worker should be 

made aware prior to planning such a 

move. The specific sections of the FTR 

may be accessed on the Internet at the 

following Web site: http:// 

www.access.gpo.gov/nara/cfr/ 

waisidx_02/41cfrv4_02.html#301-1. 

Proposed § 618.530 on the time and 

method of payment of a relocation 

allowance serves the same purpose as 

20 CFR 617.48, although the proposed 

rule is edited for clarity and simplified. 

No relocation allowances may be paid 

until the worker is covered under a 

certification, makes a timely 

application, and is otherwise eligible, 

and the CSA must promptly make and 

record determinations, as well as make 

prompt payment of, relocation 

allowances. Any advance payments of 

relocation costs will be made at the time 

of the relocation or as close to the time 

of the scheduled relocation as possible, 


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but no more than 10 days before 

scheduled departure. Upon completing 

the relocation as described in paragraph 

(f) of proposed § 618.530, the worker 

and the cooperating State agency will 

reconcile the advances and costs and 

the worker will either receive the 

balance of the allowance or repay any 

advance amount that might be due. 

Subpart F—Training Services 

Proposed subpart F governs TAA 

training. TAA approval of a training 

program entitles a worker to payment of 

the costs of the training, subject to a 

number of limitations included in this 

subpart. Section 236(a)(6) of the Act 

does, however, permit other funding 

sources to pay all or part of the costs of 

a TAA–approved training program. 

Participation in a TAA-approved 

training program is an eligibility 

requirement for TRA, as explained in 

subpart G. Major changes include: 

• CSAs would be required to ensure 

that every worker has a comprehensive 

assessment leading to the development 

of an IEP to facilitate appropriate 

training for the worker. 

• Clarifying language is added to the 

six criteria provided in the law that will 

enable CSAs to better determine what 

constitutes approvable training. 

• Up to 26 additional weeks of 

training is provided for individuals who 

need remedial education as part of their 

training program, for a total of up to 130 

weeks of training. 

• Excludes the purchase of computers 

as part of the cost of a training program. 

• Allows adversely affected workers 

who are military reservists ordered to 

perform active duty that interrupts their 

training program to resume, repeat, or 

begin a new training program upon 

discharge. 

• Provides workers training flexibility 

by allowing CSAs to permit individuals 

to amend their training programs. 

• Allows the approval of part-time 

training when combined with 

employment, which gives workers the 

option to continue working while 

participating in training. 

• Requires the use of eligible training 

providers approved under WIA to 

facilitate quality training and coenrollment for trade affected workers. 

• Expands worker training options by 

permitting distance learning for all or 

part of a worker’s program where the 

final degree or certificate is equivalent 

to what would have been received if the 

training had been conducted on 

campus. 

• Allows the Department to use a 

formula to allocate TAA training funds 

to enable states to maximize timely 

training opportunities for workers. 

• Permits the worker to continue 

training at his or her own expense when 

the appropriation for training funds has 

been exhausted. This enables a worker 

to continue to receive TRA and HCTC. 

• Introduces customized training as 

an allowable activity under the TAA 

program to meet the needs of an 

employer or group of employers. 

• Makes it easier for the worker to 

attend employer-paid training by 

allowing the state to assume any 

unfunded portion of partially employer 

funded programs and by allowing the 

state to assume any liability if the 

worker is unable to successfully 

complete the training. 

• Makes transportation costs for 

travel to and from training payable for 

miles outside the worker’s commuting 

area. 

• Facilitates the largest number of 

workers served by allowing a CSA to 

determine a maximum reasonable cost 

for training for the state or each local 

area. 

• Provides training services to 

individuals entitled to cash benefits 

under the TAA for Farmers program 

administered by the U.S. Department of 

Agriculture. 

Proposed § 618.600 explains that the 

purpose of an approved training 

program is to assist an adversely 

affected worker to obtain skills leading 

to a new job as quickly and effectively 

as possible. 

Proposed § 618.605 discusses general 

procedures for adversely affected 

workers to apply for training, as well as 

other procedures CSAs must follow in 

making determinations on applications 

for training. Proposed paragraph (a) 

requires CSAs to ensure that every 

worker has a comprehensive assessment 

leading to the development of an IEP, as 

described in proposed §§ 618.345 and 

618.350, before approving an 

application for training. The use of a 

comprehensive assessment in the 

development of a worker’s IEP is 

essential to ensure the proper 

coordination and use of reemployment 

services to develop a successful training 

program. 

Proposed § 618.605(b)(1) follows 20 

CFR 617.22(d) on the use of forms when 

applying for training, but simplifies the 

current regulatory language to describe 

more accurately the process by which 

the worker chooses a training program 

and applies to the CSA for approval 

based on statutory criteria. While a 

worker may seek assistance from a CSA 

in selecting a training program, 

ultimately it is the worker and not the 

CSA who decides whether to apply to 

a particular training program. Proposed 

paragraph (c) differs from 20 CFR 

617.22(e) by adding that the CSA, in 

making determinations on training and 

TAA-funded subsistence and 

transportation payments under 

proposed § 618.640, must keep copies of 

all applications and determinations in 

the adversely affected worker’s case file. 

The Department proposes adding this 

language to ensure that a worker’s case 

file is complete and that it contains 

relevant information about a worker’s 

request for training. 

Proposed § 618.605(d) slightly 

changes 20 CFR 617.23(a) by clarifying 

that CSAs are not required to create new 

training programs or develop new 

curricula where none currently exist. 

Nonetheless, the Department strongly 

encourages CSAs to use all necessary 

means to find appropriate training 

where a significant void in training 

opportunities exists. CSAs, in 

collaboration with the local One-Stop 

delivery system and other partners, 

should explore how to make new 

training opportunities available either 

by approving out of area training or by 

encouraging training providers to 

provide needed training in the local 

area, as well as exploring ways in which 

on-the-job training (OJT), customized 

training, and other training programs 

can be adapted to accommodate workers 

in areas that lack training opportunities. 

Proposed § 618.610, which 

corresponds to 20 CFR 617.22(a)(1) 

through (a)(6), implements all six 

statutory criteria for training approval. 

The introductory language adds a new 

requirement that a CSA must refer to a 

worker’s comprehensive assessment and 

IEP before approving training because 

they will be important tools for 

measuring the proposed training against 

the approval criteria. 

Criterion 1, implemented by proposed 

§ 618.610(a), requires that there be no 

suitable employment available for the 

adversely affected worker. Section 

236(e) of the Act provides the definition 

of ‘‘suitable employment, which appears 

at proposed § 618.110. Proposed 

paragraph (a) generally follows 20 CFR 

617.22(a)(1)(i), but includes the 

condition that a CSA must deny training 

approval if the worker is notified of a 

specific recall to the firm in the same or 

essentially the same job that is expected 

to be permanent. When recalls are 

scheduled in the foreseeable future, 

workers clearly do not require training 

because suitable employment is 

available to the worker. In that case, it 

is appropriate for the CSA to grant a 

waiver of the training requirement 

under the recall provision at proposed 

§ 618.725(b)(1) to allow the worker to 

qualify for TRA while awaiting the 

recall. Proposed paragraph (a) also 


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explores more fully the concept of ‘‘no 

reasonable prospect of such suitable 

employment in the foreseeable future’’

by requiring the CSA to look at both the 

worker’s skills and the local or 

appropriate out of area labor market 

indicators as well as the likelihood of 

recall. 

Criterion 2 (the worker would benefit 

from the appropriate training), 

implemented by proposed § 618.610(b), 

contains similar requirements to the 

current regulation at 20 CFR 

617.22(a)(2)(i). However, instead of 

referring to ‘‘job readiness,’’ criterion 2 

emphasizes that the training is expected 

to improve the worker’s chances of 

obtaining and retaining ‘‘sustainable 

employment at higher wages for the 

worker than in the absence of training.’’

This change emphasizes the 

Department’s belief that approved 

training should provide the worker with 

the skills necessary to remain employed 

throughout a career. 

Proposed § 618.610(b)(2) follows the 

current regulations at 20 CFR 

617.22(a)(2)(i) in requiring that a worker 

be capable of undertaking, making 

satisfactory progress in, and completing 

the training. However, the Department 

proposes eliminating the phrase 

‘‘mental and physical capabilities’’ that 

is currently contained in 20 CFR 

617.22(a)(2)(i) and substituting the 

phrase ‘‘knowledge, skills, and abilities’’

as the test for determining whether a 

worker can undertake, make satisfactory 

progress in, and complete the training in 

order to eliminate any suggestion that a 

CSA or subrecipient may lawfully take 

the disability or disabilities of a 

qualified worker into consideration 

when determining eligibility for 

training. Section 504 of the 

Rehabilitation Act of 1973 (29 U.S.C. 

794) and its implementing regulations at 

29 CFR Part 32 and, if applicable, WIA 

section 188 (29 U.S.C. 2938) and its 

implementing regulations at 29 CFR Part 

37, prohibit such consideration. Both 20 

CFR Part 32 and 29 CFR Part 37 define 

the circumstances under which a 

particular individual with a disability 

may be considered ‘‘qualified’’ for a 

program or activity. See the definition of 

‘‘qualified handicapped individual’’ in 

29 CFR 32.3 and 29 CFR 37.4. For the 

same reasons, the same change was 

made in § 618.610(e) and ‘‘knowledge, 

skills and abilities’’ replaces the word 

‘‘capabilities’’ in § 618.610(f). For 

further information about these 

requirements, contact the Department’s 

Civil Rights Center (CRC) as directed in 

the regulatory text of proposed 

§ 618.875(i)(3). 

Proposed § 618.610(b)(3) contains a 

new requirement that a CSA must not 

approve applications for training 

programs that would result in seasonal 

employment of such short duration and 

minimum compensation that a worker 

cannot achieve self-sufficiency, as 

defined by the Local Workforce 

Investment Board under 20 CFR 

663.230. The Department believes that 

training that would result in this type of 

seasonal employment does not benefit 

the worker and would be an 

inappropriate use of limited training 

funds. 

Criterion 3 (there is a reasonable 

expectation of employment following 

the completion of such training) is 

implemented by proposed 

§ 618.610(c)(3) and corresponds to 20 

CFR 617.22(a)(3). It provides that the 

CSA must assess, based on labor market 

information about present and future 

employment conditions and trends, 

whether the skills and education 

acquired while in training is likely to 

allow the worker to find a job allowing 

the worker to achieve self-sufficiency, as 

defined by the State or Local Workforce 

Investment Board under 20 CFR 

663.230. 

Criterion 3 would not require that 

TAA-approved training must lead to a 

job or that the CSA must create training 

that leads to jobs for adversely affected 

workers. The Department recognizes 

that there are situations in which tight 

local labor markets or significant 

barriers to employment may make it 

difficult or impossible to identify 

immediate job opportunities for 

workers. The same workers may, 

however, benefit from training by 

improving their abilities to compete in 

the labor market by gaining skills 

needed to compete for jobs. The 

Department proposes to interpret 

criterion 3 flexibly enough to allow 

CSAs to approve training that they 

determine will lead to the acquisition of 

skills that will significantly improve a 

worker’s prospects of obtaining a job in 

the local labor market, even if job 

opportunities after completion of the 

training cannot be identified. 

Accordingly, proposed paragraph 

(c)(1) expands upon the statutory 

language discussed in 20 CFR 

617.22(a)(3) by expressly providing that 

a reasonable expectation of employment 

does not require that employment 

opportunities for a worker be available, 

or offered, immediately upon the 

completion of training. However, it may 

not be realistic to approve training in an 

occupation in which there has been a 

trend of fewer and fewer job openings 

over some period of time, or where the 

industry in which the retraining is 

proposed has been laying-off workers 

with skills similar to those for which 

training is requested. This criterion 

requires TAA and One-Stop delivery 

system staff to continually update their 

knowledge of the local labor market and 

its trends. 

Proposed paragraphs (c)(2) through 

(c)(5) do not have counterparts in 

current regulations. Paragraph (c)(2) 

allows CSAs to use the demand 

occupation list maintained by the Local 

Workforce Investment Board, as 

required in the WIA regulations at 20 

CFR 661.350 in determining whether 

there is a reasonable expectation of 

employment following training. Use of 

this common information source 

reinforces the relationship of the partner 

programs in the One-Stop delivery 

system and encourages the Local 

Workforce Investment Board to think 

broadly about the types of workers who 

that system serves. WIA permits each 

Local Workforce Investment Board to 

define ‘‘demand occupation’’ based on 

its unique labor market conditions, 

trends, and employer-identified skill 

needs. As the staff of a required partner 

in the One-Stop delivery system, TAA 

program staff should participate in 

discussions about how demand 

occupations are determined and the 

content of the list. Proposed 

§ 618.610(c)(3) places a new obligation 

on the CSA to document that there is a 

reasonable expectation of employment 

in the planned area of relocation when 

a worker desires to relocate. 

Proposed § 618.610(c)(4) recognizes 

that a ‘‘demand for one’’ can exist in the 

local labor market, as long as that 

demand can be documented by the CSA 

with evidence that an employer intends 

to hire the worker upon successful 

completion of the training. This 

provision permits the CSA to determine 

that a reasonable expectation of 

employment exists in an occupation 

that may be a valid career choice, but for 

which there are very limited numbers of 

jobs in rural areas or in larger workforce 

areas where only a few skilled 

specialists are needed to meet the local 

demand (e.g., taxidermist or underwater 

boat repairer). Proposed paragraph (c)(5) 

recognizes that self-employment is a 

viable option under existing market 

conditions, even where there is no 

expectation that employers have 

positions available in a given 

occupation upon completion of training. 

Criterion 4 (training is reasonably 

available) is implemented by proposed 

§ 618.610(d) and corresponds to 20 CFR 

617.22(a)(4) but has been simplified. 

This criterion requires that training be 

reasonably available to the worker from 

either governmental agencies or private 

sources and refers to the list of possible 

sources of approved training contained 


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in proposed § 618.620, noting that the 

list is not exhaustive. It eliminates the 

requirement in current 20 CFR 

617.22(a)(4)(ii) that first consideration 

be given to training within the worker’s 

normal commuting area and that 

training outside the commuting area 

should only be approved if such 

training is not available within the 

commuting area or would cost less. A 

similar requirement now appears in 

proposed § 618.610(f)(2)(ii) as part of the 

sixth criterion for training approval. 

Criterion 5 (the worker is qualified to 

undertake and complete such training), 

implemented by proposed § 618.610(e), 

follows the requirements in 20 CFR 

617.22(a)(5), but has been reorganized 

and some minor provisions added. 

Proposed paragraph (e)(1) adds a new 

requirement directing the CSA to 

consult the worker’s IEP or 

comprehensive assessment. Proposed 

paragraph (e)(2) generally follows 20 

CFR 617.22(a)(5)(ii), and stresses that 

the duration of the approved training 

must be commensurate with the 

worker’s financial resources. 

Criterion 6 (the training is suitable for 

the worker and available at a reasonable 

cost) is implemented by proposed 

§ 618.610(f) and generally follows the 

current regulations at 20 CFR 

617.22(a)(6). Proposed paragraph (f)(1) 

identifies the worker’s comprehensive 

assessment and IEP as sources of 

information on the worker’s knowledge, 

skills, and abilities, background and 

experience. The first sentence of 20 CFR 

617.22(a)(6)(i) is not included because it 

is unnecessary. 

Proposed § 618.610(f)(2) discusses 

reasonable cost, which has been and 

continues to be a critical determinant in 

approving training programs to ensure 

that training funds are expended wisely, 

are available for the maximum number 

of adversely affected workers, and can 

also adequately support workers to 

ensure that they will complete their 

selected training. Proposed paragraph 

(f)(2)(i) includes a new cost prohibition 

against using TAA funds to purchase 

personal computer equipment for 

adversely affected workers to own in 

order for them to engage in a training 

program that requires such equipment 

as a prerequisite. However, this 

provision allows CSAs to purchase 

personal computer equipment which it 

can then lend to those workers who are 

required to have such equipment for 

their particular training programs. 

Certain One-Stop systems using funds 

under WIA have successfully instituted 

similar loan arrangements for use of 

computer equipment. Therefore, if a 

training program requires the use of 

computer equipment, a CSA may not 

approve the training if it determines that 

the worker lacks access to the necessary 

computer equipment. This prohibition 

will help to ensure that purchases of 

personal computer equipment for 

workers to own will not deplete the 

TAA funds available for training and 

other benefits. 

Since the amount of training funds is 

capped, the statute requires that training 

be approved only if it is ‘‘available at a 

reasonable cost,’’ and, once approved, a 

worker is entitled to payment of all the 

costs of the approved training, the 

Department believes it is important to 

assure that the costs of training are kept 

in check as long as the training is 

adequate to meet the worker’s needs. 

Proposed § 618.610(f)(2)(ii) through (iv), 

as well as the proposed cost cap in 

§ 618.650, seek to accomplish this cost 

containment in several ways. These 

paragraphs restate many of the 

requirements of § 617.22(a)(6)(ii) and 

(iii). These proposed paragraphs have 

not retained the requirement, in 

§ 617.22(a)(6)(ii), that, in determining 

the reasonableness of the cost of 

training, the cost be compared with the 

costs of training workers in similar 

occupations. The Department believes 

that CSAs should have more flexibility 

in determining the reasonable cost of 

training, within the parameters set forth 

below. 

Proposed § 618.610(f)(2)(ii) provides 

that the CSA must first consider the 

lowest cost training available in the 

worker’s commuting area, if that 

training is of sufficient quality, content, 

and expected outcome to meet the 

worker’s occupational goal as reflected 

in the worker’s IEP, as developed under 

proposed § 618.340. A CSA may 

approve higher cost training if it is of 

higher quality, content, or expected 

outcomes or is expected to achieve 

comparable results in a significantly 

shorter duration. The Department 

intends that higher cost training not be 

approved unless there is a clear 

(‘‘demonstrable’’) difference in the 

quality and results of the training or 

unless the same results can be achieved 

in a significantly shorter time, which is 

consistent with the Act’s intent to get 

workers back into employment as 

rapidly as possible. The words 

‘‘demonstrably’’ and ‘‘significant’’ have 

been included in the regulatory 

language to make clear that there must 

be a real and substantial benefit from a 

more expensive training program in 

order for it to be approvable when a 

good and less expensive training 

program is available. 

Proposed § 618.610(f)(2)(iii) 

consolidates 20 CFR 617.22(b) into this 

criterion 6. It provides that training in 

a selected occupational area may not be 

approved if (1) it requires an 

extraordinarily high skill level, and (2) 

the total costs of the training are 

substantially higher than the costs of 

other types of training that are suitable 

for the worker. The intent of the second 

clause is to require CSAs to choose the 

least expensive method of training that 

provides similar results for the worker. 

So, for example, if an on-the-job training 

opportunity would cost $2,000 and a 

classroom training course that would 

teach the same skills would cost $6,000, 

a CSA must approve the OJT 

opportunity. 

Proposed § 618.610(f)(2)(iv) follows 

20 CFR 617.22(a)(6)(iii)(C) in 

prohibiting approval where 

transportation or subsistence payments 

for training outside the worker’s 

commuting area add substantially to the 

total cost of training, if other 

appropriate training in the commuting 

area is available at a lower cost. 

Proposed paragraph (f)(2)(v) introduces 

a new restriction. A CSA may deny 

approval of training when its costs 

exceed the limit on the amount of 

training per worker set by a CSA, unless 

that agency makes an exception based 

upon individual and exceptional 

circumstances, as provided in proposed 

§ 618.650(a). The preamble discussion 

of § 618.650 explains this training cap. 

Proposed § 618.615 discusses the 

various limitations on a CSA’s approval 

of a training program. In particular, 

proposed paragraph (a)(2) contains a 

new requirement that CSAs consider 

factors such as a worker’s full- or parttime non-suitable employment, as 

described in proposed § 618.630, 

childcare considerations, and the 

worker’s course selection. 

Proposed § 618.615(a)(3) corresponds 

to 20 CFR 617.22(f)(2), which limits the 

maximum duration of any approvable 

training program to match the duration 

of training to the statutory limits on 

income support since, for most workers, 

the availability of income support is 

critical to the ability to engage in 

training. The Department interprets the 

Reform Act’s addition of 26 weeks of 

TRA for adversely affected workers who 

require remedial education, as 

discussed in proposed § 618.755, to 

mean that Congress intended to match 

the maximum number of weeks of 

training with the maximum number of 

available weeks of income support (UI 

plus TRA). Therefore, paragraph (a)(3)(i) 

changes the current 104-week regulatory 

limit on weeks of training to include up 

to an additional 26 weeks of training for 

workers whose approved training 

includes remedial education, for a total 


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number of weeks of training not to 

exceed 130 weeks. 

This proposed paragraph also clarifies 

the existing regulation by specifically 

stating the current program requirement 

of counting consecutive calendar weeks 

when measuring the duration of 

training. This ensures that the number 

of weeks of an approved training 

program does not significantly exceed 

the number of weeks of UI plus TRA. 

Proposed § 618.615(a)(3)(iii) does not 

have a counterpart in Part 617 because 

it concerns program changes adopted in 

the Reform Act. It requires the CSA to 

consult the worker’s comprehensive 

assessment or IEP when determining the 

length of remedial education the worker 

needs, and permits a CSA to approve a 

training program consisting entirely of 

remedial education when such a 

program is appropriate for the worker. 

The Department proposes these 

measures to ensure that the duration of 

any remedial education component of a 

training program meets the worker’s 

specific needs. The Department expects 

CSAs to approve remedial education 

programs when it is justified to help 

workers who need assistance with the 

basic skills of reading, writing, 

mathematics and/or language to obtain 

employment. When determining the 

type and length of remedial education 

appropriate for the worker, CSAs should 

assess the worker’s basic skills to 

determine whether there are deficits in 

any area that necessitate remedial 

education. Remedial education may 

occur before, or while participating in, 

the requested training program. 

Proposed § 618.615(a)(4) creates an 

exception to the duration of training 

requirements to meet the training needs 

of adversely affected workers who are 

members of a reserve component of the 

U.S. Armed Forces ordered to perform 

active duty service. Such workers 

should not be penalized for serving their 

country. The exception tolls the 

duration of training requirement so that 

those workers who return after 

involuntarily being called up to active 

duty service can re-enroll in a training 

program upon their return or even begin 

a new training program. The terms, 

notification procedures, and 

documentation requirements in 

proposed paragraphs (a)(4)(i) through 

(a)(4)(v) coincide with those in the 

Uniform Services Employment and 

Reemployment Rights Act (USERRA) 

(38 U.S.C. 4301–4333), which protects 

reemployment rights of workers called 

to military service. These procedural 

requirements differ from those in 

USERRA, 38 U.S.C. 4312, when 

necessary to conform to the situation of 

an adversely affected worker enrolled or 

participating in a TAA-approved 

program. 

The Department invites comments on 

whether to allow other exceptions to the 

duration of approvable training 

programs and, if so, what exceptions 

might be appropriate. As is discussed 

above, a purpose of the proposed limits 

is to ensure that income support is 

available throughout the training period. 

However, the Department recognizes 

that not all workers need income 

support to complete training, and that 

some workers might have a need for a 

longer training program or to 

temporarily suspend training. Allowing 

exceptions could provide such workers 

more options. On the other hand, 

further exceptions could undermine the 

purpose of TAA to return a worker to 

worker as fast as possible. 

Proposed § 618.615(b) greatly expands 

upon the current regulatory requirement 

for amending an approved training 

program. The second sentence of 20 

CFR 617.22(f)(3)(ii) merely permitted an 

amendment ‘‘to add a course designed 

to satisfy unforeseen needs of the 

individual.’’ Proposed paragraph (b) 

recognizes that more substantial 

amendments may be necessary and sets 

forth the circumstances, and conditions, 

under which amendments, including 

the substitution of an entirely new 

program, may be made. Proposed 

paragraph (c) retains the single training 

program rule of 20 CFR 617.22(f)(2), but 

permits exceptions for amendments, as 

well as when an adversely affected 

worker is called for active duty as 

provided in paragraph (a)(4). Paragraph 

(c) thereby seeks to ensure careful 

expenditure of limited training funds in 

a manner that will meet the training 

needs of the greatest number of 

adversely affected workers. 

Proposed § 618.615(d) corresponds to 

20 CFR 617.22(f)(4) on full-time 

training, but differs significantly by 

permitting CSAs to approve part-time 

training. This section recognizes that a 

mix of training and employment suited 

to the worker’s situation may achieve 

the sustained employment goal, and do 

so as quickly as possible. This will 

permit workers financially or otherwise 

unable to participate in full-time 

training to enroll in TAA program 

training opportunities to upgrade their 

skills. In particular, proposed paragraph 

(d)(2)(i) requires that the combination of 

part-time training and part-time 

employment must represent the 

equivalent of full-time employment as 

defined by the State UI law. However, 

the overall limitation on the duration of 

training under proposed § 618.615(b) 

remains the same. 

Proposed § 618.615(d)(ii) provides 

that if the hours of work are reduced so 

that the combination of part-time 

employment and part-time training no 

longer represent the equivalent of fulltime employment, the worker may 

complete that session or semester. 

However, the training approval must be 

rescinded beginning with the next 

session or semester, unless the 

combination of part-time employment 

and part-time training is changed to 

represent the equivalent of full-time 

employment by that time. Proposed 

paragraph (d)(2)(ii) recognizes that 

employers may reduce workers’ hours of 

employment or terminate employment 

during an approved training program 

and protects a worker by allowing the 

worker to continue in training for a 

period of time or to find other nonsuitable employment or to increase his/ 

her training schedule to continue in the 

approved training program on a parttime basis. 

Proposed paragraph (d)(2)(iii) also 

protects workers by requiring CSAs to 

ensure that workers understand the 

effects of part-time employment on 

receipt of UI and other TAA benefits, 

including the HCTC, to prevent their 

unknowingly losing benefits due to this 

choice. Even with these limitations on 

part-time training, this change provides 

a worker the option, if approved by the 

cooperating State agency, to choose a 

mix of training and employment that 

best suits the worker’s situation. While 

the Department seeks to provide 

workers with greater flexibility in 

choosing training options, the primary 

goal of approved training remains 

returning the worker to employment as 

quickly as possible. CSAs should keep 

this goal in mind when determining 

whether to approve part-time training. 

Proposed § 618.620 provides for the 

selection of training programs. Proposed 

paragraph (a) represents a change from 

the language at 20 CFR 617.23(d), which 

outlined the selection criteria for 

training programs and also evaluated a 

training provider’s success by 

placement rates. 

Proposed § 618.620(a) establishes the 

criteria for selecting training providers 

but also describes the procedures for 

approving affected worker requests for 

training by a training provider that is 

not on a State approved list. Under 

proposed § 618.620(a)(1), training other 

than OJT, customized training, or 

training for a limited demand 

occupation must be provided to an 

adversely affected worker through a 

program approved under the WIA 

eligible training provider provisions. 

Further, proposed § 618.620(a)(2) 

eliminates the reference to a training 


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provider’s placement rates and requires 

the CSA to follow procedures under 

WIA when an affected worker requests 

training from a provider that has not 

been approved. Proposed § 618.620(a)(3) 

makes an exception from the 

requirement that a training provider 

must be on the State-approved list for 

training in limited demand occupations 

if the training meets the requirements 

described in § 618.610(c)(4). 

The Department believes that the 

TAA requirements for approving a 

training provider for an adversely 

affected worker should follow the 

requirements of WIA. By following the 

WIA approval procedures, CSAs would 

be required to ensure the credibility and 

accountability of service providers and 

for providing quality performance 

information to participants. Following 

the WIA procedures would fulfill the 

requirement of section 239(e) of the Act, 

which requires the Department to 

coordinate services provided under 

TAA with those offered under WIA. It 

would also abandon the outdated ‘‘silo’’

approach to workforce development and 

make the various programs work 

together more closely, as the Reform Act 

amendments contemplate. This 

approach also is consistent with section 

236(a)(1)(B) of the Act, which allows 

training to be approved if the CSA 

determines that the worker can benefit 

from the training. Requiring CSAs to use 

training providers approved under WIA 

provides an assurance that workers will 

receive the skills needed to reach their 

employment goals because the providers 

have demonstrated that they operate 

effective training programs. 

To take account of possible 

amendments to the process of approving 

training providers in the WIA 

reauthorization, the Department refers 

to ‘‘eligible training providers’’ under 

WIA rather than specifically referring to 

the Eligible Training Provider list. This 

revision would allow the TAA training 

requirements to change as the WIA 

training provider requirements evolve 

through future legislation. 

Proposed § 618.620(a) does not 

include the language in 20 CFR 

617.23(d)(2) that describes the 

procedures for determining the types of 

training that may be provided, including 

the requirement to consult with local 

employers, appropriate labor 

organizations, and others. The 

Department believes this language is 

unnecessary because CSAs may only 

approve training by providers that have 

been approved under WIA 

requirements. Those requirements 

provide an opportunity for business and 

labor to comment on the selection 

procedures. Therefore, the Department 

believes that this process is sufficient to 

accomplish the same result without the 

additional language in 20 CFR 

617.23(d)(2). 

Proposed § 618.620(b) covers methods 

of training and generally follows 20 CFR 

617.23(b), (c)(1) and (c)(2). Proposed 

paragraph (b)(2) provides for preference 

to be given to on-the-job training under 

proposed § 618.635 when firm-specific 

training is not practical. In determining 

whether to approve OJT, the CSA must 

consider the six criteria in § 618.610, as 

well as the availability of OJT and the 

worker’s need for remedial education, 

and must inform the worker of the effect 

of such training on eligibility for HCTC. 

Because of these latter two new factors, 

added by the Reform Act, the 

Department has revised the language 

about the preference for OJT to make it 

clear that these new factors must be 

taken into account in determining what 

training method best fits an adversely 

affected worker’s needs. 

Proposed § 618.620(b)(4) is derived 

from 20 CFR 617.23(c)(2), but adds some 

new features. It describes institutional 

training methods and gives priority to 

training in public area vocational and 

technical education schools and 

community colleges (when it is 

determined that these schools are at 

least as effective and efficient as other 

institutional alternatives). The 

Department has added the reference to 

community colleges in recognition of 

their importance to the nation’s overall 

training efforts. Proposed paragraph 

(b)(4) also expands the kinds of 

approvable institutional training 

specifically to include the increasingly 

popular option of distance learning, 

where a participant completes all or part 

of an educational or training program in 

a location remote from the institution 

hosting the program. 

Proposed § 618.620(c), which 

provides a non-exclusive list of other 

specific types of approvable training 

programs, generally follows 20 CFR 

617.24(d), (e) and (f). However, this 

provision adds vocational and technical 

education to the list of approvable types 

of training because they are included in 

the Carl D. Perkins Vocational and 

Applied Technology Education Act, 

which supercedes the Vocational 

Education Act of 1963, to which section 

236(a)(1)(D) of the Act refers. 

Proposed § 618.625 explicates a series 

of restrictions on payments for training 

programs. It follows 20 CFR 617.25(b), 

but has been rewritten, simplified and 

condensed to eliminate certain 

redundancies. The introductory 

paragraph contains new language that 

specifically allows the Department to 

use a formula to distribute the 

statutorily-capped training funds to 

CSAs, as permitted under section 

236(a)(2)(B) of the Act. Distribution of 

TAA funds by formula adds 

predictability and regularity to the 

funding process, and allows CSAs to 

better plan for and manage the use of 

available training funds. 

Of particular note, proposed § 618.625 

(c) permits the CSA to share training 

costs with authorities administering 

other Federal, State, and private funding 

sources. It is based on section 

236(a)(5)(E) and 236(a)(6) of the Act, 

allowing for the sharing of program 

costs, and follows 20 CFR 617.25(b)(2) 

and (b)(3). The CSA should take into 

consideration all appropriate and 

available funds to pay for a TAA 

training program, thereby reducing the 

amount of TAA training funds used to 

cover the costs. Within the One-Stop 

delivery system, it may be possible to 

leverage training resources, including 

resources for basic and remedial 

education, and specialized training for 

workers with disabilities, with other 

One-Stop delivery system partner 

programs. 

Proposed § 618.625(c)(1) follows 20 

CFR 617.25(b)(3)(ii)(A). It authorizes the 

CSA to share future costs of training 

where prior costs were paid from 

another Federal, State or private source, 

as permitted by section 236(a)(5)(E) and 

236(a)(6) of the Act. However, it 

prohibits reimbursement from TAA 

funds of any training costs which were 

incurred and for which payment became 

due before the approval of the training 

program. For example, if a laid-off 

worker is enrolled in WIA-funded 

training (using a prearrangement 

discussed in proposed paragraph (c)(2)) 

in order to ensure that there is no delay 

in the worker’s access to needed 

training because the semester will begin 

before the certification decision on the 

TAA petition, then TAA funds may not 

be used to pay for any costs of the 

training program incurred before 

certification. 

Proposed § 618.625(c)(2)(i) 

corresponds to 20 CFR 617.25(b)(2)(ii) 

and (b)(3)(ii)(A), describing 

prearrangements and what is required in 

prearrangement agreements. These 

agreements may be entered into on a 

case-by-case basis to address specific 

training situations of workers or they 

may be part of an overall statewide 

strategy to effectively use and maximize 

available resources from TAA, 

workforce development and other 

programs. Prearrangements help prevent 

duplication of the payment of training 

costs, which is prohibited by section 

236(a)(4)(B)(i) of the Act. They also help 

ensure that training costs that are 


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reimbursable under any other Federal 

law are not paid from TAA funds, 

which would violate section 

236(a)(4)(B)(ii) of the Act. Proposed 

paragraph (c)(2)(i) also contains a new 

requirement that the CSA must enter 

into an agreement with another funding 

source to specify how the worker’s 

training program will be funded if funds 

become available from another source to 

pay for training after TAA funds are 

committed. The Department has added 

this provision for clarity because it 

specifically covers a situation not 

previously addressed in the regulations. 

Proposed § 618.625(c)(2)(ii) follows 20 

CFR 617.25(b)(3)(ii)(B) and is derived 

from section 236(a)(6)(B) of the Act. 

This provision will help avoid duplicate 

payments of training costs by requiring 

the worker to enter into a written 

agreement with the CSA providing that 

TAA funds will not be applied toward, 

or used to pay, any portion of the costs 

of the training that the worker has 

reason to believe will be paid by any 

other source. 

Proposed § 618.625(c)(3)(i) follows 20 

CFR 617.25(b)(4)(ii)(C). As required by 

section 236(a)(4)(C) of the Act, the CSA 

must not consider payments to the 

worker under other Federal laws which 

do not directly cover the costs of 

training in determining the amount of 

training costs payable from TAA funds. 

Thus, Federal student financial 

assistance paid directly to a worker is 

not deducted from the worker’s TAA 

benefits. This is also consistent with 20 

U.S.C. 1087uu, which prohibits Federal 

student financial assistance from being 

considered in determining eligibility 

for, or the benefit amount, under any 

other Federally-funded benefit or 

assistance program. To effectuate this 

prohibition, proposed paragraph (c)(3)(i) 

eliminates the requirement of 20 CFR 

617.25(b)(4)(ii)(C)(1) that payments of 

Federal student financial assistance to 

the worker be deducted from TRA. 

Proposed § 618.625(c)(3)(ii) follows 20 

CFR 617.25(b)(4)(ii)(C)(2) in requiring 

that when other Federal funding sources 

directly pay the training provider for 

training costs, the payments must be 

accounted for as a direct payment of 

training costs under that other Federal 

law. Thus, the CSA must deduct the 

amount of those other payments from 

the amount of TAA funds payable to the 

training provider in order to prevent 

duplication in the payment of training 

costs. Generally, the CSA will use a 

prearrangement agreement to assure 

proper accounting for these payments. 

Proposed § 618.625(d)(2)(i), modified 

from 20 CFR 617.25(b)(5)(ii), prohibits 

the approval of a training program if the 

worker is required to pay training costs 

from TAA funds or any funds belonging 

to the worker from any source, subject 

to the limited exception provided in 

proposed paragraph (d)(2)(ii). This 

prohibition follows section 236(a)(1) of 

the Act, which provides that the worker 

is entitled to have the costs of approved 

training paid by the Secretary, subject to 

the annual training cap limitation under 

section 236(a)(2)(A). Proposed 

paragraph (d)(2)(ii) creates a new and 

limited exception that permits a worker 

to contribute personal funds for the 

payment of training costs when the 

Director determines that all available 

funds have been allocated, and only 

when the CSA determines that no other 

funding from other sources is available 

to pay for such worker’s training 

program. Where the worker chooses to 

pay those unfunded costs, the CSA is 

not liable to pay those costs. Where the 

worker chooses not to pay the unfunded 

costs, the CSA must waive the training 

requirement in order to preserve any 

remaining basic TRA eligibility under 

proposed § 618.725(b)(6) on the basis 

that training is not available. Of course, 

waiving the training requirement will 

not benefit those workers who have 

begun receiving additional TRA before 

ceasing training due to lack of training 

funds. The Department expects CSAs to 

make every reasonable effort to find 

other funding, including WIA dislocated 

worker and NEG funds, to provide 

training when TAA funds are capped. 

This option should rarely be used and 

only as a last resort. 

Proposed § 618.625(d)(2)(iii) is also 

new and addresses the situation where 

an employer or other entity agrees to 

fund training costs under conditions 

that may make the worker liable for all 

or a portion of those costs if certain 

conditions are not met. For example, an 

employer may offer separated 

employees paid training, but require the 

worker to reimburse the employer if the 

worker does not maintain a certain 

minimum grade point average (GPA). If 

the training is otherwise approvable 

under the Act, this proposed provision 

would allow the CSA to contract with 

an employer or other entity to assume 

any unfunded costs on the worker’s 

behalf. Thus, in the above example, if 

the employer required the worker to 

maintain a 2.5 GPA or lose the paid 

training benefit, the worker could enroll 

in and receive employer-funded 

training, and, if the worker later 

achieves only a 2.4 GPA, the agreement 

would allow the CSA to assume the cost 

of training and not force the adversely 

affected worker to reimburse the 

employer. This provides the CSA with 

greater flexibility to leverage the use of 

nongovernmental funds made available 

by employers and others to adversely 

affected workers. 

Proposed § 618.630, which follows 20 

CFR 617.22(g), derives from section 

236(d) of the Act. This provision 

addresses those workers who cannot 

find suitable employment, as defined in 

proposed § 618.110, but who obtain 

non-suitable employment. These 

workers, while employed, continue to 

be eligible for TAA training 

opportunities as long as their proposed 

training meets the approval criteria in 

proposed § 618.610. They may continue 

their employment while waiting for 

their selected training course to begin. 

Upon approval and enrollment in 

training, they may choose to terminate 

their employment, reduce the hours 

worked, or continue in either full- or 

part-time employment while taking 

training (as discussed in proposed 

§ 618.615(c)). The workers may not be 

determined ineligible or disqualified for 

UI or TAA program benefits, including 

TRA, because they left work that is not 

suitable employment. Of course, 

choosing to continue in such 

employment, either part- or full-time, 

may have negative effects on UI and 

TAA benefits, including the possible 

loss of the HCTC. Proposed paragraph 

(a) requires CSAs to provide written 

notice to warn an adversely affected 

worker who continues in non-suitable 

employment on a part-time or full-time 

basis while undertaking approved 

training that, due to disqualifying 

income, the worker may not receive any 

UI or TRA, which might then forfeit the 

worker’s eligibility for the HCTC. 

Employed TAA participants continue to 

be eligible for job search and relocation 

allowances before or upon completion 

of their TAA training, as discussed in 

proposed § 618.630(b). 

Proposed § 618.635 modifies 20 CFR 

617.25(a) to provide a new description 

of OJT that follows the statutory 

definition at section 247(16) of the Act. 

This section sets forth detailed 

requirements for OJT and customized 

training. OJT must be provided under a 

contract between the CSA and an 

employer, which may be in either the 

public or private sector. Related 

education necessary for acquisition of 

skills needed for the position should be 

provided to the extent possible, either as 

part of the OJT contract or separately as 

approved TAA training. Classroom 

training sponsored by the employer 

(known as vestibule training) may be 

part of OJT and may occur either before 

the actual ‘‘hands-on’’ training or may 

be provided for part of the day with the 

balance of the training day in a 

productive setting. The IEP and the OJT 


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contract should specify the duration of 

the OJT, which must be appropriate to 

the occupation for which the adversely 

affected worker is being trained. The 

duration of the OJT does not need to be 

the same for the same occupation for all 

workers as long as it allows the worker 

to become proficient in the occupation. 

Proposed § 618.635(a)(5) contains the 

conditions required by section 236(c) of 

the Act for approval of the costs of OJT. 

Proposed paragraphs (a)(5)(i) through 

(a)(5)(viii) are essentially unchanged 

from 20 CFR 617.25(a)(1) through (a)(7) 

and (a)(9), except for minor language 

changes. Paragraphs (a)(8) and (a)(10) of 

20 CFR 617.25(a) have been dropped 

because of the repeal of the previous 

language of section 236(c)(8) of the Act, 

which required the employer to certify 

to the Secretary that the employer will 

continue to employ such worker for at 

least 26 weeks after completion of 

training if the worker desires to 

continue employment and the employer 

does not have due cause to terminate 

the employment. In the Reform Act, 

Congress replaced the former section 

236(c)(8) requirement with a 

requirement that the employer be 

provided reimbursement of not more 

than 50 percent of the wage rate of the 

participant for the cost of providing the 

training and additional supervision 

related to the training. This requirement 

is now included in proposed 

§ 618.635(a)(4). 

Proposed § 618.635(a)(6) follows the 

statutory provision requiring payments 

for OJT to be made to employers in 

equal monthly installments. Proposed 

paragraph (a)(6) changes 20 CFR 

617.25(a) to eliminate confusion over 

this requirement and to clarify that it 

does not require equal dollar amounts 

be paid on a monthly basis. Instead, 

proposed paragraph (a)(6) permits CSAs 

to pay either in equal monthly dollar 

amounts or to compute the monthly 

payments based on the same rate of 

reimbursement for each hour worked, 

up to a maximum of 40 hours each 

week. Under this latter method of 

computation, the dollar amounts of the 

payments may fluctuate because, though 

paid at the same rate, the payments are 

based on different numbers of hours. 

Proposed § 618.635(a)(7) is a reminder 

that proposed § 618.765(c) provides that 

workers engaged in OJT are not eligible 

for TRA because workers must be 

eligible for TRA to be considered 

eligible for the HCTC. 

Proposed § 618.635(b) explains 

customized training, which is a new 

term under section 236(f) of the Act and 

is part of employer-based training under 

section 236(a)(5)(A) of the Act. Proposed 

paragraphs (b)(1) through (b)(3) set forth 

the specific requirements for 

customized training. For example, 

proposed paragraph (b)(3) requires the 

CSA to consider similar policies 

established under WIA by the State and 

Local Workforce Investment Boards in 

determining the portion, which must be 

at least 50 percent, of the cost of 

customized training paid by the 

employer. 

Proposed § 618.640 discusses the 

requirements for TAA-funded 

subsistence and transportation 

payments and combines 20 CFR 617.27 

and 617.28. Proposed paragraph (b) 

incorporates the determination and 

notice requirements of proposed 

§ 618.825 and the hearings and appeals 

requirements of proposed § 618.835 for 

any determination by a CSA on an 

application for supplemental assistance. 

Proposed § 618.640(c) and (d) 

correspond to, condense, and rewrite for 

clarity 20 CFR 617.27 and 20 CFR 

617.28, respectively. Proposed 

paragraph (d)(3) sets forth the 

calculation of the transportation 

allowance, and provides that these 

payments are solely for those miles 

beyond the commuting area. This is a 

significant change from 20 CFR 

617.28(b), which provides an allowance 

for the entire round trip distance where 

training is conducted outside the 

commuting area. Section 236(b) of the 

Act permits, but does not require, the 

Department to pay, ‘‘where 

appropriate,’’ supplemental assistance 

necessary to defray ‘‘reasonable’’

transportation expenses when the 

training is outside the community area. 

In order to conserve the capped training 

funds for tuition, fees, books, and 

equipment, the Department proposes to 

limit training allowances to only those 

miles beyond the commuting area. The 

Department believes this change is 

reasonable because workers who travel 

to training within the commuting area 

receive no allowance. 

Proposed § 618.645 establishes a new 

requirement for an adversely affected 

worker’s voluntary withdrawal from a 

training program. Proposed paragraph 

(a) provides that the CSA must advise 

the adversely affected worker that 

eligibility to training, even though not 

completed, under the existing 

certification is terminated if they 

withdraw from approved training. The 

worker will not be able to resume the 

training program. Proposed paragraph 

(a) also recognizes an exception: If a 

worker ceases participation in a training 

program for justifiable cause, the worker 

may resume the program if it can be 

completed within the 104 or 130 week 

time limits of proposed § 618.615(a)(3). 

This provision further implements the 

single training program rule of proposed 

§ 618.615(c). Because of the limitations 

on training funds, the Department 

cannot afford to pay for workers to take 

more than one approved training 

program. However, proposed paragraph 

(b) recognizes that adversely affected 

workers who withdraw from training 

still may receive job search and 

relocation allowances if they meet all 

the eligibility requirements for these 

benefits as set forth in proposed 

§§ 618.410 and 618.515. 

Proposed § 618.650 provides new 

authority, under certain conditions, for 

CSAs to set limits on the amount of 

training costs payable for adversely 

affected workers. Section 236(a)(F) of 

the Act requires the Secretary to 

approve training suitable for the worker 

and available at a reasonable cost. The 

Department has interpreted ‘‘reasonable 

cost’’ in proposed § 618.610(f)(2) to 

require taking into consideration, among 

other things, ‘‘the least cost to TAA 

funding of providing suitable training 

opportunities to the worker.’’ This 

requires the CSA to focus on approving 

training for individual workers at the 

lowest reasonable cost for the particular 

type of training in that area that will 

enable the worker to obtain employment 

within a reasonable period of time. This 

focus on the lowest reasonable cost will 

result in training opportunities for the 

largest number of adversely affected 

workers. 

To achieve the goal of expanding 

training opportunities for the largest 

number of workers, the Department 

believes it must give CSAs the authority 

to set specific training caps as a tool to 

ensure they approve training for 

individual workers at the lowest 

reasonable costs which will lead to 

employment. Proposed § 618.650 allows 

CSAs to establish training caps on a 

statewide or local area basis, and, if caps 

are established, requires that they be set 

based on the costs for training available 

in the local area. The Department is 

concerned that a state-wide training cost 

cap could shortchange areas of the State 

in which training costs are high. Thus, 

a CSA may not arbitrarily establish a 

cap. In recognition that in a large State 

costs may vary significantly from urban 

areas to rural areas, the State must arrive 

at a reasonable cap based upon training 

costs in the local areas throughout the 

State. 

Proposed § 618.650(a) allows training 

caps to be established on a statewide or 

local area basis. If these caps are used, 

however, they must reasonably reflect 

the costs for training available in all the 

local areas throughout the State. The 

CSA must also develop standards and 

procedures for the review and approval 


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of training costs that exceed established 

limits, based on individual and 

exceptional circumstances. This 

exception to the cost cap will prevent 

the denial of a training program based 

solely on a cost limitation. While the 

Department expects CSAs to be 

judicious in granting exceptions, the 

Department recognizes that there will 

likely be a few exceptional cases in 

which relief from the cap is appropriate. 

The genesis of training caps goes back 

over a decade. The Department 

previously proposed to amend 20 CFR 

617.22(b) to allow CSAs to establish, 

annually, a maximum amount allowable 

for the total cost of training for each 

worker. 59 FR 906, 924 (January 6, 

1994). Comments on that proposal noted 

that Congress rejected a proposed 

$4,000 per worker limit on training 

costs because training and related costs 

for individual workers may vary 

significantly from one region of the 

country to another and from one worker 

dislocation to another. 59 FR 924. The 

comments also pointed out the 

contradiction in requiring CSAs to 

establish a single maximum amount but 

then indicating that States should take 

into consideration the different types of 

occupational training and varying 

durations of training, which would then 

seem to render a single maximum cost 

meaningless. The comments also raised 

concerns that inequities would occur in 

setting a single amount both for 

individuals in a rural area without 

training facilities and for individuals in 

an urban area with training facilities. 

Although the Department abandoned its 

proposal, instead adopting the current 

language at 20 CFR 617.22(a)(6) making 

no provision for caps, some CSAs have 

expressed a desire over the past several 

years to have the flexibility to establish 

training caps when warranted by State 

and local circumstances. 

The Department believes that the 

earlier concerns on implementing 

training caps, while valid, are less of a 

concern under proposed § 618.650. 

First, the requirement that a training cap 

be based on the local area cost basis 

should eliminate the problem of 

significant variances in costs that would 

exist across regions if a single state cap 

were used. Second, the requirement to 

base caps on local area costs should 

guard against the possibility of workers 

in certain areas of a State being shut out 

of reasonably priced training 

opportunities in their local area because 

any cap, whether statewide or local, will 

have to consider the reasonable costs of 

training in that local area. Although not 

required, CSAs may choose a statewide 

cap based on the local area in the State 

with the highest reasonable costs of 

training. This would ensure that all 

workers in the State have an 

opportunity to obtain training at a 

reasonable cost. Third, the requirement 

that CSAs develop standards and 

procedures to review and approve 

training costs that exceed established 

limits based on individual and 

exceptional circumstances, should help 

eliminate the specific concerns of 

workers in rural areas who may be 

concerned that the lack of training 

opportunities will force them to seek 

higher-cost training outside their local 

area because of the need for adding 

subsistence and transportation 

payments as a component to their total 

training costs. This requirement also 

means that CSAs will continue to 

review individual training programs 

under the cost criteria for types and 

duration of training since reasonable 

training for a particular worker’s 

circumstances may be approved even if 

it is above the established training cap. 

Finally, the advent of the WIA and the 

One-Stop delivery system, which 

focuses on forging partnerships for 

training and employment services in 

local labor markets to assist individuals 

in finding jobs, now provides CSAs with 

better information on local labor 

markets and local training 

opportunities, including their costs. The 

One-Stop delivery system was not in 

place when the Department last 

considered training caps, but this 

system now allows for the collection of 

data on various training programs and 

puts the CSA in a better position to 

gauge local training costs. Better 

information on local labor markets and 

on the costs and quality of various 

training opportunities provides CSAs 

with the ability to establish reasonable 

local, regional or statewide training caps 

that reflect current conditions. Thus, the 

Department believes that this current 

proposal addresses the earlier concerns 

about their fairness and can be 

implemented effectively under the OneStop delivery system. 

Proposed § 618.650(b) requires 

cooperating State agencies to review 

their training caps annually and to 

change them when warranted. Proposed 

paragraph (c) requires that whenever a 

CSA establishes, changes, or ceases 

using a training cap, the CSA must send 

written notice and full documentation 

supporting its action to the Director 

before establishing, changing, or ending 

such limits. This requirement allows the 

Department to monitor, review, and 

approve the cost limits in accordance 

with the criteria in proposed paragraph 

(a) of this section. The CSA’s caps, or 

their modification or termination, will 

take effect in 30 calendar days after 

receipt by the Director, unless the 

Department objects in writing to the 

CSA. 

Proposed § 618.655 implements 

section 296(d)(2) of the Act, entitling an 

agricultural commodity producer 

entitled to receive a cash benefit under 

the TAA for Farmers program (see 7 

CFR Part 1580) to employment services 

and training benefits (including 

subsistence and transportation 

payments) under the Department of 

Labor’s TAA program. Although section 

296(d)(2) of the Act entitles these 

individuals to training, it does not mean 

that they are entitled to receive any 

training they want. Rather, the 

Department must place reasonable 

limitations on the approval of this 

training to assure that public funds are 

spent wisely for purposes for which 

Congress appropriated them. Thus, 

although section 296(d)(2) of the Act 

does not require application of the six 

criteria for training approval at section 

236 of the Act, the Department believes 

that approval criteria 2 through 6 

(proposed § 618.610(b) through (f)) 

establish reasonable conditions for 

selecting and approving training for 

these or any individuals. Criteria 2 

through 6 relate to the quality of the 

training and the utility of the training 

for the worker and thus permit CSAs to 

ensure that the training meets the needs 

of affected farmers. Proposed paragraph 

(a)(1) would apply, for example, 

approval criteria 5, at proposed 

§ 618.610(e)(2), requiring, for training 

approval, that the worker have sufficient 

personal or family resources on which 

to live to allow completion of the 

training. It would make no sense to 

spend scarce training dollars on training 

that an individual will be forced to quit 

because of inadequate personal 

finances. 

The Department proposes not to apply 

training approval criterion 1 (proposed 

§ 618.610(a)), that there is no suitable 

employment available except where the 

agricultural commodity producer 

actually obtains suitable employment, 

because this is the major threshold 

requirement for determining whether a 

worker is entitled to training. The 

Department believes that it should not 

stand in the way of the statutory 

training eligibility. However, all of the 

other provisions of this subpart F would 

apply to place reasonable parameters 

around this eligibility. Thus, for 

example, an approved training program 

for an eligible agricultural commodity 

producer (as for an adversely affected 

worker) could not exceed 104 

consecutive calendar weeks, with a 

possible 26 additional calendar weeks, 

as needed, to complete approved 


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remedial education, per proposed 

§ 618.615(a)(3)(i). 

Proposed § 618.655(a)(3) would 

require denial of training approval 

where the agricultural commodity 

producer has already obtained what is, 

in effect, ‘‘suitable employment’’ under 

section 236(e) of the Act. An adversely 

affected worker who obtains ‘‘suitable 

employment’’ is not entitled to training 

under criterion 1, requiring that no 

‘‘suitable employment’’ be available. 

Since an agricultural commodity 

producer does not receive wages, but 

instead earns income from the sale of a 

commodity, proposed paragraph (a)(3) 

substitutes ‘‘average weekly income’’ for 

‘‘average weekly wages’’ in the 

definition of ‘‘suitable employment.’’

‘‘Average weekly income’’ would be 

calculated based on the agricultural 

commodity producer’s self-employment 

income earned in his or her most recent 

tax year before the notice of entitlement 

to a cash benefit under the TAA for 

Farmers program. ‘‘Average weekly 

income’’ would be based on ‘‘all selfemployment’’ because the CSA will 

likely be unable to isolate that portion 

of the self-employment income that was 

the basis of the cash benefit under the 

TAA for Farmers program. By using 

‘‘average weekly income’’ in the 

definition of suitable employment in 

proposed paragraph (a)(3), the CSA 

treats agricultural commodity producers 

the same as adversely affected workers 

by denying training where the 

agricultural commodity producer has 

made a successful adjustment by 

obtaining, what is, in effect, suitable 

employment. 

Proposed § 618.655(b) provides that 

the CSA must verify agricultural 

commodity producer’s entitlement to a 

cash benefit under the TAA for Farmers 

program in accordance with procedures 

established by the Department of Labor. 

Currently this is done through an 

approved Form FFA–229, ‘‘Application 

for Trade Adjustment Assistance (TAA) 

for Individual Producers,’’ signed by the 

approving official at the Farm Service 

Agency. However, the Department 

expects that in the future CSAs will be 

able to confirm this entitlement 

electronically, using a Department of 

Agriculture database. 

Proposed § 618.655(c) provides that 

an agricultural commodity producer 

receiving training is entitled to 

subsistence and transportation 

payments where the CSA determines 

that the requirements of proposed 

§ 618.640 are met. It is logical and 

reasonable that those same requirements 

apply to agricultural commodity 

producers. 

Proposed § 618.655(d) limits an 

agricultural commodity producer 

entitled to a cash benefit in multiple 

years for the same commodity to only 

one training program per affected 

commodity. Although section 296(d)(2) 

of the Act could be read as permitting 

a new training program each year, that 

result would not be a logical or 

reasonable reading of the law. A training 

program approved under subpart F 

should give an individual the skills 

necessary to obtain new employment, 

and a second training program would be 

an unnecessary diversion of scarce 

training funds from better uses. If an 

agricultural commodity producer 

receives TAA training under a 

certification and a future certification is 

issued with respect to the same 

commodity, the individual will be 

considered to have already received the 

training eligibility under section 

296(d)(2) of the Act. 

Proposed § 618.655(e), sets the limits 

on the TAA services that an eligible 

agricultural commodity producer may 

receive, found in section 296(d)(2) of the 

Act. Agricultural commodity producers 

entitled to a cash benefit are entitled to 

employment services under subpart C, 

but not any TRA under subpart G, job 

search allowances under subpart D, 

relocation allowances under subpart E, 

or ATAA under subpart I [reserved]. 

Subpart G—Trade Readjustment 

Allowances 

Proposed subpart G, derived from 20 

CFR Part 617, subpart B, covers the 

eligibility requirements for, and the 

amounts and duration of, trade 

readjustment allowances (TRA). 

Proposed subpart G reorganizes and 

simplifies some of the parallel 

provisions of Part 617 to make them 

easier to follow and excludes provisions 

of Part 617 that have lapsed. Proposed 

subpart G also implements several 

Reform Act amendments to TRA 

eligibility criteria. Major changes 

include: 

• Allows individuals to receive 

wholly state-funded additional UI in 

addition to TRA to support an 

individual’s job search and/or 

participation in training. 

• Encourages rapid re-employment by 

instituting deadlines (i.e., 8/16 

enrollment deadline) for enrollment in 

approved training in order to qualify for 

TRA. 

• Strengthens the connection between 

TRA and training by establishing 

specific criteria for issuing waivers of 

the training requirement for basic TRA 

eligibility. 

• Increases additional TRA for 

workers in approved training from 26 

weeks to 52 weeks, thus reducing the 

chance of a worker dropping out of 

training due to insufficient income 

support. 

• Permits the payment of up to an 

additional 26 weeks of TRA, which 

assists workers who require remedial 

education to have enough income 

support to complete occupational 

training. 

• Provides conditions under which 

TAA participants meet the definition of 

‘‘eligible TAA recipient’’ for HCTC 

purposes, and directs the CSA to 

transmit the names of such workers to 

the Internal Revenue Service (IRS). 

• Provides prompt access to HCTC for 

qualified TAA recipients and reduces 

the administrative burden on state 

agencies for issuing waivers by allowing 

workers to receive TRA, and thus be 

potentially eligible for HCTC, without 

enrolling in training or receiving a 

waiver for the weeks prior to the 8/16 

enrollment deadline. 

Proposed § 618.700 describes the 

scope of this proposed subpart G. 

Proposed § 618.705 explains that 

there are three categories of TRA: Basic, 

additional, and remedial. This proposed 

section has no parallel in part 617. It is 

intended to make the rest of proposed 

subpart G easier to follow by providing 

context to the references throughout 

subpart G to the three distinct types of 

TRA. Proposed paragraphs (a) and (b) 

identify, respectively, basic TRA and 

additional TRA and reference their 

respective qualifying requirements 

contained in later sections in subpart G. 

Proposed paragraph (c) addresses 

remedial TRA. Even though the Act 

does not explicitly refer to ‘‘remedial 

TRA’’ as a separate category of TRA, the 

Act, as amended by the Reform Act, 

implicitly recognizes remedial TRA as a 

distinct form of TRA. Section 233(g) of 

the Act permits the payment of up to 26 

additional weeks of TRA, to assist those 

workers who require remedial education 

by providing extended income support 

while the worker completes 

occupational training. Proposed 

paragraph (c) makes eligibility for 

remedial TRA contingent upon the 

specific qualifying requirements of 

proposed § 618.755. In particular, and as 

explained in more detail in the 

preamble explanation of proposed 

§ 618.755, remedial TRA need not be 

concurrent with participation in 

remedial education, as long as the 

adversely affected worker had 

participated in remedial education and 

is participating in approved training 

while receiving remedial TRA. 

Finally, in order to prevent 

duplication of benefits, proposed 

paragraph (d) provides that an adversely 


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affected worker may receive only one 

form of TRA—basic, additional, or 

remedial—for a given week of 

unemployment. 

Proposed § 618.710 covers 

applications for TRA. Under proposed 

paragraph (a), a worker may apply for 

TRA if the worker is covered under 

either a certification or, if before a 

certification is issued, a petition. 

Proposed paragraph (b) provides, as 

does 20 CFR 617.10(a), that, for a TRA 

application filed before a certification 

covering the adversely affected worker 

is issued, the CSA must make those 

determinations necessary to establish or 

protect such worker’s TRA entitlement 

and, if necessary, to protect the worker’s 

eligibility for the HCTC. The reference 

to HCTC is added because eligibility for 

HCTC may depend upon meeting all of 

the TRA eligibility requirements except 

exhausting UI. The CSA must also 

advise an applicant that a determination 

on payment of TRA cannot be made 

unless a certification is issued. 

Proposed paragraph (c) follows 20 

CFR 617.10(b), although it is edited for 

clarity. It sets the time limits for 

applications for TRA. 

Proposed paragraph (d) follows 20 

CFR 617.10(c) in providing the 

procedures for filing TRA applications. 

Proposed paragraph (e) provides that 

TRA determinations are subject to 

specified requirements in proposed 

subpart H concerning determinations, 

appeals and hearings. It also requires 

that an adversely affected worker’s case 

record must include the worker’s TRA 

applications and the determinations on 

the applications. This is a new 

provision with no explicit counterpart 

in current regulations, but it merely 

clarifies, rather than changes or adds to, 

existing requirements. 

Proposed paragraph (f) follows 20 

CFR 617.11(a)(2)(i) and 617.11(b) in 

providing that a CSA may not pay a 

worker TRA until a certification is 

issued covering the worker, and that an 

adversely affected worker may not be 

paid TRA until the first week beginning 

more than 60 days after the date of the 

filing of the petition that resulted in the 

certification under which the worker is 

covered. 

Proposed § 618.715 follows 20 CFR 

617.11(a)(2) in setting forth the 

requirements for basic TRA eligibility. 

Proposed paragraphs (a) through (c) 

follow 20 CFR 617.11(a)(2)(i) through 

(a)(2)(iii) setting three of the rules for 

basic TRA eligibility. 

Proposed paragraph (d) follows 20 

CFR 617.11(a)(2)(iv) in providing that an 

adversely affected worker must have 

been entitled to UI for a week within the 

first benefit period, as defined in 

proposed § 618.110. Proposed paragraph 

(d) simplifies the language in the 

current regulation by eliminating 

references to the ‘‘first qualifying 

separation,’’ because that term is 

incorporated into the definition of ‘‘first 

benefit period.’’

Proposed paragraph (e)(1) requires 

exhaustion of UI entitlement and 

follows the requirement in 20 CFR 

617.11(a)(2)(v)(A) and (B) except in two 

respects. First, proposed paragraph (e) 

contains an exception to the exhaustion 

requirement, under section 231(a)(3)(B) 

of the Act, as amended by the Reform 

Act, that exhaustion of additional 

compensation that is funded by a State 

and not reimbursed from any Federal 

funds, including any waiting weeks, is 

not required. Second, it explains that 

whenever a worker becomes entitled (or 

would become entitled if the worker 

had applied therefor) to UI—except 

additional compensation that is funded 

by a State and not reimbursed from any 

Federal funds—TRA eligibility is 

suspended until the worker again 

exhausts UI. 

Proposed paragraph (f) provides that 

the adversely affected worker must be 

able and available for work and must 

meet the EB work test requirements, 

except while enrolled in, or 

participating in, training approved 

under proposed subpart F. The 

requirements in proposed paragraph (f) 

combine the requirements in 20 CFR 

617.11(a)(2)(vi) and 20 CFR 617.17, 

except that the 20 CFR 617.17(a)(1) 

requirement that a worker be 

unemployed appears in proposed 

paragraph (g) of this section. Proposed 

paragraph (f) also reorganizes and 

rephrases the paragraphs containing the 

specified means for meeting the EB 

work test requirements in a way the 

Department believes is easier to follow. 

Proposed paragraph (g) provides that 

the adversely affected worker must be 

unemployed as defined in the 

applicable State law for UI claimants. 

This requirement follows 20 CFR 

617.17(a)(1) and is placed in this section 

because it is a qualifying requirement 

for basic TRA. 

Finally, proposed paragraph (h) 

mirrors the ‘‘participation in training’’

requirement of 20 CFR 

617.11(a)(2)(vii)(1). The specific 

requirements in 20 CFR 

617.11(a)(2)(vii)(2) and (3) have been 

moved to a separate section, proposed 

§ 618.720. 

Proposed paragraph (h) also provides 

that the participation in training 

requirement does not apply to a worker 

before what is commonly referred to as 

the 8/16-week deadline for enrollment 

in training. In fact, there are four 

alternative deadlines set out in section 

231(a)(5)(A)(ii) of the Act and in 

proposed § 618.720(c). The deadlines 

are: (1) The last day of the 16th week 

after the worker’s most recent total 

qualifying separation; (2) the last day of 

the eighth week after the week in which 

the certification covering the worker is 

issued; (3) 45 days after the later of the 

above two dates, if there are extenuating 

circumstances to justify an extension in 

the enrollment period; or (4) the last day 

of a period determined by the Secretary 

to be approved for enrollment after the 

termination of a waiver. These 

alternative deadlines are implemented 

in proposed § 618.720(c)(1) through (4) 

and are discussed also below in the 

preamble discussion of those 

paragraphs. 

The Department proposes to interpret 

the participation in TAA-approved 

training eligibility requirement as not 

applying before the applicable deadline. 

Until the deadline is reached, the fact 

that a worker is not enrolled in or 

participating in training or has not 

received a waiver of participation in 

training does not preclude eligibility for 

basic TRA. Applying the participation 

in TAA-approved training requirement 

before the deadline would undermine 

one purpose of the deadlines, that is, to 

provide sufficient time to identify and 

make arrangements for an appropriate 

training program. Further, applying the 

participation in training requirement 

before the deadlines would cause some 

adversely affected workers who do not 

participate in training before the 

deadline to be denied eligibility for the 

HCTC because, by not meeting a 

requirement for TRA eligibility, they 

would not be ‘‘eligible TAA recipients’’

as required to receive the HCTC. A 

Government Accountability Office 

(GAO) report on the TAA program, 

published on September 22, 2004, found 

that in a majority of the states, some 

adversely affected workers might not be 

enrolling in the most appropriate 

training program because the 8/16-week 

deadline forced the states into rushed 

assessments of the workers’ needs. See 

pages 13–17 of this GAO report, 

available at http://www.gao.gov/ 

new.items/d041012.pdf. The 

Department believes that not applying 

the participation in training requirement 

before the 8/16-week deadline will 

prevent aggravation of this problem. 

A related issue, on which the 

Department seeks public comment, is 

whether the deadlines should apply to 

waivers of the training requirement in 

the case of adversely affected workers 

who do not enroll in training by the 

applicable deadline; whether the 

issuance of a waiver after the deadline 


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has passed can revive eligibility for 

basic TRA. The Department’s current 

position, reflected in § 618.725(a), is 

that an adversely affected worker who 

neither enrolls in training by the 

applicable deadline, nor receives a 

waiver of the training requirement by 

that deadline, may not become eligible 

for TRA by later receiving such a 

waiver. This position was articulated in 

the operating instructions in Training 

and Employment Guidance Letter 

(TEGL) No. 11–02, Change 1 (69 FR 

60903 (2004)), which interpreted section 

231(a)(5)(A) as imposing ‘‘a deadline by 

which a worker must be enrolled in 

approved training, or have a waiver of 

this requirement, in order to be eligible 

for TRA.’’ However, a CSA recently 

brought to the Department’s attention an 

alternative reading, based on the 

structure of the Act, that the applicable 

deadline applies only to enrollment in 

training and not to waivers of the 

training requirement. The argument is 

that the alternative deadlines are 

contained only in the Act’s provision on 

the enrollment in training requirement, 

section 231(a)(5)(A); that language in 

section 231(a)(5)(A)(ii) suggests the 

requirement applies only to the 

enrollment in training requirement in 

section 231(a)(5)(A)(i); and that the 

alternative requirement that the worker 

receive a waiver of the training 

requirement is contained in a separate 

provision, section 231(a)(5)(C) of the 

Act. While this argument is plausible, 

the Department is concerned that it 

effectively undermines Congress’ intent 

that TAA-eligible workers be quickly 

returned to work or quickly provided 

with the training they need to succeed 

in the labor market. In light of this 

argument, the Department encourages 

public comments on this issue. 

As noted above, proposed § 618.720 

provides the requirements governing a 

worker’s participation in training 

approved under proposed subpart F as 

a condition of receiving TRA. 

Proposed paragraph (a) provides that 

an adversely affected worker must be 

enrolled in, participating in, or have 

completed training approved under 

proposed subpart F, or have a waiver 

granted under proposed § 618.725 in 

effect by the applicable deadline for 

enrollment in training. Proposed 

paragraph (a) repeats some of the 

requirements in proposed § 618.715(h) 

so that all the requirements related to 

basic TRA eligibility and all the 

requirements related to training 

requirements for receipt of TRA are 

placed in separate sections of the 

proposed rule. 

Proposed paragraph (b) is selfexplanatory. 

Proposed paragraph (c) implements 

the enrollment in training deadlines, 

added by the Reform Act to section 

231(a)(5)(A)(ii) of the Act. It implements 

the statutory requirement that, unless a 

worker who has a waiver in effect, the 

worker must be enrolled in training 

approved under subpart F no later than 

one of four alternative specified 

deadlines to be eligible for basic TRA. 

Proposed paragraphs (c)(1) through 

(c)(4) describe the deadlines and mirror 

the Act. 

Proposed paragraph (c)(3) provides an 

alternative deadline of the last day of 

the 30-consecutive calendar day period 

following the termination or revocation 

of a waiver under proposed § 618.725. 

This paragraph implements section 

231(a)(5)(A)(ii)(IV) of the Act, added by 

the Reform Act, which directs the 

Secretary to determine the deadline by 

which a worker must enroll in approved 

training after the termination of a 

waiver. The Department believes 30 

calendar days is sufficient time for a 

worker whose waiver has been 

terminated or revoked to be advised of, 

and consider, training options, select an 

option, and enroll in training. 

Proposed paragraph (c)(4) implements 

the requirement of section 

231(a)(5)(A)(ii)(III) of the Act, added by 

the Reform Act, that a worker may have 

45 additional days after the later of the 

16/8-week deadlines, if there are 

extenuating circumstances that justify 

the extension. The Act does not 

elaborate on what are extenuating 

circumstances. Proposed paragraph 

(c)(4) explains that extenuating 

circumstances are unusual situations 

that are beyond the direct control of the 

adversely affected worker and that make 

enrollment within the otherwise 

applicable deadline impossible or 

impractical. Proposed paragraphs 

(c)(4)(i) through (iv) provide a nonexhaustive list of examples of 

extenuating circumstances. 

Finally, proposed paragraph (c)(5) 

provides the same exception to the 

participation in training requirement 

that is contained in proposed 

§§ 618.715(h) and 618.720(a), as 

explained in the discussion of proposed 

§ 618.715(h). 

Proposed paragraph (d), derived from 

section 231(b)(2) of the Act, follows 20 

CFR 617.11(a)(2)(vii)(B). It provides an 

exception to the training requirement 

for claims for basic TRA for weeks of 

unemployment beginning before the 

filing of an initial claim for TRA (within 

a reasonable period of time, as provided 

in proposed § 618.710(c)), and for weeks 

before notification that a worker is 

covered by a certification and is fully 

informed of the requirements for 

enrollment in training. 

Proposed paragraph (e) interprets the 

terms ‘‘enrolled in training,’’

‘‘participating in training,’’ and 

‘‘completed training.’’

Proposed paragraphs (e)(1) and (e)(3) 

interpret, respectively, ‘‘enrolled in 

training’’ and ‘‘completed training’’

substantially the same as, respectively, 

paragraphs (1) and (2) of 20 CFR 

617.11(a)(2)(vii)(D); but the 

interpretation of ‘‘completed training’’ is 

revised for clarity. 

Proposed paragraph (e)(2) interprets 

‘‘participating in training.’’ Part 617 

does not interpret this term, despite 

using it throughout. Interpreting it in 

proposed Part 618 is helpful. 

Proposed paragraph (e)(2)(i) provides 

that an adversely affected worker is 

‘‘participating in training’’ if the worker 

is attending and participating in all 

scheduled classes, required activities, 

and required events, or the training 

institution has excused the worker’s 

absence or failure to participate. 

Proposed paragraph (e)(2)(i) also 

provides a mechanism for ensuring that 

an adversely affected worker does not 

receive basic TRA when that worker has 

‘‘ceased participation’’ in the approved 

training in which the worker is enrolled, 

in accordance with § 618.765(b)(3)(ii). It 

requires the training institution to 

certify in writing on a monthly basis to 

the CSA whether the adversely affected 

worker has met this requirement, and, if 

not, whether it has excused the worker. 

Proposed paragraph (e)(2)(ii) provides 

that an adversely affected worker in a 

distance learning program is 

‘‘participating in training’’ if the worker 

is meeting all the requirements of the 

training institution. Proposed paragraph 

(e)(2)(ii) also provides the same 

mechanism, monthly reports, for 

ensuring that a worker is participating 

in the training. The Department 

specifically invites comments on 

whether the requirements for monthly 

certifications by training institutions of 

worker participation is overly 

burdensome and whether there is a 

better means of assuring that a worker 

is participating in training as required 

for TRA. 

Proposed paragraph (e)(2)(iii) 

provides that a worker is participating 

in training during breaks in training that 

meet the requirements of § 618.760. 

Proposed § 618.725 addresses waivers 

of the training requirement as a 

condition for receiving basic TRA. This 

proposed section, because of the Reform 

Act amendments, varies substantially 

from the waiver provisions in 20 CFR 

617.19(a)(2) and (b) through (d). 


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Proposed paragraph (a) provides the 

general rule that a CSA may issue to an 

adversely affected worker a written 

waiver of the training requirement if it 

finds that training is not feasible or 

appropriate for one or more of the 

reasons listed in paragraph (b). 

Proposed paragraph (a) also provides 

that no waiver of the training 

requirement is permitted for additional 

TRA or remedial TRA eligibility. 

Finally, proposed paragraph (a) 

requires, as discussed above in the 

discussion of proposed § 618.715(h), 

that a waiver must be issued no later 

than the latest of the applicable training 

enrollment deadlines described in 

§ 618.720(c). 

Proposed paragraph (b) sets forth the 

permissible bases for waiving the 

training requirement, implementing 

Reform Act amendments to section 

231(c) of the Act. Before the Reform Act, 

the Act permitted waiver of the training 

requirement where training was not 

feasible or appropriate for a worker and 

gave the Secretary discretion to decide 

the criteria for determining whether 

training is feasible or appropriate. The 

Reform Act reduced the Secretary’s 

discretion by specifying six bases, at 

least one of which must be cited in any 

determination that training is not 

feasible or appropriate for an adversely 

affected worker. Proposed paragraphs 

(b)(1) through (b)(6) identify the six 

bases, mostly verbatim from the Act; 

however, some of them elaborate on the 

statutory requirement, as explained 

below. 

Proposed paragraph (b)(1) implements 

the statutory waiver criterion that ‘‘[t]he 

worker has been notified that the worker 

will be recalled by the firm from which 

the separation occurred.’’ The 

Department believes that this means 

that the recall must be to the same or 

substantially the same position by the 

firm from which the separation 

occurred, and that the recall is expected 

to be permanent. In this way, the criteria 

for approval of training will work in 

tandem with waiver of the training 

requirement where the worker has been 

notified of a recall and ensure that the 

worker receives income support while 

awaiting the recall. That is, section 

236(a)(1) of the Act (implemented in 

proposed § 618.610(a)) requires denial 

of training where suitable employment 

is available, which includes a recall. 

However, section 231(c)(1)(A) of the Act 

(implemented in this proposed 

paragraph) provides for waiver of the 

training requirement where a worker 

has been notified of a recall to the 

adversely affected employment. 

Proposed paragraph (b)(1) differs from 

its counterpart in 20 CFR 

617.19(b)(2)(ii)(A) in that it excludes 

‘‘general’’ recalls, described in 20 CFR 

617.19(b)(2)(ii)(A)(2)(ii), from 

consideration in determining whether to 

issue a waiver due to a recall notice. 

The Department believes that a general 

recall, which by its terms does not 

include a specified date or time period 

for returning to work, is inherently too 

vague to rely upon for purposes of 

issuing a waiver of the training 

requirement. It also would simplify 

administration, and help ensure 

consistency among determinations on 

issuing waivers of the training 

requirement and denying approval of 

training, to require that a recall have a 

specified date or time period for 

returning to work in order to meet the 

requirements of both proposed 

paragraph (b)(1) and proposed 

§ 618.610(a). 

Proposed paragraph (b)(1) also differs 

from 20 CFR 617.19(b)(2)(ii)(A) in 

requiring that a recall be permanent. 

The Department believes that it would 

not be appropriate to deny training if a 

worker chooses not to return to work 

that holds no long term prospect of 

employment. If a worker chooses to 

accept a temporary recall, the worker 

may remain eligible for TRA upon his/ 

her subsequent separation, under the 

moving eligibility rules of the Act. 

Proposed paragraph (b)(2) implements 

the statutory waiver criterion that an 

adversely affected worker has 

marketable skills for suitable 

employment, and there is a reasonable 

expectation of employment at 

equivalent wages in the foreseeable 

future. The definition of ‘‘suitable 

employment’’ in proposed § 618.110 is 

used also in proposed § 618.610(a)(1) for 

purposes of determining whether to 

approve training. As discussed in the 

preamble discussion of the definition of 

‘‘suitable employment,’’ the Department 

believes that, despite the use of slightly 

different language in sections 

231(c)(1)(B) and 236(a)(1)(A), the two 

provisions must be read 

complementarily, so that a worker who 

is denied training because of the 

availability of suitable employment is 

not also denied a waiver because of a 

conflicting interpretation of the phrase 

‘‘employment at equivalent wages’’ in 

the waiver criteria. Proposed paragraph 

(b)(3) implements the statutory waiver 

criterion that the worker is within two 

years of meeting all requirements for 

entitlement to either old-age insurance 

benefits under title II of the Social 

Security Act (except for the requirement 

of application for these benefits), or a 

private, employer-or-labor organizationsponsored pension. Proposed paragraph 

(b)(3) interprets entitlement to benefits 

under title II of the Social Security Act 

as including either full or partial 

retirement benefits. 

Proposed paragraph (b)(4) implements 

the statutory waiver criterion that the 

worker is unable to participate in 

training for health reasons. Proposed 

paragraph (b)(4) repeats the statutory 

language almost verbatim with no 

further elaboration. 

Proposed paragraph (b)(5) implements 

the statutory waiver criterion that the 

first available enrollment date for the 

approved training of the worker is 

within 60 days after the date of the 

waiver determination, or, if later, there 

are extenuating circumstances for the 

delay in enrollment, as determined 

under guidelines issued by the 

Secretary. Proposed paragraph (b)(5) 

repeats the 60-day deadline almost 

verbatim from the statutory language 

and, for consistency, implements the 

extension for extenuating circumstances 

by applying the test in proposed 

§ 618.720(b)(4) for determining whether 

there are extenuating circumstances. 

Proposed paragraph (b)(6) implements 

the statutory waiver criterion that a 

waiver of the training requirement may 

be issued if training is unavailable. 

Proposed paragraph (b)(6) implements 

this statutory provision almost verbatim 

with no further elaboration. 

Proposed paragraph (c) governs the 

contents of a written waiver. It provides 

that a waiver does not take effect unless 

it contains, at a minimum, six specific 

items of information. Proposed 

paragraph (c) is modified from 20 CFR 

617.19(a)(2)(i) through (a)(2)(vii) to 

account for the statutory change 

concerning allowable bases for issuing a 

waiver, and is also slightly reorganized 

to make it easier to follow. In particular, 

the requirement for the recipient’s 

signature has been modified, to account 

for current claims-taking practice, to 

permit other evidence of the 

participant’s receipt and 

acknowledgement of the waiver. 

Proposed paragraph (d) requires that 

whenever a waiver request (whether or 

not made by the adversely affected 

worker to whom the request pertains) is 

denied, the worker to whom the denial 

pertains must be furnished with a 

written notice of the denial, and that the 

written notice must contain certain 

specified information. The paragraph is 

modified from 20 CFR 617.19(a)(3) for 

clarity about the required contents of a 

denial. 

Proposed paragraphs (e) and (f) 

implement provisions of section 

231(c)(2) of the Act, as amended by the 

Reform Act. Proposed paragraph (e) 

implements section 231(c)(2)(A) of the 

Act that a waiver of the training 


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requirement may be effective for not 

more than 6 months after the date on 

which it is issued ‘‘unless the Secretary 

determines otherwise.’’ Proposed 

paragraph (f) implements section 

231(c)(2)(B) of the Act requiring 

revocation of a waiver if the basis of a 

waiver no longer applies, and written 

notification of the revocation to the 

worker. 

Proposed paragraph (e)(1) implements 

the 6-month limit with two additional 

qualifications. First, it provides that the 

extension may be for a period not to 

exceed 6 months or the worker’s period 

of basic TRA entitlement, whichever 

comes first. This limitation is consistent 

with the fact that a waiver may be 

issued only for basic TRA. Second, the 

waiver must be reviewed every 30 days 

to determine if one or more of the bases 

for a waiver continue to apply. The 

Department believes this requirement 

would be an effective means of ensuring 

that the waiver criteria continue to be 

met for the duration of the waiver. Not 

regularly reviewing waivers would 

undermine the Act’s requirement that 

waivers should remain in effect only as 

long as the bases for a waiver continue 

to apply. 

Proposed paragraph (e)(2) implements 

the statutory authority to extend a 

waiver beyond 6 months by providing 

two criteria that must be met in order 

for a CSA to extend a waiver. The 

criteria require that one or more of the 

bases for a waiver apply to the worker, 

and that the worker has not yet 

exhausted basic TRA entitlement. The 

first criterion permits a CSA to extend 

a waiver beyond 6 months as long as at 

least one of the six bases for a waiver 

continues to apply, even if the original 

basis or bases for issuing the waiver no 

longer apply. This criterion implements 

the statutory mandate that a waiver be 

in effect only if specified criteria are 

met. The Department includes the 

second criterion because extending a 

waiver of the training requirement 

would be pointless if the worker has 

exhausted basic TRA eligibility. The 

Department believes these criteria 

provide the maximum flexibility to 

extend a waiver within the spirit of the 

statutory requirements for such waivers. 

Proposed paragraph (f) implements 

the statutory requirement that a waiver 

must be revoked if none of the six 

specified statutory bases for a waiver 

continues to apply. It requires the CSA 

to revoke a waiver if the waiver criteria 

are no longer met, and to notify the 

adversely affected worker in writing of 

the revocation. The notice would be 

required to contain the same 

information as a denial of waiver issued 

under proposed paragraph (d). Proposed 

paragraph (g) implements the new 

statutory requirement added by the 

Reform Act to section 231(c)(3)(B) of the 

Act that CSAs submit to the Secretary 

the written waivers of the training 

requirement issued under the Act and a 

statement of reasons for each waiver. 

Proposed paragraph (g) implements this 

requirement by requiring CSAs to 

transmit a copy to the appropriate 

Regional Administrator of any or all 

waivers or any or all revocations of 

waivers together with a statement of the 

reasons for the waiver or revocation. As 

a practical matter, a separate statement 

of reasons will not need to be submitted 

if the waiver follows the requirements of 

proposed paragraphs (c) and (f) and 

contains the reasons for the waiver or 

revocation. 

Proposed § 618.730, modeled after 20 

CFR 617.12, provides the requirements 

for evidence of qualification for basic, 

additional, and remedial TRA. 

Proposed paragraph (a), containing 

the basic requirement that CSAs obtain 

the basic information necessary to 

establish whether a TRA applicant is 

eligible to receive TRA, is substantially 

the same as 20 CFR 617.12(a). However, 

proposed paragraph (a) excludes the 

requirement in 20 CFR 617.12(a)(2) that 

a State agency must obtain a TRA 

applicant’s average weekly wage. This 

information is not administratively 

necessary in the case of a TRA applicant 

who is totally separated from adversely 

affected employment. 

Proposed paragraphs (b) and (c) on 

obtaining alternative information where 

records are unavailable include only 

one change from 20 CFR 617.12(b) and 

(c). Where 20 CFR 617.12(c) requires 

verification by the employer of 

information received from other 

sources, proposed paragraph (c) requires 

such verification only ‘‘if possible.’’

This change acknowledges that in some 

cases the employer might have gone out 

of business, so that obtaining the 

required verification is virtually 

impossible. 

Proposed paragraph (d), concerning 

the data on which a CSA must base a 

determination on TRA entitlement and 

benefit amounts, is substantively similar 

to 20 CFR 617.12(d), but, rather than 

requiring the CSA to make adjustments 

to the suspect data and make its 

determinations on the basis of the 

adjusted data, requires the CSA to make 

its determinations from the best 

available information. The Department 

believes that this change provides CSAs 

with more flexibility. 

Proposed § 618.735, governing the 

determination of a worker’s weekly 

amount of TRA, whether basic, 

additional, or remedial, is modeled on 

20 CFR 617.13. 

Proposed paragraphs (a) and (b) are 

substantively the same as their 

counterparts in, 20 CFR 617.13(a) and 

(b). 

Proposed paragraph (c), requiring 

specified reductions to the TRA weekly 

amount, closely follows 20 CFR 

617.13(c). However, proposed paragraph 

(c)(2) is modified from 20 CFR 

617.13(c)(2) in order to resolve a conflict 

between the Act and another Federal 

statutory provision. The conflict is 

between section 232(c) of the Act, 

requiring a worker’s TRA weekly benefit 

amount to be reduced by the amount of 

a training allowance the worker 

received for that week under any other 

Federal law, and another Federal 

statutory provision, at 20 U.S.C. 1087uu, 

that prohibits Federal student financial 

assistance from being considered in the 

determination of a Federal student 

financial assistance recipient’s 

eligibility for or benefit amount under 

any other Federally funded benefit or 

assistance program. The provision at 20 

CFR 617.13(c)(2) interprets training 

allowances referred to in section 232(c) 

of the Act as including specified types 

of payments that constitute Federal 

student financial assistance under 20 

U.S.C. 1087uu. 

Proposed paragraph (c)(2) resolves 

this conflict by requiring that no 

reduction of the TRA weekly amount be 

made for the receipt of Federal student 

financial assistance, as defined in 

proposed § 618.110. It further provides 

that in the case of a worker to whom 

such Federal student financial 

assistance is available, the State must 

rely on prearrangements for the sharing 

of costs under proposed subpart F in 

order to harmonize the provision of 

such Federal student financial 

assistance with the worker’s TRA 

entitlement. The Department believes 

that prearrangements can be used to 

harmonize TRA with the provision of 

Federal student financial assistance 

consistent with the requirements of both 

otherwise conflicting statutory 

requirements. Under such a 

prearrangement, the agency responsible 

for providing Federal student financial 

assistance might, to the extent provided 

for under its laws, adjust that assistance 

in view of the worker’s receipt of TRA. 

Proposed § 618.740, on calculating the 

maximum amount of basic TRA, follows 

20 CFR 617.14, with a few substantive 

and organizational differences. The 

calculation in proposed paragraph (a) is 

substantively the same except for two 

differences. The first difference is that 

additional compensation (defined at 

proposed § 618.110) is not included in 


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the total sum of UI that must be 

subtracted as part of the calculation of 

the maximum amount of basic TRA. 

This difference results from an 

amendment by the Reform Act to 

section 231(a)(3)(B) that a worker need 

not exhaust additional compensation 

funded by a state and not reimbursed 

from federal funds to qualify for TRA. 

The purpose of that amendment was to 

allow a worker to collect TRA even 

though he or she was entitled to 

additional compensation, which the 

worker might then collect after 

exhausting TRA. To deduct such 

additional compensation from a 

worker’s TRA would defeat this 

purpose. 

The second difference concerns the 

reduction for the total sum of the 

adversely affected worker’s UI 

entitlement. Section 617.14(a)(2) 

provides that a worker’s UI reduction 

must include, in addition to any UI the 

worker actually received, any UI to 

which the worker would have been 

entitled had the worker applied for it 

during the worker’s first benefit period. 

The last sentence of that paragraph adds 

that in calculating the worker’s 

maximum TRA amount, the worker’s 

full UI entitlement for the first benefit 

period must be subtracted, regardless of 

the amount, if any, actually paid to the 

worker. This last sentence created an 

unintended result in recent years for 

workers who, after they began receiving 

TRA during their first benefit period, 

became eligible for extended benefits or 

benefits under the Temporary Extended 

Unemployment Compensation (TEUC) 

program. For example, assume that 

three weeks before a worker’s benefit 

year ends, the worker becomes eligible 

for a TEUC maximum benefit amount of 

13 weeks. If the worker is entitled to 

regular UI in a second benefit year, that 

regular UI entitlement means the worker 

is not eligible for TEUC as of the start 

of the second benefit year. Therefore, 

the worker could have collected at most 

three weeks of TEUC. However, because 

of the last sentence in 20 CFR 

617.14(a)(2), all 13 weeks of TEUC 

would be deducted from the basic TRA 

maximum benefit amount, even though 

the worker could not have collected 10 

weeks of it. 

These workers would have their basic 

TRA maximum amount reduced by the 

full potential amount of the extended UI 

entitlement during their first benefit 

period, whether or not they were 

actually paid that full potential 

entitlement or could even actually 

qualify for the entire amount. In some 

cases, this resulted in workers having 

their maximum amount of TRA reduced 

to an amount below what they already 

had received, which resulted in TRA 

overpayments being established, despite 

these workers having received TRA for 

weeks of unemployment for which they 

were not eligible for any UI. Because 

these workers lawfully received TRA for 

weeks of unemployment for which they 

were not eligible for UI, and could not 

have known that they would become 

eligible for extended UI at a later time 

during their first benefit period, it seems 

contrary to the Act to declare the 

lawfully received TRA payments to be 

overpayments. Upon further review of 

the legislative history, the Department 

has determined that the Act does not 

compel the reduction of the TRA 

maximum amount by the full potential 

UI entitlement during the first benefit 

period. 

Therefore, the Department proposes to 

exclude the last sentence of 20 CFR 

617.14(a)(2) from proposed paragraph 

(a) of § 618.740 so that no deduction 

will be made from the basic TRA 

maximum benefit amount for the 

potential amount of extended benefits or 

TEUC that could not be received. 

However, excluding this provision 

potentially could cause another 

problem: a worker could receive basic 

TRA for weeks for which the worker did 

not receive UI because of State UI law 

disqualification provisions. Even though 

the disqualification provisions at 

proposed § 618.765(a) prohibit that 

result, proposed § 618.740(a) arguably 

could be read as conflicting with 

proposed § 618.765(a). To avoid any 

conflict, and because the Department 

believes it would defeat the purpose of 

the disqualification provisions to allow 

workers to receive TRA for such weeks, 

the Department proposes requiring the 

UI reduction to include the total sum of 

UI the worker would have received in 

the worker’s first benefit period had 

such worker ‘‘either applied therefor or 

not been subject to a disqualification 

under the applicable State law.’’

Proposed paragraph (b), which 

contains exceptions to the maximum 

TRA amount calculation is 

substantively unchanged from 20 CFR 

617.14(b)(1) and (2). However, proposed 

paragraph (b) excludes language in 20 

CFR 617.14(b) that nothing in that 

paragraph will affect an individual’s 

eligibility for the allowances described 

in that paragraph. The Department 

believes this language is unnecessary. 

Finally, another difference between 

proposed § 618.740 and 20 CFR 617.14 

is that the heading for proposed 

§ 618.740 explicitly provides that this 

section applies only to calculating the 

maximum amount of basic TRA. The 

heading for 20 CFR 617.14 does not 

contain this limitation, but 20 CFR 

617.14(b)(3) effectuates the same result 

by explicitly excluding additional TRA 

from the maximum amount calculation. 

The Department believes it can 

accomplish the same thing simply by 

modifying the section heading. 

Proposed paragraph (c), which 

requires reductions of the maximum 

TRA amount for the receipt of Federal 

training allowances under other 

programs, follows 20 CFR 617.14(c), but 

has substantive differences. Proposed 

paragraph (c)(1) requires a worker’s total 

number of weeks of TRA eligibility to be 

reduced by the number of weeks for 

which the worker both receives a 

training allowance referred to in 

proposed § 618.735(c)(2) and would be 

eligible to receive TRA. However, unlike 

20 CFR 617.14(c)(1), no deduction 

would be made for the receipt of Federal 

student financial assistance. As 

explained above, in the discussion of 

proposed § 618.735(c)(2), such a 

deduction would conflict with 20 U.S.C. 

1087uu. Proposed paragraph (c)(1) 

provides for prearrangements, as does 

proposed § 618.735(c)(2). 

Proposed paragraph (c)(2) requires 

that if a training allowance from another 

training program is less than the TRA 

weekly benefit amount for a given week, 

then the worker must receive a TRA 

amount for that week not to exceed the 

difference between the worker’s regular 

TRA weekly amount calculated under 

proposed § 618.735(a) and the amount 

of the training allowance paid to the 

worker for that week. Proposed 

paragraph (c)(2) contains the same 

requirement for the treatment of Federal 

student financial assistance as proposed 

paragraph (c)(1). 

Proposed § 618.745, establishing the 

basic TRA eligibility period, is 

substantively different from 20 CFR 

617.15(a). Proposed paragraph (a) 

implements the requirement in section 

233(a)(2) of the Act, as amended by the 

Reform Act, that provides that the 104- 

week TRA eligibility period will be 

extended to a 130-week period where 

necessary for an adversely affected 

worker to complete remedial education 

approved under the Act. 

Proposed paragraph (b) is an entirely 

new provision. It addresses situations 

where, because of the delays associated 

with litigation over the denials of 

certifications of petitions, certifications 

are issued so late that workers covered 

under the certification would not have 

enough time during which they could 

be paid basic or additional TRA to be 

able to complete approved training. 

Proposed paragraph (b) remedies this by 

providing that, as long as the petitioner 

or the adversely affected worker did not 

contribute to the delay in issuing the 


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certification, for example, failing to 

meet filing deadlines or repeatedly 

requesting extensions of filing 

deadlines, the basic TRA eligibility 

period will be extended for a period, 

decided on a case-by-case basis, 

necessary to provide an eligibility 

period for basic and additional TRA, 

and remedial TRA, if needed, that 

would provide a worker TRA through 

completion of approved training. The 

Department believes that in these cases, 

the adversely affected workers should 

not be unfairly penalized by not 

receiving TRA throughout their 

approved training. The Department 

proposes paragraph (b) to restore such 

workers to the position they would have 

occupied had the certification covering 

them been issued without the delay. 

For the same reasons, proposed 

paragraph (c) extends this exception to 

cases in which a CSA’s determination 

that a worker is ineligible for TRA is 

ultimately reversed through 

reconsideration or appeal. Conforming 

provisions in proposed §§ 618.720(d)(2) 

and 618.750(a)(3) modify the training 

enrollment deadline and the deadline 

for a bona fide training application for 

a worker whose initial TRA negative 

determination is reversed on 

reconsideration or appeal. Without 

these modifications, a worker might 

miss these deadlines through no fault of 

the worker, but because of the delay in 

finding the worker eligible. 

Proposed § 618.750, establishing the 

qualifying requirements for, and 

duration of, additional TRA, has no 

specific counterpart in 20 CFR Part 617; 

however, most of the provisions in 

proposed § 618.750 are contained in 

various sections of 20 CFR Part 617. The 

Department believes including a section 

governing only additional TRA in 

proposed Part 618 would make the TRA 

requirements easier to follow than the 

current regulations. 

Proposed paragraph (a) contains 

additional TRA qualifying requirements 

and is, in substance, unchanged from 

the current regulations in 20 CFR 

617.11(a)(2) (TRA qualifying 

requirements), 617.15(b)(2) (training 

application filing deadlines), and 

617.15(b)(3) (requirement of 

participation in training except during 

breaks in training). 

Proposed paragraph (b), governing the 

duration of additional TRA, closely 

follows the definition of ‘‘eligibility 

period’’ for ‘‘additional TRA’’ in 20 CFR 

617.3(m)(2). The only substantive 

difference is that an adversely affected 

worker may receive up to 52 weeks of 

additional TRA, rather than up to 26 

weeks, because of the Reform Act’s 

amendment to section 233(a)(3) of the 

Act. 

Proposed § 618.755, providing the 

qualifying requirements for, and 

duration of, remedial TRA, is a new 

section because remedial TRA added by 

the Reform Act. Under section 233(g) of 

the Act, remedial TRA may be paid only 

‘‘in order to assist an adversely affected 

worker to complete training approved 

for the worker under section 236 which 

includes a program of remedial 

education.’’ The Department would 

implement this requirement in proposed 

paragraphs (a)(2) and (a)(3) by requiring 

participation in remedial education and 

that such participation must have 

caused training to extend beyond the 

period for which basic and additional 

TRA were payable. Additionally, the 

Department believes that because the 

Act does not provide any other 

distinctions between remedial TRA and 

other types of TRA, an adversely 

affected worker also must, as a 

condition for receiving remedial TRA, 

meet the qualifying requirements for 

receipt of basic TRA, as would be 

required by proposed paragraph (a)(1). 

Section 233(g) of the Act authorizes 

payment of remedial TRA for ‘‘up to 26 

* * * weeks in the 26-week period that 

follows the last week of entitlement to 

[TRA] otherwise payable under this 

chapter.’’ The Department interprets 

this provision as requiring that remedial 

TRA be paid during a 26-consecutive 

calendar week period; that remedial 

TRA be paid only for the same number 

of weeks, but not exceeding 26, that the 

worker participates in remedial 

education; and that remedial TRA be 

paid only after exhausting basic and 

additional TRA. These interpretations 

are reflected in proposed paragraph (b). 

The Department recognizes that 

permitting payment of remedial TRA 

only after exhaustion of basic and 

additional TRA could create an 

apparent anomaly because most workers 

would not be enrolled in remedial 

education concurrent with receipt of 

remedial TRA. This is because, in many 

cases, the remedial education 

component of an approved training 

program would occur early in the 

program. Therefore, proposed paragraph 

(a)(2) provides that participation in 

remedial education may occur either 

during or before the week for which 

remedial TRA is claimed. Further, since 

nothing in the Act prohibits a worker 

receiving basic or additional TRA for 

weeks in which the worker participates 

in remedial education, proposed 

paragraph (c) clarifies that a worker may 

receive basic or additional TRA for 

those weeks that exceed the 26-week 

maximum for which remedial TRA may 

be paid or that fall outside the required 

26-consecutive calendar week period. 

Proposed § 618.760, governing 

payment of TRA, whether basic, 

additional, or remedial, during breaks in 

training, is substantially the same as 20 

CFR 617.15(d) except that, as the result 

of a Reform Act amendment to section 

233(f) of the Act, it extends the 

maximum number of days a break may 

last without interrupting TRA payments 

from 14 days to 30 days. Proposed 

§ 618.760 omits provisions in 20 CFR 

617.15(d) (5) and (6) that clarify 

requirements for the maximum amount 

of basic TRA and the basic and 

additional TRA eligibility periods. 

These clarifications would be 

unnecessarily duplicative in proposed 

§ 618.760. The requirements in 20 CFR 

617.15(d)(5), concerning the effect of 

breaks in training on the basic TRA 

maximum amount and the basic TRA 

eligibility period, are effectuated by 

proposed §§ 618.740 (maximum amount 

of basic TRA) and 618.745 (basic TRA 

eligibility period). The requirement in 

20 CFR 617.15(d)(6), concerning the 

running of the additional TRA eligibility 

period for weeks during which 

additional TRA is not paid, is 

effectuated by proposed § 618.750(b) 

(duration of additional TRA). 

Proposed § 618.765, governing 

disqualifications from receiving TRA, is 

substantively unchanged from 20 CFR 

617.18, except for changes in 20 CFR 

617.18(b) reflected in proposed 

§ 618.765(b)(2) and (3). Proposed 

paragraph (b)(2), providing for the 

disqualification from receipt of TRA for 

workers enrolled in approved training 

under certain conditions, contains the 

same requirements as in 20 CFR 

617.18(b)(2) except that it adds 

clarifications. 

Proposed paragraph (b)(2)(i) follows 

20 CFR 617.18(b)(2)(i), with two 

modifications. One modification is that 

proposed paragraph (b)(2)(i) omits 

language in 20 CFR 617.18(b)(2)(i) that 

a disqualification under that paragraph 

applies to not just basic TRA but also to 

‘‘any other payment’’ under Part 617. 

The Department believes this language 

is partly inaccurate and partly 

unnecessary. It is partly inaccurate 

because participation in training is not 

an eligibility requirement for job search 

or relocation allowances or Alternative 

TAA for Older Workers, so that a TRA 

disqualification under (b)(2)(i) would 

not affect the worker’s entitlement to 

those payments. It is partly unnecessary 

because provisions in other sections of 

this proposed subpart G and other 

proposed subparts are sufficient to 

ensure that a worker who fails to meet 

the participation in training requirement 


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50790 Federal Register / Vol. 71, No. 165 / Friday, August 25, 2006 / Proposed Rules 

would not receive benefits for which 

participation in training is required as a 

condition of receiving such benefits. 

Specifically, proposed §§ 618.750 and 

618.755 prohibit payment of, 

respectively, additional TRA and 

remedial TRA for any week in which 

the worker did not participate in 

training, and proposed § 618.840(g) 

requires establishment of overpayments 

for a worker who, without good cause, 

does not complete training approved 

under proposed subpart F. 

Second, proposed paragraph (b)(2)(i) 

includes two clarifications not 

contained in 20 CFR 617.18(b)(2)(i). The 

first is that a worker who has justifiable 

cause (as described in paragraph 

(b)(3)(iii)) for a failure to begin, or 

cessation of participation in, training 

may receive basic TRA for any week in 

which such failure or cessation occurred 

if the worker otherwise meets the 

requirements of this subpart G. The 

Department believes that if a worker is 

unable to begin or continue 

participation in training through no 

fault of the worker, it is appropriate to 

permit the worker to continue to collect 

basic TRA. Since, in some cases, the 

deadlines for granting a waiver set forth 

in § 618.720(c), will have passed, this 

exception will allow such workers to 

continue to collect basic TRA. The 

second clarification is that failure to 

begin participation in training, cessation 

of participation in training, or 

revocation of a waiver does not change 

the eligibility periods in proposed 

§§ 618.745, 618.750(b), and 618.755(b), 

even if the worker had justifiable cause. 

Proposed paragraphs (b)(2)(ii) and 

(b)(2)(iii) are new provisions, but they 

only provide clarifications of TRA 

requirements rather than create new 

substantive requirements. Proposed 

paragraph (b)(2)(ii) provides that no 

adversely affected worker may receive 

additional or remedial TRA for any 

week in which the worker failed to 

participate in training, regardless of 

whether such worker had justifiable 

cause. This is merely a clarification to 

reinforce the requirement already 

contained in proposed §§ 618.750 and 

618.755, which cover the qualifying 

requirements for and duration of 

additional and remedial TRA. This 

clarification would be helpful because a 

person reading proposed § 618.765 in 

isolation might overlook the 

requirement that a worker must, with no 

exceptions except for breaks in training 

that meet the requirements of proposed 

§ 618.760, participate in training for 

every week for which the worker 

receives additional or remedial TRA. 

Proposed paragraph (b)(2)(iii) 

provides that the disqualification in 

proposed paragraph (b)(2)(i) does not 

apply to an adversely affected worker 

for TRA claims for weeks beginning 

before the filing of an initial claim for 

TRA, nor for any week beginning before 

the worker is notified that he or she is 

covered by a TAA certification and is 

fully informed of the disqualification 

rules. This provision restates an 

exception to the participation in 

training requirement provided in 

proposed § 618.720(d). Like proposed 

paragraph (b)(2)(ii), this clarification 

would be helpful because a person 

reading proposed § 618.765 in isolation 

might otherwise overlook the exception 

to the participation in training 

requirement contained in proposed 

§ 618.720(d). 

Proposed paragraph (b)(3) provides 

the interpretation of three terms used in 

proposed paragraph (b)(2). Proposed 

paragraphs (b)(3)(i) and (b)(3)(ii) 

interpret, respectively, ‘‘failed to begin 

participation’’ and ‘‘ceased 

participation’’ in training the same as 

the current regulation in 20 CFR 

617.18(b)(2)(ii)(A) and (B). In requiring 

in both interpretations that a worker 

participate in all classes and activities 

in the training program, the Department 

intends that the worker be disqualified 

from receiving TRA if the worker misses 

even a single class or activity in the 

training program in a week without 

good cause. The Department believes 

that TAA-approved training is meant to 

provide adversely affected workers with 

the opportunity to find new 

employment as quickly and efficiently 

as possible. The Department believes 

that the best way to effectuate this 

intent, to ensure that TAA funds are 

effectively spent, and to improve 

program performance, is to require that 

the workers who receive those funds 

participate in each and every class and 

activity in their approved training 

program unless excused by the training 

provider. 

Proposed paragraph (b)(3)(iii) 

interprets ‘‘justifiable cause’’ very 

similarly to 20 CFR 617.18(b)(2)(ii)(C), 

but with four changes. Proposed 

paragraph (b)(3)(iii) slightly rephrases 

the basic interpretation of ‘‘justifiable 

cause;’’ excludes the examples used in 

20 CFR 617.18(b)(2)(ii)(C); adds an 

example not contained in 20 CFR 

617.18(b)(2)(ii)(C); and adds a 

requirement that CSAs determine 

whether ‘‘justifiable cause’’ exists on a 

case-by-case basis. 

First, the basic interpretation of 

‘‘justifiable cause’’ in proposed 

paragraph (b)(3)(iii) requires the reasons 

for the worker’s conduct to be compared 

to the conduct expected of a reasonable 

worker in the ‘‘same or similar’’

circumstances, rather than in ‘‘like’’

circumstances, as provided in 20 CFR 

617.18(b)(2)(ii)(C). The Department 

believes this change is clearer and easier 

to administer than the previous test. 

Second, the exclusion of the examples 

in 20 CFR 617.18(b)(2)(ii)(C) does not 

mean the reasons listed in the current 

regulation no longer are valid; rather, 

the Department believes the reasons 

themselves are somewhat vague and not 

necessarily very helpful. 

Third, the new example in proposed 

paragraph (b)(3)(iii) is that an excused 

absence under a training institution’s 

written policy may be considered 

‘‘justifiable cause.’’ The Department 

believes that the specific inclusion of 

excused absences as justifiable cause 

ameliorates any arbitrary effects of the 

rule that a worker must attend all 

classes and activities to avoid 

disqualification by recognizing that 

there will be situations in which 

nonattendance at a class or activity is 

justified by other needs of the 

individual or the individual’s training. 

Fourth, the additional language on 

case-by-case determination has no 

parallel in the current regulation but 

also, in the Department’s view, does not 

change the current requirements. 

Rather, this language would merely 

codify what already is done in practice 

in the States. 

Proposed paragraph (b)(3) applies to 

distance learning as well as to 

institutional training. Distance learning 

may, in some cases, be more self-paced 

than institutional training, which 

usually requires physical attendance at 

specific classes. CSAs will need to work 

with distance learning providers to 

understand the specific requirements or 

milestones of the distance learning 

program and to make sure that the 

training provider keeps the agency 

informed of the student’s adherence to 

those requirements. 

Finally, proposed paragraph (c), 

prohibiting payment of TRA to a worker 

for any week during which the worker 

is receiving on-the-job training, is 

substantively identical to 20 CFR 

617.18(c) but rephrased for clarity and 

simplicity. 

Proposed § 618.770 is new. It 

implements the Department’s role in 

administering the HCTC, created by the 

Reform Act. Proposed paragraph (a) 

references some of the substance in 

section 35 of the Internal Revenue Code 

(26 U.S.C. 35), which authorizes the 

HCTC. Proposed paragraph (a) is 

informational, since the IRS determines 

HCTC eligibility. Proposed paragraph 

(b) describes the duties of the CSA in 

administering the HCTC. 


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Subpart H—Administration By 

Applicable State Agencies 

This proposed subpart is modeled 

after subpart G of 20 CFR Part 617. 

However, sections in this proposed 

subpart H are organized differently than 

their companion sections in 20 CFR Part 

617, and have been revised to reflect 

changes made by the Reform Act. Also, 

some new sections have been added. 

This proposed subpart covers the 

administrative procedures that the CSA 

will follow in delivering TAA program 

benefits and services to adversely 

affected workers. Major changes 

include: 

• Clarifies that, in order to better 

integrate service delivery with all 

workforce investment programs, and 

provide flexibility to the states, merit 

staffing is not required, except that these 

merit system standards do apply to 

employees of the state UI or 

employment service (ES) agency who 

perform functions under both the TAA 

program and the UI and/or ES programs. 

• Clarifies the need for the CSA to 

submit, upon request, a copy of each 

waiver of the training requirement, and 

a statement of the reasons for such 

waiver. 

• Clarifies actions the Department 

may take in the absence of a jointlysigned Governor-Secretary Agreement 

for a particular state. 

• Directs the CSA to provide 

information on ATAA benefits and 

deadlines to a worker, and inform the 

worker that a choice must be made 

between TAA and ATAA benefits and 

services, if the worker is covered under 

both a TAA and an ATAA certification. 

• Requires the state to provide 

information about the HCTC and second 

COBRA election period available to 

affected workers to increase their 

opportunities to access the HCTC. 

• Provides that ATAA will be treated 

in the same manner as TRA for 

recovering overpayments. 

• Directs CSAs to submit, only upon 

request, a copy of any administrative or 

judicial ruling on an individual’s 

eligibility to TAA or ATAA. Previously, 

states were required to submit a copy of 

every administrative or judicial ruling. 

• Adds a new section, which 

establishes ‘‘priority of service’’

requirements for the TAA program 

consistent with the Jobs for Veterans Act 

of 2002. This gives the highest priority 

for approval and funding of TAA 

benefits to an adversely affected worker 

meeting the veterans’ priority of service. 

• Provides that the Department may 

reduce the training allocation or 

administrative funding of CSAs that fail 

to submit accurate and timely reports. 

• Informs CSAs of the need to report 

financial results on an accrual basis. 

• Requires CSAs to supply data to the 

Secretary on national TAA program 

performance goals identified in 

applicable regulations, the Department’s 

written advisories, or any other written 

means used to communicate such goals. 

• To ensure a complete and accurate 

accounting of program performance, 

directs the use of quarterly wage record 

information, the Wage Record 

Interchange System, and supplemental 

data, when appropriate. 

Proposed § 618.800 sets out the scope 

for subpart H; that it covers 

administrative procedures governing the 

TAA program. 

Proposed § 618.805 addresses the 

Agreements between the States and the 

Secretary of Labor that are required 

under section 239 of the Act before a 

State may deliver TAA to adversely 

affected workers. It follows § 617.59 but 

reorders the provisions and edits them 

for clarity. Proposed § 618.805 omits 

two provisions in 20 CFR 617.59 that 

the Department believes are obsolete 

and also adds a new provision not 

contained in 20 CFR 617.59. 

Proposed paragraph (b), which 

provides the requirements for executing 

an Agreement, is significantly rephrased 

but remains substantively unchanged 

from 20 CFR 617.59(b). The one 

difference is that proposed paragraph (b) 

includes language more explicitly 

requiring the Secretary, in addition to 

the State, to sign and date the 

Agreement as a prerequisite to the 

Agreement taking effect. Proposed 

paragraph (b) recognizes the current 

practice of executing Agreements. A 

new sentence indicating the 

consequences of not entering an 

Agreement has been added to proposed 

paragraph (b) to serve as a reminder. 

Proposed paragraph (d) is a new 

provision that clarifies the applicability 

of State merit systems to the TAA 

program. The Department has received 

inquiries in recent years about the 

applicability of the merit system 

standards, promulgated by the U.S. 

Office of Personnel Management in 5 

CFR 900.603, to the TAA program. 

These standards apply to the States’

administration of, among other things, 

the UI program as a condition of the 

States receiving administrative grants. 

TAA has no legislative requirement to 

use State merit system employees, nor 

do the programs authorized under the 

Workforce Investment Act. The Reform 

Act requires the Secretary to secure for 

adversely affected workers the services 

provided through the One-Stop delivery 

system. To avoid imposing new merit 

staffing requirements on the One-Stop 

partner programs, including those 

funded by WIA, proposed paragraph (d) 

provides that the merit system standards 

in 5 CFR 900.603 do not apply to the 

TAA program, except that these merit 

system standards do apply to employees 

who perform functions under both the 

TAA program and other programs 

covered by the merit standards. 

Proposed paragraph (e) is a new 

provision which identifies required 

provisions in each Agreement while 

also clarifying that it is not an 

exhaustive list. Proposed paragraph 

(e)(1) requires Agreements to contain 

provisions consistent with the 

requirements of section 239 of the Act. 

It is designed to remind States of, and 

insure compliance with, the 

requirements of section 239 of the Act. 

Proposed paragraph (e)(2) reflects the 

provisions of section 231(c)(2) of the Act 

by requiring Agreements to contain 

provisions authorizing the CSA to issue 

waivers of the training requirement 

under proposed § 618.725, and requiring 

the CSA to submit, to the Secretary, 

upon request, a copy of each waiver 

and, if not already contained within 

each waiver, a statement of the reasons 

for such waiver. Proposed paragraph 

(e)(3) provides that Agreements must 

contain the requirement that CSAs 

supply data to the Secretary on national 

TAA program performance goals 

identified in applicable regulations, the 

Department’s written directives, or any 

other written means used to 

communicate such goals. This is a new 

requirement designed to implement 

guidance from the Office of 

Management and Budget (OMB) on the 

Government Performance Results Act of 

1993 (GPRA). GPRA requires, among 

other things, that Federal agencies take 

steps to improve the performance 

outcomes of federally funded programs. 

Toward this end, proposed § 618.880 

requires States to report specified data 

on TAA performance outcomes to the 

Department. The Department believes 

that including a specific provision in 

the Agreements requiring reporting of 

performance data would emphasize to 

States the importance of pursuing 

improved performance outcomes in the 

TAA program. 

Proposed paragraph (g) provides that 

ETA Regional Administrators are 

responsible for monitoring and 

reviewing State and CSA compliance 

with the Agreement. It is slightly 

rephrased from 20 CFR 617.59(g), 

deleting ‘‘initially’’ from language in 20 

CFR 617.59(g) that stated ETA Regional 

Administrators are ‘‘initially’’

responsible for monitoring and 

reviewing State and CSA compliance, 

and omitting language in 20 CFR 


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617.59(g) that provides for ‘‘periodic’’

monitoring and review by ETA Regional 

Administrators. The word ‘‘initially’’ is 

a confusing and unnecessary 

qualification to the central role that ETA 

Regional Administrators assume in 

overseeing the States’ administration of 

the TAA program. The word ‘‘periodic’’

is omitted because Departmental review 

is an ongoing process. 

Proposed paragraph (h) is modified 

from 20 CFR 617.59(f). Proposed 

paragraph (h) retains the substance of 20 

CFR 617.59(f) but also provides that the 

Secretary may, upon finding a State has 

not fulfilled its commitments under its 

Agreement, ‘‘disallow costs or impose 

such other sanctions as may be 

appropriate.’’ The Department believes 

it is important to explicitly provide for 

lesser sanctions that might be more 

effective in encouraging compliance 

with the terms of the Agreements than 

only the more severe sanction of 

terminating the Agreement. 

Finally, proposed § 618.805 omits two 

provisions of 20 CFR 617.59 that the 

Department believes are obsolete. The 

first of these provisions is 20 CFR 

617.59(d), which provides that a State or 

State agency must execute an amended 

Agreement with the Secretary before 

administering any amendments to the 

Act. The Department believes this 

provision to be unnecessary and 

counterproductive. The Act contains no 

such requirement, and it would be more 

efficient and beneficial to all interested 

parties to allow States, which have 

already agreed to administer the TAA 

program in accordance with the law and 

the Department’s instructions, to 

administer amendments to the Act 

before the execution of an amended 

Agreement. However, the omission of 

this provision from proposed Part 618 

should not be construed as removing the 

Department’s authority to require 

execution of an amended Agreement 

after amendments to the Act are 

enacted. 

The second provision is 20 CFR 

617.59(h), which requires coordination 

among State agencies administering 

programs under subpart C of 20 CFR 

Part 617, entities administrating the Job 

Training Partnership Act (JTPA), and 

State UI agencies. JTPA has been 

superseded by the Workforce 

Investment Act of 1998 (WIA), and, 

reflecting the Reform Act’s increased 

emphasis on program coordination, the 

Department proposes a new set of 

coordination requirements in proposed 

subpart C that need not be repeated in 

proposed § 618.805. 

Proposed § 618.810, providing the 

requirements governing State agency 

rulemaking concerning State TAA 

administration, is slightly rephrased but 

contains only two substantive 

differences from 20 CFR 617.54. The 

first difference is that while the current 

regulation permits the Department’s 

temporary approval of a State 

supplemental procedure to remain in 

effect for not longer than 90 days, 

proposed § 618.810 provides that such 

temporary approval may remain in 

effect ‘‘not to exceed a period 

determined by the Secretary on a caseby-case basis.’’ The 90-day maximum in 

the current regulation is unnecessarily 

restrictive and all interested parties 

would be better served if the periods for 

temporary approvals are decided on a 

case-by-case basis, depending on the 

importance of the provision to state 

operations and the length of the review 

process. The second difference from 20 

CFR 617.54 is that, while 20 CFR 617.54 

requires a CSA to follow State UI law 

requirements for public notice and 

opportunity for hearing, proposed 

§ 618.810 more broadly requires the 

State to follow also any other State or 

Federal law that may require such 

public notice and opportunity for 

hearing. This change accommodates the 

possibility that other laws that require 

public participation in changes to State 

plans or procedures, such as WIA, could 

apply. 

Proposed § 618.815, authorizing CSAs 

to issue and enforce subpoenas for 

various purposes specified in that 

provision, is substantially the same as 

20 CFR 617.53, with one modification. 

Proposed § 618.815 identifies the 

purposes for which subpoenas to 

require attendance of witnesses and 

production of records may be issued: for 

making benefit determinations and 

assisting in the petition determination 

process. 

Proposed § 618.820 contains 

requirements the States must meet in 

providing TAA program and benefit 

information to workers. It is 

significantly modified from 20 CFR 

617.4 and has been placed in proposed 

subpart H on State administration where 

it more logically fits. Proposed § 618.820 

omits some provisions in 20 CFR 617.4 

that the Department believes are 

unnecessary. It updates some provisions 

and adds a few provisions to reflect 

Reform Act amendments to the Act. It 

also includes other changes that have 

occurred since Part 617 became 

effective, and some of the requirements 

typically contained in the Agreements 

with the States. 

Proposed paragraph (a), requiring 

CSAs to provide general program 

information and advice to workers, 

serves the same purpose as 20 CFR 

617.4(a) but is more condensed. 

Proposed paragraph (b) is a new 

provision mandated by the Reform Act 

which requires CSAs to provide rapid 

response assistance and appropriate 

core and intensive services, consistent 

with section 134 of WIA, to workers 

covered under a TAA petition. 

Proposed paragraph (c) implements 

section 235 of the Act and requires 

CSAs to provide specified 

reemployment services to adversely 

affected workers. This is a new 

provision. 

Proposed paragraph (d) requires CSAs 

to provide assistance to complete and 

file TAA petitions. It combines 

requirements contained in 20 CFR 

617.4(b) and 20 CFR 617.4(e)(2), 

simplifies the language of those 

provisions, and adds the authorization, 

provided by the Reform Act, for CSAs 

to file petitions on behalf of worker 

groups. 

Proposed paragraph (e) requires CSAs 

to provide certain information and 

assistance to adversely affected workers 

after a certification covering their 

worker group is issued. The provisions 

in proposed paragraph (e) are 

substantively identical to 20 CFR 617.4, 

but they have been rephrased and 

slightly reorganized for clarity and 

simplicity. Proposed paragraph (e)(2) 

mirrors 20 CFR 617.4(d)(1) but has some 

minor changes. The first change is that 

proposed paragraph (e)(2) adds a 

sentence encouraging CSAs to provide 

notice of benefits during the rapid 

response process to workers who are 

covered by a certification and who have 

received a notice of separation, 

consistent with the Reform Act’s 

requirement that rapid response 

assistance be provided. The second 

change is to add to the information that 

must be included in the written notice 

mailed to each worker covered by a 

certification information regarding the 

training enrollment deadlines that are a 

condition of TRA eligibility. 

Proposed paragraph (f) requires CSAs 

to provide specific benefit assistance to 

workers. Proposed paragraph (f)(1) is 

modeled on 20 CFR 617.4(e)(1) but is 

rephrased for clarity. One minor change 

from 20 CFR 617.4(e)(1) is that proposed 

paragraph (f)(1) omits the reference to 

UI claimants because it might be 

confusing. The Department interprets 

section 225(b)(1) of the Act to require 

that the CSA provide notice to each 

worker that it can reasonably identify as 

being covered by a certification whether 

or not that worker has applied for UI. 

Proposed paragraph (f)(2) combines 

the requirements of 20 CFR 617.4(e)(3) 

and 20 CFR 617.4(e)(4) into a single 

paragraph because they are closely 

related. The language has been changed 


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to emphasize the need to timely provide 

the advice and reemployment services 

adversely affected workers need to make 

the decisions about employment or 

training necessary to preserve eligibility 

for TAA benefits. Language has been 

added to recognize that a worker may 

decline to be interviewed. 

Proposed paragraphs (f)(3) and (f)(4) 

are new provisions that require CSAs to 

provide information on ATAA benefits 

and deadlines and on HCTC and the 

second COBRA election. 

Proposed § 618.825 contains Federal 

procedural requirements that apply to 

State benefit determination and 

redetermination processes. It contains 

four minor differences from 20 CFR 

617.50, only two of which are 

noteworthy. The first is in proposed 

paragraph (d), which excludes an 

exception contained in 20 CFR 

617.50(d) that the State law and 

regulations do not apply where they are 

inconsistent with the letter or purpose 

of 20 CFR part 617. This exception is 

unnecessary because this paragraph 

applies only to matters that by the terms 

of Federal law are committed to be 

decided under State law. The second 

difference is in proposed paragraph (g), 

which omits an exception in 20 CFR 

617.50(g) that the specified provisions 

of the Employment Security Manual do 

not apply where part 617 requires 

otherwise. This exception is 

unnecessary because it is axiomatic that 

where there is a conflict between the 

Act or the implementing regulations and 

the Employment Security Manual, the 

Act or implementing regulations govern. 

Proposed § 618.830, concerning the 

respective responsibilities of a liable 

State and an agent State, repeats the 

requirements in 20 CFR 617.26 but 

updates the requirements to reflect 

changes made by the Reform Act, and 

also reorganizes the requirements. 

Proposed paragraph (a)(6) requires a 

liable State to provide lists of eligible 

TRA recipients and eligible ATAA 

recipients to the IRS consistent with the 

requirements of proposed § 618.770. 

These lists are necessary for the IRS to 

determine who is potentially eligible to 

receive the HCTC. Also, the specific 

reference in 20 CFR 617.26(a) that ‘‘the 

liable State also is responsible for 

publishing newspaper notices’’ alerting 

the public to certifications is omitted 

here as unnecessary because it is 

contained in proposed § 618.820(e)(3). 

Proposed § 618.835, providing 

requirements governing appeals and 

hearings of TAA determinations and 

redeterminations, repeats the 

requirements in 20 CFR 617.51, but 

slightly rephrases the language for 

clarity and also adds a new paragraph. 

This new paragraph, proposed 

paragraph (b), clarifies that, as an 

exception to the general rule concerning 

appeals in proposed paragraph (a), a 

complaint that a determination or 

redetermination under this part 618 

violates applicable Federal 

nondiscrimination laws administered by 

the U.S. Department of Labor must be 

filed in accordance with the procedures 

of 29 CFR parts 31, 32, 35, 36, and/or 

37, as provided in proposed § 618.875(i) 

(Nondiscrimination and equal 

opportunity requirements). This 

clarification would help insure that 

proper procedures are followed where a 

claimant alleges discrimination. 

Proposed § 618.840, concerning 

overpayments, fraud, and penalties for 

fraud, generally repeats 20 CFR 617.55, 

but reorganizes the section outline to 

make it easier to follow. Proposed 

§ 618.840 slightly rephrases some of the 

provisions in 20 CFR 617.55 and also 

contains a few substantive differences 

from 20 CFR 617.55. Also, proposed 

§ 618.840 omits provisions in 20 CFR 

617.55(h) on using TAA to offset other 

debts because, reflecting the importance 

the Department places upon these 

provisions, proposed subpart H devotes 

a separate proposed section to them, 

§ 618.845. 

Proposed paragraph (a) repeats the 

requirements in 20 CFR 617.55(a), 

except that the language on the 

overpayment waiver criteria has been 

moved into separate paragraphs for 

clarity. 

Proposed paragraph (b), concerning 

the State election to permit waivers of 

overpayment recoveries, repeats the 

requirements in 20 CFR 

617.55(a)(2)(ii)(C)(4) and places this 

provision toward the beginning of 

proposed § 618.840 because it logically 

precedes other provisions in this 

proposed section. A sentence has been 

added to clarify that if a CSA elects the 

option of waiving overpayments, 

waivers must follow the rules in 

§ 618.840, and the CSA must document 

that its waiver rules do so. Proposed 

paragraph (c) repeats the requirements 

of 20 CFR 617.55(a)(2)(ii)(C)(3) but 

modifies them slightly by specifying 

that the waiver request must be made to 

the CSA. Proposed paragraph (d) repeats 

the requirements in 20 CFR 

617.55(a)(1)(i)–(ii). 

Proposed paragraph (e) contains more 

specific waiver criteria that interpret the 

general criteria in proposed paragraphs 

(d)(1) and (d)(2). 

Proposed paragraphs (e)(1) and (e)(2) 

provide the criteria to determine 

whether an overpayment was made 

without fault of the person or individual 

who received the overpayment. 

Proposed paragraph (e)(1) repeats the 

requirements in 20 CFR 

617.55(a)(2)(i)(A)(1)–(5), with one 

exception. It changes the standard for 

determining whether fault exists from 

‘‘knew or could have been expected to 

know’’ to ‘‘knew or should have 

known.’’ The Department believes this 

test is easier to administer because it is 

a common standard that administrative 

and judicial adjudicators apply 

routinely. 

Proposed paragraphs (e)(3) and (e)(4) 

repeat the requirements in 20 CFR 

617.55(a)(2)(ii)(A)(1) and 20 CFR 

617.55(a)(2)(ii)(B). However, proposed 

paragraph (e)(3)(ii) rephrases the 

language of the current regulation to 

make it easier to understand. 

Proposed paragraphs (e)(5)(i) and 

(e)(5)(ii) repeat the requirements in 20 

CFR 617.55(a)(2)(ii)(C)(1) and 

(a)(2)(ii)(C)(2), with two modifications. 

The first modification is that the 

explanation of what is a ‘‘lasting 

financial hardship’’ in proposed 

paragraph (e)(5)(i) omits the 

requirement that the hardship must also 

be ‘‘extraordinary’’ to make it clear that 

these are two separate tests. The second 

modification is that where 20 CFR 

617.55(a)(2)(ii)(C)(2) refers to a person’s 

or individual’s ‘‘firm’’ or 

‘‘organization,’’ proposed paragraph (e) 

refers to the person’s or individual’s 

‘‘wholly or family-owned business’’ and 

omits the term ‘‘organization.’’ This 

wording more clearly focuses attention 

on the debtor’s assets. 

Proposed paragraph (f) repeats the 

requirements about determinations of 

fraud in 20 CFR 617.55(b) but makes 

one modification, adding that a person 

or individual found guilty of fraud in a 

TAA claim is ‘‘forever more’’ ineligible 

for any further TAA payments. The 

Department believes that this ‘‘lifetime’’

ban is the better interpretation of section 

243(b) of the Act, which it implements. 

Proposed paragraph (g) retains the 

requirements in 20 CFR 617.55(c) about 

the consequences of failing to complete 

training, a job search, or a relocation 

funded by the TAA program, but is 

rewritten for clarity. 

Proposed paragraph (h) repeats the 

requirements in 20 CFR 617.55(d), 

slightly rephrased for clarity. 

Proposed paragraph (i) repeats the 

requirements in 20 CFR 

617.55(a)(2)(ii)(C)(5), with changes 

concerning recovering an overpayment 

from the affected person’s or 

individual’s State UI entitlement and 

with some added provisions. The 

current regulation permits, but does not 

require, recovery from State UI 

payments. Proposed paragraph (i)(2) 

requires overpayment recovery from 


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State UI in a State that has in effect a 

cross-program offset Agreement with the 

Secretary under authority of 42 U.S.C. 

503(g)(2), subject to the limitation on 

the amount that may be recovered from 

any single payment in proposed 

paragraph (i)(4). The current regulations 

predated the cross-program offset 

Agreements and, therefore, contain no 

provision for them. Proposed paragraph 

(i)(3) provides that, in States that do not 

have a cross-program offset Agreement, 

overpayment recovery from State UI is 

permitted but not required, and also is 

subject to the limitation in proposed 

paragraph (i)(4). Proposed paragraph 

(i)(4) limits recoveries from all types of 

UI described in proposed paragraph (i) 

to no more than 50 percent of each of 

the affected person’s or individual’s 

State UI payments. This limitation 

would implement the limitation in 

section 243(a)(2) of the Act. However, 

since the Act sets the 50-percent 

deduction as a ceiling, proposed 

paragraph (i)(4) requires each State to 

follow its own law if its law provides for 

a greater limitation. 

Proposed paragraphs (j) and (k) repeat 

the requirement of 20 CFR 617.55(e) and 

(f). 

Proposed paragraph (l) repeats the 

requirements of 20 CFR 617.55(g) but 

makes one change. It changes the 

requirement that State procedures for 

detection and prevention of fraudulent 

TAA overpayments be ‘‘commensurate 

with’’ those for State UI to a 

requirement that State procedures to be 

‘‘no less rigorous than’’ those for State 

UI. The Department believes this change 

provides a clearer standard. 

Proposed paragraph (m) follows 20 

CFR 617.55(i) in explaining who is a 

‘‘person’’ for purposes of proposed 

§§ 618.840 and 618.845, except for two 

modifications. The modifications are 

that proposed paragraph (m) explicitly 

includes ‘‘any training institution as 

well as the officers and officials 

thereof,’’ and ‘‘an adversely affected 

worker or other individual.’’

Proposed § 618.845 governs the use of 

TAA benefits to offset debts that a 

benefit recipient owes to others. 

Proposed paragraph (a) largely follows 

20 CFR 617.55(h)(1) but rephrases it for 

clarity and adds ATAA. The authority 

for this requirement is the Debt 

Collection Act of 1982 (Pub. L. 97–365) 

and its implementing regulations in 29 

CFR Part 20. 

Proposed paragraph (b) makes a 

significant change in 20 CFR 

617.55(h)(2). The current regulation 

prohibits using TAA to pay debts owed 

to any State or other person or entity but 

permits offset only for debts owed for 

child support and alimony required to 

be collected under State and Federal 

law. Proposed paragraph (b) limits the 

general prohibition to allow TAA and 

ATAA to be applied to any debt that 

may be collected under the State law for 

UI. The Department proposes this 

change because the exception in the 

current regulation goes beyond Federal 

law and because, since State laws must 

follow the Social Security Act (SSA), 

there is no good reason to single out one 

instance in which the SSA requires or 

permits collection of debts but to ignore 

others. 

Most particularly, SSA section 

303(e)(2) requires a State to deduct 

‘‘child support obligations’’ from ‘‘any 

unemployment compensation otherwise 

payable to an individual.’’ Under SSA 

section 303(e)(2)(B), this deduction is 

applicable to TRA. However, SSA 

section 303(e)(1) defines ‘‘child support 

obligations’’ as ‘‘only includ[ing] 

obligations which are being enforced 

pursuant to a plan described in section 

454 of this Act which has been 

approved by the Secretary of Health and 

Human Services under Part B of title IV 

of this Act.’’ It therefore does not permit 

deductions for alimony or for child 

support in general, as provided by 20 

CFR 617.55(h)(2), but only for child 

support obligations of the type 

specified. Unemployment Insurance 

Program Letter No. 45–89 (55 FR 1886 

(1990)) explained in detail the 

deductions permitted under SSA 

section 303(e)(2). 

Other SSA provisions permit 

deductions from State UI for other 

purposes. These SSA provisions, like 

section 303(e)(2), apply to TRA. For 

example, section 303(d)(2)(A), SSA, 

permits offset of UI to recover 

uncollected over-issuances of food 

stamps under section 303(e)(2)(B)(iii). 

The Department believes that all TAA 

and ATAA, which are closely connected 

to TRA, should follow the same rules for 

the offset of benefits as State UI law, 

except as provided under proposed 

paragraph (a). 

Proposed § 618.850, on uniform 

interpretation and application of the Act 

and these proposed regulations, repeats 

the requirements in 20 CFR 617.52, but 

with some reorganization and a few 

substantive changes. A change 

throughout proposed § 618.850 is that 

these provisions apply explicitly to both 

TAA and ATAA. 

Proposed paragraphs (a) and (b) repeat 

the requirements in 20 CFR 617.52(a) 

and (b). 

Proposed paragraph (c)(1) modifies 

the requirements in 20 CFR 617.52(c)(1) 

that States to forward to the Department 

a copy of each administrative and 

judicial TAA decision within 10 days 

after the decision’s issuance to a 

requirement to forward to the 

Department a copy of any TAA 

determination or redetermination only 

upon the Department’s request. 

Proposed paragraph (c)(1) also applies 

the requirement to all administrative 

and judicial decisions. The Department 

believes the current requirement is 

unduly burdensome and that the 

purpose of this provision, oversight of 

State benefit rulings, can be 

accomplished effectively with this less 

burdensome requirement. 

Proposed paragraph (c)(2) combines 

the requirements in 20 CFR 617.52(c)(2), 

(3) and (5) and makes some changes. 

Proposed paragraph (c)(2) rewrites and 

simplifies the provisions in 20 CFR 

617.52(c)(2) and (c)(3), eliminating the 

distinction between ‘‘ordinary’’ and 

‘‘patent and flagrant’’ interpretations. 

Since the procedures applicable to both 

types of determination are the same, the 

Department sees no need to retain the 

distinction. Proposed paragraph 

(c)(2)(ii) also eliminates any ambiguity 

in 20 CFR 617.52(c)(3), concerning the 

conditions under which payments 

otherwise ‘‘due’’ within the meaning of 

SSA section 303(a)(1) may be 

temporarily delayed in the case of a 

determination, redetermination, or 

decision awarding TAA that is 

inconsistent with the Department’s 

interpretation of the Act or the 

regulations. Section 617.52(c)(3) uses 

the phrase ‘‘redetermination or appeal 

action is taken.’’ This language leaves 

unclear what is the ‘‘redetermination 

action’’ that must be taken and how that 

action differs from the actual 

redetermination. Proposed paragraph 

(c)(2)(ii) resolves this ambiguity by 

requiring that the redetermination be 

issued. 

Proposed paragraph (c)(2)(iii) repeats 

the requirements of 20 CFR 617.52(c)(5), 

with three substantive changes: that the 

request for reconsideration must be in 

writing; that the request must be made 

within 10 calendar days of receiving the 

notice; and that the Secretary will 

respond to the request within 30 

calendar days. These changes will make 

for a more orderly and predictable 

process. 

Proposed paragraph (c)(3) repeats the 

requirements in 20 CFR 617.52(c)(4) but 

slightly rephrases them for clarity. 

Proposed paragraph (c)(4) repeats the 

requirement in 20 CFR 617.52(c)(6). 

Proposed § 618.855 repeats the 

requirements in 20 CFR 617.56 

concerning inviolate rights to TAA 

almost verbatim but extends it to 

include ATAA. 

Proposed § 618.860, a new section, 

establishes ‘‘priority of service’’


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requirements for the TAA program 

consistent with the Jobs for Veterans Act 

of 2002. Under that Act, armed forces 

veterans and specified categories of 

spouses of such veterans are entitled to 

a ‘‘priority of service’’ in Department of 

Labor-funded workforce development 

programs. This proposed section 

requires CSAs to give ‘‘the highest 

priority’’ for approval and funding of 

TAA to an adversely affected worker 

meeting the veterans’ priority of service. 

In particular, this priority would come 

into play if the TAA program is 

approaching its annual national cap on 

training funds. In that case, each CSA 

must give priority to veterans and to the 

specified categories of spouses, over 

other adversely affected workers’

training applications, in approving and 

funding training. Of course, when a CSA 

is about to run out of its allotted training 

funds, it may request supplemental 

training funds to ensure that all 

adversely affected workers’ training 

needs are met. There is no annual 

national cap on payments of other TAA 

benefits, and a CSA about to run out of 

its allotted funds for such other benefits 

may request supplemental funding for 

such benefits; however, it is possible 

that the funds appropriated for other 

TAA services could be exhausted, in 

which case the priority of service would 

apply to TAA program benefits beyond 

training. 

Proposed § 618.865 repeats the 

requirements in 20 CFR 617.57 

concerning recordkeeping and 

disclosure of information but makes a 

few minor changes. 

Proposed paragraph (a) is very similar 

to 20 CFR 617.57(a), with two changes. 

First, proposed paragraph (a) omits 

reference to reporting form ETA 563. 

This omission does not mean that 

reporting on this form is no longer 

required. Rather, required reporting 

would be governed by proposed 

§ 618.870. Second, proposed paragraph 

(a) adds that CSAs are required to 

maintain records that contain any 

information that the Department 

determines to be appropriate in support 

of any reports that the Department may 

require, including the reports specified 

in proposed §§ 618.875(j) and 

618.880(e). This new language would 

facilitate initiatives on improving TAA 

program performance and outcomes. 

Proposed paragraph (b) modifies the 

requirements in 20 CFR 617.57(b). The 

opening sentence requires States to keep 

information on TAA applicants 

confidential to the extent required 

under all State and Federal laws. This 

is a change from the first sentence in 20 

CFR 617.57(b), which requires 

information in records kept by a State in 

its administration of the Act to be kept 

confidential and to be disclosed only in 

the same manner and to the same extent 

as State UI information may be 

disclosed under State law. 

Proposed paragraph (b) omits the 

second sentence of 20 CFR 617.57(b) 

and substitutes a new second sentence 

that explicitly identifies confidential 

business information, as defined in 

proposed § 618.110, as a type of 

information that States must keep 

confidential. The requirements in the 

first two sentences of 20 CFR 617.57(b) 

are appropriate for 20 CFR Part 617 

because it governs only individual 

benefits administration and not the 

petition determination process, which 

can bring the State into possession of 

confidential business information 

obtained when determining whether to 

issue a certification. State UI law 

confidentiality and disclosure 

requirements may not apply to 

confidential business information and 

also may not consider other Federal law 

confidentiality requirements that could 

apply to that information. Because 

proposed Part 618, governs both the 

petition determination process and 

individual benefits administration, it is 

necessary that proposed paragraph (b) 

contain these more broadly applicable 

requirements. Also, the language in 

proposed paragraph (b) is more 

consistent with the language in the 

Agreements with the States, which more 

broadly encompasses any State and 

Federal confidentiality and disclosure 

requirements that might apply to TAA 

information. 

Proposed § 618.870 expands on the 

one-sentence requirement in 20 CFR 

617.61 requiring CSAs to submit such 

information and reports and conduct 

such studies as the Secretary requires 

for TAA purposes. 

Proposed paragraph (a) repeats the 

requirement in 20 CFR 617.61 and adds 

that CSAs must submit financial and 

non-financial reports on activities 

conducted with TAA program funds to 

the Department in accordance with 

reporting instructions on such reports’

content, frequency, and due dates 

approved by the Office of Management 

and Budget. The Department proposes 

adding this requirement to facilitate 

initiatives on improving TAA program 

performance and outcomes. 

Proposed paragraph (b), a new 

provision, provides that the Department 

may reduce the funding of CSAs that 

fail to submit accurate and timely 

reports or whose reports cannot be 

validated or verified as accurately 

counting and reporting activities. This 

provision reflects the importance the 

Department places on the submission of 

timely and accurate reports and 

provides an additional incentive for 

CSAs to comply with reporting 

requirements. 

Proposed § 618.875, a new section, 

contains general fiscal and 

administrative requirements applicable 

to CSA’ administration of the TAA 

program. It is modeled on the WIA 

regulations at 20 CFR 667.200, but with 

significant differences. Proposed 

§ 618.875 contains no requirements that 

States are not already required to meet. 

Its requirements are those also found in 

Federal regulations in 29 CFR and 48 

CFR, various Office of Management and 

Budget (OMB) Circulars that govern 

uses of Federal funds by recipients of 

such funds, and the Department’s 

interpretations of those regulations and 

Circulars. The Department believes 

including this section in subpart H to 

highlight these requirements would 

result in improved compliance by CSAs 

and other entities receiving TAA funds. 

Proposed paragraph (a) is roughly 

modeled on the WIA regulation in 20 

CFR 667.200(a) but contains significant 

differences because it is written for TAA 

purposes. 

Proposed paragraph (a)(3) provides 

that the period of expenditure for TAA 

funds granted for employment services, 

training, and job search and relocation 

allowances is three years. This 

provision follows section 245(b) of the 

Act, as amended by the Reform Act. 

Proposed paragraph (a)(4) provides 

that equipment, as described in 

Attachment B of ‘‘Cost Principles for 

State, Local and Indian Tribal 

Governments,’’ codified at 2 CFR Part 

225, and in 29 CFR 97.32, includes 

equipment acquired with TAA 

administrative funds under both current 

and prior Agreements. 

29 CFR 97.32, includes equipment 

acquired with TAA administrative 

funds under both current and prior TAA 

Annual Cooperative Financial 

Agreements. This provision, which only 

clarifies existing Federal law 

requirements, responds specifically to 

two situations observed in the States. 

First, in the case of a CSA’s internal 

reorganization, any equipment 

purchased in prior years with TAA 

funds remains the CSA’s property and 

must continue to be used for the TAA 

program. Second, this provision makes 

clear that a CSA may charge other nonTAA State agencies for using equipment 

purchased originally with TAA funds in 

previous years. 

Proposed paragraph (a)(5), mirrors the 

requirement in the WIA regulation at 20 

CFR 667.200(a)(5), that TAA grant 

recipients apply the addition method to 

all program income earned under TAA 


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grants. Proposed paragraph (a)(5) 

codifies the Department’s view that the 

addition method always should be used 

in TAA administration. 

Proposed paragraph (b) governs 

allowable costs and cost principles, 

mirroring the requirements in the WIA 

regulation in 20 CFR 667.200(c). 

Proposed paragraph (b)(7) provides that 

all types of organizations must abide by 

the limitation on administrative costs 

for training and job search and 

relocation allowances contained in the 

TAA Annual Cooperative Financial 

Agreement. 

Proposed paragraphs (c) through (e) 

provide specific cost principles 

applicable to TAA grants. Proposed 

paragraphs (c) and (d) mirror the 

requirements in the WIA regulations at 

20 CFR 667.200(c)(6) and (e). Proposed 

paragraph (e) provides that, as an 

exception to 2 CFR part 225 (codifying 

OMB Circular No. A–87 (Revised)), the 

costs of certain State employee fringe 

benefit plans may be charged to TAA 

grant funds if certain conditions are 

met. This preserves the benefit rights of 

State UC and ES agency employees who 

perform functions in the TAA program. 

Proposed paragraph (f) waives, with 

one specified exception, the 

requirement in 2 CFR part 225 that TAA 

grant recipients obtain the Department’s 

approval before purchasing equipment, 

as defined in 29 CFR 97.3, using TAA 

grant funds. Prior Department approval 

still is required for real estate purchases. 

The Department also reserves the right 

to require the transfer of automatic data 

processing equipment in accordance 

with applicable regulations. 

Proposed paragraphs (g) and (h) are 

self-explanatory. 

Proposed paragraph (i) contains 

nondiscrimination and equal 

opportunity requirements, drawn from 

29 CFR Part 37. It is modeled on the 

nondiscrimination and equal 

opportunity provisions at 20 CFR 

641.827 in the Department’s regulations 

implementing the Senior Community 

Service Employment Program, but is 

revised to make it appropriate for the 

TAA program. 

Proposed paragraph (i)(1) notifies 

CSAs and subrecipients of financial 

assistance under the TAA program that, 

as recipients of Federal financial 

assistance, they are subject to the 

requirements of specified Parts of 29 

CFR, setting forth prohibitions relating 

to discrimination. 

Proposed paragraph (i)(2) notifies 

CSAs and subrecipients of financial 

assistance under the TAA program of 

the circumstances under which they 

may be subject to 29 CFR Part 37, which 

implements the nondiscrimination 

provisions in section 188 of WIA. It 

states that the WIA nondiscrimination 

regulations apply to CSAs and 

subrecipients that operate their TAA 

programs and activities ‘‘as part of the 

One-Stop delivery system,’’ as provided 

in 29 CFR 37.2(a)(2). Since CSAs and 

entities that carry out ‘‘activities 

authorized under chapter 2 of title II of 

the Trade Act of 1974’’ (29 U.S.C. 

2841(b)(1)(B)(viii)) are required OneStop partners, the WIA 

nondiscrimination regulations apply to 

them. Coverage under this provision is 

not limited to CSAs or subrecipients 

that co-locate their operations in a OneStop Center. Proposed paragraph 

(i)(2)(ii) notifies CSAs and subrecipients 

that there may be additional 

circumstances under which they are 

subject to 29 CFR Part 37 if they in any 

other way meet the definition of 

‘‘recipient’’ in 29 CFR 37.4. 

Proposed paragraph (i)(3) directs 

those with questions about the cited 

nondiscrimination provisions to DOL’s 

Civil Rights Center. It also explains 

where persons who believe that those 

nondiscrimination regulations have 

been violated may file complaints. 

Proposed paragraph (i)(4) explains 

how the cited nondiscrimination 

provisions affect the applicability of any 

other Federal nondiscrimination laws, 

or any relevant State or local laws, to 

TAA programs and activities. Proposed 

paragraph (i)(4)(i) provides that 

proposed § 618.875(i) does not, and is 

not intended to, affect any rights 

regarding, or protections against, 

discrimination provided by such laws, 

except as provided in proposed 

paragraphs (4)(ii) and (iii). 

Proposed paragraph (i)(4)(ii) makes 

clear that the provisions of DOL’s 

regulations implementing certain 

Federal statutes requiring 

nondiscrimination take precedence over 

any State or local law or other 

requirement that permits, or requires, 

discrimination on the bases protected by 

those Federal regulations. Proposed 

paragraph (i)(4)(iii) provides that 29 

CFR Part 37 takes precedence over any 

State or local law or other requirement 

that permits or requires discrimination 

against beneficiaries of the TAA 

program on the basis of participation in 

a program or activity that is financially 

assisted under title I of WIA or on the 

basis of citizenship or status as a noncitizen lawfully admitted to work in the 

United States. 

Proposed paragraph (j) contains fiscal 

reporting requirements for CSAs. Like 

other DOL workforce development 

programs, CSAs are required to report 

financial results on an accrual basis. 

Proposed § 618.880 is a new section 

which contains TAA program 

performance requirements. As 

mentioned in the discussion of 

proposed § 618.805, proposed § 618.880 

implements OMB guidance on GPRA. 

Toward this end, proposed § 618.880(a) 

requires States to report specified data 

on TAA performance outcomes to the 

Department. 

Proposed paragraph (b) requires States 

to report TAA program data necessary to 

calculate performance in three specified 

categories and also includes a provision 

authorizing the Department to establish 

additional categories. The three 

specified categories are taken from the 

‘‘common measures’’ through which the 

Federal Government measures the 

performance of a variety of workforce 

development programs. The Department 

has adopted the common measures and 

will apply them to all Departmentfunded workforce development 

programs. 

Proposed paragraph (c)(1) identifies, 

in general terms, the performance 

measures States must use in reporting 

performance under each category 

identified in proposed paragraph (b). It 

also authorizes the Department to 

establish additional measures. Proposed 

paragraph (c)(2) provides that the 

Department will identify certain 

timeframes, definitions, and units of 

cost in future administrative issuances 

to provide more detailed reporting 

guidance. The Department believes that 

flexibility is required in setting the 

details of performance reporting, which 

is best provided in administrative 

issuances. 

Proposed paragraph (d) requires 

CSAs, consistent with State law, to use 

quarterly wage record information, as 

defined in the WIA regulation at 20 CFR 

666.150(c), in measuring progress on the 

program performance measures. 

Specifically, it requires CSAs to use 

social security numbers if permitted by 

Federal law, and other identifying 

designations if Federal law prohibits 

such use of social security numbers, to 

measure the progress of TAA program 

participants using quarterly wage 

information. The Department believes 

current Federal law permits such use of 

social security numbers but recognizes 

that Congress in recent years has 

considered restricting the uses of social 

security numbers. Further, proposed 

paragraph (d) requires CSAs that 

participate in the Wage Record 

Interchange System (WRIS) to use WRIS 

to obtain pertinent wage information for 

individuals who obtain work outside 

the State in which they received 

services. Finally, proposed paragraph 

(d) permits CSAs to use supplemental 


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sources to obtain pertinent wage and 

employment data. 

Proposed paragraph (e) imposes 

performance reporting requirements on 

CSAs. The Department plans to initially 

require the use only of the Trade Act 

Participant Report that States already 

submit. However, proposed paragraph 

(e) recognizes that the Department in the 

future might require reports that 

supersede or supplement this report. 

Proposed paragraph (e) also requires 

that reports be verified or validated as 

accurate. 

Proposed paragraph (f) provides that 

State performance outcomes will be 

measured against national goals 

established by the Department. These 

evaluations of State performance 

compared to national goals would be 

used to plan actions to improve program 

performance. Proposed paragraph (f) 

also provides that the Department may 

negotiate and establish performance 

goals each fiscal year with each CSA. 

Finally, proposed paragraph (g) 

provides that the Department will 

annually publish the States’ TAA 

program performance. 

Proposed § 618.885 contains 

requirements related to the termination 

of the TAA program after it expires. 

This provision is very different from 20 

CFR 617.64, because it reflects 

amendments to section 285 of the Act 

made after the promulgation of 20 CFR 

617.64, including those made by the 

Reform Act. 

Proposed paragraph (a) provides the 

general rule that TAA benefits may not 

be paid after the termination date in 

section 285 of the Act or as otherwise 

provided by law. Section 285(a)(1) of 

the Act currently provides a termination 

date of September 30, 2007. However, 

history demonstrates that this date can 

change, and the Act might be 

reorganized so that a termination date 

might not always be contained in 

section 285. Therefore, the Department 

proposes omitting a specific date in the 

regulation and also qualifying the 

reference to section 285 to accommodate 

that possibility. 

Proposed paragraph (b) provides the 

one exception to the general rule that 

benefits may not be paid after the 

termination date: That TAA benefits 

must continue to be paid to adversely 

affected workers who are covered under 

TAA certifications issued before the 

termination date and who otherwise 

meet TAA benefit eligibility 

requirements. 

Proposed subpart H also excludes 

some provisions contained in subpart G 

of 20 CFR Part 617 which are based on 

expired laws. Also, proposed subpart H 

omits the provision in 20 CFR 617.58 

that UI otherwise payable to an 

adversely affected worker must not be 

denied or reduced for any week because 

of the worker’s entitlement for any TAA 

benefit. The Department believes other 

provisions in proposed Part 618 

effectuate the same result, obviating the 

need for such a provision in proposed 

subpart H. 

Part 665—Statewide Workforce 

Investment Activities Under Title I of 

the Workforce Investment Act 

The amendments to the WIA 

regulations proposed to be codified at 

20 CFR Part 665 reflect the Reform Act 

requirements for coordination between 

the workforce investment system and 

the TAA program that proposed 20 CFR 

618.320 also addresses. Proposed 

§ 665.330 revises the title of this section 

to read: ‘‘Are Trade Adjustment 

Assistance (TAA) program requirements 

for rapid response assistance, under the 

Trade Act of 1974, as amended, also 

required activities?’’ The revised title 

clearly identifies that this section 

applies to the TAA programs instead of 

the NAFTA-TAA program under the 

NAFTA Implementation Act (Pub. L. 

103–182), which was repealed by the 

Reform Act. Accordingly, this revised 

section incorporates the requirement 

that section 221(a)(2)(A) of the Act 

places on the States, through the 

Governors, to expand State rapid 

response assistance to cover workers 

who have filed, or on whose behalf has 

been filed, a petition for certification of 

eligibility to apply for TAA. 

Proposed § 665.330 recognizes that 

the full range of rapid response 

activities required by § 665.310 may not 

be appropriate for workers covered by a 

petition because of the size or the timing 

of the layoff, or because such assistance 

has been provided previously in 

response to a layoff. Under those 

circumstances, paragraphs (b) and (c) of 

proposed § 665.330 permit States to 

make alternative arrangements to assist 

workers seeking TAA certification to 

obtain employment. Rapid response 

assistance by the States includes 

providing individuals covered by a 

petition with: the information specified 

at proposed § 665.310(b) and proposed 

§§ 618.310 and 618.820; and 

information about and access to 

appropriate core and intensive services, 

and training opportunities, income 

support, and potential HCTC assistance, 

if they have not otherwise been 

provided. 

Part 671—National Emergency Grants 

for Dislocated Workers 

The proposed revisions to the WIA 

regulations codified at 20 CFR Part 671 

reflect changes to the NEG program 

relating to the HCTC. Proposed 

§ 671.105 revises this section to reflect 

that the Reform Act amended WIA 

section 174 to permit grants to provide 

health insurance coverage assistance 

under WIA section 173(f) and (g) to 

adversely affected workers under the 

Trade Act. 

A new section, § 671.115 ‘‘Under 

what circumstances are NEG grants 

available to provide assistance under 

WIA section 173(f) and (g)?,’’ is 

proposed to be added to Part 671. This 

new section would explain how NEG 

grants described in § 671.105 may be 

used to pay for health insurance 

coverage and other assistance for 

administrative and start-up expenses 

related to enrolling TAA recipients, 

ATAA recipients and PBGC pension 

recipients in qualified health insurance, 

as provided under the Reform Act. 

V. Administrative Requirements 

Executive Order 12866 

This proposal to revise 20 CFR Part 

617, add 20 CFR Part 618, and revise 20 

CFR Part 663 and 20 CFR Part 671 is not 

an economically significant rule because 

it will not materially alter the budgetary 

impact of entitlements, grants, user fees, 

or loan programs, have an annual effect 

on the economy of $100 million or 

more, or adversely affect in a material 

way the economy, a sector of the 

economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities. However, 

the proposal is a significant regulatory 

action under Executive Order 12866, 

section 3(f), Regulatory Planning and 

Review, because it raises novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. Accordingly, this regulation has 

been submitted to the Office of 

Management and Budget (OMB) for 

review. 

Paperwork Reduction Act 

This proposed rule contains 

requirements for States to submit to the 

Department, at the Department’s 

request, copies of any judicial or 

administrative decisions relating to an 

individual’s eligibility to TAA and the 

text of procedures or supplemental 

procedures enacted by the States to 

further effective administration of the 

TAA program (proposed §§ 618.845 and 

618.810, currently codified at 20 CFR 

617.52 and 617.54). These requirements 

were previously reviewed and approved 

for use by the Office of Management and 

Budget (OMB) under 20 CFR 601.2 and 


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§ 601.3 and assigned OMB control 

number 1205–0222 under the provisions 

of the Paperwork Reduction Act of 1995 

(Pub. L. 104–13) (PRA). Additionally, in 

accordance with the PRA, OMB has 

approved the Department’s reporting 

requirements for the States at: proposed 

§ 618.870(e) concerning TAA program 

performance data (OMB control number 

1205–0392); and proposed § 618.725(g) 

concerning written waivers of the 

training requirement, and proposed 

§§ 618.855 and 618.860 concerning 

reports on TAA activity in general 

(OMB control number 1205–0016). The 

Department has determined that this 

proposed rule contains no new 

information collection requirements. 

Executive Order 13132: Federalism 

The Department has reviewed this 

proposed rule revising the operation of 

a federal benefit program in accordance 

with Executive Order 13132 and found 

that it will not have substantial direct 

effects on the States or the relationship 

between the national government and 

the States, or the distribution of power 

and responsibilities among the various 

levels of government, within the 

meaning of the Executive Order. 

Unfunded Mandates Reform Act and 

Executive Order 12875 

This regulatory action has been 

reviewed in accordance with the 

Unfunded Mandates Reform Act of 1995 

(Pub. L. 104–4) and Executive Order 

12875. The Department has determined 

that this rule does not include any 

federal mandate that may result in 

increased expenditures by state, local, 

or tribal governments, in the aggregate, 

or by the private sector, of $100 million 

or more in any one year. Accordingly, 

the Department has not prepared a 

budgetary impact statement. 

Regulatory Flexibility Act/SBREFA 

We have notified the Chief Counsel 

for Advocacy, Small Business 

Administration, and made the 

certification pursuant to the Regulatory 

Flexibility Act (RFA) at 5 U.S.C. 605(b), 

that this proposed rule will not have a 

significant economic impact on a 

substantial number of small entities. 

Under the RFA, no regulatory flexibility 

analysis is required where the rule ‘‘will 

not * * * have a significant economic 

impact on a substantial number of small 

entities.’’ 5 U.S.C. 605(b). A small entity 

is defined as a small business, small 

not-for-profit organization, or small 

governmental jurisdiction. 5 U.S.C. 

601(3)–(5). Therefore, the definition of 

the term ‘‘small entity’’ does not include 

States or individuals. 

This rule revises and updates 

procedures governing an entitlement 

program administered by the States and 

not by small governmental jurisdictions. 

In addition, the entitlement program 

applies to individuals who seek 

certification of eligibility under the 

program only, and not small entities as 

defined by the Regulatory Flexibility 

Act. Therefore, the Department certifies 

that this proposed rule will not have a 

significant impact on a substantial 

number of small entities and, as a result, 

no regulatory flexibility analysis is 

required. 

In addition, the Department certifies 

that this proposed rule is not a major 

rule as defined by section 804 of the 

Small Business Regulatory Enforcement 

Act of 1996 (SBREFA). Under section 

804 of SBREFA, a major rule is one that 

is an ‘‘economically significant 

regulatory action’’ within the meaning 

of Executive Order 12866. Because this 

proposed rule is not an economically 

significant rule under Executive Order 

12866, we certify that it also is not a 

major rule under SBREFA. 

Effect on Family Life 

The Department certifies that this 

proposed rule has been assessed in 

accordance with section 654 of Public 

Law 105–277, 112 Stat. 2681, for its 

effect on family well-being. The 

Department concludes that the rule will 

not adversely affect the well-being of the 

nation’s families. Rather, it should have 

a positive effect on family well-being by 

providing greater benefits, including 

health insurance coverage assistance, to 

eligible individuals. 

Congressional Review Act 

This proposed rule is not a ‘‘major 

rule’’ as defined in the Congressional 

Review Act (5 U.S.C. 801 et seq.). If 

promulgated as a final rule, this rule 

will not result in an annual effect on the 

economy of $100,000,000 or more; a 

major increase in costs or prices for 

consumers, individual industries, 

Federal, State, or local government 

agencies, or geographic regions; or 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets. 

Catalogue of Federal Domestic 

Assistance Number 

This program is listed in the 

Catalogue of Federal Domestic 

Assistance at No. 17.245. 

List of Subjects 

20 CFR Parts 617 and 618 

Administrative practice and 

procedure, Employment, Fraud, Grant 

programs-labor, Manpower training 

programs, Relocation assistance, 

Reporting and recordkeeping 

requirements, Trade adjustment 

assistance, Vocational education. 

20 CFR Parts 665 and 671 

Employment, Grant programs—labor. 

Words of Issuance 

For the reasons stated in the 

preamble, Part 617 of title 20, Code of 

Federal Regulations, is amended, Part 

618 of title 20, Code of Federal 

Regulations is added, and Part 665 and 

671 of title 20, Code of Federal 

Regulations, as amended, as set forth as 

follows: 

Signed at Washington, DC on July 27, 2006. 

Emily Stover DeRocco, 

Assistant Secretary of Labor. 

PART 617—TRADE ADJUSTMENT 

ASSISTANCE FOR WORKERS UNDER 

THE TRADE ACT OF 1974 

1. The authority citation for part 617 

continues to read as follows: 

Authority: 19 U.S.C. 2320; Secretary’s 

Order No. 3–81, 46 FR 31117. 

2. The heading for part 617 is revised 

to read as follows: 

PART 617—TRADE ADJUSTMENT 

ASSISTANCE UNDER THE TRADE ACT 

OF 1974 FOR WORKERS CERTIFIED 

UNDER PETITIONS FILED BEFORE 

NOVEMBER 4, 2002 

3. Section § 617.1 is amended by 

revising paragraphs (a) and (b) to read 

as follows: 

§ 617.1 Scope. 

The regulations in this part 617 

pertain to: 

(a) Adjustment assistance, such as 

counseling, testing, training, placement, 

and other supportive services for 

adversely affected workers under the 

terms of chapter 2 of title II of the Trade 

Act of 1974, as amended prior to August 

6, 2002 (the Act), covered by 

certifications issued under petitions 

filed with the Secretary before 

November 4, 2002; 

(b) Trade readjustment allowances 

(TRA) and other allowances such as 

allowances while in training, job search 

and relocation allowances, for adversely 

affected workers under the Act covered 

by certifications issued under petitions 


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filed with the Secretary before 

November 4, 2002; and 

* * * * * 

4. Section 617.10 is amended by 

adding paragraph (e) to read as follows: 

§ 617.10 Applications for TRA. 

* * * * * 

(e) Advising workers to apply for 

health coverage tax credit. State 

agencies will advise each worker of the 

qualifying requirements for the health 

coverage tax credit (HCTC) and related 

health insurance assistance. 

5. Title 20, chapter V, is amended by 

adding new part 618 to read as follows: 

PART 618—TRADE ADJUSTMENT 

ASSISTANCE UNDER THE TRADE ACT 

OF 1974 FOR WORKERS CERTIFIED 

UNDER PETITIONS FILED AFTER 

NOVEMBER 3, 2002 

Subpart A—General 

Sec. 

618.100 Purpose and scope. 

618.105 Effective dates for the 2002 

amendments to the Trade Act of 1974. 

618.110 Definitions. 

Subpart B—[Reserved] 

Subpart C—Delivery of Services 

through the One-Stop System 

Sec. 

618.300 Scope. 

618.305 The TAA program as a One-Stop 

partner. 

618.310 Responsibilities for the delivery of 

employment services not funded under 

the Act. 

618.315 Responsibilities for the delivery of 

employment services funded under the 

Act. 

618.320 Coordination with WIA-funded 

rapid response activities. 

618.325 Integrated service strategies to 

ensure that a comprehensive array of 

services are provided by WIA or other 

programs. 

618.330 Assessment of adversely affected 

workers. 

618.335 Initial assessment of adversely 

affected workers. 

618.340 Employment services and waiver 

provisions for workers not enrolled in 

training. 

618.345 Comprehensive assessment for 

adversely affected workers. 

618.350 IEPs for adversely affected workers. 

618.355 Staff requirements for assessments. 

618.360 Employment services for workers 

enrolled in training and follow-up 

services. 

618.365 Employment services and the TAA 

for Farmers program. 

Subpart D—Job Search Allowances 

618.400 Scope. 

618.405 Applying for a job search 

allowance. 

618.410 Eligibility for a job search 

allowance. 

618.415 Findings required. 

618.420 Amount of a job search allowance. 

618.425 Determination and payment of a 

job search allowance. 

618.430 Job search program participation. 

Subpart E—Relocation Allowances 

618.500 Scope. 

618.505 General. 

618.510 Applying for a relocation 

allowance. 

618.515 Eligibility for a relocation 

allowance. 

618.520 Findings required. 

618.525 Determining the amount of a 

relocation allowance. 

618.530 Determinations and payment of a 

relocation allowance. 

Subpart F—Training Services 

618.600 Scope. 

618.605 Procedures. 

618.610 Criteria for approval of training. 

618.615 Limitations on approval of training. 

618.620 Selection of training program. 

618.625 Payment restrictions for training 

programs. 

618.630 Training of reemployed workers 

not in suitable employment. 

618.635 Enrollment in on-the-job and 

customized training. 

618.640 Subsistence and transportation 

payments. 

618.645 Voluntary withdrawal from a 

training program. 

618.650 State training cost caps. 

618.655 Training services and TAA for 

Farmers program. 

Subpart G—Trade Readjustment 

Allowances 

618.700 Scope. 

618.705 Categories of TRA. 

618.710 Applications for TRA and 

payment. 

618.715 Qualifying requirements for basic 

TRA. 

618.720 Training requirement for receipt of 

basic, additional, and remedial TRA. 

618.725 Waiver of training requirement for 

basic TRA. 

618.730 Evidence of qualification for basic, 

additional, and remedial TRA. 

618.735 Weekly amounts of basic, 

additional, and remedial TRA. 

618.740 Maximum amount of basic TRA. 

618.745 Eligibility period for basic TRA. 

618.750 Qualifying requirements for, and 

duration of, additional TRA. 

618.755 Qualifying requirements for, and 

duration of, remedial TRA. 

618.760 Payment of basic, additional, or 

remedial TRA during breaks in training. 

618.765 Disqualifications. 

618.770 Health Coverage Tax Credit. 

Subpart H—Administration By Applicable 

State Agencies 

618.800 Scope. 

618.805 Agreements with the Secretary of 

Labor. 

618.810 Cooperating State agency 

rulemaking. 

618.815 Subpoenas. 

618.820 TAA program and benefit 

information to workers. 

618.825 Determinations of eligibility; 

notices to individuals. 

618.830 Liable State and agent State 

responsibilities. 

618.835 Appeals and hearings. 

618.840 Overpayments; penalties for fraud. 

618.845 Recovery of debts due the United 

States or to others by TAA offset. 

618.850 Uniform interpretation and 

application of the Act and regulations. 

618.855 Inviolate rights to TAA or ATAA. 

618.860 Veterans’ priority of service. 

618.865 Recordkeeping and disclosure of 

information requirements. 

618.870 Information, reports, and studies. 

618.875 General fiscal and administrative 

requirements. 

618.880 TAA program performance. 

618.885 Termination of TAA program 

benefits. 

Authority: 19 U.S.C. 2320; Secretary’s 

Order No. 3–81, 46 FR 31117. 

Subpart I—[Reserved] 

Subpart A—General 

§ 618.100 Purpose and scope. 

(a) The Trade Act of 1974, as 

amended (the Act), establishes a trade 

adjustment assistance (TAA) program. 

The goal of the TAA program is to 

provide adversely affected workers with 

assistance to return them to work that 

will use the highest skill levels and pay 

the highest wages given the workers’

preexisting skill levels and education 

and the condition of the labor market, 

and to do so as quickly as possible. The 

TAA program also includes the ATAA 

program, which may be available to 

workers 50 years of age or older. 

Workers who have lost their jobs with 

firms who supplied, or were 

downstream producers to, other firms 

whose workers were certified as eligible 

to apply for TAA may also be covered 

under the TAA program. The 

regulations in this part 618 are issued to 

implement the Act. 

(b) This part 618 covers: 

(1) The scope, purpose, effective dates 

and transition guidelines, and 

definitions of terms applicable to the 

TAA program; 

(2) [Reserved]; 

(3) Counseling, testing, placement, 

and other supportive services for 

adversely affected workers and 

agricultural commodity producers 

entitled to receive a cash benefit under 

the TAA for Farmers program (subpart 

C); 

(4) Job search allowances for 

adversely affected workers (subpart D); 

(5) Relocation allowances for 

adversely affected workers (subpart E); 

(6) Training for adversely affected 

workers (subpart F); 


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(7) Trade readjustment allowances 

(TRA) for adversely affected workers 

(subpart G); 

(8) Administrative requirements 

applicable to State agencies 

administering the TAA program and 

assistance for individuals (subpart H); 

(9) [Reserved]. 

§ 618.105 Effective dates for the 2002 

amendments to the Trade Act of 1974. 

Section 151 of the Trade Adjustment 

Assistance Reform Act of 2002 (the 

‘‘Reform Act’’), Public Law 107–210, 

provides that its amendments governing 

Trade Adjustment Assistance for 

Workers applies to petitions for 

certification filed on or after November 

4, 2002. However, ATAA became 

effective on August 6, 2003 and the 

Health Coverage Tax Credit (HCTC), 

established under 26 U.S.C. 35 

(administered by the Internal Revenue 

Service), generally became effective on 

December 1, 2002. Consistent with 

section 151 of the Reform Act, Part 617 

of title 20 of the Code of Federal 

Regulations governs the operational and 

benefit provisions of the TAA program 

for petitions filed before November 4, 

2002, even where the determinations are 

made after that date. 

§ 618.110 Definitions. 

The following definitions apply in 

this part. 

Act means chapter 2 of title II of the 

Trade Act of 1974, Public Law 93–618, 

88 Stat. 1978, 2011 et seq. (19 U.S.C. 

2271–2321 and 2395), as amended. 

Additional compensation means 

unemployment compensation totally 

financed by a State and payable under 

State law by reason of conditions of 

high unemployment or by reason of 

other special factors and, when so 

payable, includes unemployment 

compensation payable under chapter 85, 

title 5 of the United States Code. 

Adversely affected employment 

means employment in a firm or 

appropriate subdivision of a firm (which 

may include workers in any agricultural 

firm or subdivision of an agricultural 

firm), if workers of such firm or 

subdivision are certified as eligible to 

apply for trade adjustment assistance 

under this part. 

Adversely affected worker means an 

individual, including an employer, who, 

because of lack of work in adversely 

affected employment—

(1) Has been totally or partially 

separated from such employment 

between the impact date and two years 

after the date on which the certification 

is signed, unless the certification 

expires or is terminated earlier; or 

(2) Has been totally separated from 

employment with the firm in a 

subdivision of which such adversely 

affected employment exists between the 

impact date and two years after the date 

on which the certification is signed, 

unless the certification expires or is 

terminated earlier. 

Agent State means any State other 

than the liable State for an adversely 

affected worker. 

Alternative trade adjustment 

assistance, Alternative TAA or ATAA 

means a wage subsidy for adversely 

affected workers 50 years of age and 

older. 

Applicable State law means, for any 

adversely affected worker, the State law 

of the State—

(1) In which such worker is entitled 

to UI (whether or not such worker has 

filed a UI claim) immediately following 

such worker’s first separation, or 

(2) If the adversely affected worker is 

not so entitled to UI under the State law 

of any State immediately following such 

first separation, or is entitled to UI 

under the Railroad Unemployment 

Insurance Act (RRUI), the State law of 

the State in which such first separation 

occurred. 

(3) The applicable State law for an 

adversely affected worker, as 

determined under paragraphs (1) and (2) 

of this definition, remains the 

applicable State law for such worker 

until such worker becomes entitled to 

UI under the State law of another State 

(whether or not such worker files a UI 

claim in that other State). 

(4) For purposes of determining the 

applicable State law for UI entitlement 

under paragraph (1) of this definition—

(i) An adversely affected worker is 

deemed entitled to UI under a State law 

if such worker satisfies the base period 

employment and wage qualifying 

requirements of such State law. 

(ii) In the case of a combined-wage 

claim (under part 616 of this chapter), 

UI entitlement must be determined 

under the law of the paying State. 

(iii) In case of a Federal UI claim, or 

a joint State and Federal UI claim 

(under parts 609 and 614 of this 

chapter), UI entitlement must be 

determined under the law of the 

applicable State for such claims. 

Average weekly hours means a figure 

obtained by dividing: 

(1) Total hours worked (excluding 

overtime) by a partially separated 

worker in adversely affected 

employment in the 52 weeks (excluding 

weeks in such period during which the 

individual was sick or on vacation) 

preceding the individual’s first 

qualifying separation, by 

(2) The number of weeks in such 52 

weeks (excluding weeks in such period 

during which the individual was sick or 

on vacation) in which the individual 

actually worked in such employment. 

Average weekly wage means onethirteenth of the total wages paid to an 

individual in the individual’s high 

quarter. The high quarter for an 

individual is the quarter in which the 

total wages paid to the individual were 

highest among the first four of the last 

five completed calendar quarters 

preceding the week in which the 

individual’s first separation occurred. 

Benefit period means, with respect to 

an individual—

(1) The benefit year and any ensuing 

period, as determined under the 

applicable State law, during which the 

individual is eligible for regular 

compensation, additional 

compensation, extended compensation, 

or Federal supplemental compensation, 

or 

(2) The equivalent of such a benefit 

year or ensuing period provided for 

under the applicable Federal 

unemployment insurance law. 

Bona fide application for training 

means an individual’s signed and dated 

application for training filed with the 

State agency administering the TAA 

training program, on a form provided by 

the cooperating State agency necessarily 

containing the individual’s name, 

petition number, and specific 

occupational training. 

Certification means a certification of 

eligibility to apply for TAA, or TAA and 

ATAA, with respect to a specified group 

of workers of a firm or appropriate 

subdivision of a firm. 

Certification period means the period 

of time during which total and partial 

separations from adversely affected 

employment within a firm or 

appropriate subdivision of a firm are 

covered by the certification. 

Certifying officer means an official in 

the Employment and Training 

Administration, United States 

Department of Labor, who has been 

delegated the authority granted to the 

Secretary of Labor to make 

determinations and issue certifications 

of eligibility to apply for trade 

adjustment assistance. 

Co-enrollment means enrollment in 

the TAA program and at least one other 

program that operates as part of the WIA 

One-Stop delivery system, such as the 

Adult program under title I of the WIA. 

Commuting area means the area in 

which an individual would be expected 

to travel to and from work on a daily 

basis as determined under the 

applicable State law. 

Confidential business information 

means commercial or financial 

information received by the Director in 

an investigation of a petition for 


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certification of eligibility to apply for 

TAA, or TAA and ATAA, whose 

disclosure is prohibited under the Trade 

Secrets Act, 18 U.S.C. 1905. 

Cooperating State Agency (CSA) 

means the State workforce agency or 

any other State or local agency 

administering job training or related 

programs and which participates in the 

administration of the TAA program 

under an agreement with the Secretary 

to carry out any of the provisions of the 

Act. 

Customized training means training 

that is designed to meet the special 

requirements of one or more employers, 

as provided in § 618.635(b) (enrollment 

in on-the-job and customized training). 

Date of certification means the date 

on which the certifying officer signs the 

certification of eligibility to apply for 

TAA, or TAA and ATAA, for a group of 

adversely affected workers at a firm or 

appropriate subdivision. 

Date of filing means the date on 

which a complete petition is received by 

the Division of Trade Adjustment 

Assistance, Employment and Training 

Administration, United States 

Department of Labor, 200 Constitution 

Avenue, NW., Washington, DC 20210. 

Date of separation means: 

(1) With respect to a total separation—

(i) For an individual in employment 

status, the last day worked; or 

(ii) For an individual on employerauthorized leave, the last day the 

individual would have worked had the 

individual not been on the employerauthorized leave; or 

(2) With respect to a partial 

separation, the last day of the week in 

which the partial separation occurred. 

Department of Labor or Department or 

DOL means the United States 

Department of Labor. 

Director means the Director, Division 

of Trade Adjustment Assistance, 

Employment and Training 

Administration, United States 

Department of Labor, Washington, DC, 

who has responsibility for administering 

the TAA programs, or his or her 

designee. 

Division of Trade Adjustment 

Assistance or DTAA means the 

organization within the Employment 

and Training Administration, DOL, 

Washington, DC that administers the 

TAA programs, or its successor 

organization. 

Eligible ATAA recipient means an 

individual who is receiving benefits 

under a demonstration program of 

Alternative Trade Adjustment 

Assistance for older workers under 

subpart I of part 618. 

Eligible PBGC pension recipient 

means an individual who is 55 years of 

age or older and is receiving a pension 

benefit paid in whole or part by the 

Pension Benefit Guaranty Corporation 

(PBGC). 

Eligible TAA recipient means an 

individual who is receiving a trade 

readjustment allowance (TRA) under 

the TAA program, or would be eligible 

for TRA except that he/she has not yet 

exhausted Unemployment Insurance 

benefits. 

Employer means any individual or 

type of organization, including the 

Federal government, a State 

government, a political subdivision, or 

an instrumentality of one or more 

governmental entities, with one or more 

individuals performing service in 

employment for it within the United 

States. 

Employment means any service 

performed for an employer by an officer 

of a corporation or by an individual for 

wages. 

Extended compensation or Extended 

Benefits or EB means the extended 

unemployment compensation payable 

to an individual for weeks of 

unemployment which begin in an 

Extended Benefits Period, under those 

provisions of a State law which satisfy 

the requirements of the Federal-State 

Extended Unemployment Compensation 

Act of 1970 and regulations governing 

the payment of extended unemployment 

compensation and, when so payable, 

includes unemployment compensation 

payable under chapter 85 of title 5 of the 

United States Code, but does not 

include regular compensation, 

additional compensation, or Federal 

supplemental compensation. Extended 

compensation is explained further in 

part 615 (Extended Benefits in the 

Federal-State Unemployment 

Compensation Program) of title 20 of the 

Code of Federal Regulations. 

Family means the following members 

of an individual’s household whose 

principal place of abode is with the 

individual in a home the individual 

maintains or would maintain but for 

unemployment: 

(1) A spouse; 

(2) An unmarried child, including a 

stepchild, adopted child, or foster child, 

under age 21 or of any age if incapable 

of self-support because of mental or 

physical incapacity; and 

(3) Any other person whom the 

individual would be entitled to claim as 

a dependent for income tax purposes 

under the Internal Revenue Code of 

1986, as amended. 

Federal student financial assistance 

means student financial assistance 

authorized by title IV of the Higher 

Education Act of 1965, as amended (20 

U.S.C. 1070 et seq.): Grants to Students 

in Attendance at Institutions of Higher 

Education (20 U.S.C. 1070a–1070f–6) 

(popularly known as Pell grants); 

Federal Family Education Loan Program 

(20 U.S.C. 1071–1087–4; William D. 

Ford Federal Direct Loan Program (20 

U.S.C. 1087a–1087j); Federal Perkins 

Loans (20 U.S.C. 1087aa–1087ii); 

Federal Work-Study Programs (42 

U.S.C. 2751–2756b); and Bureau of 

Indian Affairs student assistance 

programs, such as Indian and Alaska 

Native forestry education assistance 

programs (35 U.S.C. 3113). 

Federal supplemental compensation 

means the Federal supplemental 

unemployment compensation payable 

to individuals under the Temporary 

Extended Unemployment Compensation 

Act of 2002 or any similar Federal law. 

Firm means an individual 

proprietorship, partnership, joint 

venture, association, corporation 

(including a development corporation), 

business trust, cooperative, trustee in 

bankruptcy, or receiver under decree of 

any court. A firm, together with any 

predecessor or successor-in-interest, or 

together with any affiliated firm 

controlled or substantially beneficially 

owned by substantially the same 

persons may be considered a single 

firm. 

First benefit period means the benefit 

period established after the worker’s 

first qualifying separation or in which 

such separation occurs. 

First qualifying separation means, for 

the purposes of determining the weekly 

and maximum amounts of basic TRA 

payable to an individual, the 

individual’s first (total or partial) 

separation within the certification 

period of a certification if, with respect 

to such separation, the individual meets 

the requirements of paragraphs (a), (b), 

and (d) of § 618.715 (qualifying 

requirements for basic TRA). 

First separation means, for an 

individual to qualify as an adversely 

affected worker for the purposes of TAA 

program benefits (without regard to 

whether the individual also qualifies for 

TRA), the individual’s first total or 

partial separation within the 

certification period of a certification, 

irrespective of whether such first 

separation also is a qualifying 

separation. 

Health Coverage Tax Credit or HCTC 

means the tax credit for the costs of 

health insurance coverage of eligible 

individuals authorized by section 35 of 

the Internal Revenue Code of 1986 

(relating to refundable credits), as 

amended (26 U.S.C. 35). 

Impact date means the date stated in 

a certification of eligibility to apply for 

TAA, or TAA and ATAA, on which the 


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total or partial separations of the 

workers covered by the certification 

began or threatened to begin. 

Individual Employment Plan or IEP 

means a document containing an 

ongoing strategy jointly developed by 

the participant and the CSA, which 

identifies the participant’s employment 

goals, the appropriate achievement 

objectives, and the appropriate 

combination of services for the 

participant to achieve the employment 

goals. Generally, the IEP is prepared 

after conducting both an initial 

assessment and a comprehensive 

assessment of the worker’s employment 

goals and strategies to achieve those 

goals. 

Job finding club means a job search 

workshop that includes a period of 1 to 

2 weeks of structured, supervised 

activity in which participants attempt to 

obtain jobs. 

Job search program or JSP means a job 

search workshop or job finding club. 

Job search workshop means a short (1 

to 3 days) seminar designed to provide 

participants with knowledge that will 

enable the participants to find jobs. 

Subjects of the seminar include labor 

market information, resume writing, 

interviewing techniques, and techniques 

for finding job openings. 

Lack of work means that the employer 

does not have work for the worker to 

perform, and includes circumstances 

when: 

(1) Work is not available because the 

employer closes or ceases operations; or 

(2) Work is not available because the 

employer downsizes the workforce by 

means of attrition or layoff, including 

downsizing when an employee accepts 

an employer’s offer of a severance 

package designed by the employer to 

encourage voluntary separations; or 

(3) Work to maintain the worker’s 

customary hours of work is not 

available. 

Layoff means a suspension of or 

separation from employment by a firm 

for lack of work, initiated by the 

employer, and expected to be for a 

definite or indefinite period of not less 

than seven (7) consecutive days. 

Liable State means the State whose 

State law is the applicable State law for 

an adversely affected worker. 

One-Stop delivery system means the 

system of entities operating under title 

I of WIA to administer and deliver 

workforce investment, educational, and 

other human resource program services 

to enhance access to these services in 

local areas and improve long-term 

employment, as described in part 662 of 

title 20 of the Code of Federal 

Regulations. 

On-the-job training means training 

provided by an employer to an 

individual, as provided in 

§ 618.635(a)(1) (enrollment in on-the-job 

and customized training). 

Partial separation means, for a worker 

who has not been totally separated, 

whether the worker either is covered by 

a petition for certification of eligibility 

to apply for TAA, or TAA and ATAA, 

or the worker has been certified as an 

adversely affected worker, that: 

(1) The worker’s hours of work have 

been reduced to 80 percent or less of the 

worker’s average weekly hours at the 

firm or in adversely affected 

employment during a week ending on or 

after the impact date specified in the 

certification under which the adversely 

affected worker is covered; and 

(2) The worker’s wages have been 

reduced to 80 percent or less of the 

worker’s average weekly wage at the 

firm or in adversely affected 

employment during a week ending on or 

after the impact date specified in the 

certification under which the adversely 

affected worker is covered. 

Program of remedial education means 

training that is designed to enhance the 

employability of an adversely affected 

worker by upgrading basic knowledge 

through such courses as adult basic 

education, basic math and literacy, 

English-as-a-second-language, and high 

school equivalency, among others. 

Qualifying separation means, for an 

individual to qualify as an adversely 

affected worker and for basic TRA, for 

determining the 16-week period for 

enrollment in approved training as a 

condition of TRA, and for determining 

the basic TRA eligibility period, any 

total separation of the individual within 

the certification period of a certification, 

with respect to which the individual 

meets all of the requirements in 

paragraphs (a), (b), (c) and (d) of 

§ 618.715 (qualifying requirements for 

basic TRA). 

Regional Administrator means the 

appropriate Regional Administrator of 

the Employment and Training 

Administration, U.S. Department of 

Labor. 

Regular compensation means 

unemployment compensation payable 

to an individual under any State law, 

and, when so payable, includes 

unemployment compensation payable 

under chapter 85, title 5 of the United 

States Code, but does not include 

extended compensation, additional 

compensation or federal supplemental 

compensation. 

Secretary means the Secretary of 

Labor, U.S. Department of Labor, or his 

or her designee. 

State means the States of the United 

States, the District of Columbia and the 

Commonwealth of Puerto Rico; and the 

term ‘‘United States,’’ when used in the 

geographical sense, includes the 

Commonwealth of Puerto Rico. 

State agency means the agency of the 

State that administers the State law. 

State law means the unemployment 

insurance law of a State approved by the 

Secretary under section 3304 of the 

Internal Revenue Code of 1986 (26 

U.S.C. 3304). 

Suitable employment means work of a 

substantially equal or higher skill level 

than the worker’s previous adversely 

affected employment and wages for 

such work at not less than 80 percent of 

the worker’s average weekly wage, 

including (or taking into consideration) 

the value of fringe benefits, including 

health insurance. 

Suitable work means, with respect to 

an individual—

(1) Suitable work as defined in the 

applicable State law for claimants for 

regular compensation; or 

(2) Suitable work as defined in 

applicable State law provisions 

consistent with section 202(a)(3) of the 

Federal-State Extended Unemployment 

Compensation Act of 1970; whichever is 

applicable, but does not in any case 

include self-employment or 

employment as an independent 

contractor. 

Supportive services means services 

such as transportation, childcare, 

dependent care, and housing that are 

needed to enable an individual to 

participate in activities authorized 

under the Act. 

Total separation means the layoff or 

severance of a worker from employment 

in a firm in which adversely affected 

employment exists or has been alleged 

to exist in a petition for certification of 

eligibility to apply for TAA. 

Trade adjustment assistance or TAA 

means the benefits and services 

provided under subparts D, E, F, and G 

of this part 618 and not ATAA provided 

under subpart I [Reserved]. TAA also 

includes certain employment services 

provided to adversely affected workers, 

as described in subpart C of this part 

618. 

Trade adjustment assistance for 

Farmers program or TAA for Farmers 

program means the program 

implemented by regulations codified at 

7 CFR part 1580 and in §§ 618.365 

(employment services and the TAA for 

Farmers program) and 618.655 (training 

services and TAA for Farmers program). 

Under this program the Department of 

Agriculture provides technical 

assistance and certifies qualified 

agricultural commodity producers as 


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eligible to apply for cash benefits from 

the Department of Agriculture. 

Trade readjustment allowance or TRA 

means a weekly allowance payable to an 

adversely affected worker with respect 

to such worker’s unemployment under 

subpart G of this part 618. 

Unemployment insurance or UI 

means the unemployment compensation 

payable to an individual under any 

State law or Federal unemployment 

compensation law, including chapter 85 

of title 5, United States Code (5 U.S.C. 

8501 et seq.) and the Railroad 

Unemployment Insurance Act (45 

U.S.C. 351 et seq.), and includes: 

Regular compensation, additional 

compensation, extended compensation 

or extended benefits or EB, and Federal 

supplemental compensation. 

Wages means all compensation for 

employment for an employer, including 

commissions, bonuses, and the cash 

value of all compensation in a medium 

other than cash. 

Wagner-Peyser Act means the 

Wagner-Peyser Act, as amended (29 

U.S.C. 49 et seq.). 

Week means a week as defined in the 

applicable State law. 

Week of unemployment means a week 

of total, part total, or partial 

unemployment as determined under the 

applicable State law or Federal 

unemployment insurance law. 

Workforce Investment Act or WIA 

means the Workforce Investment Act of 

1998 (Pub. L. 105–220), as amended (29 

U.S.C. 2801 et seq.). 

Subpart B—[Reserved] 

Subpart C—Delivery of Services 

Through the One-Stop System 

§ 618.300 Scope. 

This subpart requires cooperating 

State agencies, under the agreements 

signed with the Secretary under 

§ 618.805 (agreements with the 

Secretary of Labor), to integrate the 

provision of benefits and services 

available to workers separated or 

threatened with separation under the 

TAA program with the delivery of 

employment services and other 

assistance provided under any Federal 

law other than the Act, through the OneStop service delivery system 

(established under title I of the 

Workforce Investment Act of 1998 

(WIA)), as required by sections 235 and 

239(a), (e), and (g) of the Act. It also 

implements the requirements of section 

221(a)(2)(A) of the Act for the provision 

of rapid response assistance and 

intensive services described in WIA 

section 134(d)(2) and (3) for workers 

upon the receipt of a petition covering 

those workers. 

§ 618.305 The TAA program as a One-Stop 

partner. 

The cooperating State agency must 

ensure that the TAA program complies 

with One-Stop partnership requirements 

in 20 CFR 662.230. 

§ 618.310 Responsibilities for the delivery 

of employment services not funded under 

the Act. 

(a) The cooperating State agency must 

assure the following services are made 

available to individuals covered under a 

petition for certification of eligibility to 

apply for TAA or TAA and ATAA: 

(1) Rapid response assistance (as 

specified in § 618.320 (coordination 

with WIA-funded rapid response 

activities)); and 

(2) Core and applicable intensive 

services, as needed through the OneStop delivery system. 

(b) The cooperating State agency must 

make every reasonable effort to ensure 

that the core and intensive services 

available to adversely affected workers, 

including those certified as eligible to 

apply for ATAA, include the following 

services: 

(1) Wagner-Peyser Act labor exchange 

services; 

(2) Assessment; 

(3) Employment counseling; 

(4) Vocational testing; 

(5) Placement services; 

(6) Development of Individual 

Employment Plans (IEPs) for adversely 

affected workers, as specified in 

§ 618.350; and 

(7) Supportive services, as defined in 

§ 618.110. 

(c) The cooperating State agency must 

make every reasonable effort to ensure 

the provision of services authorized 

under other Federal laws for all 

adversely affected workers. 

(d) The services described in this 

section may be paid for with WIA or 

Wagner-Peyser funds or with funds from 

One-Stop partner programs if the 

workers meet the eligibility 

requirements of those programs. 

(e)(1) Except as provided in paragraph 

(e)(2) of this section, adversely affected 

workers who meet the definition of a 

dislocated worker under WIA, section 

101(9), may participate in appropriate 

core, intensive, training, and supportive 

services funded with WIA Dislocated 

Worker funds. 

(2) Those adversely affected workers 

who are partially separated generally 

will not meet the WIA definition of a 

dislocated worker and therefore may not 

be served with WIA Dislocated Worker 

funds. Such workers may be served in 

WIA-funded Adult Worker programs 

and receive similar One-Stop core, 

intensive, training and supportive 

services. 

§ 618.315 Responsibilities for the delivery 

of employment services funded under the 

Act. 

(a) The CSA is responsible for 

providing information to individuals 

about TAA, as required in § 618.820 

(TAA program and benefit information 

to workers); 

(b) The CSA is responsible for 

providing the following services to 

adversely affected workers, which may 

be paid out of TAA funds: 

(1) Interviewing each adversely 

affected worker about suitable training 

opportunities reasonably available to 

each worker under subpart F of this 

Part, reviewing such opportunities with 

each worker, informing each worker of 

the requirements for participation in 

training, including the enrollment 

deadlines, as a condition for receiving 

TRA, and accepting applications for 

training; 

(2) Informing adversely affected 

workers of the employment services and 

allowances available under the Act and 

this part 618, the application 

procedures, the filing requirements for 

such employment services and the 

training requirement and enrollment 

deadlines for receiving TRA; 

(3) Determining whether suitable 

employment, as defined in § 618.110, is 

available; 

(4) Providing self-directed job search 

training, when necessary; 

(5) Providing training; 

(6) Providing job search and 

relocation allowances; 

(7) Determining which training 

institutions offer training programs at a 

reasonable cost and with a reasonable 

expectation of employment (as 

described in § 618.610(c)) following the 

completion of such training, and 

procuring such training; 

(8) Documenting the standards and 

procedures used to select occupations 

and training institutions in which 

training is approved; 

(9) Approving training programs for 

adversely affected workers; 

(10) Monitoring the progress and 

attendance of adversely affected workers 

in approved training programs; 

(11) Developing and implementing a 

procedure for determining whether to 

issue a training waiver and reviewing 

waivers and extensions at least every 30 

days to determine whether the 

conditions under which they are issued 

have changed; and 

(12) Coordinating the administration 

and delivery of employment services, 


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benefits, training, and supplemental 

assistance for workers with programs 

under the Act, the Wagner-Peyser Act, 

and the WIA. 

§ 618.320 Coordination with WIA-funded 

rapid response activities. 

(a) Upon the filing of a petition, the 

Governor must ensure that rapid 

response assistance is made available, 

consistent with 20 CFR 665.300 and 20 

CFR 665.310 (WIA rapid response 

activities). 

(1) If rapid response activities have 

been provided previously in response to 

a layoff or plant closure or other event, 

then the Governor must determine 

whether the provision of any additional 

information or assistance related to the 

TAA program is necessary due to the 

filing of the petition. This may include 

information about training 

opportunities, income support, 

employment services, and potential 

HCTC assistance. 

(2) If rapid response assistance has 

not been provided previously in 

response to a layoff or plant closure or 

other event, then the Governor must 

ensure that appropriate rapid response 

assistance is provided. The Governor 

may develop and implement 

appropriate methods of achieving the 

goals of rapid response in situations 

where the full range of rapid response 

activities required by 20 CFR 665.310 is 

not appropriate. The alternative 

methods should be cost effective and 

responsive to the workers’ needs. At a 

minimum, information and access to 

unemployment compensation benefits, 

comprehensive One-Stop system 

services, employment services, and 

TAA program benefits, must be 

provided. 

(b) The Governor is encouraged to 

provide workers for whom a TAA 

petition has been filed with access to 

appropriate WIA core and intensive 

services using rapid response funding 

before a determination on whether to 

certify the workers’ petition is issued in 

order to assist a more rapid return to 

employment. 

§ 618.325 Integrated service strategies to 

ensure that a comprehensive array of 

services are provided by WIA or other 

programs. 

(a) The cooperating State agency must 

collaborate with Local Workforce 

Investment Boards and other WIA OneStop partners and is encouraged to 

collaborate with other available 

programs to ensure that adversely 

affected workers receive appropriate 

services, as described in § 618.310 

(responsibilities for the delivery of 

employment services not funded under 

the Act) and § 618.315 (responsibilities 

for the delivery of employment services 

funded under the Act). 

(b) Any adversely affected worker 

may be co-enrolled (as defined in 

§ 618.110) in one or more appropriate 

One-Stop employment programs to 

ensure that all necessary and 

appropriate services are available for the 

worker. Where an adversely affected 

worker is not co-enrolled, the State must 

employ other integrated service 

strategies to ensure that such services 

are made available to the worker. 

§ 618.330 Assessment of adversely 

affected workers. 

(a) The cooperating State agency must 

design its assessment process to protect 

a potentially eligible worker’s access to 

TAA-approved training and to TRA. 

Services must be scheduled to provide 

the worker sufficient time and 

information to make a meaningful and 

timely request for training approval or a 

waiver, if appropriate, and protect the 

worker’s eligibility to receive TRA. 

(b) The cooperating State agency must 

provide an adversely affected worker 

with an initial assessment, as described 

in, § 618.335 and, if appropriate, a 

comprehensive assessment, as described 

in § 618.345, to determine which 

benefits and services, including 

training, are most appropriate to enable 

the worker to become reemployed. 

§ 618.335 Initial assessment of adversely 

affected workers. 

(a) The initial assessment represents 

the first step in determining if the 

worker will need employment services, 

whether suitable employment is 

available to the worker without training, 

whether training is needed and feasible, 

whether any of the six criteria for 

issuing a waiver from the training 

requirement for receipt of TRA (as 

described in § 618.725(b)(1) through 

(b)(6)) apply, and whether the worker 

may meet the requirements for ATAA 

and the HCTC. The initial assessment of 

the worker’s likely employment 

opportunities in the local labor market 

must take into consideration the 

following factors: 

(1) Prevailing local labor market 

conditions, including the 

unemployment rate, local employer skill 

demands and hiring prerequisites; 

(2) Transferable skills that the worker 

may possess that would be of interest to 

other local employers; and 

(3) Any significant barriers to 

reemployment the worker has, such as: 

(i) Obsolete skills in the worker’s 

present occupation; 

(ii) Skills similar to those of other 

workers that represent an excess supply 

in the labor market area; or 

(iii) Limited English language 

proficiency coupled with limited or no 

skills in demand in the local labor 

market area. 

(b) The initial assessment 

requirements may be satisfied by a WIAfunded initial assessment. Assessments 

performed under the Wagner-Peyser Act 

or other partner programs, or a worker’s 

profile under the UI profiling system 

(section 303(j) of the Social Security Act 

(42 U.S.C. 503(j)), may satisfy the initial 

assessment requirements if they meet 

the requirements of paragraph (a) of this 

section. 

(c) Based upon the information 

gathered in the initial assessment, 

described in paragraph (a) of this 

section, the cooperating State agency 

may: 

(1) Determine that suitable 

employment (as defined in § 618.110) is 

available to the worker, and if so, the 

cooperating State agency may provide 

WIA core and intensive services. If the 

worker disagrees with the 

determination, the cooperating State 

agency must provide the worker with a 

comprehensive assessment (under 

§ 618.345) to be certain that the initial 

assessment is correct. 

(2) Determine that no suitable 

employment is available to the worker 

and, if so, the cooperating State agency 

may provide services as described in 

§ 618.310 (responsibilities for the 

delivery of employment services not 

funded under the Act) and § 618.315 

(responsibilities for the delivery of 

employment services funded under the 

Act) and must provide a comprehensive 

assessment (as described in § 618.345) 

of the worker’s circumstances in order 

to develop a comprehensive service 

strategy for the adversely affected 

worker. 

(d) If the cooperating State agency 

determines under paragraph (c) of this 

section that an adversely affected 

worker lacks marketable skills with 

which the worker can reasonably be 

expected to secure suitable 

employment, as defined under 

§ 618.110, the cooperating State agency 

must advise the worker to apply for 

training under subpart F, or seek a 

waiver under § 618.725 (waiver of 

training requirement for basic TRA). 

§ 618.340 Employment services and 

waiver provisions for workers not enrolled 

in training. 

(a) The cooperating State agency must 

coordinate with the One-Stop delivery 

system to ensure the provision of 

services to adversely affected workers 

who are determined through the initial 

assessment under § 618.335(a) (initial 

assessment of adversely affected 


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workers) to possess marketable skills for 

suitable employment and who are 

reasonably expected to find 

employment at equivalent wages in the 

foreseeable future. For these workers, in 

addition to the services discussed in 

§ 618.310 (responsibilities for the 

delivery of employment services not 

funded under the Act) and § 618.315 

(responsibilities for the delivery of 

employment services funded under the 

Act), the cooperating State agency must 

take the following actions, as necessary, 

and in a timely manner, to assure that 

the workers’ job search activities are 

efficient and effective: 

(1) Determine whether a waiver of the 

training requirement is appropriate 

under § 618.725 (waiver of training 

requirement for basic TRA), and, if 

appropriate, issue the waiver; 

(2) Refer the worker to suitable work 

(as defined in § 618.110, whichever is 

applicable to the worker) through 

appropriate labor exchange services 

provided by the public employment 

service system or through WIA core 

services. 

(b)(1) For workers whose initial 

assessment under § 618.330 (assessment 

of adversely affected workers) indicates 

that suitable employment is available 

but who are unsuccessful in their job 

search efforts, the cooperating State 

agency must establish procedures that 

will permit review of the assessment 

and of the reasons for the workers’

circumstances, as follows: 

(i) If a waiver of the training 

requirement has not been issued, the 

review must occur in a sufficiently 

timely manner so as not to endanger a 

worker’s eligibility for TRA under the 

time deadlines for enrollment in a 

training program described in 

§ 618.725(b). 

(ii) If a waiver of the training 

requirement has been issued based on 

the assessment that the worker has 

marketable skills, the review should be 

part of the cooperating State agency’s 

30-day waiver review procedures. 

(2) Based upon the review under 

paragraph (b)(1) of this section, the 

cooperating State agency may plan 

appropriate additional employment 

services and make a determination 

whether to continue or revoke a training 

waiver issued under § 618.725, to 

provide additional core and intensive 

services, and/or supportive services, or 

to initiate a comprehensive assessment 

in preparation for training. 

§ 618.345 Comprehensive assessment for 

adversely affected workers. 

(a) The cooperating State agency must 

arrange for a comprehensive assessment 

for each worker seeking TAA approval 

of a training program. 

(b) The comprehensive assessment 

must expand upon the initial 

assessment regarding the worker’s skills, 

aptitudes, and abilities (including 

reading and math levels). The 

cooperating State agency should 

determine in the comprehensive 

assessment, the worker’s interests as 

they relate to employment opportunities 

in demand either in the commuting area 

(as defined in § 618.110) or, where there 

is no reasonable expectation of securing 

employment in the commuting area and 

the worker is interested in relocation to 

other areas, outside of the commuting 

area. 

§ 618.350 IEPs for adversely affected 

workers. 

A cooperating State agency must 

prepare an IEP, as defined in § 618.110, 

for any worker who receives a 

comprehensive assessment. The IEP 

must document the result of the 

comprehensive assessment and 

document a service strategy to provide 

the worker with the services needed to 

obtain employment. The IEP must 

document: 

(a) Whether or not each of the six 

criteria for training approval in 

§ 618.610(a) through (f) (criteria for 

approval of training) or for issuing a 

training waiver under § 618.725 has 

been met; 

(b) The type of training proposed, if 

any; 

(c) Any additional services that will 

be needed by the worker to obtain 

employment, including intensive 

services, supportive services, and posttraining and follow-up services; and 

(d) Any prearrangements (as 

described in § 618.625(c) (payment 

restrictions for training programs)) for 

sharing the costs of the worker’s 

approved training program, any 

amendments of the training program, 

and any subsistence or transportation 

payments provided and the basis for its 

calculation. 

§ 618.355 Staff requirements for 

assessments. 

Staff performing either the initial or 

comprehensive assessment should 

possess the following: 

(a) An understanding of the local 

labor market; 

(b) Knowledge of local employer skill 

demands and hiring prerequisites, such 

as educational requirements and 

professional certifications, and the sets 

of skills workers from various 

occupations are likely to possess; 

(c) The ability to identify transferable 

skills that a worker may possess that 

would be of interest to other local 

employers outside of the worker’s 

present occupational area; 

(d) The ability to evaluate quickly a 

worker’s knowledge of and ability to 

implement job search strategies with 

little or no assistance; and 

(e) The ability to identify a worker’s 

apparent employment barriers that will 

require additional training and 

counseling. 

§ 618.360 Employment services for 

workers enrolled in training and follow-up 

services. 

(a) The cooperating State agency must 

ensure that all workers who enroll in 

training continue to receive access to 

the full range of core and intensive 

services as discussed in § 618.310 

(responsibilities for the delivery of 

employment services not funded under 

the Act) and § 618.315 (responsibilities 

for the delivery of employment services 

funded under the Act), as appropriate, 

to facilitate their appropriate and timely 

re-employment. 

(b) The cooperating State agency must 

provide follow-up services, including 

placement and other appropriate 

supportive services to workers upon 

completion of training. 

§ 618.365 Employment services and the 

TAA for Farmers program. 

The cooperating State agency must 

provide employment services to 

individuals entitled to cash benefits 

under the TAA for Farmers program 

administered by the U.S. Department of 

Agriculture. Such individuals may also 

receive training and incidental 

supplemental assistance under subpart 

F of this part. However, they are not 

entitled to any other benefits under the 

TAA program or under ATAA, 

including TRA under subpart G of this 

part, job search allowances under 

subpart D of this part, or relocation 

allowances under subpart E of this Part. 

Subpart D—Job Search Allowances. 

§ 618.400 Scope. 

This subpart D sets forth the 

conditions under which an adversely 

affected worker may apply for and 

receive a job search allowance to help 

the worker secure suitable employment 

outside the commuting area but within 

the United States. 

§ 618.405 Applying for a job search 

allowance. 

(a) Forms. To receive a job search 

allowance, an adversely affected worker 

must apply to the cooperating State 

agency, using the forms that such 

agency will furnish upon request. 


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(b) Submittal. A worker who has a 

total or partial separation may apply to 

the cooperating State agency for a job 

search allowance after a certification has 

been issued covering the worker. The 

worker must apply for a job search 

allowance before beginning a job search, 

and the job search allowance will not be 

approved until the cooperating State 

agency has determined that the worker 

is covered by a certification. 

(c) Time limits. To receive a job search 

allowance, the worker must apply 

before the later of the following: 

(1) The 365th day after either the date 

of the certification under which he or 

she is covered, or the 365th day after his 

or her last total separation, whichever is 

later; or 

(2) The 182nd day after the date of 

concluding approved training, unless 

the worker received a waiver of the 

participation in training requirement, in 

which event this paragraph (c)(2) is 

inapplicable. 

§ 618.410 Eligibility for a job search 

allowance. 

(a) Conditions. To be eligible for a job 

search allowance a worker must: 

(1) File a timely application within 

the deadlines imposed by § 618.405(c) 

(applying for a job search allowance); 

(2) Be an adversely affected worker 

totally separated from the job covered 

under the certification when he or she 

begins the job search; 

(3) Receive a determination by the 

cooperating State agency that he or she 

cannot reasonably expect to secure 

suitable employment (as defined in 

§ 618.110) in the commuting area (as 

defined in § 618.110), and can 

reasonably expect to obtain suitable 

employment affording a reasonable 

expectation of employment of a longterm duration outside the commuting 

area and in the area of the job search. 

(4) Not have previously received a 

relocation allowance under subpart E 

under this same certification; and 

(5) Begin each job search after the date 

of the certification and complete each 

State approved job search within 30 

calendar days after the worker leaves 

the commuting area to begin the job 

search. 

(b) Completion of job search. A job 

search is completed when the worker 

either obtains a job or has contacted 

each employer the worker planned to 

contact or to whom the cooperating 

State agency or other One-Stop partner 

referred the worker as part of the job 

search. 

§ 618.415 Findings required. 

(a) Available funding. Before any 

payment of a job search allowance may 

be approved, the liable State (as defined 

in § 618.110) must determine that job 

search funds are available for the fiscal 

year in which the job search activity 

takes place. 

(b) Findings by liable State. Before 

final payment of a job search allowance 

may be approved, the liable State must 

also: 

(1) Find that the worker meets the 

eligibility requirements for a job search 

allowance specified in § 618.410(a)(1) 

through (b)(5) (eligibility for a job search 

allowance); 

(2) Find that the worker submitted the 

application for a job search allowance 

within the time limits specified in 

§ 618.405(c) (applying for a job search 

allowance); and 

(3) Verify that the worker made 

contacts with all employers to which 

the worker has been referred and must 

find that the worker completed the job 

search (as described in § 618.410(b)) 

within the time limits stated in 

§ 618.410(a)(5) (eligibility for a job 

search allowance). 

(c) Assistance by agent State. (1) 

When a worker files an application for 

a job search allowance to conduct a job 

search in an agent State (as defined in 

§ 618.110), the cooperating State agency 

of the agent State in which the worker 

conducts the job search is responsible 

for assisting the worker in conducting 

the job search, and for assisting the 

liable State by furnishing to it any 

information required for the liable 

State’s determination of the claim. 

(2) The agent State must cooperate 

fully with the liable State in carrying 

out its activities and functions with 

regard to such applications. 

§ 618.420 Amount of a job search 

allowance. 

(a) Computation. The job search 

allowance is 90 percent of the total costs 

of each of the following (up to the limit 

in paragraph (b) of this section): 

(1) Travel. The more cost effective, 

reasonable mode of travel which cannot 

exceed the lesser of: 

(i) The actual cost of the most 

economical round trip travel by public 

transportation the worker reasonably 

can be expected to take between the 

worker’s home and the job search area; 

or 

(ii) The prevailing cost per mile under 

the Federal travel regulations (41 CFR 

part 301–11) for roundtrip travel by the 

usual route from the worker’s home to 

the job search area. 

(2) Lodging and meals. The worker’s 

allowable lodging and meals costs, 

which cannot exceed the lesser of: 

(i) The actual cost for lodging and 

meals while engaged in the job search; 

or 

(ii) 50 percent of the prevailing per 

diem allowance under the Federal travel 

regulations for the worker’s job search 

area. 

(b) Limit. The worker’s total job search 

allowance under a certification may not 

exceed the statutory dollar limit, no 

matter how many job searches he or she 

undertakes. If the worker is entitled to 

be paid or reimbursed by another source 

for any of these travel, lodging and 

meals expenses, the job search 

allowance will be reduced by that 

amount. 

§ 618.425 Determination and payment of a 

job search allowance. 

(a) Determinations. The cooperating 

State agency must promptly make and 

record determinations necessary to 

assure an adversely affected worker’s 

eligibility to a job search allowance. 

Sections 618.825 (determinations and 

notice) and 618.830 (appeals and 

hearings) of subpart H apply to these 

determinations. Copies of such 

applications and all determinations by 

the cooperating State agency must be 

included in the adversely affected 

worker’s case record. 

(b) Payment. If the worker makes a 

timely application, is covered under a 

certification, and is otherwise eligible, 

the cooperating State agency must make 

payment as promptly as possible after 

the worker has completed a job search 

and complied with paragraph (d) of this 

section, provided that funds are 

available for job search allowances. 

(c) Advances. Once the cooperating 

State agency determines that the worker 

is eligible for a job search allowance, it 

may advance the worker 60 percent of 

the estimated amount of the job search 

allowance (subject to the limit of 

§ 618.420(b) (amount of a job search 

allowance)) not later than five days 

before the worker begins the job search. 

The advance must be deducted from any 

payment under paragraph (b) of this 

section. 

(d) Worker evidence. Once the worker 

has completed a job search, he or she 

must certify, on a form provided by the 

cooperating State agency, as to the 

employer contacts made and the daily 

lodging and meals expenses and 

transportation costs. The worker must 

provide receipts for all lodging and 

purchased transportation expenses 

during the job search. An adjustment 

must be made if the amount advanced 

is less or more than the amount to 

which the worker is eligible under this 

section. 


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§ 618.430 Job search program 

participation. 

(a) Requirements. An adversely 

affected worker who participates in an 

approved job search program (JSP), as 

defined in § 618.110, may receive 

reimbursement for necessary expenses 

incurred for the worker’s participation 

in the approved JSP, regardless of the 

worker’s approval for or receipt of a job 

search allowance under § 618.420 

(amount of a job search allowance) and 

§ 618.425 (determination and payment 

of a job search allowance). 

(b) Approved JSP. A cooperating State 

agency may approve a JSP if: 

(1) The JSP is provided through the 

WIA, the public employment service, or 

any other Federal or State funded 

program, and complies with § 618.110; 

or, 

(2) The JSP is sponsored by the firm 

from which the worker has been 

separated and complies with § 618.110. 

(c) JSP allowances. Subsistence and 

transportation costs, whether inside or 

outside the worker’s commuting area, 

must be approved for workers 

participating in JSPs in accordance with 

§ 618.640(c) and (d) (governing 

subsistence and transportation costs for 

workers in approved training) and 

within available State funding levels. 

Costs incurred may not exceed those 

allowable for training under § 618.640(c) 

and (d). 

Subpart E—Relocation Allowances 

§ 618.500 Scope. 

This subpart E sets forth the 

conditions under which an adversely 

affected worker may apply for and 

receive a relocation allowance to help 

the worker relocate to secure suitable 

employment outside the commuting 

area but within the United States. 

§ 618.505 General. 

(a) A relocation allowance may be 

granted to an adversely affected worker 

to assist the worker and the worker’s 

family to relocate within the United 

States. A relocation allowance may be 

granted to a worker only once under a 

certification. 

(b) A relocation allowance may not be 

granted to more than one member of a 

family for the same relocation. If more 

than one member of a family applies for 

a relocation allowance as an adversely 

affected worker for the same relocation, 

then the allowance must be paid to the 

family member who files first, if 

otherwise eligible. 

§ 618.510 Applying for a relocation 

allowance. 

(a) Forms. To receive a relocation 

allowance, a worker must apply to the 

cooperating State agency, using the 

forms that such agency will furnish 

upon request. 

(b) Submittal. A worker who has a 

total or partial separation may apply to 

the cooperating State agency for a 

relocation allowance after a certification 

has been issued covering the worker. 

The worker must apply for a relocation 

allowance before the relocation begins. 

(c) Time limits. The worker must 

apply for a relocation allowance before 

the later of the following: 

(1) The 425th day after either the date 

of the certification under which the 

worker is covered or the worker’s last 

total separation, whichever is later; or 

(2) The 182nd day after the date the 

worker concluded training, unless the 

worker received a waiver of the 

participation in training requirement, in 

which event this paragraph (c)(2) is 

inapplicable. 

§ 618.515 Eligibility for a relocation 

allowance. 

(a) Conditions. To be eligible for a 

relocation allowance, the worker must: 

(1) File a timely application within 

the deadlines imposed by § 618.510(c) 

(applying for a relocation allowance); 

(2) Be an adversely affected worker 

totally separated from adversely affected 

employment when the relocation 

begins; 

(3) Not have already received a 

relocation allowance under the same 

certification; 

(4) Relocate within the United States 

but outside the worker’s present 

commuting area; 

(5) Receive a determination by the 

cooperating State agency that the worker 

has no reasonable expectation of 

securing suitable employment (as 

defined in § 618.110) in the commuting 

area (as defined in § 618.110), and has 

obtained suitable employment affording 

a reasonable expectation of employment 

of a long-term duration, or a bona fide 

offer of such suitable employment, 

outside the commuting area and in the 

area of intended relocation; and 

(6)(i) Begin the relocation as promptly 

as possible after the date of certification 

but no later than: 

(A) 182 days after the worker applies 

for a relocation allowance, or 

(B) 182 days after the conclusion of an 

approved training program, if the 

worker entered a training program 

approved under § 618.640(c) and (d) 

(subsistence and transportation 

payments) for training outside the 

worker’s commuting area; 

(ii) Complete the relocation (as 

described in § 618.530(e) (determination 

and payment of a relocation allowance)) 

within a reasonable time as determined 

in accordance with Federal travel 

regulations with the cooperating State 

agency giving consideration to, among 

other factors, whether: 

(A) Suitable housing is available in 

the area of relocation; 

(B) The worker can dispose of the 

worker’s residence; 

(C) The worker or a family member is 

ill; and 

(D) A member of the family is 

attending school, and if so, when the 

member can best be transferred to a 

school in the area of relocation. 

(b) Job search allowances. The 

cooperating State agency may not 

approve a relocation allowance and a 

job search allowance for a worker at the 

same time. However, if the worker has 

received a job search allowance, he or 

she may receive a relocation allowance 

at a later time. 

§ 618.520 Findings required. 

(a) Available funding. Before any 

payment of a relocation allowance may 

be approved, the liable State (as defined 

in § 618.110) must make a 

determination that relocation funds are 

available for the fiscal year in which the 

relocation activity takes place. 

(b) Findings by liable State. Before 

final payment of a relocation allowance 

may be approved, the liable State must 

make the following findings: 

(1) That the worker meets the 

eligibility requirements for a relocation 

allowance specified in § 618.515(a)(1) to 

(6) and is not also receiving a job search 

allowance as specified in § 618.515(b) 

(eligibility for a relocation allowance); 

(2) That the worker submitted the 

application for a relocation allowance 

within the time limits specified in 

§ 618.510(c) (applying for a relocation 

allowance); 

(3) That the worker began and 

completed the relocation within the 

time limitations specified in 

§ 618.515(a)(6) (eligibility for a 

relocation allowance); and 

(4) That the worker obtained suitable 

employment affording a reasonable 

expectation of employment of a longterm duration, or a bona fide offer of 

such suitable employment, in the area of 

intended relocation, in accordance with 

§ 618.515(a)(5) (eligibility for a 

relocation allowance). The liable State 

must verify (directly or through the 

agent State) the employment or bona 

fide offer with the employer. 

(c) Assistance by agent State. (1) 

When a worker relocates to an agent 

State (as defined in § 618.110), the 

cooperating State agency of the agent 

State is responsible for: 

(i) Assisting the worker in relocating 

to the State, and in completing an 


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application for a relocation allowance 

with the liable State, and 

(ii) Assisting the liable State by 

furnishing to it any information 

required for the liable State’s 

determination on the claim. 

(2) The agent State must cooperate 

with the liable State in carrying out its 

activities and functions with regard to 

relocation applications. When requested 

by the liable State, the agent State must 

verify with the employer and report to 

the liable State whether the worker has 

obtained suitable employment affording 

a reasonable expectation of employment 

of a long-term duration, or a bona fide 

offer of such suitable employment. 

§ 618.525 Determining the amount of a 

relocation allowance. 

The worker’s relocation allowance 

includes the following, as applicable: 

(a) Reimbursement. (1) Personal 

travel. The worker may be reimbursed 

for 90 percent of the following expenses 

related to personal travel: 

(i) The lesser of—

(A) the most cost effective, reasonable 

travel expenses by public transportation 

for the worker and family from their old 

home to their new home; or 

(B) the prevailing cost per mile by 

privately owned vehicle under the 

Federal travel regulations (41 CFR part 

301–11) for travel by the usual route 

from their old home to their new home. 

(ii) Separate travel, computed in 

accordance with paragraph (a)(1)(i) of 

this section, of a family member or 

members who, for good cause and with 

the approval of the cooperating State 

agency, must travel separately to their 

new home. For purposes of this 

paragraph (a)(1)(ii), good cause includes 

but is not limited to reasons such as a 

family member’s health, schooling or 

economic circumstances. 

(2) Lodging and meals. The worker 

may be reimbursed for 90% of lodging 

and meal expenses for the worker and 

his or her family while they are in 

transit, but such costs may not exceed 

the lesser of: 

(i) The actual lodging and meals cost 

to the worker and his or her family 

while they are traveling; or 

(ii) 50 percent of the prevailing per 

diem allowance under the Federal travel 

regulations for the relocation area for 

those days while the worker and his or 

her family are traveling. 

(3) Movement of household goods. (i) 

The worker may be reimbursed for 90 

percent of the allowable costs of moving 

the worker’s and family’s household 

goods and personal effects. This 

includes 90 percent of the costs of 

moving by the most economical 

commercial carrier the worker 

reasonably can be expected to use, 

moving by rental truck or trailer (for 

rental, mileage and fuel), or moving a 

house trailer or mobile home. It also 

includes 90 percent of the costs of 

temporary storage of household goods 

for up to 60 days. In approving the move 

of a house trailer or mobile home, the 

cooperating State agency must follow 

the specific requirements of the Federal 

travel regulations at 41 CFR part 302–

10. 

(ii) For a commercial carrier move of 

household goods or house trailer or 

mobile home, the worker must obtain an 

estimate of the moving cost and provide 

this to the liable State. The estimate may 

include the cost of insuring such goods 

and effects for their actual value or 

$40,000, whichever is less, against loss 

or damage in transit. 

(iii) If more economical, the 

cooperating State agency may make 

direct arrangements for moving and 

insuring a worker’s household goods 

and personal effects with a carrier and 

insurer selected by the worker and may 

make payment of 90 percent of moving 

and insurance costs directly to the 

carrier and insurer. No such 

arrangement releases a carrier from 

liability otherwise provided by law or 

contract for loss or damage to the 

worker’s goods and effects. The United 

States must not be or become liable to 

either party for personal injury or 

property loss damage under any 

circumstances. 

(iv) The maximum net weight of the 

household goods relocated from the 

worker’s old home to the relocation area 

may not exceed that set by the Federal 

travel regulations (41 CFR Parts 301 

through 304); and 

(4) Lump sum. As part of the 

relocation allowance, the worker will 

receive a lump sum payment equivalent 

to three times his or her average weekly 

wage, not to exceed the statutory dollar 

limit under section 237(b)(2) of the Act 

or its successor provision. 

(b) Reduction. If the worker is eligible 

to receive or has received moving 

expenses from any other source for the 

same relocation, the amount received 

will be deducted from the amount of the 

relocation allowance as determined in 

paragraphs (a)(1), (a)(2) and (a)(3) of this 

section. 

(c) Limitation. In no case may the 

cooperating State agency pay a travel 

allowance for the worker or a family 

member more than once for a single 

relocation. 

§ 618.530 Determinations and payment of 

a relocation allowance. 

(a) Determinations. The cooperating 

State agency must promptly make and 

record determinations necessary to 

assure a worker’s eligibility to a 

relocation allowance. Sections 618.825 

(determinations and notice) and 618.830 

(appeals and hearings) of subpart H 

apply to these determinations. Copies of 

such applications and all 

determinations by the cooperating State 

agency must be included in the 

adversely affected worker’s case record. 

(b) Payment. If the worker makes a 

timely application, is covered under a 

certification, and is otherwise eligible, 

the cooperating State agency must make 

payment as promptly as possible after 

the worker has completed the 

relocation. 

(c) Travel allowances. (1) The 

cooperating State agency must pay, in 

advance, by check payable to the 

worker, the allowances, computed 

under § 618.525(a) (determining the 

amount of a relocation allowance), 

within 10 days before or at the time of 

the worker’s scheduled departure to 

begin relocation. Payment for a family 

member approved for separate travel 

must be paid in advance within 10 days 

before or at the time of that family 

member’s scheduled departure. 

(2) Worker Evidence. After a worker 

completes the relocation, he or she must 

certify on a State form the daily lodging 

and meals expenses. The worker must 

provide receipts for all lodging and 

purchased transportation expenses for 

the worker and family related to the 

relocation. If the advance the worker 

received was more or less than the 

actual allowance, an appropriate 

adjustment must be made. 

(d) Movement of Household Goods. 

The cooperating State agency must pay 

the amount equal to 90 percent of the 

estimate of the costs of moving the 

worker’s household goods by the most 

economical commercial carrier the 

worker reasonably can be expected to 

use (as described at § 618.525(a)(3) 

(determining the amount of a relocation 

allowance)) as follows: 

(1) Commercial carrier. If a 

commercial carrier moves the worker’s 

household goods and personal effects, 

the cooperating State agency must 

provide the worker with an advance 

equal to 90 percent of the estimated cost 

of the move, including any other 

charges that the cooperating State 

agency has approved such as insurance. 

The funds must be advanced by check 

or checks payable to the carrier and 

insurer; the cooperating State agency 

must deliver the check to the worker 

within 10 days of, or at the time of, the 

scheduled shipment. 

(i) On completion of the move (as 

determined under paragraph (e) of this 

section), the worker must promptly 


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submit to the cooperating State agency 

a copy of the carrier’s bill of lading, 

including a receipt showing payment of 

moving costs. 

(ii) If the amount the worker received 

as an advance is greater than 90 percent 

of the actual approved moving costs, he 

or she must reimburse the cooperating 

State agency for the difference. If the 

advance the worker received is less than 

90 percent of the actual moving costs 

approved by the cooperating State 

agency, the cooperating State agency 

must reimburse the worker for the 

difference. 

(iii) If more economical, the 

cooperating State agency may make 

direct arrangements for moving and 

insuring a worker’s household goods 

and personal effects with a carrier and 

insurer selected by the worker and may 

make payment of 90 percent of moving 

and insurance costs directly to the 

carrier and insurer subject to the 

condition of § 618.525(a)(3)(iii) 

(determining the amount of a relocation 

allowance). 

(2) Private truck and trailer, rental 

truck or trailer, or house trailer move. (i) 

Private vehicle with trailer. If the move 

is by private vehicle and trailer, 90 

percent of the estimated cost for the use 

of the private vehicle must be made by 

check payable to the worker and must 

be delivered within 10 days of the 

scheduled move. 

(ii) Truck and trailer rental. If the 

move is by rental truck or rental trailer, 

90 percent of the estimated rental cost 

must be advanced by check payable to 

the worker or the rental agency and 

must be delivered to the worker within 

10 days of the scheduled move. 

(iii) House trailer. If a house trailer or 

mobile home is moved by commercial 

carrier, 90 percent of the approved 

estimated cost must be advanced by 

check payable to the worker or the 

carrier, and must be delivered to the 

worker within 10 days of the scheduled 

move. 

(iv) On completion of the move, the 

worker must promptly submit a receipt 

to the cooperating State agency 

itemizing and evidencing payment of 

the rental charges for the rental trailer 

and fuel costs, or for the rental truck 

and trailer and fuel costs, or for the 

actual charges for the house trailer or 

mobile home move. If the amount the 

worker received as an advance is greater 

than 90 percent of the actual approved 

moving costs, he or she must reimburse 

the cooperating State agency for the 

difference. If the advance the worker 

received is less than 90 percent of the 

actual moving costs approved by the 

cooperating State agency, the 

cooperating State agency must 

reimburse the worker for the difference. 

(3) Temporary storage. If temporary 

storage, not to exceed 60 days, of 

household goods and personal effects is 

necessary and incident to transportation 

of the household goods for the 

relocation, then 90 percent of the 

approved estimated cost must be 

advanced by check payable to the 

worker or the rental agency and must be 

delivered to the worker within 10 days 

of the scheduled move. 

(e) Lump sum allowance. The lump 

sum allowance provided in 

§ 618.525(a)(4) (determining the amount 

of a relocation allowance) must be paid 

when arrangements for the relocation 

are finalized, but not more than 10 days 

before the earlier of the worker’s 

anticipated departure from his or her 

old home or the anticipated date of 

shipment of the worker’s household 

goods and personal effects. 

(f) Relocation completed. A worker 

completes a relocation when the worker 

and family, if any, along with household 

goods and personal effects are delivered 

to the new residence in the area of 

relocation or to temporary storage. If no 

household goods and personal effects 

are moved, then a worker completes a 

relocation when the worker and family, 

if any, arrive in the area of relocation 

and establish a residence in the new 

area. When a family member is 

approved for separate travel, the later 

arrival of such family member does not 

alter the date the relocation was 

completed. 

Subpart F—Training Services 

§ 618.600 Scope. 

This subpart covers approval of 

training for an adversely affected 

worker. The purpose of an approved 

training program is to assist an 

adversely affected worker to obtain 

skills that will lead them to work that 

will use their highest skill levels, 

including those gained in the training 

program, and pay the highest wages 

given the workers’ preexisting skill 

levels and education and the condition 

of the labor market, and to do so as 

quickly as possible. 

§ 618.605 Procedures. 

(a) Comprehensive Assessment. The 

cooperating State agency must ensure 

that every worker has a comprehensive 

assessment leading to the development 

of an IEP, as described in subpart C, 

before an application for training can be 

approved. 

(b) Applications. (1) Applications for 

approval of training, including requests 

for TAA-funded transportation and 

subsistence payments, must accord with 

this subpart F and be documented on 

forms which the cooperating State 

agency must furnish to individuals. 

(2) A bona fide application for 

training under this subpart F must 

contain the information specified in 

§ 618.110 and must be signed and dated 

by a cooperating State agency 

representative upon receipt. 

(c) Determinations. Selection for, 

approval of, or referral of a worker to 

training, including TAA-funded 

transportation and subsistence 

payments, under this subpart F, or a 

decision with respect to any specific 

training or non-selection, non-approval, 

or non-referral for any reason is a 

determination to which § 618.825 

(determinations and notice), § 618.830 

(liable and agent State responsibilities) 

and § 618.835 (appeals and hearings) of 

subpart H apply. Copies of such 

applications and all determinations by 

the cooperating State agency whether to 

approve or deny the training, including 

TAA-funded transportation and 

subsistence payments, must be included 

in the adversely affected worker’s case 

record. 

(d) Linkages for training 

opportunities. It is the responsibility of 

the cooperating State agency to explore, 

identify, and secure training 

opportunities and to establish linkages 

with other public and private agencies, 

as described in § 618.325 (integrated 

service strategies to ensure that a 

comprehensive array of services are 

provided by WIA or other programs), 

which can provide training that 

maximizes the potential of adversely 

affected workers to return to 

employment as soon as possible. A 

cooperating State agency is not required 

to create new training programs or 

develop new curricula where none 

currently exist. 

§ 618.610 Criteria for approval of training. 

The cooperating State agency must 

consult the worker’s comprehensive 

assessment and IEP, as described 

respectively under § 618.345 and 

§ 618.350, before approving an 

application for training. Training must 

be approved for an adversely affected 

worker if the cooperating State agency 

determines all of the following six 

criteria are met: 

(a) Criterion 1: There is no suitable 

employment available for the adversely 

affected worker. (1) There is no suitable 

employment, as defined at § 618.110 

(which may include technical and 

professional employment), available for 

an adversely affected worker either in 

the commuting area, as defined in 

§ 618.110, or outside the commuting 


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area in an area to which the worker 

desires to relocate with the assistance of 

a relocation allowance under subpart E 

of this Part, and there is no reasonable 

prospect of such suitable employment 

becoming available for the worker in the 

foreseeable future. Notification of a 

specific recall, as described in 

§ 618.725(b)(1) (waiver of training 

requirement for basic TRA), to adversely 

affected employment by the worker’s 

firm in the same or essentially the same 

job is considered suitable employment if 

the recall is expected to be permanent, 

and the worker’s application for training 

must be denied. 

(2) ‘‘No reasonable prospect of such 

suitable employment in the foreseeable 

future’’ means that the worker does not 

have a likely prospect of being recalled 

to the adversely affected employment 

and an assessment of the worker’s skills 

and local labor market indicators, or 

local labor market indicators in the area 

where the worker desires to relocate, 

does not provide evidence of suitable 

employment being available in the 

foreseeable future. 

(3) If an application for training is 

denied under paragraph (a)(1) of this 

section, the cooperating State agency 

must document the availability of 

suitable employment through local labor 

market information or job orders. 

(b) Criterion 2: The worker would 

benefit from appropriate training. (1) 

The worker would benefit from 

appropriate training when a direct 

relationship exists between the worker’s 

need for skills training or remedial 

education in order to increase the 

likelihood of obtaining suitable 

employment and those skills or 

remediation that would be provided by 

the training program under 

consideration for the worker. It also 

means that the training is expected to 

improve the worker’s chances of 

obtaining and retaining sustainable 

employment at higher wages than 

would have been obtained in the 

absence of training; 

(2) The worker must also have the 

knowledge, skills, and abilities to 

undertake, make satisfactory progress 

in, and complete the training. 

(3) The cooperating State agency may 

not approve training for a worker that 

would result in seasonal employment, 

unless the duration and minimum 

compensation of such employment 

meets the criteria for employment that 

will lead to self-sufficiency set by the 

State Workforce Investment Board or the 

Local Workforce Investment Board for 

the local workforce investment area 

under 20 CFR 663.230. 

(c) Criterion 3: There is a reasonable 

expectation of employment following 

completion of such training. A 

reasonable expectation of employment 

following completion of such training 

means that, given the job market 

conditions expected to exist at the time 

of the completion of the training 

program, a reasonable expectation, fairly 

and objectively considered, exists that 

the worker is likely to find a job that 

will allow the worker to achieve selfsufficiency. Self-sufficiency is judged in 

accordance with criteria established by 

the State Workforce Investment Board or 

the Local Workforce Investment Board 

for the local workforce investment area 

under 20 CFR 663.230 using the skills 

and education acquired while in 

training, after completion of such 

training. The job market conditions 

considered must be limited to those in 

the worker’s commuting area, as defined 

in § 618.110, or in an area where the 

worker desires to relocate with the 

assistance of a relocation allowance 

under subpart E of this part. 

(1) Any determination under this 

criterion must take into account that ‘‘a 

reasonable expectation of employment’’

does not require that employment 

opportunities for the worker be 

available, or offered, immediately upon 

the completion of the approved training. 

This criterion emphasizes that, when 

initially approving such training, there 

must be a fair and objective projection 

of job market conditions expected to 

exist at the time of completion of the 

training. This criterion recognizes that 

new employment occurs on employers’

time schedules that may not coincide 

with the time of the completion of the 

training. 

(2) The cooperating State agency may 

measure expected job market conditions 

using the list of high growth and 

demand occupations maintained by the 

Local Workforce Investment Board 

(which is based in part on pertinent 

labor market data, including job order 

activity where appropriate), or by 

contacting the local and State economic 

development agencies for information 

about jobs requiring training that may 

not already exist in the local workforce 

investment area but which have a 

reasonable prospect of soon becoming 

available. 

(3) When a worker desires to relocate 

within the United States but outside the 

worker’s present commuting area upon 

completion of training, the cooperating 

State agency must obtain documentation 

(such as telephone contact notes, copies 

of e-mail communications, or written 

statements or a facsimile copy) of labor 

market information in the area in which 

relocation is planned to support the 

determination that a reasonable 

expectation of employment exists 

within the area of the planned 

relocation. 

(4) A reasonable expectation of 

employment may exist in a limited 

demand occupation for a single, trained 

worker in an occupation that occurs in 

exceptionally limited numbers in the 

worker’s commuting area (such as, a 

taxidermist or antique doll restorer) but 

is one in which the worker has 

expressed a desire for training. Such an 

occupation ordinarily will not appear 

on a list of high-growth and demand 

occupations. A limited demand for such 

an occupation does not preclude the 

development of an IEP that includes 

such an occupational training program, 

but the cooperating State agency must 

determine that there is a reasonable 

expectation that the worker can find 

employment in the occupation. 

Cooperating State agencies must require 

that an employer interested in hiring 

such a trained person provide evidence 

of an intent to hire the worker upon 

successful completion of approved 

training which provides documentation 

in the IEP that an employment 

opportunity is expected to be available. 

(5) A cooperating State agency may 

approve training in an occupation if it 

finds that there is a reasonable 

expectation that the training will lead to 

a reasonable prospect of self 

employment in the occupation for 

which the worker requests training. 

(d) Criterion 4: Training approved by 

the Secretary is reasonably available to 

the worker from either governmental 

agencies or private sources (which may 

include area vocational education 

schools and employers). This criterion 

means that training is reasonably 

accessible to the worker at any 

governmental or private training (or 

education) provider. Training may be 

institutional training, on-the-job training 

or customized training with employers. 

This criterion also means that emphasis 

must be given to finding accessible 

training for the worker in the 

commuting area, although it does not 

preclude approving training outside the 

commuting area if none is available at 

the time within the worker’s commuting 

area. Whether the training is within or 

outside the commuting area, the training 

must be available at a reasonable cost as 

prescribed in paragraph (f) of this 

section. Sources of approved training 

may include those described in 

§ 618.620 (selection of training 

programs). 

(e) Criterion 5: The worker is qualified 

to undertake and complete such 

training. This means the worker is 

qualified to undertake and complete 

such training, as follows: 


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(1) Evaluation of the worker’s 

qualifications must determine that the 

worker’s knowledge, skills, and 

abilities, educational background, work 

experience and financial resources, are 

adequate to undertake and complete the 

specific training program being 

considered. The cooperating State 

agency must consult the adversely 

affected worker’s comprehensive 

assessment or IEP developed in 

accordance with subpart C of this part 

in determining whether the worker is 

qualified to undertake and complete the 

training. 

(2) The worker must have sufficient 

personal or family resources on which 

to live to allow completion of the 

training within the time limits in 

§ 618.615(a)(3) (limitations on approval 

of training). (i) In making this 

determination, the cooperating State 

agency must consider: 

(A) The worker’s remaining weeks of 

UI and TRA payments in relation to the 

duration of the selected training 

program; 

(B) Other sources of income support 

available to the worker including 

severance, earnings of other family 

members, and other family resources; 

(C) Other fixed financial obligations 

and expenses of the worker and family; 

(D) The availability of Federal student 

financial assistance as defined in 

§ 618.110 or any State-funded student 

financial assistance; and 

(E) If applicable, the worker’s 

employment situation while attending 

training. 

(ii) Before approving a TAA training 

program, the cooperating State agency 

must document that financial resources 

were discussed with the worker and a 

determination made that the worker had 

adequate personal or family resources 

along with UI and/or TRA payments to 

allow for the completion of training. 

(iii) When a worker has inadequate 

financial resources to complete a 

selected TAA training program 

regardless of whether it exceeds the 

duration of UI and TRA payments, then 

that training must not be approved and 

consideration must be given to other 

training opportunities or related 

workforce development programs’

assistance available to the worker. 

(f) Criterion 6: Such training is 

suitable for the worker and available at 

a reasonable cost. (1) Suitable for the 

worker. Suitable for the worker means 

that the training being considered meets 

the criteria in paragraph (e) of this 

section and that the training is 

appropriate for the worker given the 

worker’s knowledge, skills, and 

abilities, background and experience. 

(2) Available at a reasonable cost. (i) 

Costs of a training program include 

tuition and related expenses (books, 

tools, uniforms and other trainingrelated clothing including goggles and 

work boots, laboratory fees and other 

academic fees required as part of the 

approved training program), subsistence 

expenses and travel expenses (described 

in § 618.640(c) and (d) (subsistence and 

transportation expenses)). Under no 

circumstances may the costs of a 

training program include the payment 

for personal computer equipment for a 

worker to own, even when it is a 

prerequisite for a worker’s training 

program, although cooperating State 

agencies may purchase personal 

computer equipment and then lend it to 

those workers who require it for their 

training; if a worker lacks sufficient 

access to such computer equipment, 

then the training program must not be 

approved. Cooperating State agencies 

must pay the costs of initial licensing 

and certification tests and fees where a 

license or certification is required for 

employment. 

(ii) The cooperating State agency must 

give first consideration to the lowest 

cost training for the occupation that is 

available in the worker’s commuting 

area, if that training is of sufficient 

quality, content, and expected outcome 

to meet the worker’s occupational goal 

as reflected in the IEP. The cooperating 

State agency may approve higher cost 

training if that training is expected to be 

of demonstrably higher quality, content 

or expected outcomes, or to achieve 

comparable results in a significantly 

shorter duration. 

(iii) Training in a selected 

occupational area may not be approved 

if: 

(A) It requires an extraordinarily high 

skill level; and 

(B) The total costs of the training are 

substantially higher than the costs of 

other types of training that are suitable 

for the worker. 

(iv) Training at facilities outside the 

worker’s commuting area requiring 

transportation or subsistence payments 

which add substantially to the total 

costs may not be approved if other 

appropriate training in the commuting 

area is available at a lower cost. 

(v) A training program may not be 

approved if the cost exceeds the limit on 

the amount of training per worker set by 

the cooperating State agency, except as 

permitted under § 618.650 (State 

training cost caps). 

§ 618.615 Limitations on approval of 

training. 

(a) Length of training. The cooperating 

State agency, in determining whether to 

approve training, must determine the 

appropriateness of the length of 

training, as follows: 

(1) The training must be of suitable 

duration to achieve the desired skill 

level to facilitate employment in the 

selected occupation in the shortest 

possible time. 

(2) Factors that may affect the 

workers’ participation in training, 

including employment (full- or parttime) under § 618.630 (training of 

reemployed workers not in suitable 

employment), availability of childcare, 

and the course schedule of the selected 

training institution, must be considered. 

(3) Duration. (i) The maximum 

duration for any approvable training 

program is 104 consecutive calendar 

weeks, and up to 26 additional calendar 

weeks, as needed, for a worker to 

complete approved remedial education 

(as discussed in § 618.755 (qualifying 

requirements for TRA)) for a total not to 

exceed 130 consecutive calendar weeks. 

(ii) If a training program meets the 

duration requirements of paragraph 

(a)(3)(i) of this section, but will extend 

beyond the period in which TRA is 

available, the cooperating State agency 

must determine, under § 618.610(e)(2) 

(criteria for approval of training), that 

the worker has sufficient personal 

resources to complete the training. 

(iii) The cooperating State agency 

must consult the adversely affected 

worker’s comprehensive assessment and 

IEP, as discussed in § 618.345 

(comprehensive assessment) and 

§ 618.350 (IEPs), when determining the 

length of remedial education the worker 

needs to return to employment. This 

paragraph does not preclude the 

cooperating State agency from 

approving a training program consisting 

entirely of remedial education when it 

is determined to be appropriate for the 

worker as long as it is consistent with, 

in particular, § 618.610(c) (criteria for 

approval of training) that there is a 

reasonable expectation of sustainable 

employment following completion of 

training. 

(4) Exception for certain workers who 

perform service in the Uniformed 

Services. A member of one of the 

Reserve components of the U.S. Armed 

Forces means the Army Reserve; Air 

Force Reserve; Naval Reserve; Marine 

Corps Reserve; Coast Guard Reserve; 

Army and Air National Guard when 

performing duty under Federal 

authority. A member of one of the 

Reserve components of the U.S. Armed 

Forces ordered to perform active duty 

service in the uniformed services will 

have the period for training, under 

paragraph (a)(3) of this section, 

suspended upon being called up to 


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duty, provided the requirements 

specified in paragraphs (a)(4)(i) through 

(v) of this section are met. Such a 

Reserve component member may either 

resume training upon discharge from 

active service for whatever training 

period still remains from the point 

when the Reservist left training for 

active duty, or be allowed to repeat 

portions of the training if doing so is 

necessary for completion of the 

approved training program, or, where 

appropriate, begin a new approved 

training program. Where the Reservist 

repeats a training program or begins a 

new training program, the Reservist will 

be entitled to a new 104-consecutive 

calendar week period, and up to an 

additional 26 calendar weeks, as 

needed, to complete approved remedial 

education (as discussed in § 618.755), 

for a total not to exceed 130-consecutive 

calendar weeks. To be eligible to 

resume, repeat, or begin a new approved 

training program, the Reservist must 

meet the following requirements: 

(i) The active duty service must be 

under competent Federal orders and 

must be involuntary service in support 

of: a war or national emergency declared 

by the President or the Congress; an 

operational mission; a critical mission 

or requirement of the uniformed 

services; or other contingencies for 

which an involuntary activation is 

deemed necessary. 

(ii) The worker must give prior oral or 

written notice of the active duty service 

to the cooperating State agency, unless 

the giving of notice is precluded by 

military necessity or is otherwise 

impossible or unreasonable. 

(iii) The worker must not have: 

(A) received a dishonorable or bad 

conduct discharge; 

(B) received a separation under other 

than honorable conditions; 

(C) received a dismissal under section 

10 U.S.C. 1161(a); or 

(D) been dropped from the rolls under 

10 U.S.C. 1161(b). 

(iv) The worker must apply to the 

cooperating State agency for training 

within 90 days following release from 

active duty service, as described in 

§ 618.605(b)(2) (procedures) above. The 

application may be oral or written. 

(v) Upon request of the cooperating 

State agency, the worker must provide 

documentation that the worker has not 

received a dishonorable or other 

disqualifying discharge upon release 

from active duty service as described in 

paragraph (a)(4)(iii) of this section. 

(b) Amending approved training. The 

cooperating State agency may, with the 

approval of the worker, amend a 

worker’s approved training program 

under the following conditions: 

(1) The cooperating State agency 

determines after reviewing and 

amending the worker’s IEP that—

(i) A course or courses designed to 

satisfy unforeseen needs of the worker, 

such as remedial education or new 

employer skill requirements, are 

necessary; 

(ii) The originally approved training 

program cannot be successfully 

completed by the worker; 

(iii) The originally approved training 

program is determined to be of poor 

quality; or 

(iv) Training in another occupation 

will lead to a better outcome. 

(2) The proposed training program 

meets the criteria for approval of 

training at § 618.610 (criteria for 

approval of training), and, specifically, 

the costs for the amended training 

program continue to meet the 

reasonable cost requirement of 

§ 618.610(f). 

(3) The amended training program 

and the originally approved training 

program combined do not exceed the 

104-week limitation, or the 130-week 

limitation when remedial education is 

part of the training program, on the 

duration of training. 

(c) One approved training program 

per certification. Except as provided 

under paragraphs (a)(4) and (b) of this 

section, no worker may receive more 

than one approved training program 

under a single certification. 

(d) Full-time or part-time training. A 

cooperating State agency may approve a 

training program on a full-time or parttime basis. 

(1) Full-time. Full-time training means 

that the hours in a day and days in a 

week of attendance in training are fulltime in accordance with the established 

hours and days of the training provider. 

If a worker in full-time training has 

obtained employment (which is not 

suitable employment as defined in 

§ 618.110, then the worker may choose 

to continue with such employment if 

the worker is willing and able to 

accommodate a full-time training 

schedule under the training institution’s 

standard for full-time training. 

(2) Part-time. (i) A cooperating State 

agency may approve part-time training 

when the worker has employment 

which is not suitable employment, or 

may amend an approved training 

program from full-time to part-time if a 

worker obtains employment which is 

not suitable employment and the worker 

wants to accept or continue with such 

employment. A cooperating State 

agency may also approve part-time 

training for partially separated workers. 

In such instances, the time limits under 

paragraph (a)(3) of this section will 

continue to apply for receipt of training 

and TRA (if applicable). Participants 

seeking approval to attend training on a 

part-time basis must be employed on at 

least a part-time basis in employment as 

defined under the State law of the State 

in which the worker is employed. The 

combination of part-time employment 

and part-time training must represent at 

least the equivalent of full-time 

employment as defined by State law. 

The training approval requirements of 

§ 618.610 (criteria for approval of 

training) apply to part-time training. In 

particular, the cooperating State agency 

must assure, before approving part-time 

training or the amendment of an 

approved training program from a fulltime to a part-time basis, that the 

program provides the worker with a 

reasonable expectation of employment 

following completion of the training 

program. 

(ii) If the hours of work are reduced 

so that the combination of part-time 

employment and part-time training no 

longer represent the equivalent of fulltime employment, the worker may 

complete that session or semester. 

However, the training approval must be 

rescinded beginning with the next 

session or semester, unless the 

combination of part-time employment 

and part-time training represents the 

equivalent of full-time employment by 

the start of the next session or semester. 

(iii) The cooperating State agency 

must ensure that the worker, if choosing 

to engage in part-time employment and 

part-time training, is informed of the 

possible negative effects on UI and other 

TAA benefits, including loss of the 

HCTC. The cooperating State agency 

must require a worker to sign a 

statement (for inclusion in the worker’s 

case file) establishing that the worker 

has been informed of the potential for 

reduced benefits. 

(e) Previous approval of training 

under other law. Training previously 

approved for a worker under another 

State or Federal law or other authority 

is not training approved under 

§ 618.610. Any such training may be 

approved under § 618.610 (criteria for 

approval of training), if it meets all of 

the requirements and limitations of 

§ 618.610 and the other provisions of 

this subpart F, but such approval may 

not be retroactive for any of the 

purposes of this Part 618, including 

payment of the costs of the training and 

payment of TRA to the worker 

participating in the training. However, 

in the case of a redetermination or 

decision reversing a determination 

denying approval of training, the 

redetermination or decision must be 

given effect retroactive to the issuance 


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of the determination that was reversed; 

but no costs of training may be paid 

unless such costs actually were incurred 

for training in which the individual 

participated, and no basic nor 

additional TRA may be paid with 

respect to any week the individual was 

not actually participating in the 

training. 

(f) Training outside the United States. 

In no case may a worker be approved for 

training under this subpart F that is 

conducted totally or partially at a 

location outside the United States. 

§ 618.620 Selection of training program. 

(a) Standards and procedures for 

selection of training. Cooperating State 

agencies must document the standards 

and procedures used to select training 

providers and training programs in 

which training is approved. The 

following provisions apply to the 

selection of a training program other 

than OJT, customized training, or 

training in limited demand occupations: 

(1) Cooperating State agencies may 

only approve training for an adversely 

affected worker if the training is 

provided by an eligible training 

provider under WIA, except as provided 

in paragraphs (a)(2) and (a)(3) of this 

section. 

(2) Cooperating State agencies must 

follow the applicable requirements 

under WIA to approve requested 

training from a provider that is not an 

eligible training provider. 

(3) Cooperating State agencies may 

approve training in limited demand 

occupations with a provider that has not 

been approved as an eligible training 

provider if the provider meets the 

requirements described at 

§ 618.610(c)(4). 

(b) Methods of training. Eligible 

adversely affected workers must be 

provided training using either one or a 

combination of the following methods: 

(1) Firm-specific retraining program. 

To the extent practicable and before 

referring a worker to approved training, 

the cooperating State agency must 

consult with the adversely affected 

worker’s firm and certified or 

recognized union, or other authorized 

representative, to identify if there is 

suitable employment at the worker’s 

firm for which the worker can be 

retrained. If such suitable employment 

is identified, the cooperating State 

agency must determine whether there is 

training available that meets the firm’s 

staffing needs and preserves or restores 

the employment relationship between 

the worker and the firm. That other 

employers in the area have no need for 

workers in a specific occupation for 

which training is undertaken does not 

preclude approval of a training program 

for such occupation with the adversely 

affected worker’s firm. 

(2) In the event that firm-specific 

retraining is not practical, preference 

should be given to on-the-job training 

under § 618.635 (enrollment in OTJ and 

customized training), which may 

include related education necessary to 

acquire skills needed for a position 

within a particular occupation, in the 

firm or elsewhere. In determining 

whether to approve on-the-job training, 

the cooperating State agency must 

consider the six criteria in § 618.610 

(criteria for approval of training), the 

availability of on-the-job opportunities 

and the worker’s need for remedial 

education, and inform the worker of the 

effect of such training on eligibility for 

HCTC; 

(3) Customized training; and 

(4) Institutional training, with priority 

given to providing the training in public 

area vocational and technical education 

schools, as well as community colleges, 

if it is determined that such schools are 

at least as effective and efficient as other 

institutional alternatives. This also 

includes distance learning where a 

worker may complete all or part of an 

educational or vocational program in a 

geographical location apart from the 

institution hosting the training program, 

and where the final certificate or degree 

conferred is equivalent in standard of 

achievement and content to the same 

program completed on campus or at 

another institutional training location. 

(c) Other training. In addition to the 

training programs discussed in 

paragraph (b) of this section, training 

programs that may be approved under 

§ 618.610 (criteria for approval of 

training) include, but are not limited 

to—

(1) Any program of remedial 

education, including adult basic 

education courses and other remedial 

education courses, English as a Second 

Language (ESL) courses, and General 

Equivalency Diploma (GED) preparation 

courses offered through community 

colleges or other training vendors; 

(2) Vocational and technical 

education and apprenticeships; 

(3) Any training program approvable 

under § 618.610 for which all, or any 

portion, of the costs of training the 

worker are paid—

(i) Under any other Federal or State 

program other than this subpart F, or 

(ii) From any source other than this 

part; and 

(4) Any other training program 

approved by the Department. 

§ 618.625 Payment restrictions for training 

programs. 

The cooperating State agency must 

(subject to the cap on training funds 

under section 236(a)(2)(A) of the Act) 

provide for payment of the costs of an 

adversely affected worker’s training 

approved under § 618.610 (criteria for 

approval of training) as provided in this 

section. The Department may use a 

formula to distribute to States training 

funds for adversely affected workers. 

(a) Funding of training programs. The 

costs of a training program approved 

under the Act may be paid—

(1) Solely from TAA funds, 

(2) Solely from other public or private 

funds (except as prohibited in paragraph 

(d) of this section), or 

(3) Partly from TAA funds and partly 

from other public or private funds 

(except as prohibited in paragraph (d) of 

this section). 

(b) No duplication of costs allowed. 

(1) Any use of TAA funds to duplicate 

the payment of training costs in any 

circumstances is prohibited. 

(2) Procedures. When the direct costs 

of a training program approvable under 

§ 618.610 (criteria for approval of 

training) are payable from TAA funds 

and are also wholly or partially payable 

from any other source, the cooperating 

State agency must establish procedures 

that ensure TAA funds will not 

duplicate funds available from the other 

source(s), but this preclusion of 

duplication does not prohibit and must 

not discourage sharing of costs under 

prearrangements authorized under 

paragraph (c)(2) of this section. 

(c) Cost sharing permitted. (1) Sharing 

the future costs of training is authorized 

where prior costs were paid from 

another source, but this paragraph (c)(1) 

does not authorize reimbursement from 

TAA funds of any training costs which 

were incurred, and for which payment 

became due, before the approval of the 

training program under § 618.610 

(criteria for approval of training). 

(2) Prearrangements and agreements. 

(i) Where training costs are shared 

between the TAA program and any 

other source, the cooperating State 

agency must enter into a 

prearrangement with the other funding 

source to agree upon the mix of TAA 

funds and other funds to be used to pay 

the costs of a training program approved 

under § 618.610 (criteria for approval of 

training). A prearrangement must be a 

specific, binding agreement from the 

other sources to pay the costs they agree 

to assume, and must be entered into 

before any TAA funds are obligated. If, 

after TAA funds are committed to a 

training program, other funds become 

available to pay for that training, the 


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cooperating State agency must enter into 

an agreement with the other funding 

source specifying how the training 

program will be funded. 

(ii) Before approving any training 

program under subpart F of this part, 

which may involve the sharing of 

training costs under the authority of 

paragraph (a)(3) of this section, the 

cooperating State agency must require 

the worker to enter into a written 

agreement with the cooperating State 

agency, under which TAA funds will 

not be applied for or used to pay any 

portion of the costs of the training the 

worker has reason to believe will be 

paid by any other source. 

(3)(i) A cooperating State agency may 

not take into account, in determining 

whether training costs are payable from 

TAA funds, any payments to the worker 

under any other Federal law, such as 

Federal student financial assistance as 

defined in § 618.110, which may have 

the effect of indirectly paying all or a 

portion of the training costs. 

(ii) If payments of Federal student 

financial assistance and other training 

allowances from other Federal funding 

sources are made to the training 

provider instead of the worker and are 

used for training costs, then such 

payments must be taken into account as 

direct payment of the training costs 

under another Federal law for purposes 

of this section. 

(d) No training fees or costs to be paid 

by worker from TAA funds. (1) A 

training program must not be approved 

under the Act if—

(i) All or a portion of the costs of such 

training program are paid under any 

nongovernmental plan or program; and 

(ii) The adversely affected worker has 

a right to obtain training or funds for 

training under such plan or program; 

and 

(iii) Such plan or program requires the 

worker to reimburse the plan or program 

from funds provided under the Act, or 

from wages paid under such training 

program, for any portion of the costs of 

such training program paid under the 

plan or program. 

(2)(i) No training program may be 

approved under § 618.610 (criteria for 

approval of training) if the worker is to, 

or may, pay any of the costs of a training 

program from any other funds belonging 

to the worker from any source, except as 

provided in paragraph (d)(2)(ii) of this 

section. 

(ii) When the Director determines that 

all available funds under section 

236(a)(2)(A) of the Act have been 

allocated, the Director will promptly 

publish a notice in the Federal Register 

announcing that determination. A 

cooperating State agency must then seek 

funding from other sources (other than 

from adversely affected workers), 

including WIA national emergency 

grants for dislocated workers under 20 

CFR part 671, to cover the costs of 

training approved under § 618.610. To 

the extent that a cooperating State 

agency is unable to fund training costs 

from those other sources, the agency 

may approve training under § 618.610 

where the worker pays those unfunded 

costs. Where the worker chooses to pay 

those unfunded costs, the cooperating 

State agency is not liable for paying 

those costs. Where the worker chooses 

not to pay the unfunded costs, the 

cooperating State agency must waive the 

training requirement on the basis that 

training is not available, in order to 

preserve any remaining basic TRA 

eligibility under § 618.725(b)(6) (waiver 

of training requirement for basic TRA). 

(iii) If an employer or other entity 

agrees to fund training costs under 

conditions that may make the worker 

liable for all or a portion of those costs 

under certain conditions, the 

cooperating State agency may, if the 

training is otherwise approvable, 

contract with the employer or other 

entity to assume any unfunded costs on 

the worker’s behalf. 

§ 618.630 Training of reemployed workers 

not in suitable employment. 

(a) An adversely affected worker who 

obtains new employment that is not 

suitable employment, as defined in 

§ 618.110, and has been approved for 

training under § 618.610 (criteria for 

approval of training) may elect to 

terminate the job, reduce the hours 

worked in the job, or continue in fullor part-time employment. Such a worker 

must not be subject to ineligibility or 

disqualification for UI or TRA as a result 

of such termination or reduction in 

employment. A worker who continues 

such full- or part-time employment 

while undertaking training is 

considered to be in training under 

§ 618.765(b) (disqualifications). If the 

worker continues in full- or part-time 

employment that is not suitable 

employment while undertaking 

approved training, the cooperating State 

agency must inform the worker in 

writing that such employment may have 

negative effects on UI and other TAA 

benefits due to disqualifying income, 

which could also include the possible 

loss of the HCTC. 

(b) An adversely affected worker 

described in paragraph (a) of this 

section may also be eligible for job 

search and relocation allowances. 

§ 618.635 Enrollment in on-the-job and 

customized training. 

(a) On-the-job training (OJT). (1) 

Description. On-the-job training is 

training provided by an employer to an 

adversely affected worker who has been 

hired by the employer. OJT is conducted 

while the worker is engaged in 

productive work in a job that provides 

knowledge or skills essential to the full 

and adequate performance of the job. 

OJT is provided under a contract with 

an employer in the public or private 

sector. 

(2) Related education. In providing 

OJT, the cooperating State agency, 

insofar as possible, must ensure the 

provision of related education necessary 

for the acquisition of skills needed for 

a position within the occupational goal 

in the worker’s IEP. Such related skills 

training may be provided as part of the 

on-the-job training contract or 

separately. Classroom training (also 

known as vestibule training) sponsored 

by the employer may be provided prior 

to or in conjunction with OJT to ensure 

the participant has sufficient working 

vocabulary and concepts of the 

employer’s industry or firm, or has a 

basic understanding of such things as 

applicable safety rules and regulations 

prior to on-site training. Such training 

may be provided at the employment site 

or at educational institutions or other 

locations. Such classroom or vestibule 

training may be conducted for a portion 

of the day, to be followed by on-site 

OJT. 

(3) Duration. The worker’s IEP and the 

OJT contract with the employer must 

specify the duration of the OJT. The 

duration of the OJT must be appropriate 

to the occupational goal for which the 

adversely affected worker is being 

trained, taking into account the content 

of the training, the worker’s prior work 

experience, and the worker’s skills as 

documented in the IEP. The duration of 

the training must allow enough time for 

the worker to become sufficiently 

proficient in the occupation for which 

the training is being provided to enable 

the worker to perform as well as 

workers in comparable positions within 

the firm. 

(4) Reimbursement. (i) Under an OJT 

contract, the employer may be 

reimbursed not more than 50 percent of 

the worker’s wage rate for a maximum 

40-hour work week (including hours 

spent in classroom or vestibule training 

conducted by the employer or the 

employer’s representatives) for the cost 

of providing the training and additional 

supervision related to the OJT. 

(ii) The reimbursement for OJT must 

be limited to the duration of approved 

training as specified in the OJT contract. 


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(5) Approval of the Costs of OJT. OJT 

costs for an adversely affected worker 

may be approved by a cooperating State 

agency only if a determination is made 

that: 

(i) No currently employed individual 

is displaced (including a partial 

displacement, such as a reduction in the 

hours of non-overtime work, wages, or 

employment benefits) by the adversely 

affected worker; 

(ii) Such training does not impair 

existing contracts for services or 

collective bargaining agreements; 

(iii) In the case of training that would 

be inconsistent with the terms of a 

collective bargaining agreement, written 

concurrence has been obtained from the 

concerned labor organization; 

(iv) No other individual is on layoff 

from the same or any substantially 

equivalent job for which the adversely 

affected worker is being trained; 

(v) The employer has not terminated 

the employment of any regular 

employee or otherwise reduced the 

workforce with the intention of filling 

the vacancy created by hiring the 

adversely affected worker; 

(vi) The job for which the adversely 

affected worker is being trained is not 

being created in a promotional line that 

will infringe in any way upon the 

promotional opportunities of currently 

employed individuals; 

(vii) The training is not for the same 

occupation from which the adversely 

affected worker was separated and with 

respect to which such worker’s group 

was certified; and 

(viii) The employer has not received 

payment under the TAA program or 

under any other Federal law for any 

other OJT provided by such employer 

which failed to meet the requirements of 

paragraphs (a)(5)(i) through (a)(5)(vi) of 

this section or the requirements of the 

other Federal laws governing 

employment practices. 

(6) Payment of the costs of OJT. The 

costs of OJT that are paid from TAA 

funds must be paid in equal monthly 

installments. To meet the requirement 

that payments be made in equal 

monthly installments, a cooperating 

State agency must either pay OJT costs 

in equal monthly dollar amounts or, 

alternatively, compute the monthly 

payments at the same rate. For the latter, 

payments based upon the number of 

hours of paid work up to a maximum of 

40 hours a week during the month and 

then multiplied by the agreed-upon rate 

of payment are equal monthly 

installments in that the payment for 

each month is computed at the same 

rate. 

(7) Under § 618.765(c), an adversely 

affected worker may not be paid TRA 

for any week during which that worker 

is in OJT and, therefore, may be 

ineligible for the HCTC. 

(b) Customized training. Customized 

training may be conducted by a training 

vendor, and is training that is: 

(1) Designed to meet the special 

requirements of one or more employers; 

(2) Conducted with a commitment by 

the employer(s) to employ an adversely 

affected worker upon successful 

completion of the training; and 

(3) For which the employer(s) pay(s) 

for a significant portion (but in no case 

less than 50 percent) of the cost of such 

training as determined by the 

cooperating State agency and consistent 

with similar policies established under 

WIA by the State Workforce Investment 

Board and Local Workforce Investment 

Board for the local workforce 

investment area. 

§ 618.640 Subsistence and transportation 

payments. 

(a) General. Subsistence and 

transportation payments must be 

provided to an adversely affected 

worker whose training has been 

approved under § 618.610 (criteria for 

approval of training) to defray 

reasonable subsistence and 

transportation expenses while the 

worker attends a training program at a 

facility outside the worker’s commuting 

area. The need for such subsistence and 

transportation payments must be 

identified in the worker’s IEP as 

described in § 618.350 (IEPs). 

(b) Applications for subsistence and 

transportation payments. An adversely 

affected worker must submit an 

application for any subsistence or 

transportation payments in accordance 

with this section on forms furnished by 

the cooperating State agency. A 

determination on an application made 

under this section is subject to § 618.825 

(determinations and notice) and 

§ 618.835 (appeals and hearings). 

(c) Subsistence payments. (1) General. 

Subsistence payments must be made for 

the costs of separate maintenance, 

which means maintaining another 

(second) residence, when the training 

facility is located outside the adversely 

affected worker’s commuting area. 

(2) Requirements for subsistence 

payments. (i) An adversely affected 

worker must receive subsistence 

payments only for the period when he 

or she is not receiving or authorized to 

receive reimbursement or separate 

payments for such costs from any other 

source; and 

(ii) No subsistence payment may be 

made for any day for which such worker 

receives a daily commuting 

transportation allowance from TAA 

funds or from any other source or any 

day of unexcused absence as certified by 

the training institution. 

(3) Amount of subsistence payments. 

The cooperating State agency may pay 

subsistence to an adversely affected 

worker only for the lesser of: 

(i) The adversely affected worker’s 

actual per diem expenses for 

subsistence, or 

(ii) 50 percent of the prevailing per 

diem allowance rate authorized under 

the Federal travel regulations (see 41 

CFR parts 301 through 304) for the 

training facility. 

(4) Timing of subsistence payments. 

The cooperating State agency must 

make subsistence payments upon an 

adversely affected worker’s completion 

of a week of training, but may advance 

a subsistence payment for a week if it 

determines that such advance is 

necessary to enable an adversely 

affected worker to participate in 

training. 

(d) Transportation payments. (1) 

General. Travel for which a 

transportation payment must be paid 

includes travel: 

(i) At the beginning and end of the 

training program located outside the 

commuting area, where the adversely 

affected worker lives at or near the 

training site and will not commute daily 

to his or her permanent residence; 

(ii) In order to return to the worker’s 

permanent residence when the worker 

fails with justifiable cause (as described 

in § 618.765(b)(3)(iii)) to complete a 

training program located outside the 

worker’s commuting area; and 

(iii) When the worker travels daily 

beyond the commuting area, and 

receives transportation payments in lieu 

of subsistence. In such cases, the daily 

transportation payment must not exceed 

the amount otherwise payable as 

subsistence for each day of commuting. 

(2) Requirements for transportation 

payments. An adversely affected worker 

must receive payments for 

transportation expenses when 

commuting to and from the training 

facility outside the commuting area. 

Transportation payments will only be 

made when the total amount of such 

payments will not exceed the total 

amount of subsistence payments that 

would be made if the adversely affected 

worker were to maintain a residence 

within the commuting area of the 

training facility. Transportation 

payments are payable only for the actual 

days traveled. Transportation payments 

must not be paid when: 

(i) Transportation is arranged and 

paid for by the cooperating State agency 

for one or more workers, 


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(ii) Such payments are being provided 

under any other law, or 

(iii) The adversely affected worker is 

authorized to be paid or reimbursed for 

such expenses from any other source. 

(3) Amount of transportation 

payments. Such transportation 

payments to an adversely affected 

worker must not exceed the lesser of: 

(i) The actual cost for travel by the 

least expensive means of public 

transportation reasonably available, or 

(ii) The cost per mile at the prevailing 

personal vehicle mileage rate authorized 

under the Federal travel regulations (see 

41 CFR parts 301 through 304). See also 

Travel on Government Business, 

Privately Owned Vehicle 

Reimbursement Rate at: http:// 

www.gsa.gov. Cost per mile payments 

are solely for those miles beyond the 

commuting area as defined at § 618.110. 

(4) Timing of transportation 

payments. (i) An adversely affected 

worker must receive transportation 

payments after completion of a week of 

training approved under § 618.610 

(criteria for approval of training). 

However, such payment may also be 

made in advance to facilitate the 

worker’s attendance at the training 

institution. 

(ii) An adversely affected worker 

receiving subsistence payments may 

also receive transportation payments 

only: 

(A) At the beginning and end of the 

training program outside the daily 

commuting area, or 

(B) When the adversely affected 

worker fails for justifiable cause (as 

described in § 618.765(b)(3)(iii)) to 

complete the training program and must 

return home before the end of the 

training program. 

(e) Adjustments to subsistence and 

transportation payment advances. The 

cooperating State agency must adjust 

subsistence and/or transportation 

payments if it advances funds and the 

amount of the advance is more or less 

than the amount to which the adversely 

affected worker is entitled to receive 

under paragraphs (c)(3) and (d)(3) of this 

section. 

§ 618.645 Voluntary withdrawal from a 

training program. 

(a) The cooperating State agency must 

advise an adversely affected worker who 

chooses to withdraw from approved 

training that the worker’s eligibility for 

TAA training (even though it was not 

completed) is terminated and the 

worker will not be able to resume the 

training program, except as provided in 

§ 618.615(a)(4) (limitations on approval 

of training) except that if a worker 

ceases participation in training for 

justifiable cause, as described in 

§ 618.765(b)(3)(iii) (disqualifications), 

the worker may resume the approved 

training program if the program can be 

completed within the 104 or 130-week 

period described in § 618.615(a)(3)(i). 

(b) The worker’s eligibility for job 

search and relocation allowances will 

not be affected by the decision to 

withdraw from training. To be eligible 

for these allowances, the worker must 

meet all eligibility requirements for 

these benefits as set forth in § 618.410 

(job search allowances) and § 618.515 

(relocation allowances). 

§ 618.650 State training cost caps. 

(a) A cooperating State agency may set 

a statewide or local area limit on the 

amount of training costs payable for 

training programs. If such limits are 

used, the methods used for calculating 

such limits must be documented and 

the limits must reasonably take into 

account the costs for training available 

in the local areas throughout the State. 

Factors that may be taken into account 

include average historical costs of 

training available from eligible training 

providers, costs of training for work 

force needs in high growth and high 

demand industries, and the overall labor 

prospects. The cooperating State agency 

must develop standards and procedures 

for the review and approval of training 

costs that exceed established limits, 

based on individual and exceptional 

circumstances. 

(b) The cooperating State agency must 

review any established limits on an 

annual basis to determine whether they 

continue to be appropriate and change 

or end such limits if warranted. 

(c) Whenever a cooperating State 

agency establishes, changes, or ceases 

using State-established limits on 

training costs payable under paragraph 

(a) of this section, the cooperating State 

agency must send written notice and 

full documentation supporting its action 

to the Director for review. Unless the 

Department notifies the cooperating 

State agency, otherwise, in writing, 

within 30 calendar days of receipt of 

such documentation, the cooperating 

State agency may establish, change, or 

end such limits. 

(d) The liable State will adhere to the 

agent State’s training cost caps, if any, 

when approving training programs in 

the agent State. 

§ 618.655 Training services and the TAA 

for Farmers program. 

(a)(1) An agricultural commodity 

producer entitled to receive a cash 

benefit under a certification under the 

TAA for Farmers program administered 

by the U.S. Department of Agriculture 

(see 7 CFR part 1580) is entitled to 

training under this subpart F where the 

cooperating State agency determines 

that training approval criteria 2 through 

6 (§§ 618.610(b) through (f)) are met. 

(2) With the exception of training 

approval criterion 1 (§ 618.610(a)), all 

the provisions of subpart F of this Part 

apply to training for an agricultural 

commodity producer under paragraph 

(a)(1) of this section. 

(3)(i) An agricultural commodity 

producer is not entitled to training 

under subpart F of this Part where that 

individual obtains work of a 

substantially equal or higher skill level 

than his or her past work as an 

agricultural commodity producer and 

wages for such work at not less than 80 

percent of the agricultural commodity 

producer’s average weekly income. 

(ii) The average weekly income will 

be determined based upon the most 

recent tax year that has ended for the 

individual prior to the agricultural 

commodity producer’s notice of 

entitlement to a cash benefit under the 

TAA for Farmers program. The average 

weekly income will be obtained by 

dividing by 52 the net income reported 

on the agricultural commodity 

producer’s tax return as income from all 

self-employment. In the event that the 

agricultural commodity producer filed a 

joint return, the average weekly income 

will be determined based upon the 

share of that self-employment income 

attributable to that individual. 

(b) The cooperating State agency 

must, upon receiving an application for 

training by an agricultural commodity 

producer, verify the individual’s 

entitlement to a cash benefit under the 

TAA for Farmers program in accordance 

with procedures established by the 

Department of Labor. 

(c) An agricultural commodity 

producer receiving training under 

paragraph (a) of this section is entitled 

to subsistence and transportation 

payments in accordance with § 618.640 

where the cooperating State agency 

determines that the requirements of that 

section are met. 

(d) An agricultural commodity 

producer entitled to a cash benefit in 

multiple years for the same commodity 

is not entitled to a different training 

program under each certification. Only 

one training program is allowed per 

affected commodity, except as provided 

under § 618.615(a)(4) (regarding certain 

workers who perform service in the 

Uniformed Services) and § 618.615(b) 

(on amending approved training 

programs). 

(e) An agricultural commodity 

producer establishing entitlement to a 

cash benefit in accordance with 


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paragraph (a)(2) of this section is 

entitled to employment services under 

subpart C of this part, but is not entitled 

to any other benefits under the TAA 

program, including TRA under subpart 

G, job search allowances under subpart 

D, relocation allowances under subpart 

E, or ATAA. 

Subpart G—Trade Readjustment 

Allowances 

§ 618.700 Scope. 

This subpart explains the 

requirements for eligibility for and the 

amounts and duration of basic TRA, 

additional TRA, and remedial TRA, all 

of which are income support in the form 

of cash payments for an adversely 

affected worker after such worker 

exhausts all rights to UI (except for 

additional compensation, as defined in 

§ 618.110). 

§ 618.705 Categories of TRA. 

(a) Basic TRA. Basic TRA is payable 

to an adversely affected worker who 

meets the requirements of § 618.715 

(qualifying requirements for basic TRA). 

Basic TRA is payable for weeks of 

unemployment after the worker meets 

the criteria for exhaustion of UI under 

§ 618.715(e); and, consistent with 

§ 618.720 (training requirement for 

receipt of basic, additional, and 

remedial TRA), for weeks of 

unemployment during which the 

worker either is enrolled in, is 

participating in, or has completed 

training (including, if necessary, 

remedial education) approved under 

subpart F of this part 618, or has 

received from the State agency a waiver 

of the training requirement (under 

§ 618.725). 

(b) Additional TRA. Additional TRA 

is payable to an adversely affected 

worker who meets the requirements of 

§ 618.750 (qualifying requirements for, 

and duration of, additional TRA). 

Additional TRA is payable only for 

weeks of unemployment during which 

the worker is participating in a training 

program, whether remedial education or 

other training, approved under subpart 

F of this part 618 and only after the 

worker has exhausted all rights to basic 

TRA. 

(c) Remedial TRA. Remedial TRA is 

payable to an adversely affected worker 

who meets the requirements of 

§ 618.755 (qualifying requirements for, 

and duration of, remedial TRA). 

Remedial TRA is payable only for weeks 

of unemployment during which the 

worker is participating in a training 

program, whether remedial education or 

other training, approved under subpart 

F of this part 618. Remedial TRA is 

payable only after the worker has 

exhausted all rights to basic and 

additional TRA. 

(d) Nonduplication of TRA. An 

adversely affected worker may receive 

only one form of TRA (basic, additional, 

or remedial) for a given week of 

unemployment. 

§ 618.710 Applications for TRA and 

payment. 

(a) When a worker may apply for TRA. 

A worker may apply to the cooperating 

State agency for TRA if the worker is 

covered under either a certification or, 

if before a certification is issued, a 

pending petition for certification. 

(b) Determinations on TRA 

applications that are filed before 

certification issued. The cooperating 

State agency must make those 

determinations necessary to establish or 

protect an individual’s potential 

entitlement to TRA and, if necessary, to 

protect the worker’s eligibility for the 

HCTC. These determinations may 

include determinations on enrollment 

in training and determinations on 

waivers. If a determination is made 

before a certification is issued, the 

cooperating State agency must advise 

the worker that eligibility for the 

benefits that are the subject of the 

determination is contingent on the 

issuance of a certification. 

(c) Timing of TRA application after 

certification issued. For TRA 

applications filed after a certification 

covering a worker is issued, an initial 

application for TRA, as well as 

applications for TRA for weeks of 

unemployment beginning before the 

initial application for TRA is filed, may 

be filed within a reasonable period of 

time after publication of the 

determination certifying a group of 

workers as eligible to apply for TAA or 

TAA and ATAA . However, an 

application for TRA for a week of 

unemployment beginning after the 

initial application is filed must be filed 

within the time limit applicable to 

claims for regular compensation under 

the applicable State law. For purposes 

of this paragraph (c), a reasonable 

period of time means such period of 

time as the adversely affected worker 

had good cause for not filing earlier, 

which may include, but need not be 

limited to, such worker’s lack of 

knowledge of the certification or 

misinformation supplied such worker 

by the cooperating State agency. 

(d) Applicable procedures. 

Applications must be filed in 

accordance with this subpart G and on 

forms furnished to workers by the 

cooperating State agency. The 

procedures for reporting and filing 

applications for TRA must be consistent 

with this part 618 and with the 

Secretary’s ‘‘Standard for Claim Filing, 

Claimant Reporting, Job Finding and 

Employment Services,’’ Employment 

Security Manual, Part V, sections 5000 

et seq. (Appendix A of Part 617 of this 

chapter). 

(e) Treatment of Determinations. 

Determinations on TRA applications are 

determinations to which §§ 618.625 

(determinations and notice), 618.830 

(liable and agent State responsibilities), 

and 618.835 (appeals and hearings) of 

subpart H apply. Copies of such 

applications for TRA and all 

determinations by the cooperating State 

agency on such applications, must be 

included in the adversely affected 

worker’s case record. 

(f) Payment of TRA. (1) A cooperating 

State agency must not make any 

payment of TRA (or other TAA) until a 

certification is issued and the 

cooperating State agency determines 

that the worker is covered thereunder; 

and 

(2) The first week any adversely 

affected worker may be entitled to a 

payment of TRA is the first week 

beginning more than 60 days after the 

date of the filing of the petition that 

resulted in the certification under which 

the adversely affected worker is 

covered. 

§ 618.715 Qualifying requirements for 

basic TRA. 

To qualify for basic TRA for a week 

of unemployment, an individual must 

meet each of the requirements in 

paragraphs (a) through (h) of this 

section: 

(a) Certification. The individual must 

be an adversely affected worker covered 

under a certification; 

(b) Separation. The adversely affected 

worker’s first qualifying separation (as 

defined in § 618.110) must occur on or 

after the impact date of the certification 

and before the expiration of the two year 

period beginning on the date of such 

certification, or, if earlier, before the 

termination date, if any, of such 

certification; 

(c) Wages and employment. The 

adversely affected worker must meet the 

following wage and other requirements: 

(1) In the 52-week period (i.e., 52 

consecutive calendar weeks) ending 

with the week of the adversely affected 

worker’s first qualifying separation (as 

defined in § 618.110), or any subsequent 

qualifying separation (as defined in 

§ 618.110) under the same certification, 

the worker must have had at least 26 

weeks of employment at wages of $30 or 

more a week in adversely affected 

employment with a single firm or, 


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where there is more than one 

subdivision, the appropriate subdivision 

of that firm. Evidence that the worker 

meets this requirement must be 

obtained as provided in § 618.730 

(maximum amount of basic TRA). 

Employment and wages covered under 

more than one certification may not be 

combined to qualify for TRA. 

(2) The following categories of weeks 

also must be treated as weeks of 

employment at wages of $30 or more, 

regardless of whether the adversely 

affected worker actually receives any 

wages during such weeks, for purposes 

of this paragraph (c): 

(i) All weeks, up to a maximum of 7 

weeks, during which the adversely 

affected worker is on employerauthorized leave for vacation, sickness, 

injury, maternity, or inactive duty or 

active duty military service for training. 

(ii) All weeks, up to a maximum of 7 

weeks, during which the adversely 

affected worker had adversely affected 

employment interrupted to serve as a 

full-time representative of a labor 

organization in such firm or 

subdivision. 

(iii) All weeks, up to a maximum of 

26 weeks, during which the adversely 

affected worker has a disability 

compensable under a workers’

compensation law or plan of a State or 

the United States. 

(iv) All weeks, up to a maximum of 

26 weeks, during which the adversely 

affected worker is on call-up for the 

purpose of active duty, if such active 

duty is ‘‘Federal service’’ as defined in 

§ 614.2(g) of this chapter, in a reserve 

status in the Armed Forces of the United 

States. 

(3) Wages and employment creditable 

under this paragraph (c) must not 

include employment, or wages earned 

or paid for employment, which is 

contrary to or prohibited by any Federal 

law. 

(d) Entitlement to UI. The adversely 

affected worker must have been entitled 

to (or would have been entitled to if the 

worker had applied therefor) UI for a 

week within the first benefit period as 

defined in § 618.110; 

(e) Exhaustion of UI. The adversely 

affected worker must meet the following 

two requirements: 

(1) The adversely affected worker 

must have exhausted all rights to any 

UI, except additional compensation that 

is funded by a State and not reimbursed 

from any Federal funds (see § 618.110), 

to which such worker was entitled (or 

would have been entitled had such 

worker applied therefor). Thus, 

whenever an adversely affected worker 

becomes entitled (or would become 

entitled if the worker applied therefor) 

to any type of UI (as defined in 

§ 618.110), except additional 

compensation funded by a State and not 

reimbursed from any Federal funds, 

after the start of the adversely affected 

worker’s receipt of TRA, then payment 

of TRA must be suspended until such 

worker exhausts entitlement to such UI. 

After the adversely affected worker 

exhausts that entitlement, as set forth in 

§ 618.240(a), payments of TRA to which 

the worker is still entitled may resume. 

(2) The adversely affected worker 

must have no unexpired waiting period 

applicable to such worker for any UI, 

except additional compensation (as 

defined in § 618.110) that is funded by 

a State and is not reimbursed from any 

Federal funds. 

(f) Extended Benefit work test. The 

adversely affected worker must be able 

and available for work, as defined in the 

applicable State law for UI claimants, 

and must meet the Extended Benefit 

(EB) work test requirements by the 

means described in this paragraph (f), 

unless any exception described in 

paragraph (f)(2) of this section applies: 

(1) The EB work test requirement 

must be met by: 

(i) Registering for work with the State, 

in accordance with those provisions of 

the applicable State law which apply to 

EB claimants and which are consistent 

with part 615 of this chapter, 

(ii) Applying for any suitable work, as 

defined in § 618.110, to which the 

adversely affected worker is referred by 

the State, 

(iii) Actively engaging in seeking 

work, 

(iv) Furnishing the State with tangible 

evidence of work search efforts each 

week, and 

(v) Accepting any offer of suitable 

work. 

(2) The able and available 

requirement and the EB work test 

requirement do not apply for purposes 

of TRA eligibility—

(i) When the adversely affected 

worker is enrolled or participating in a 

training program approved under 

Subpart F of this Part 618, or, 

(ii) During a break in training that 

does not exceed 30 days as counted in 

accordance with § 618.760(b), or, 

(iii) With respect to claims for TRA 

for those weeks of unemployment 

beginning before the filing of an initial 

claim for TRA, or for any week which 

begins before the adversely affected 

worker is notified that such worker is 

covered by a certification issued under 

the Act and is fully informed of the EB 

work test requirements. Before such 

notification and advice, the worker must 

not be subject to the EB work test 

requirements for TRA eligibility 

purposes, nor to any State timely filing 

requirement, but must be required to be 

unemployed and able to work and 

available for work with respect to any 

such week except as provided in 

paragraphs (f)(2)(i) and (f)(2)(ii) of this 

section for adversely affected workers 

enrolled in, or participating in, a 

training program approved under 

subpart F. 

(g) Unemployed. The adversely 

affected worker must be unemployed, as 

defined in the applicable State law for 

UI claimants. 

(h) Participation in approved training. 

The adversely affected worker must be 

enrolled in, participating in, or have 

completed, training under the 

requirements of § 618.720 (training 

requirement for receipt of basic, 

additional, and remedial TRA), unless, 

with respect to basic TRA, these 

requirements are waived under 

§ 618.725. This participation in 

approved training requirement does not 

apply as a condition for receiving basic 

TRA before the applicable deadline 

under § 618.720(c). 

§ 618.720 Training requirement for receipt 

of basic, additional, and remedial TRA. 

(a) Basic TRA. As a condition for 

receiving basic TRA, except before the 

applicable deadline under paragraph (c) 

of this section, the adversely affected 

worker, after a total or partial separation 

from adversely affected employment 

within the certification period of a 

certification issued under this part 618, 

must—

(1) Be enrolled in (as explained in 

paragraph (e)(1) of this section) a 

training program approved under 

subpart F of this part 618; or 

(2) Be participating in (as explained in 

paragraph (e)(2) of this section) a 

training program approved under 

subpart F of this part 618; or 

(3) Have completed (as explained in 

paragraph (e)(3) of this section) a 

training program approved under 

subpart F of this part 618; or 

(4) Have a waiver granted under 

§ 618.725 in effect. 

(b) Additional and remedial TRA. As 

a condition for receiving additional or 

remedial TRA, the adversely affected 

worker must be participating in a 

training program approved under 

subpart F of this part 618, as explained 

in paragraph (e)(2) of this section. 

(c) Enrollment in training deadlines. 

As a condition for receiving basic, 

additional, or remedial TRA, the 

adversely affected worker must be 

enrolled in a training program approved 

under subpart F of this part 618 (unless, 

in the case of basic TRA, a waiver 


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granted under § 618.725 is in effect) no 

later than the latest of: 

(1) The last day of the 16th week after 

the adversely affected worker’s most 

recent qualifying separation as defined 

in § 618.110; or 

(2) The last day of the 8th week after 

the week in which the certification was 

issued; or 

(3) The last day of the 30-consecutive 

calendar day period following the 

termination or revocation of a waiver 

under § 618.725; or 

(4) 45 days after the later of the dates 

specified in paragraphs (c)(1) or (c)(2) of 

this section, if there are extenuating 

circumstances that justify an extension 

of the enrollment period. Extenuating 

circumstances that justify the 45-day 

extension are unusual situations that are 

beyond the direct control of the 

adversely affected worker, and that 

make enrollment within the otherwise 

applicable deadline impossible or 

impractical. They include, but are not 

limited to, the following: 

(i) Abrupt cancellation of the training 

program by the training provider; 

(ii) The first available enrollment date 

is after the deadline specified in 

paragraphs (c)(1) or (c)(2) of this section; 

(iii) The adversely affected worker 

suffers injury or illness that prevents his 

or her ability to enroll; or 

(iv) Failure of the cooperating State 

agency to notify the adversely affected 

worker of the petition certification and/ 

or training enrollment deadlines. 

(5) An adversely affected worker who 

is not enrolled in training may receive 

basic TRA before the expiration of the 

applicable deadline under this 

paragraph (c). 

(d) Exceptions. (1) The requirement of 

paragraph (a) of this section that a 

worker be enrolled in, or participating 

in, training does not apply to an 

adversely affected worker with respect 

to claims for basic TRA for weeks of 

unemployment beginning before the 

filing of an initial claim for TRA within 

a reasonable period of time as provided 

in § 618.710(c), nor for any week which 

begins before the worker is notified that 

the individual is covered by a 

certification issued under the Act and is 

fully informed of the requirements of 

this section. 

(2)(i) The enrollment in training 

deadlines of paragraph (c) of this section 

do not apply where a cooperating State 

agency’s negative determination on an 

initial application for TRA under 

subpart G of this part 618 has been 

reversed through redetermination or 

appeal; the delay in obtaining the 

reversal is not attributable to the 

adversely affected worker; and the 

adversely affected worker is unable to 

meet the enrollment in training 

deadlines because of the delay in 

obtaining the reversal of the negative 

determination. 

(ii) Where the conditions of paragraph 

(d)(2)(i) of this section are met, the 

worker will have until the last day of 

the 8th week after the week in which 

the negative determination was reversed 

in which to enroll in training. 

(e) For purposes of the training 

requirement in paragraphs (a) and (b) of 

this section, the following provisions 

apply: 

(1) A worker is ‘‘enrolled in training’’

if the cooperating State agency has 

approved an application for training and 

the training institution has furnished 

written notice that the worker has been 

accepted into the approved program, 

which is scheduled to begin within 30 

calendar days of the approval of the 

training application. 

(2) An adversely affected worker is 

‘‘participating in training’’ if—

(i) The worker is either attending and 

participating in all scheduled classes, 

required activities, and required events, 

or the training institution has excused 

the worker’s absence or failure to 

participate in accordance with its 

written policies. After the close of each 

month during which the training 

program is in session, the training 

institution must certify in writing to the 

cooperating State agency whether, for 

each week ending during the prior 

month, the worker has attended and 

participated in all scheduled classes, 

required activities, and required events 

or whether it has excused the worker’s 

absence in accordance with it written 

policies; or 

(ii) In the case of distance learning, 

the worker is either meeting all the 

requirements of the training institution 

in accordance with its rules, regulations, 

and standards, or the training institution 

has excused the worker’s failure to meet 

those requirements in accordance with 

its written policies. After the close of 

each month during which the training 

program is in session, the training 

institution must certify in writing to the 

cooperating State agency whether, for 

each week ending during the prior 

month, the worker has met all the 

requirements of the training institution, 

or whether it has excused the worker 

from those requirements in accordance 

with its written policies; or 

(iii) For any week during a break in 

training, if all of the requirements of 

§ 618.760 (concerning payment of TRA 

during breaks in training) are met. 

(3) An adversely affected worker has 

‘‘completed training’’ if—

(i) The training program was 

approved under subpart F of this part 

618; and 

(ii) The training program was 

completed after the worker’s total or 

partial separation from adversely 

affected employment within the 

certification period of a TAA 

certification; and 

(iii) The training provider has 

certified that all the conditions for 

completion of the training program have 

been satisfied. 

§ 618.725 Waiver of training requirement 

for basic TRA. 

(a) Waiver for basic TRA. A 

cooperating State agency may issue a 

written waiver of the requirement in 

§ 618.720 that an adversely affected 

worker be enrolled or participating in 

training as a condition of basic TRA 

eligibility upon a finding that training 

for such worker is not feasible or 

appropriate, for one or more reasons 

identified in paragraph (b) of this 

section. The waiver must contain the 

information required in paragraph (c) of 

this section. No waiver of the training 

requirement is permitted for additional 

TRA or remedial TRA eligibility. 

Waivers must be issued no later than the 

latest of the applicable deadlines 

described in § 618.720(c). 

(b) Bases for a waiver. The 

cooperating State agency, in order to 

issue a written waiver to an adversely 

affected worker, must conclude, after 

conducting an assessment of such 

worker, that training is not feasible or 

appropriate for one or more of the 

following reasons, which must be cited 

in the written waiver: 

(1) The adversely affected worker has 

been notified that he or she will be 

recalled to the same or substantially the 

same position by the firm from which 

the separation occurred, and the recall 

is expected to be permanent. A recall for 

purposes of this paragraph (b)(1) means 

that the employer who separated the 

worker from adversely affected 

employment has issued a specific recall 

whereby the employer notified the 

adversely affected worker, or a group of 

workers including such worker, to 

return to work on a certain date or 

within a specified time period. 

(2) The adversely affected worker has 

marketable skills and there is a 

reasonable expectation of suitable 

employment (as defined in § 618.110) 

within the foreseeable future. 

(3) The adversely affected worker is 

within 2 years of meeting all 

requirements for entitlement to either: 

(i) Full or partial retirement old-age 

insurance under title II of the Social 

Security Act (42 U.S.C. 401 et seq.) 


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(except for the requirement of 

application therefor); or 

(ii) A private pension sponsored by an 

employer or labor organization. 

(4) The adversely affected worker is 

unable to participate in a training 

program for health reasons. A waiver 

granted for this reason does not exempt 

the worker from requirements relating to 

the availability for work, active search 

for work, or refusal to accept work 

under Federal or State UI laws. 

(5) The first available enrollment date 

for training is within 60 days after the 

date on which a waiver determination is 

made, or, if later, there are extenuating 

circumstances, as determined under the 

criteria in § 618.720(b)(4) (training 

requirement for basic TRA), that apply 

to the delay in enrollment in training. 

(6) Training is not reasonably 

available from governmental or private 

sources (which may include area 

vocational education schools, as defined 

in § 3 of the Carl D. Perkins Vocational 

and Technical Education Act of 1998 

(20 U.S.C. 2302), and employers), or 

suitable training is not available at a 

reasonable cost, or training funds are 

unavailable. 

(c) Contents of a waiver. A waiver 

issued under this section may not take 

effect unless it contains, at a minimum, 

the following information: 

(1) The adversely affected worker’s 

name and the worker’s social security 

number or another identifying 

designation used by the State; 

(2) The name and location of the 

worker group and the petition number 

under which the adversely affected 

worker’s group was certified; 

(3) A statement of the reasons why 

training is not feasible or appropriate for 

the adversely affected worker, citing to 

one or more reasons identified in 

paragraph (b) of this section; 

(4) The effective date and expiration 

date of the waiver; 

(5) A statement that the waiver must 

be revoked immediately upon a 

determination that the basis or bases for 

the waiver no longer apply; and 

(6) The signature of an official of the 

cooperating State agency authorized to 

grant the waiver, and the signature of 

the adversely affected worker or other 

evidence of the worker’s receipt of the 

waiver to acknowledge such worker’s 

receipt of the waiver. 

(d) Denial of a waiver. In any case 

where the cooperating State agency 

denies a request (whether or not made 

by the adversely affected worker to 

whom the request pertains) that a 

waiver under this section be issued, the 

adversely affected worker to whom the 

denial pertains must be furnished with 

a written notice of the denial of waiver. 

The cooperating State agency must 

afford such worker the right to appeal 

the denial of a waiver. The written 

notice of denial of waiver must contain, 

at minimum, the information in 

paragraphs (c)(1), (c)(2) and (c)(6) of this 

section; the specific reason(s) for the 

denial; the date of the denial; and notice 

of the adversely affected worker’s 

appeal rights. 

(e) Duration of a waiver issued under 

this section. (1) A waiver issued under 

this section may be for a period not to 

exceed 6 months, or the worker’s period 

of basic TRA entitlement, whichever 

comes first, and must be reviewed every 

30 days to determine if one or more of 

the bases in paragraph (b) of this section 

continue to apply. 

(2) Notwithstanding the 6-month 

limitation in paragraph (e)(1) of this 

section, a cooperating State agency may 

extend an adversely affected worker’s 

waiver beyond 6 months, only if: 

(i) Training continues not to be 

feasible or appropriate for such worker 

for one or more of the reasons described 

in paragraph (b) of this section; and 

(ii) Such worker has not yet exhausted 

his or her basic TRA entitlement. 

(f) Revocation of a waiver. The 

cooperating State agency must revoke a 

waiver issued under this section if the 

waiver criteria are no longer met. The 

cooperating State agency must notify the 

adversely affected worker in writing of 

any such revocation. The notice of 

revocation must be appealable and must 

contain the same information as a denial 

of waiver issued under paragraph (d) of 

this section as appropriate. 

(g) Submission of waivers and notices. 

The cooperating State agency must 

submit to the appropriate Regional 

Administrator, upon request, a copy of 

any or all waivers issued under this 

section together with a statement of 

reasons for each such waiver, and a 

copy of any or all notices of revocation 

of waiver issued under this section 

together with a statement of reasons for 

each such revocation. 

§ 618.730 Evidence of qualification for 

basic, additional, and remedial TRA. 

(a) Cooperating State agency action. 

When a worker applies for basic, 

additional, or remedial TRA, the 

cooperating State agency having 

jurisdiction under § 618.825 

(determinations of eligibility) must 

obtain information necessary to 

establish: 

(1) Whether the worker meets the 

qualifying requirements in § 618.715 for 

basic TRA, in § 618.750 for additional 

TRA, or in § 618.755 for remedial TRA; 

(2) For a worker claiming to be 

partially separated, the average weekly 

hours (as defined in § 618.110) and 

average weekly wage (as defined in 

§ 618.110) in adversely affected 

employment. 

(b) Insufficient data. If information 

specified in paragraph (a) of this section 

is not available from cooperating State 

agency records or from any employer, 

the cooperating State agency must 

require the worker to submit a signed 

statement setting forth such information 

as may be required for the cooperating 

State agency to make the determinations 

required by paragraph (a) of this section. 

(c) Verification. A statement made 

under paragraph (b) of this section must 

be certified by the worker to be true to 

the best of the worker’s knowledge and 

belief and must be supported by 

evidence such as W–2 Forms, paycheck 

stubs, union records, income tax 

returns, or statements of fellow workers, 

and must, if possible, be verified by the 

employer. 

(d) Determinations. The cooperating 

State agency must make the necessary 

determinations on the basis of 

information obtained under this section, 

except that if, after reviewing 

information obtained under paragraph 

(b) and (c) of this section against other 

available data, including agency 

records, it concludes that such 

information is not reasonably accurate, 

it must make the determination on basis 

of the best available information. 

§ 618.735 Weekly amounts of basic, 

additional, and remedial TRA. 

(a) Regular allowance. The amount of 

basic, additional, or remedial TRA 

payable for a week of total 

unemployment (including a week of 

training approved under subpart F of 

this part 618) is an amount equal to the 

most recent weekly benefit amount of UI 

(including dependents’ allowances) 

payable to the individual for a week of 

total unemployment preceding the 

individual’s exhaustion of UI following 

the individual’s first qualifying 

separation (as defined in § 618.110); 

except that—

(1) In a State in which weeks of UI are 

paid in varying amounts related to 

wages with separate employers, the 

weekly amount of TRA must be 

calculated as it would be to pay 

extended compensation; and 

(2) Where a State calculates a base 

amount of UI and calculates 

dependents’ allowances on a weekly 

supplemental basis, TRA weekly benefit 

amounts must be calculated in the same 

manner and under the same terms and 

conditions as apply to claimants for UI, 

except that the base amount must not 

change. 


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(b) Increased allowance. An adversely 

affected worker in training approved 

under subpart F of this part 618 who is 

thereby entitled for any week to TRA 

and a training allowance under any 

other Federal law for the training of 

workers will be paid in the amount 

computed under paragraph (a) of this 

section or, if greater, the amount to 

which the adversely affected worker 

would be entitled under such other 

Federal law if such worker applied for 

such allowance. A payment under this 

paragraph (b) is in lieu of any training 

allowance to which the adversely 

affected worker is entitled under such 

other Federal law. 

(c) Reductions to the TRA weekly 

amount.The weekly amount of TRA 

payable under this section will be 

reduced (but not below zero) by—

(1) Income that is deductible from UI 

under the disqualifying income 

provisions of the applicable State law or 

Federal UI law; 

(2) The amount of a training 

allowance (other than a training 

allowance referred to in paragraph (b) of 

this section) under any Federal law that 

the adversely affected worker receives 

for such week, except that no reduction 

of the TRA weekly amount will be made 

for the receipt of Federal student 

financial assistance (as defined in 

§ 618.110), and that in the case of an 

adversely affected worker to whom such 

Federal student financial assistance is 

available, the State will rely on 

prearrangements for the sharing of costs 

under § 618.625(c)(2) (payment 

restrictions for training programs) in 

order to harmonize the provision of 

such Federal student financial 

assistance with the worker’s TRA 

entitlement; and 

(3) Any amount that would be 

deductible from UI for days of absence 

from training under the provisions of 

the applicable State law that applies to 

workers in approved training. 

§ 618.740 Maximum amount of basic TRA. 

(a) General rule. Except as provided in 

paragraph (b) of this section, the 

maximum amount of basic TRA payable 

to an adversely affected worker is the 

product of 52 multiplied by the TRA 

weekly amount for a week of total 

unemployment, calculated under 

§ 618.735(a) (weekly amounts of TRA), 

reduced by the total sum of UI (except 

additional compensation (defined at 

§ 618.110)) that such worker received, or 

would have received had such worker 

either applied therefor or not been 

subject to a disqualification under the 

applicable State law, in such worker’s 

first benefit period as defined in 

§ 618.110. 

(b) Exceptions. The maximum amount 

of TRA determined under paragraph (a) 

of this section does not include: 

(1) The amount of dependents’

allowances paid as a supplement to the 

base weekly amount determined under 

§ 618.735(a); and 

(2) The amount of the difference 

between the adversely affected worker’s 

weekly increased allowances 

determined under § 618.735(b) and such 

worker’s weekly amount determined 

under § 618.735(a). 

(c) Reduction for Federal training 

allowance. (1) If a training allowance 

referred to in § 618.735(c)(2) is greater 

than the amount of TRA otherwise 

payable to an adversely affected worker 

for any week of unemployment with 

respect to which the worker would be 

entitled to TRA (determined without 

regard to any disqualification under 

§ 618.765(b)(2)), if the worker had 

applied for TRA for such week, then 

each week must be deducted from the 

total number of weeks of TRA otherwise 

payable to such worker, except that no 

such deduction will be made for the 

receipt of Federal student financial 

assistance as defined in § 618.110. In the 

case of an adversely affected worker to 

whom such Federal student financial 

assistance is available, the State will 

rely on prearrangements for the sharing 

of training costs under § 618.625(c)(2) in 

order to harmonize the provision of 

such Federal student financial 

assistance with the worker’s TRA 

entitlement. 

(2) If the training allowance referred 

to in paragraph (c)(1) of this section is 

less than the amount of TRA otherwise 

payable to the adversely affected worker 

for such week, such worker must, when 

applying for TRA for such week, be paid 

TRA in an amount not to exceed the 

difference between such worker’s 

regular weekly TRA amount, as 

determined under § 618.735(a), and the 

amount of the training allowance paid 

to such worker for such week. However, 

if the training allowance referred to in 

paragraph (c)(1) is Federal student 

financial assistance as defined in 

§ 618.110, then the amount of TRA will 

not be reduced. In the case of an 

adversely affected worker to whom such 

Federal student financial assistance is 

available, the State will rely on 

prearrangements for the sharing of 

training costs under § 618.625(c)(2) 

(payment restrictions for training 

programs) in order to harmonize the 

provision of such Federal student 

financial assistance with the worker’s 

TRA entitlement. 

§ 618.745 Eligibility period for basic TRA. 

(a) Except as provided in paragraph 

(b) of this section, an adversely affected 

worker is ineligible to receive basic TRA 

for any week of unemployment 

beginning after the close of the 104- 

week period beginning with the first 

week following the week in which the 

adversely affected worker’s most recent 

qualifying separation (defined in 

§ 618.110) occurred. If necessary to 

permit an adversely affected worker to 

complete training, approved under 

subpart F of this part 618, that includes 

remedial education, that 104-week 

period will be extended to 130 weeks. 

(b) The limitation in paragraph (a) of 

this section does not apply where a 

negative determination on a petition 

filed under subpart B of this part 618 

has been appealed to the United States 

Court of International Trade; and the 

certification is later granted; and the 

delay in the certification is not 

attributable to the petitioner or the 

adversely affected worker; and the 

adversely affected worker does not have 

enough weeks remaining in the 

eligibility period established under 

paragraph (a) of this section, together 

with weeks of entitlement to additional 

TRA, to extend the duration of the 

period of TRA eligibility (basic, 

additional, and remedial) through the 

completion of training approved under 

subpart F of this part 618. In that event, 

the eligibility period for basic TRA will 

be extended, on a case-by-case basis, as 

necessary to provide an eligibility 

period for basic and additional TRA 

(and remedial TRA, if applicable) 

through the completion of that training. 

In no event may the basic TRA 

eligibility period extend beyond the 

close of the 104-week period (or, in 

cases where the worker takes remedial 

education courses, the 130-week period) 

beginning with the first week following 

the week of the certification. Nothing in 

this paragraph (b) modifies the 

limitation on the maximum amount of 

basic, additional, or remedial TRA. 

(c) The limitation in paragraph (a) of 

this section does not apply where a 

cooperating State agency’s negative 

determination on an application for 

TRA filed under subpart G of this part 

618 has been reversed on 

redetermination or appeal; the delay in 

obtaining the reversal is not attributable 

to the adversely affected worker; and the 

adversely affected worker does not have 

enough weeks remaining in the 

eligibility period established under 

paragraph (a) of this section, together 

with weeks of entitlement to additional 

TRA, to extend the duration of the 

period of TRA eligibility (basic, 


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additional, and remedial) through the 

completion of training approved under 

subpart F of this part 618. In that event, 

the eligibility period for basic TRA will 

be extended, on a case-by-case basis, as 

necessary to provide an eligibility 

period for basic and additional TRA 

(and remedial TRA, if applicable) 

through the completion of that training. 

In no event may the basic TRA 

eligibility period extend beyond the 

close of the 104-week period (or, in 

cases where the worker takes remedial 

education courses, the 130-week period) 

beginning with the first week following 

the week of the reversal. Nothing in this 

paragraph (c) modifies the limitation on 

the maximum amount of basic, 

additional, or remedial TRA. 

§ 618.750 Qualifying requirements for, and 

duration of, additional TRA. 

(a) Qualifying requirements for 

additional TRA. An adversely affected 

worker is eligible to receive additional 

TRA for any week only if: 

(1) The worker meets all qualifying 

requirements for receipt of basic TRA in 

§ 618.715; and 

(2) Except as provided in § 618.760 for 

a break in training, the adversely 

affected worker actually participated in 

training, approved under subpart F of 

this part 618, during that week; and 

(3) The adversely affected worker 

filed a bona fide application for training 

(as defined in § 618.110) within the later 

of 210 days after the certification date or 

210 days after such worker’s most recent 

total or partial separation (as defined, 

respectively, in § 618.110 and 

§ 618.110); provided, that if the 

adversely affected worker is unable to 

meet this deadline for the same reasons 

as in § 618.720(d)(2)(i), the worker will 

have 210 days from the date of the 

reversal of a denial of an initial 

application for TRA in which to file a 

bona fide application. 

(b) Duration of additional TRA. 

Additional TRA is payable for up to 52 

weeks during the 52 consecutivecalendar week period that—

(1) Immediately follows the last week 

of entitlement to basic TRA otherwise 

payable to the individual; or 

(2) Begins with the first week of 

training approved under subpart F of 

this part 618, if such training begins 

after the last week described in 

paragraph (b)(1) of this section; or 

(3) Begins with the first week in 

which such training is approved under 

subpart F of this part 618, if such 

training is approved after the training 

has commenced; but approval of 

training under subpart F of this part 618 

after the training has commenced does 

not imply or justify approval of a 

payment of basic or additional TRA 

with respect to any week which ended 

before the week in which such training 

was approved, nor approval of payment 

of any costs of training or any costs or 

expenses associated with such training 

(such as travel or subsistence) which 

were incurred before the date of the 

approval of such training under subpart 

F of this part 618. 

§ 618.755 Qualifying requirements for, and 

duration of, remedial TRA. 

(a) Qualifying requirements for 

remedial TRA. An adversely affected 

worker is eligible to receive remedial 

TRA for any week only if—

(1) Such worker meets all qualifying 

requirements for receipt of basic TRA in 

§ 618.715 (qualifying requirements for 

basic TRA); and 

(2) The adversely affected worker 

actually participated in a program of 

remedial education, approved under 

subpart F of this part 618, during or 

before that week; and 

(3) Participation in the program of 

remedial education caused the worker’s 

training program to extend for a period 

longer than the periods during which 

basic and additional TRA are payable 

under, respectively, §§ 618.715 

(qualifying requirements for basic TRA) 

and 618.750 (qualifying requirements 

for, and duration of, additional TRA). 

(b) Duration of remedial TRA. 

Remedial TRA is payable only for up to 

26 consecutive calendar weeks as 

necessary for an adversely affected 

worker to complete a training program 

that is approved under subpart F of this 

part 618 and which includes remedial 

education, and is payable only during 

the 26-consecutive calendar week 

period that begins with the first week 

following the week in which the 

adversely affected worker exhausted all 

rights to additional TRA under 

§ 618.750 (qualifying requirements for, 

and duration of, additional TRA). No 

adversely affected worker may receive 

remedial TRA for a greater number of 

weeks than the number of weeks during 

which such worker participated in a 

program of remedial education 

approved under subpart F of this part 

618. Remedial TRA may be paid only 

for the number of weeks that the 

program of remedial education caused 

the training program to extend training 

and the period in which additional TRA 

is payable under § 618.750. 

(c) Other forms of TRA payable for 

remedial education. Where a program of 

remedial education approved under 

subpart F of this part 618 exceeds 26 

weeks, or falls outside the 26- 

consecutive calendar week period 

established under paragraph (b) of this 

section, an adversely affected worker 

may, if otherwise eligible, receive basic 

or additional TRA for those weeks of 

remedial education exceeding 26 or 

falling outside the 26-consecutive 

calendar week period. 

§ 618.760 Payment of basic, additional, or 

remedial TRA during breaks in training. 

(a) TRA (basic, additional, or 

remedial) is payable to an otherwise 

eligible adversely affected worker 

during breaks in training (periods 

within or between courses, terms 

(quarters or semesters), and academic 

years) that do not exceed 30 days 

(counted in accordance with paragraph 

(b) of this section), only if—

(1) The adversely affected worker 

participated in training approved under 

subpart F of this part 618 immediately 

before the beginning of the break in 

training; and 

(2) The break in training was provided 

in the established schedule of the 

training provider; and 

(3) The adversely affected worker 

resumes participation in the training 

immediately after the break ends. 

(b) Counting of days for breaks in 

training. For the purpose of determining 

whether a break in training is within the 

30-day maximum allowed under this 

section, all calendar days beginning 

with the first day of the training break 

and ending with the last day of the 

break, as provided in the published 

schedule of the training provider, must 

be counted. However, any Saturday, 

Sunday, or official State or National 

Holiday occurring during the scheduled 

break in training is excluded from the 

30-day count if training normally would 

not be scheduled in the training 

program during those days if there was 

no break. 

§ 618.765 Disqualifications. 

(a) General rule. Except as stated in 

paragraph (b)(1) of this section and in 

§ 618.840(f) (concerning disqualification 

due to fraud), an adversely affected 

worker may not be paid TRA for any 

week of unemployment such worker is 

or would be disqualified from receiving 

UI under the disqualification provisions 

of the applicable State law, including 

the provisions of the applicable State 

law which apply to EB claimants and 

are consistent with the Federal-State 

Extended Unemployment Compensation 

Act of 1970. 

(b) Disqualification of trainees. (1) 

State law inapplicable. A State law may 

not be applied to disqualify an 

adversely affected worker from 

receiving UI or TRA because: 

(i) Such worker is enrolled in or 

participating in a training program 


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approved under subpart F of this part 

618; or 

(ii) Such worker refuses work to 

which the State agency referred such 

worker because such work either would 

require discontinuation of approved 

training or when added to the number 

of hours of approved training would 

occupy such worker more than 8 hours 

a day or 40 hours a week, except that 

this paragraph (b)(1)(ii) does not apply 

to an adversely affected worker who is 

ineligible under paragraph (b)(2) of this 

section; or 

(iii) Such worker quits work that was 

not suitable employment (as defined in 

§ 618.110) and it was reasonable and 

necessary to quit in order to begin or 

continue training approved under 

subpart F of this part 618. 

(2) Disqualifications. (i) An adversely 

affected worker who, without justifiable 

cause (as described in paragraph 

(b)(3)(iii) of this section), fails to begin 

participation (as described in paragraph 

(b)(3)(i) of this section) in training 

approved under subpart F of this part 

618, or ceases participation (as 

described in paragraph (b)(3)(ii) of this 

section) in such training, or for whom 

a waiver is revoked under § 618.725(f) 

(waiver of training requirement for basic 

TRA), may not receive basic TRA for 

any week in which such failure, 

cessation, or revocation occurred. The 

disqualification will continue for any 

succeeding week thereafter until the 

week in which such worker begins or 

resumes participation in a training 

program approved under subpart F of 

this part 618. A worker who has 

justifiable cause (as described in 

paragraph (b)(3)(iii) of this section) for 

such failure to begin, or ceasing, 

participation in training may receive 

basic TRA for any week in which such 

failure or cessation occurred if the 

worker otherwise meets the 

requirements of this subpart G. Such 

failure, cessation, or revocation does not 

change the eligibility periods defined in 

§§ 618.745, 618.750(b), and 618.755(b), 

regardless of whether such worker had 

justifiable cause. 

(ii) No adversely affected worker may 

receive additional or remedial TRA for 

any week in which such worker failed 

to participate in training, regardless of 

whether such worker had justifiable 

cause. 

(iii) The disqualification in paragraph 

(b)(2)(i) of this section will not apply to 

an individual with respect to claims for 

TRA for weeks of unemployment 

beginning before the filing of an initial 

claim for TRA, nor for any week which 

begins before the individual is notified 

that the individual is covered by a 

certification issued under the Act and is 

fully informed of the requirements of 

this section. 

(3) For determining the 

disqualification of trainees, the 

following provisions apply: 

(i) Failed to begin participation. A 

worker will be determined to have 

failed to begin participation in a training 

program when the worker fails to attend 

one or more scheduled training classes 

and other training activities in the first 

week of the training program, without 

justifiable cause. 

(ii) Ceased participation. A worker 

will be determined to have ceased 

participation in a training program 

when the worker fails to attend all 

scheduled training classes and other 

training activities scheduled by the 

training institution in any week of the 

training program, without justifiable 

cause. 

(iii) Justifiable cause means, for 

purposes of this section, the reason(s) 

that justify the adversely affected 

worker’s conduct when measured by 

conduct expected of a reasonable 

worker in the same or similar 

circumstances. For example, an excused 

absence under a training institution’s 

written policy may be considered 

‘‘justifiable cause.’’ The cooperating 

State agency must determine all cases of 

failure to enroll or begin or continue 

participation in training on a case-bycase basis. 

(c) Disqualification while in on-thejob training. An adversely affected 

worker may not be paid any TRA for 

any week during which such worker is 

receiving on-the-job training. 

§ 618.770 Health Coverage Tax Credit. 

(a) An eligible TAA recipient, as 

defined in § 618.110, an eligible ATAA 

recipient, as defined in § 618.110, and 

an eligible PBGC recipient, as defined in 

§ 618.110, may be eligible for the Health 

Coverage Tax Credit subject to a 

determination by the Internal Revenue 

Service. 

(b) The cooperating State agency is 

responsible for: (1) Transmitting a list of 

eligible TAA recipients and eligible 

ATAA recipients to the Internal 

Revenue Service; 

(2) Providing information and 

assistance to workers under 

§ 618.820(f)(4) (TAA program and 

benefit information to workers); and 

(3) Assisting in other activities and 

functions required by the State’s 

Agreement with the Secretary under 

§ 618.805 (agreements with the 

Secretary of Labor). 

Subpart H—Administration By 

Applicable State Agencies 

§ 618.800 Scope. 

This subpart covers the administrative 

procedures a cooperating State agency 

must follow in delivering TAA program 

benefits and services to adversely 

affected workers. 

§ 618.805 Agreements with the Secretary 

of Labor. 

(a) Authority. A State or cooperating 

State agency must, before performing 

any function or exercising any 

jurisdiction under the Act and this part 

618, execute an Agreement with the 

Secretary meeting the requirements of 

the Act. 

(b) Execution. An Agreement under 

paragraph (a) of this section must be 

signed and dated on behalf of the State 

or the cooperating State agency by an 

authorized official whose authority is 

certified by the State Attorney General 

or counsel for the cooperating State 

agency, unless the Agreement is signed 

by the Governor or the chief elected 

official of the State. To become effective, 

in addition to an aforementioned State 

official signing and dating the 

Agreement, the Secretary must sign and 

date the Agreement on behalf of the 

United States. In the event that a State 

does not execute an Agreement under 

paragraph (a) of this section, then 

section 3302(c)(3) of the Internal 

Revenue Code of 1986 (26 U.S.C. 3302 

(c)(3)) (loss of unemployment tax credits 

under section 3302(a) and (b)) applies. 

(c) Agent of the United States. A State 

that has executed an Agreement under 

this section is an agent of the United 

States for purposes of carrying out the 

terms of the Agreement, and the 

cooperating State agency must carry out 

fully the purposes of the Act and this 

part 618, including making 

determinations and redeterminations 

and in connection with proceedings for 

review thereof. 

(d) Merit staffing. A State need not 

apply the merit system standards of 5 

CFR 900.603 to TAA program staff, 

except that employees who also perform 

other functions covered by the merit 

system must be merit staffed. 

(e) Contents. Each Agreement under 

this section must contain provisions 

including, but not limited to, the 

following: 

(1) Provisions consistent with the 

requirements of section 239 of the Act 

(19 U.S.C. 2311) providing for these 

Agreements; 

(2) Authorization for the cooperating 

State agency to issue waivers under 

§ 618.725 (waiver of the training 

requirement for basic TRA), and the 


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requirement that the cooperating State 

agency submit, upon request, to the 

Secretary a copy of each such waiver 

and, if not already contained within 

each waiver, a statement of the reasons 

for such waiver; and 

(3) The requirement that the 

cooperating State agency supply data to 

the Secretary on national TAA program 

performance goals identified in 

applicable regulations, the Department 

of Labor’s written directives, or any 

other written means used to 

communicate such goals. 

(f) Public access to Agreements. The 

cooperating State agency must make 

available for inspection and copying an 

accurate copy of its Agreement under 

this section to any individual or 

organization that requests it. Copies of 

the Agreement may be furnished upon 

payment of the same charges, if any, as 

apply to the furnishing of copies of 

other records of the cooperating State 

agency. 

(g) Review of cooperating State agency 

compliance. The appropriate ETA 

Regional Administrator is responsible 

for monitoring and reviewing State and 

cooperating State agency compliance 

with the Agreement entered into under 

the Act and this section. 

(h) Breach. If the Secretary finds that 

the State or cooperating State agency 

has not fulfilled its commitments under 

its Agreement under this section, the 

Secretary may terminate the Agreement, 

disallow costs or impose such other 

sanctions as may be appropriate. In the 

event that the Secretary terminates the 

Agreement, section 3302(c)(3) of the 

Internal Revenue Code of 1986 

(regarding loss of unemployment tax 

credits under section 3302(a) and (b)) 

applies. The Secretary must provide the 

State or cooperating State agency 

reasonable notice and opportunity for 

hearing before the Secretary makes a 

finding whether the State has not 

fulfilled its commitments under its 

Agreement. 

(i) Administration absent State 

Agreement. In any State in which no 

Agreement under this section is in 

effect, the Secretary must administer the 

Act and this part 618 and pay TAA 

hereunder through appropriate 

arrangements made by the Department. 

For this purpose, the Secretary or the 

Department is substituted for the State 

or cooperating State agency wherever 

appropriate under the Act and this part 

618. Such arrangements must require 

that TAA be administered in accordance 

with this part 618 and the provisions of 

the applicable State law, except to the 

extent that such State law is 

inconsistent with this part 618, or 

section 303 of the Social Security Act 

(42 U.S.C. 503), or section 3304(a) of the 

Internal Revenue Code of 1986 (26 

U.S.C. 3304(a)). Any such arrangement 

must include a provision for a fair 

hearing for any individual whose 

application for TAA is denied. A final 

determination as to eligibility to TAA 

will be subject to review by the courts 

of competent jurisdiction as provided by 

42 U.S.C 405(g), as required by section 

240(b) of the Trade Act. 

§ 618.810 Cooperating State agency 

rulemaking. 

A cooperating State agency may 

establish supplemental procedures not 

inconsistent with the Act or this part 

618 or procedures prescribed by the 

Department to further effective 

administration of this part 618. The 

exact text of such supplemental 

procedure or procedures, certified as 

accurate by a responsible official, 

employee, or counsel of the cooperating 

State agency, must be submitted to the 

Department. No supplemental 

procedure may become effective unless 

and until approved by the Department. 

Approval may be granted on a 

temporary basis, not to exceed a period 

determined by the Secretary on a caseby-case basis, in cases of administrative 

necessity. On reasonable notice to a 

cooperating State agency, approval of a 

supplemental procedure may be 

withdrawn at any time. If public notice 

and opportunity for hearing would be 

required under either a State law for 

adoption of a similar or analogous 

procedure involving UI or other State or 

Federal law, the cooperating State 

agency must provide such public notice 

and opportunity for hearing as to the 

supplemental procedure. 

§ 618.815 Subpoenas. 

A cooperating State agency may issue 

subpoenas to require attendance of 

witnesses and production of records on 

the same terms and conditions as under 

the State law in the determination of a 

worker’s claim for TAA or to obtain 

information needed by the Department 

of Labor or the cooperating State agency 

in the petition determination process. 

The cooperating State agency may 

enforce compliance with subpoenas as 

provided under the State law and, if a 

State court declines to enforce a 

subpoena issued under this section, the 

cooperating State agency may petition 

for an order requiring compliance with 

such subpoena to the United States 

District Court with jurisdiction over the 

proceeding. 

§ 618.820 TAA program and benefit 

information to workers. 

(a) Providing general program 

information and advice. Cooperating 

State agencies must provide full 

information and advice to workers about 

the benefits available under this part 

618, and about the petition and 

application procedures and the 

appropriate filing deadlines for such 

benefits. 

(b) Rapid response assistance. 

Cooperating State agencies must ensure 

that rapid response assistance and 

appropriate core and intensive services, 

as described in section 134 of the 

Workforce Investment Act, as amended, 

are made available to workers for whom 

a petition under subpart B of this part 

618 has been filed. 

(c) Providing reemployment services. 

Cooperating State agencies must provide 

to adversely affected workers 

reemployment services, including 

testing, counseling, assessment, 

selection and referral to training, 

placement services, and such other 

reemployment services as the Secretary 

may prescribe. 

(d) Petition filing assistance. 

Cooperating State agencies must provide 

whatever assistance is necessary to 

enable individuals and entities to 

prepare petitions or applications for 

program benefits. Cooperating State 

agencies must facilitate the early filing 

of petitions for any workers who, based 

on information received from sources, 

including but not limited to, the State’s 

dislocated worker unit, reasonably may 

be eligible to apply for benefits under 

this part 618. Cooperating State agencies 

may file petitions on behalf of groups of 

workers for whom petitions have not 

otherwise been filed. 

(e) Providing information after a 

certification is issued. (1) Cooperating 

State agencies must inform the State’s 

board on vocational and technical 

education (also called the eligible 

agency, as defined in 20 U.S.C. 2302(9)) 

or the equivalent agency in the State 

and other public or private agencies, 

institutions, and employers, as 

appropriate, of each certification issued 

under subpart B of this part 618 and of 

projections, if available, of the needs for 

training under subpart F of this part 618 

as a result of such certification. 

(2) Upon receipt of a certification 

issued under subpart B of this part 618 

by the Department of Labor, the 

cooperating State agency must provide a 

written notice through the mail of the 

benefits available under this part 618 to 

each worker known to be covered by the 

certification when the worker becomes 

partially or totally separated or as soon 

as possible after the certification is 


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issued if the worker is already partially 

or totally separated from adversely 

affected employment. As part of its 

rapid response responsibilities under 

§ 618.320, cooperating State agencies are 

encouraged to provide notice of benefits 

to certified workers who have not yet 

been totally or partially separated but 

who have received notice of separation. 

The cooperating State agency must 

obtain from the firm, or another reliable 

source, the names and addresses of all 

workers who were partially or totally 

separated from adversely affected 

employment before the agency received 

the certification, and of all workers who 

are thereafter partially or totally 

separated within the certification 

period. The cooperating State agency 

must mail to each such worker a written 

notice that contains the following 

information: 

(i) The worker group(s) covered by the 

TAA or the TAA and ATAA 

certification, and the article(s) produced 

as specified in the copy of the 

certification furnished to the State 

agency. 

(ii) The name and the address or 

location of workers’ firm. 

(iii) The impact, certification, and 

expiration dates in the certification 

document. 

(iv) A summary of benefits and 

reemployment services available to the 

workers. 

(v) An explanation of how, when, and 

where the workers may apply for TAA 

benefits and services. 

(vi) The training enrollment deadlines 

for TRA qualification. 

(vii) Whom to contact to get 

additional information on the 

certification. 

(3) Upon receipt of a copy of a 

certification issued by the Department 

affecting workers in a State, the 

cooperating State agency must publish a 

notice of the certification in a 

newspaper of general circulation in 

areas in which such workers reside. A 

newspaper notice is not required to be 

published, however, in the case of a 

certification with respect to which the 

cooperating State agency can 

substantiate, and enters in its records 

evidence substantiating, that all workers 

covered by the certification have 

received the written notice required by 

paragraph (c)(2) of this section. The 

published notice must include the same 

information identified in paragraphs 

(e)(2)(i) through (e)(2)(vii) of this 

section. 

(f) Specific benefit assistance to 

workers. Cooperating State agencies 

must—

(1) Advise each adversely affected 

worker, as soon as practicable after the 

worker is separated from adversely 

affected employment or, if later, after a 

certification is issued, of the benefits 

and services available under this part 

618, and of the qualifying requirements, 

procedures, and deadlines for applying 

for such benefits and services. 

(2) Interview each adversely affected 

worker unless the worker declines the 

interview, as soon as practicable after 

the worker is separated from adversely 

affected employment or after a 

certification is issued. The interview 

must be scheduled in time for the 

worker to meet the 8 week or 16 week 

deadlines for enrollment in training. 

The interview must include, when 

appropriate, information about suitable 

training opportunities available to the 

worker under subpart F of this part 618, 

about jobs available in the labor market 

for workers with marketable skills, and 

about a waiver under § 618.725. 

(3) Provide information on ATAA 

benefits and deadlines, including 

informing the potentially eligible 

worker that the worker must make a 

choice between TAA and ATAA 

benefits and services, if ATAA is 

included in the certification. 

(4) Provide information about: 

(i) The health coverage tax credit 

(HCTC) available to eligible TAA 

program recipients and eligible ATAA 

program recipients (as defined in 

§ 618.110), as provided under section 35 

of the Internal Revenue Code of 1986. 

Information provided to workers about 

the HCTC must include guidance on 

how to contact the appropriate division 

of the Internal Revenue Service for more 

detailed eligibility and benefit 

information about the HCTC; 

(ii) The second COBRA election 

opportunity (a second period during 

which HCTC-eligible individuals, who 

did not elect COBRA coverage during 

the first election period, may elect 

coverage under COBRA, which provides 

an individual and his/her family 

temporary continuation of health 

insurance coverage under the 

individual’s previous employerprovided health insurance plan) 

available to eligible TAA recipients and 

eligible ATAA recipients (as defined in 

§ 618.110) under the Employee 

Retirement Income Security Act of 1974 

(ERISA), the Internal Revenue Code of 

1986, and the Public Health Service Act. 

Information provided to workers about 

the second COBRA election period must 

include guidance on how to contact the 

appropriate division of the Internal 

Revenue Service for more detailed 

eligibility and benefit information about 

the second COBRA election period. 

§ 618.825 Determinations of eligibility; 

notices to individuals. 

(a) Determinations of initial 

applications. The cooperating State 

agency whose State law is the 

applicable State law under § 618.110 

must, upon the filing of an initial 

application, promptly determine the 

individual’s eligibility to TAA or ATAA 

under this part 618, and may accept for 

such purposes information and findings 

supplied by another cooperating State 

agency. 

(b) Determinations of subsequent 

applications. The cooperating State 

agency must, upon the filing of an 

application for payment of TRA, ATAA, 

or subsistence and transportation, 

promptly determine whether the 

individual is eligible for such payment, 

and, if eligible, the amount of such 

payment, for which the worker is 

eligible. In addition, the cooperating 

State agency must, upon the filing of a 

subsequent application for a job search 

allowance (where the total of previous 

job search allowances paid the worker 

was less than the statutory dollar limit), 

promptly determine whether the worker 

is eligible for a job search allowance, 

and, if eligible, the amount of the job 

search allowance for which the worker 

is eligible. 

(c) Redeterminations. The provisions 

of the applicable State law concerning 

the right to request, or authority to 

undertake, reconsideration of a 

determination on a claim for UI applies 

to determinations on all forms of TAA 

and on ATAA under this part 618. 

(d) Use of State law. In making 

determinations or redeterminations 

under this section, or in reviewing such 

determinations or redeterminations 

under § 618.835, a cooperating State 

agency must apply the regulations in 

this part 618. As to matters committed 

by this part 618 to be decided under the 

applicable State law, a cooperating State 

agency, a hearing officer, or a State court 

must apply the applicable State law and 

regulations thereunder, including the 

procedural requirements of the 

applicable State law or regulations: 

Provided, that, no provision of State law 

or regulations on good cause for waiver 

of any time limit, or for late filing of any 

claim, will apply to any time limitation 

referred to or specified in this part 618, 

unless such State law or regulation is 

made applicable by a specific provision 

of this part 618. 

(e) Notices to individuals. The 

cooperating State agency must notify the 

individual in writing of any 

determination or redetermination of 

eligibility to TAA or ATAA. Each 

determination or redetermination must 

inform the individual of the reason for 


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the determination or redetermination 

and of the right to reconsideration or 

appeal in the same manner as 

determinations of entitlement to UI are 

subject to redetermination or appeal 

under the applicable State law. 

(f) Promptness. Cooperating State 

agencies must make full payment of 

TAA and ATAA when due with the 

greatest promptness that is 

administratively feasible. 

(g) Procedure. The procedures for 

making and furnishing determinations 

and written notices of determinations to 

individuals, must be consistent with the 

Secretary’s ‘‘Standard for Claim 

Determinations—Separation 

Information,’’ Employment Security 

Manual, Part V, sections 6010–6015 

(appendix B of part 617 of this chapter). 

§ 618.830 Liable State and agent State 

responsibilities. 

(a) Liable State. The liable State is 

responsible for: 

(1) Making all determinations, 

redeterminations, and decisions on 

appeals on all claims for program 

benefits under this part 618, including 

job search allowances under subpart D; 

relocation allowances under subpart E; 

training under subpart F; subsistence 

and transportation payments under 

§ 618.640; basic, additional, and 

remedial TRA under subpart G; waivers 

and revocations of waivers under 

§ 618.725; and ATAA; 

(2) Providing workers with general 

program information and advice under 

§ 618.820(a) and petition filing 

assistance under § 618.820(d); 

(3) Providing rapid response 

assistance under § 618.320 upon 

receiving a copy of a petition filed on 

behalf of a group of workers at a firm or 

appropriate subdivision in the State; 

(4) Providing information and 

assistance to adversely affected workers 

under paragraphs (c) (reemployment 

services), (e) (information after a 

certification is issued), and (f) (specific 

benefit assistance to workers) of 

§ 618.820 upon receiving a certification 

issued by the Department with respect 

to affected workers at a firm or 

appropriate subdivision in the State; 

(5) Providing reemployment services 

as provided under this part 618 to 

adversely affected workers covered by a 

certification issued by the Department 

under this part; 

(6) Providing a list of eligible TAA 

recipients and eligible ATAA recipients 

(as defined in § 618.110) to the Internal 

Revenue Service under § 618.770; and 

(7) Assisting in other activities and 

functions required by the State’s 

Agreement with the Secretary under 

§ 618.805. 

(b) Agent State. The agent States is 

responsible for: 

(1) Cooperating fully with and 

assisting the liable State in carrying out 

its responsibilities, activities, and 

functions; 

(2) Cooperating with the liable State 

in taking applications and claims for 

TAA and ATAA; 

(3) Providing interstate claimants with 

general program information and advice 

under § 618.820(a) and petition filing 

assistance under § 618.820(d); 

(4) Providing employment services 

under subparts C, D, E, F, G, and I of 

this part to adversely affected workers 

covered by a certification issued by the 

Department; 

(5) Cooperating with the liable State 

by providing information that the liable 

State needs for it to issue 

determinations, redeterminations, and 

decisions on appeals on all claims for 

program benefits under this part 618, as 

described in paragraph (a)(1) of this 

section; 

(6) Procuring and paying the cost of 

any approved training under subpart F, 

and subsistence and transportation 

payments under § 618.640, according to 

determinations issued by the liable 

State; and 

(7) Assisting in other activities and 

functions required by the State’s 

Agreement with the Secretary under 

§ 618.805. 

§ 618.835 Appeals and hearings. 

(a) Applicable State law. Except as 

provided below in paragraph (b), a 

determination or redetermination under 

this part 618 is subject to review in the 

same manner and to the same extent as 

UI determinations and redeterminations 

under the applicable State law, and only 

in that manner and to that extent. 

Proceedings for review of a 

determination or redetermination may 

be consolidated or joined with 

proceedings for review of other 

determinations or redeterminations 

under the applicable State law where 

convenient or necessary. Procedures as 

to the right of appeal and opportunity 

for fair hearing must be consistent with 

sections 303(a)(1) and (3) of the Social 

Security Act (42 U.S.C. 503(a)(1) and 

(3)). 

(b) Allegations of discrimination. 

Complaints alleging that a 

determination or redetermination under 

this part 618 violates applicable Federal 

nondiscrimination laws administered by 

the U.S. Department of Labor must be 

filed in accordance with the procedures 

of 29 CFR parts 31, 32, 35, 36, and/or 

37, as provided in § 618.875(i) 

(nondiscrimination and equal 

opportunity requirements). 

(c) Appeals promptness. Appeals 

under paragraph (a) of this section must 

be decided with a degree of promptness 

meeting the Secretary’s ‘‘Standard on 

Appeals Promptness—Unemployment 

Compensation’’ (Part 650 of this 

chapter). Any provisions of the 

applicable State law for advancement or 

priority of UI cases on judicial 

calendars, or otherwise intended to 

provide for prompt payment of UI when 

due, must apply equally to proceedings 

involving eligibility to TAA under this 

part 618. 

§ 618.840 Overpayments; penalties for 

fraud. 

(a) Determination and repayment. If a 

cooperating State agency or a court of 

competent jurisdiction determines that 

any person has received any payment 

under this part 618 to which the person 

was not entitled, including a payment 

referred to in paragraph (f) or paragraph 

(g) of this section, such person will be 

liable to repay such amount to the 

cooperating State agency, and the 

cooperating State agency must recover 

any such overpayment in accordance 

with the provisions of this section 

except that the cooperating State agency 

may, in accordance with paragraphs (b) 

through (e) of this section, waive the 

recovery of any such overpayment. 

(b) Waiver of overpayment recovery; 

State option. Each cooperating State 

agency has the option to decide whether 

to permit waiver of recovery of 

overpayments determined under 

paragraph (a) of this section. However, 

a cooperating State agency that decides 

to permit such waiver must apply the 

waiver provisions of this section and 

document that its waiver rules meet the 

requirements of this section. A 

cooperating State agency’s decision 

whether to permit waiver of TAA 

overpayment recovery will not be 

controlled by whether it waives UI 

overpayment recovery. The State’s 

decision whether to permit waiver of 

TAA overpayment recovery must be 

published for the information of the 

public and must be provided to the 

Department. 

(c) Waiver of overpayment recovery; 

requests for waiver. In States which 

permit waivers of overpayments, notices 

of a determination of overpayments 

must include an accurate description of 

the waiver provisions of this section. 

Determinations granting or denying 

waivers of overpayment recovery under 

this section must be made only on a 

request for a waiver determination by 

the affected person. The request must be 

made on a form furnished to the person 

by the cooperating State agency. 


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(d) Waiver of overpayment recovery; 

general waiver criteria. The cooperating 

State agency may waive the recovery of 

any overpayment determined under 

paragraph (a) of this section if the 

agency determines: 

(1) The payment was made without 

fault on the part of such person, in 

accordance with paragraphs (e)(1) and 

(e)(2) of this section; and 

(2) Requiring repayment would be 

contrary to equity and good conscience, 

in accordance with paragraphs (e)(3) 

through (e)(5) of this section. 

(e) Waiver of overpayment recovery; 

specific waiver criteria. (1) In 

determining whether fault exists for 

purposes of paragraph (d)(1) of this 

section, the following factors must be 

considered: 

(i) Whether the person made a 

material statement or representation in 

connection with the application for 

TAA that resulted in the overpayment, 

and whether the person knew, or should 

have known, that the statement or 

representation was inaccurate. 

(ii) Whether the person failed, or 

caused another to fail, to disclose a 

material fact in connection with an 

application for TAA that resulted in the 

overpayment, and whether the person 

knew, or should have known, that the 

fact was material. 

(iii) Whether the person knew, or 

should have known, that the person was 

not entitled to the TAA payment. 

(iv) Whether, for any other reason, the 

overpayment resulted directly or 

indirectly, and partially or totally, from 

any act or omission of the person or of 

which the person had knowledge, and 

which was erroneous or inaccurate or 

otherwise wrong. 

(v) Whether there has been a 

determination of fraud under paragraph 

(f) of this section or section 243 of the 

Act. 

(2) An affirmative finding on any one 

of the factors in this paragraph (e)(1) 

precludes waiver of overpayment 

recovery. 

(3) In determining whether equity and 

good conscience exists for purposes of 

paragraph (d)(2) of this section, the 

following factors must be considered: 

(i) If the overpayment was the result 

of a decision on appeal, whether the 

cooperating State agency had given 

notice to the person that the case had 

been appealed; that the person may be 

required to repay the overpayment in 

the event of a reversal on appeal; and 

recovery of the overpayment will not 

cause extraordinary and lasting 

financial hardship to the person. 

(ii) If the overpayment was not the 

result of an appeal, whether recovery of 

the overpayment will not cause 

extraordinary financial hardship to the 

person and whether the person was 

notified that he or she was liable for 

repaying it. 

(4) An affirmative finding on either of 

the factors in this paragraph (e)(3) 

precludes waiver of overpayment 

recovery. 

(5)(i) For the purpose of paragraph 

(e)(3) of this section, an extraordinary 

financial hardship exists if recovery of 

the overpayment would result directly 

in the person’s loss of or inability to 

obtain minimal necessities of food, 

medicine, and shelter for a substantial 

period of time; and a lasting financial 

hardship is one that may be expected to 

endure for the foreseeable future. 

(ii) In applying this test in the case of 

attempted recovery by repayment, a 

substantial period of time is 30 days, 

and the foreseeable future is at least 

three months. In applying this test in 

the case of proposed recoupment from 

other benefits, a substantial period of 

time and the foreseeable future are the 

longest potential period of benefit 

eligibility as measured at the time of the 

request for a waiver determination. In 

making these determinations, the 

cooperating State agency must take into 

account all potential income of the 

person and the person’s wholly or 

family-owned business, or family and 

all cash resources available or 

potentially available to the person and 

the person’s wholly or family-owned, or 

family in the time period being 

considered. 

(f) Fraud. If a cooperating State 

agency or a court of competent 

jurisdiction finds that any person: 

(1) Knowingly has made, or caused 

another to make, a false statement or 

representation of a material fact; or 

(2) Knowingly has failed, or caused 

another to fail, to disclose a material 

fact; and as a result of such false 

statement or representation, or of such 

nondisclosure, such person has received 

any payment under this part 618 to 

which the person was not entitled, such 

person will, in addition to any other 

penalty provided by law, forever more 

be ineligible for any further payments 

under this part 618. 

(g) Training, job search and relocation 

allowances. (1) If an adversely affected 

worker fails, with good cause, to 

complete training, a job search, or a 

relocation, then the payments for such 

benefit are not overpayments. 

(2) If an adversely affected worker 

fails, without good cause, to complete 

training, a job search, or a relocation, 

then any payments for such benefits are 

overpayments. 

(3) If an adversely affected worker 

fails, with good cause, to complete part 

of the training, job search, or relocation 

and that worker also fails, without good 

cause, to complete another part of the 

training, job search, or relocation, then 

any payment for the benefit accruing 

from the failure to complete training, job 

search, or relocation without good cause 

are overpayments. 

(4) For purposes of this paragraph (g), 

an adversely affected worker has good 

cause if there exist such reasons that 

would cause a reasonable person in like 

circumstances not to complete TAA 

program benefits and services. The 

cooperating State agency must 

determine whether good cause exists on 

a case-by-case basis. 

(5) An overpayment established under 

this paragraph (g) may be recovered or 

may be waived as provided in this 

section. 

(h) Final determination. Except for 

overpayments determined by a court of 

competent jurisdiction, no repayment 

may be required, and no deduction may 

be made, under this section until the 

cooperating State agency has made a 

determination under paragraph (a) of 

this section, and has provided the 

person concerned a notice of the 

determination and an opportunity for a 

fair hearing thereon, and the 

determination has become final. 

(i) Overpayment recovery by offset. 

Unless an overpayment is otherwise 

recovered, or is waived under 

paragraphs (b) through (e) of this 

section, the cooperating State agency—

(1) Must, subject to the limitation in 

paragraph (i)(4) of this section, recover 

the overpayment by deduction from any 

sums payable to such person under: 

(i) This part 618; 

(ii) Any Federal UI law administered 

by the State agency; or 

(iii) Any other Federal law 

administered by the State agency that 

provides for the payment of 

unemployment assistance or an 

allowance with respect to 

unemployment. 

(2) Must, if the State has a crossprogram offset Agreement with the 

Secretary in effect under authority of 42 

U.S.C. 503(g)(2), and subject to the 

limitation in paragraph (i)(4) of this 

section, recover the overpayment from 

UI payable to such person under the 

applicable State law. 

(3) May, if the State does not have a 

cross-program offset Agreement with the 

Secretary in effect under authority of 42 

U.S.C. 503(g)(2), and subject to the 

limitation in paragraph (i)(4) of this 

section, recover the overpayment from 

UI payable to such person under the 

State law. 

(4) Must not allow any single 

deduction under this paragraph (i) to 


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exceed 50 percent of the amount 

otherwise payable to the person; except 

that if the applicable State law provides 

for an overpayment recovery deduction 

that is less than 50 percent of the 

amount otherwise payable, such 

recovery must be equal to that lesser 

percentage. 

(j) Deposit. Any amount recovered by 

a cooperating State agency under this 

section must be deposited into the 

Federal fund or account from which 

payment was made. 

(k) Procedural requirements. The 

provisions of paragraphs (c), (e), and (g) 

of § 618.830 and § 618.835 apply to 

determinations and redeterminations 

made under this section. 

(l) Fraud detection and prevention. 

State procedures for the detection and 

prevention of fraudulent overpayments 

of TAA and ATAA must be, at a 

minimum, no less rigorous than those 

the State has adopted with respect to 

State unemployment compensation, and 

consistent with the Secretary’s 

‘‘Standard for Fraud and Overpayment 

Detection,’’ Employment Security 

Manual, Part V, sections 7510–7515 

(Appendix C of this Part). 

(m) Person. For purposes of this 

section and § 618.845 (recovery of debts 

due the United States or others by TAA 

offset), a person includes, in addition to 

an adversely affected worker or other 

individual, any employer or other entity 

or organization as well as the officers 

and officials thereof, any training 

institution as well as the officers and 

officials thereof, who may bear personal 

responsibility for the overpayment. 

§ 618.845 Recovery of debts due the 

United States or others by TAA offset. 

(a) Debt due the United States. 

Notwithstanding any other provision of 

this part 618, the State agency must 

apply TAA and ATAA, payable under 

this part to a person (as described in 

§ 618.840(m)), for the recovery by offset 

of any debt due the United States from 

the person. 

(b) Debt due to others. The State 

agency must not apply or use TAA and 

ATAA, in any manner for the payment 

of any debt of any person to any State 

or any other entity or person, except as 

provided by the applicable State law for 

UI. 

§ 618.850 Uniform interpretation and 

application of the Act and regulations. 

(a) First rule of construction. The Act 

and the implementing regulations in 

this part 618 will be construed liberally 

to carry out the purposes of the Act. 

(b) Second rule of construction. The 

Act and the implementing regulations in 

this part 618 will be construed to assure, 

insofar as possible, the uniform 

interpretation and application of the Act 

and this part 618 throughout the United 

States. 

(c) Effectuating purposes and rules of 

construction. (1) To effectuate the 

purposes of the Act and this part 618 

and to assure uniform interpretation and 

application of the Act and this part 618 

throughout the United States, a 

cooperating State agency must, upon 

request, forward to the Department a 

copy of any administrative or judicial 

ruling on an individual’s eligibility to 

TAA and ATAA under this part 618. 

(2)(i) If the Department believes that 

a determination, redetermination, or 

decision is inconsistent with the 

Department’s interpretation of the Act 

or this part 618, the Department may at 

any time notify the cooperating State 

agency of the Department’s view. The 

cooperating State agency must issue a 

redetermination or must appeal, if 

possible. The cooperating State agency 

also must not follow such 

determination, redetermination, or 

decision as a precedent. In any 

subsequent proceedings which involve 

such determination, redetermination, or 

decision, or in which such 

determination, redetermination, or 

decision is cited as precedent or 

otherwise relied upon, the cooperating 

State agency must inform the decision 

maker of the Department’s view and 

must make all reasonable efforts, 

including appeal or other proceedings 

in an appropriate forum, to obtain 

modification, limitation, or a reversal of 

the determination, redetermination, or 

decision. 

(ii) If the determination, 

redetermination, or decision in question 

awards TAA or ATAA to an individual, 

the benefits are ‘‘due’’ within the 

meaning of section 303(a)(1) of the 

Social Security Act (42 U.S.C. 503(a)(1)), 

and therefore must be paid promptly to 

the individual. Payments to the 

individual may be temporarily delayed 

if redetermination is issued or appeal is 

filed not more than one business day 

following the day on which the first 

payment otherwise would be issued to 

the individual; and the cooperating 

State agency seeks an expedited appeal 

decision within not more than two 

calendar weeks after the appeal is filed. 

If the redetermination is not issued or 

the appeal is not filed within the above 

time limit, or the decision on appeal is 

not obtained within the above twocalendar week limit, or any decision on 

appeal is issued which affirms the 

determination, redetermination, or 

decision awarding TAA or ATAA or 

allows it to stand in whole or in part, 

the benefits awarded must be paid 

promptly to the individual. 

(iii) A State may request in writing, 

within 10 calendar days of receiving a 

notice under paragraph (c)(2) of this 

section, reconsideration of the notice. 

The State will be given an opportunity 

to present its views and arguments if 

desired. The request must be made to 

the Secretary and may include views 

and arguments on the matters to be 

decided by the Secretary under 

paragraph (c)(3) of this section. The 

Secretary must respond to the State’s 

reconsideration request within 30 

calendar days of receiving the request. 

(3)(i) If any determination, 

redetermination, or decision referred to 

in paragraph (c)(2) of this section is 

treated as a precedent for any future 

application for TAA or TAA and ATAA, 

the Secretary will decide whether to 

terminate the Agreement with the State 

entered into under the Act and this part 

618, and whether to apply § 618.805(h) 

(agreements with the Secretary of 

Labor). 

(ii) In the case of any determination, 

redetermination, or decision that is not 

legally warranted under the Act or this 

part 618, including any determination, 

redetermination, or decision referred to 

in paragraph (c)(2) of this section, the 

Secretary will decide whether the State 

will be required to restore to the United 

States any sums paid under such a 

determination, redetermination, or 

decision, and whether, in the absence of 

such restoration, to terminate the 

Agreement with the State, and whether 

to apply § 618.805(h), or whether to take 

other action to recover such sums for 

the United States. 

(4) A State may not presume the 

Department’s concurrence in a 

determination, redetermination, or 

decision from the absence of a notice 

issued under this section. 

§ 618.855 Inviolate rights to TAA or ATAA. 

Except as specifically provided in this 

part 618, the rights of individuals to 

TAA or ATAA must be protected in the 

same manner and to the same extent as 

the rights of persons to UI are protected 

under the applicable State law. Such 

measures must include protection of 

applicants for TAA or TAA and ATAA 

from waiver, release, assignment, 

pledge, encumbrance, levy, execution, 

attachment, and garnishment of their 

rights to TAA or ATAA, except as 

provided in §§ 618.840 (overpayments; 

penalties for fraud) and 618.845 

(recovery of debts due the United States 

or others by TAA offset). In the same 

manner and to the same extent, 

individuals must be protected from 

discrimination and obstruction in regard 


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to seeking, applying for, and receiving 

any right to TAA or ATAA. 

§ 618.860 Veterans’ priority of service. 

The Jobs for Veterans Act of 2002 (38 

U.S.C. 4215(b)) establishes a priority of 

service for covered persons who 

otherwise meet the eligibility 

requirements for participation in TAA 

programs. Such covered persons include 

veterans, as well as spouses of any 

veteran who died of a service connected 

disability, has a total disability resulting 

from a service connected disability, or 

died while a disability so evaluated was 

in existence, or spouses of any member 

of the Armed Forces serving on active 

duty who are listed for a total of more 

than 90 days as missing in action, 

captured, or forcibly detained. The 

cooperating State agency must give the 

highest priority for approval and 

funding of TAA program benefits 

(including training, where the approval 

of training criteria are met) to an 

adversely affected worker meeting the 

veterans’ priority of service criteria. 

§ 618.865 Recordkeeping and disclosure 

of information requirements. 

(a) Recordkeeping. Each cooperating 

State agency must make and maintain 

such records pertaining to the 

administration of the Act as the 

Secretary requires and must make all 

such records available for inspection, 

examination and audit by such Federal 

officials as the Secretary may designate 

or as may be required by law. 

Cooperating State agencies must 

maintain records that contain any 

information that the Department 

determines to be appropriate in support 

of any reports that the Department may 

require, including those reports 

specified in §§ 618.875(j) (general fiscal 

and administrative requirements) and 

618.880(e) (TAA program performance). 

(b) Disclosure of information. Each 

State must keep confidential any 

information it receives about each 

applicant for any benefit or service 

under the Act in the course of fulfilling 

its obligations under the Act and this 

part 618 to the extent required under all 

applicable State and Federal laws. Each 

State also must keep confidential any 

confidential business information, as 

defined in § 618.110, that it obtains or 

receives in the course of fulfilling its 

obligations under the Act and this part 

618 and must not disclose such 

information to any person, organization, 

or entity except as directed by the 

Secretary, a court, or as required by 

applicable State and Federal laws. This 

provision on the confidentiality of 

information maintained in the 

administration of the Act does not 

apply, however, to disclosures to the 

Department. This provision on 

confidentiality also does not apply to 

disclosures either for the purposes of 

§ 618.840 or paragraph (a) of this 

section, or to provide information, 

reports and studies required by 

§ 618.870 (information, reports, and 

studies), or where nondisclosure would 

be inconsistent with the Freedom of 

Information Act (5 U.S.C. 552), the 

Privacy Act of 1974 (5 U.S.C. 552a), or 

regulations of the Department 

promulgated thereunder (see 29 CFR 

parts 70 and 70a). 

§ 618.870 Information, reports, and 

studies. 

(a) A cooperating State agency must 

furnish to the Secretary such 

information and reports, including the 

reports required by §§ 618.875(j) 

(general fiscal and administrative 

requirements) and 618.880 (TAA 

program performance), and conduct 

such studies as the Secretary determines 

are necessary or appropriate to carry out 

the purposes of the Act and this part 

618. A cooperating State agency must 

submit financial and non-financial 

reports on activities conducted with 

TAA program funds to the Department 

in accordance with reporting 

instructions approved by the Office of 

Management and Budget as to the 

content, frequency, and due dates. 

(b) The Department may reduce the 

administrative funding of cooperating 

State agencies that fail to submit 

accurate and timely reports. Cooperating 

State agencies submitting reports that 

cannot be validated or verified as 

accurately counting and reporting 

activities in accordance with the 

reporting instructions may be treated as 

failing to submit reports. 

§ 618.875 General fiscal and administrative 

requirements. 

(a) Uniform fiscal and administrative 

requirements. (1) Each cooperating State 

agency receiving funds allocated for the 

TAA program funds from the 

Department as an agent of the United 

States must administer the TAA 

program in accordance with the 

‘‘Uniform Administrative Requirements 

for Grants and Cooperative Agreements 

to State and Local Governments’’ at 29 

CFR part 97. Paragraphs (a)(2) through 

(a)(5) of this section further elaborate 

upon the application of 29 CFR part 97 

to the administration of the TAA 

program. 

(2) Unless indicated otherwise in the 

TAA Annual Cooperative Financial 

Agreement between a State and the 

Department, or in a State subaward 

instrument (and as elaborated in 

paragraphs (a)(3) through (a)(5) of this 

section), a recipient of funds allocated 

for the TAA program (whether 

administrative or benefit fund expense 

categories) under a subaward from a 

State must abide by the administrative 

requirements provided in this paragraph 

(a)(2). Specifically, units of State, local, 

or Indian tribal government must abide 

by the regulations at 29 CFR part 97. 

Institutions of higher education, 

hospitals, other non-profit 

organizations, and commercial 

organizations must abide by the 

‘‘Uniform Administrative Requirements 

for Grants and Other Agreements with 

Institutions of Higher Education, 

Hospitals and Other Non-Profit 

Organizations’’ at 29 CFR part 95. 

(3) Funds awarded to a State during 

a Federal fiscal year to carry out TAA 

program activities under sections 235 

through 238 of the Act (but not sections 

231 through 234 of the Act) may be 

expended by the State during that 

Federal fiscal year and the succeeding 

two Federal fiscal years. 

(4) Equipment, as described in 29 CFR 

97.32 and Appendix B of ‘‘Cost 

Principles for State, Local and Indian 

Tribal Governments’’ at 2 CFR part 225, 

includes equipment acquired with TAA 

administrative funds under both current 

and prior Agreements. 

(5) The addition method, described at 

29 CFR 95.24 or 29 CFR 97.25(g)(2) (as 

appropriate), must be used for all 

program income earned under TAA 

grants. When the cost of generating 

program income has been charged to 

such grant, the gross amount earned 

must be added to such grant. However, 

when these costs have not been charged 

to such grant, the cost of generating 

program income must be subtracted 

from the amount earned to establish the 

net amount of program income available 

for use under such grant. 

(b) General allowable costs/cost 

principles. (1) All recipients and 

subrecipients must follow the Federal 

allowable cost principles that apply to 

their kind of organization. The DOL 

regulations at 29 CFR 95.27 and 29 CFR 

97.22(b) identify the Federal principles 

for determining allowable costs which 

each kind of recipient and subrecipient 

must follow. The applicable Federal 

principles for each kind of recipient are 

described in paragraphs (b)(2) through 

(b)(6) of this section, while paragraph 

(b)(7) of this section applies to all 

recipients of TAA administrative funds. 

(2) Allowable costs for State, local, 

and Indian tribal government 

organizations must be determined under 

‘‘Cost Principles for State, Local and 

Indian Tribal Governments’’ at 2 CFR 

part 225. 


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(3) Allowable costs for non-profit 

organizations must be determined under 

‘‘Cost Principles for Non-Profit 

Organizations’’ at 2 CFR part 230. 

(4) Allowable costs for institutions of 

higher education must be determined 

under ‘‘Cost Principles for Educational 

Institutions’’ at 2 CFR part 220. 

(5) Allowable costs for hospitals must 

be determined in accordance under 

appendix E of 45 CFR part 74, 

‘‘Principles for Determining Costs 

Applicable to Research and 

Development Under Grants and 

Contracts with Hospitals.’’

(6) Allowable costs for commercial 

organizations and those non-profit 

organizations listed in Attachment C to 

‘‘Cost Principles for Non-Profit 

Organizations’’ at 2 CFR part 230, must 

be determined under the provisions of 

the Federal Acquisition Regulation at 48 

CFR part 31. 

(7) The administrative cost limit for 

the fiscal year program funding 

allocation for training, job search 

assistance, and relocation allowances is 

included in the TAA Annual 

Cooperative Financial Agreement, with 

which States must comply. 

(c) Claims against the Federal 

Government. For all types of entities, 

legal expenses for the prosecution of 

claims against the Federal Government, 

including appeals to an Administrative 

Law Judge, are unallowable. 

(d) Lobbying Costs. In accordance 

with the restrictions on lobbying at 29 

CFR part 93, no TAA program funds 

may be charged for salaries or expenses 

related to any activity designed to 

influence appropriations or other 

legislation pending before the Congress 

of the United States or any State 

legislature. 

(e) Employee Fringe Benefits. As an 

exception to 2 CFR part 225 with 

respect to personnel benefit costs 

incurred on behalf of State Workforce 

Agency (SWA) employees who are 

members of fringe benefit plans which 

do not meet the requirements of 

Attachment B, item 11, in ‘‘Cost 

Principles for State, Local, and Indian 

Tribal Governments’’ at 2 CFR part 225, 

the costs of employer contributions or 

expenses incurred for SWA fringe 

benefit plans are allowable, provided 

that: 

(1) All fringe benefit plans covered in 

paragraphs (e)(2) and (e)(3) of this 

section were approved by the Secretary 

before October 1, 1983; and all covered 

employees joined the plan before 

October 1, 1983; and any additional 

costs resulting from improvements to 

the plans made after October 1, 1983 are 

not chargeable to DOL grant funds; and 

the State agrees to refund to the 

Department of Labor any amount 

refunded to the State by the carrier at 

the termination of the plan or at the 

time the last beneficiary dies, whichever 

is later. 

(2) For retirement plans, the plan is 

authorized by State law; and the plan is 

insured by a private insurance carrier 

which is licensed to operate this type of 

plan in the State; and any dividends or 

similar credits because of participation 

in the plan are credited against the next 

premium falling due under the contract. 

(3) For SWA fringe benefit plans other 

than retirement plans, costs of the plan 

are allowable until such time as the plan 

is comparable in cost and benefits to 

fringe benefit plans available to other 

similarly employed State employees, 

after which time the requirements of 2 

CFR part 225 cited in this paragraph (e) 

will apply. 

(f) Prior Approval of Equipment 

Purchases. As provided in Attachment 

B, item 19.c. of ‘‘Cost Principles for 

State, Local and Indian Tribal 

Governments’’ at 2 CFR part 225, the 

requirement that grant recipients obtain 

prior approval from the Federal grantor 

agency for all purchases of equipment 

(as defined in 29 CFR 97.3) is waived, 

and approval authority is delegated to 

the cooperating State agency, except 

that the Secretary reserves the right to 

require transfer of title to Automated 

Data Processing Equipment in 

accordance with 29 CFR 97.32(g). Prior 

Federal approval of real estate 

purchases is not waived or delegated. 

(g) Audit requirements. (1) All States, 

local governments, and non-profit 

organizations that are recipients or 

subrecipients of TAA or ATAA program 

funds must follow the audit 

requirements under 29 CFR parts 96 and 

99. Further implementing requirements 

for governmental organizations, and for 

institutions of higher education, 

hospitals, and other non-profit 

organizations, are at, respectively, 29 

CFR 97.26 and 29 CFR 95.26. 

Organizations that expend more than 

the minimum level specified in 29 CFR 

part 99 must have either an 

organization-wide audit conducted in 

accordance with 29 CFR parts 96 and 

99. 

(2) Commercial organizations that are 

subrecipients of TAA or ATAA program 

funds and expend more than the 

minimum level specified in 29 CFR part 

99 must have either an organizationwide audit conducted in accordance 

with 29 CFR parts 96 and 99 or a 

program-specific financial and 

compliance audit. 

(h) Government-wide debarment and 

suspension, and government-wide drugfree workplace requirements. All TAA 

program fund recipients and 

subrecipients must comply with the 

government-wide requirements for 

debarment and suspension, and the 

government-wide requirements for a 

drug-free workplace at 29 CFR part 98. 

(i) Nondiscrimination and equal 

opportunity requirements. 

(1) Cooperating State agencies and 

subrecipients of financial assistance 

under the TAA program are required to 

comply with the nondiscrimination and 

equal opportunity provisions codified in 

the Department’s regulations at 29 CFR 

parts 31, 32, 35, and 36. 

(2) Cooperating State agencies and 

subrecipients of financial assistance 

under the TAA program are required to 

comply with the nondiscrimination and 

equal opportunity provisions codified in 

the Department’s regulations at 29 CFR 

part 37 if the agency or subrecipient: 

(i) Operates its TAA programs and 

activities as part of the One-Stop 

delivery system established under the 

Workforce Investment Act of 1998, as 

amended (WIA); or 

(ii) Otherwise satisfies the definition 

of ‘‘recipient’’ in 29 CFR 37.4. 

(3) Questions about, or complaints 

alleging violation of, the 

nondiscrimination requirements cited in 

this section may be directed to the 

Director, Civil Rights Center, U.S. 

Department of Labor, Room N–4123, 

200 Constitution Avenue, NW., 

Washington, DC 20210. Complaints 

alleging violations of the WIA 

nondiscrimination regulations at 29 CFR 

part 37 may also be filed at the State 

agency or subrecipient level. See 29 CFR 

37.71 and 37.76. All such complaints 

must be processed using procedures that 

comply with the requirements in 29 

CFR part 37. 

(4)(i) This § 617.875(i) is not intended 

to, and does not, affect any rights 

regarding, or protections against, 

discrimination that are provided under 

any other applicable Federal laws 

prohibiting discrimination, any 

applicable State or local laws related to 

discrimination, or their implementing 

regulations, except as provided in 

paragraphs (i)(4)(ii) and (iii). 

(ii) The obligation to comply with the 

nondiscrimination and equal 

opportunity provisions of 29 CFR parts 

31, 32, 35, 36, and/or 37 is not excused 

or reduced by any State or local law or 

other requirement that uses race, color, 

religion, sex, age, disability, political 

affiliation or belief as a basis for 

prohibiting or limiting an individual’s 

eligibility for any of the following: 

(A) Receiving aid, benefits, services, 

training, or employment; 

(B) Participating in any TAA program 

or activity; 


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(C) Being employed by any 

cooperating State agency; or 

(D) Practicing any occupation or 

profession. 

(iii) The obligation to comply with the 

nondiscrimination and equal 

opportunity provisions of 29 CFR part 

37 is not excused or reduced by any 

State or local law or other requirement 

that permits or requires discrimination 

against beneficiaries of the TAA 

program on the basis of: 

(A) Participation in a program or 

activity that is financially assisted under 

title I of WIA; or 

(B) Citizenship or status as a noncitizen lawfully admitted to work in the 

United States. 

(j) Fiscal reporting requirements for 

cooperating State agencies. (1) In 

accordance with 29 CFR 97.41, each 

cooperating State agency must submit a 

quarterly financial status report (QFSR) 

to the Department. The QFSR must be 

submitted in electronic format via the 

Internet within 30 days after the end of 

each quarter. Each cooperating State 

agency must also submit a final QFSR 

to the Department within 90 days after 

the end of the grant period. The 

Department will provide instructions for 

the preparation of this report. 

(2) Financial data must be reported on 

an accrual basis, and cumulatively by 

funding year of appropriation. Financial 

data may also be required on specific 

program activities. 

(3) If the cooperating State agency’s 

accounting records are not normally 

kept on the accrual basis of accounting, 

the cooperating State agency must 

develop accrual information through an 

analysis of the documentation on hand. 

§ 618.880 TAA program performance. 

(a) General rule. Each State that has 

an Agreement with the Secretary in 

effect under § 618.805 must report its 

TAA program performance to the 

Department as provided in this section. 

(b) Performance categories. States 

must report program data necessary to 

calculate performance in the following 

categories: 

(1) Entered employment. 

(2) Retention in employment. 

(3) Average earnings. 

(4) Any additional categories 

established by the Department. 

(c) Performance measures. 

(1) States must report program 

performance using the following 

measures for the categories in 

paragraphs (b)(1) through (b)(4) of this 

section: 

(i) Entered employment—the 

percentage of program participants 

employed within a period of time, 

established by the Department under 

paragraph (c)(2) of this section, after 

exiting the program; 

(ii) Retention in employment—of 

those program participants who have 

entered employment, the percentage of 

program participants who remain 

employed after a period of time, 

established by the Department under 

paragraph (c)(2) of this section; 

(iii) Average earnings—the average 

earnings per participant over a time 

interval, established by the Department 

under paragraph (c)(2) of this section; 

(iv) Any other measures established 

by the Department. 

(2) The Department will establish the 

timeframes used in the measurements 

for paragraphs (c)(1)(i) through (c)(1)(iii) 

of this section, and the definitions for 

specified terms for paragraph (c)(1)(iii) 

of this section, and will set the units of 

cost and timeframes used in paragraph 

(c)(1)(iv) of this section. The Department 

will provide further instructions on 

such timeframes, definitions of the 

measures, and units of cost in 

administrative issuances providing 

reporting guidance. 

(d) Use of wage records. Cooperating 

State agencies must, consistent with 

State law, use quarterly wage record 

information (as defined in 20 CFR 

666.150(c)) in measuring the progress on 

program performance measures in 

paragraphs (c)(1)(i) through (c)(1)(iii) of 

this section. In order to meet this 

requirement, cooperating State agencies 

must use registered program 

participants’ social security numbers or, 

if Federal law prohibits such use of 

social security numbers, other 

identifying designations, and such other 

information as is necessary, to measure 

the progress of those participants 

through quarterly wage record 

information. Cooperating State agencies 

that participate in the Wage Record 

Interchange System must use the Wage 

Record Interchange System to obtain 

pertinent wage information for 

individuals who obtain work outside 

the State in which they received 

services. Also, cooperating State 

agencies may use supplemental sources 

to obtain pertinent wage and 

employment data. 

(e) Reporting requirements. 

Cooperating State agencies must report 

TAA program performance data, 

identified in paragraphs (b) and (c) of 

this section, to the Department. The 

report used for this purpose is the Trade 

Act Participant Report (OMB control 

No. 1205–0392), unless otherwise 

superseded or on such other forms as 

the Department may prescribe. The 

report must be verified or validated as 

accurately counting and reporting 

activities in accordance with reporting 

instructions issued by the Department. 

(f) Performance evaluation and 

improvement. State performance 

outcomes will be measured against 

national goals established by the 

Department to evaluate State program 

performance and to plan actions to 

promote improved program 

performance. The Department may 

negotiate and establish individual 

performance goals each fiscal year with 

cooperating State agencies. 

(g) Publication of performance results. 

The Department will publish, annually, 

the TAA program performance results of 

the States. 

§ 618.885 Termination of TAA program 

benefits. 

(a) Except as provided in paragraph 

(b) of this section, cooperating State 

agencies may not provide vouchers, 

allowances, and other payments or 

benefits under this part 618 after the 

termination date provided in section 

285 of the Act or as otherwise provided 

by law. 

(b) Notwithstanding paragraph (a) of 

this section, cooperating State agencies 

must continue to provide benefits under 

this part 618 to an adversely affected 

worker for any week for which such 

worker meets the eligibility 

requirements for such benefits, if, on or 

before the termination date provided in 

section 285 of the Act or other law, the 

worker is—

(1) A member of a worker group that 

is certified as eligible for benefits under 

this part 618; and 

(2) Is otherwise eligible to receive 

benefits under this part 618. 

Subpart I—[Reserved] 

PART 665—STATEWIDE WORKFORCE 

INVESTMENT ACTIVITIES UNDER 

TITLE I OF THE WORKFORCE 

INVESTMENT ACT 

6. The authority citation for part 665 

continues to read as follows: 

Authority: Section 506(c), Public Law 105–

220; 20 U.S.C. 9276(c). 

7. Section 665.330 is revised to read 

as follows: 

§ 665.330 Are Trade Adjustment 

Assistance (TAA) program requirements for 

rapid response assistance, under the Trade 

Act of 1974, as amended, also required 

activities? 

(a) Yes. The Trade Act of 1974 (Pub. 

L. 93–618), as amended, requires that 

the Governor must make available rapid 

response assistance, described in 

§§ 665.300 and 665.310, to individuals 

upon the filing of a petition covering 

those individuals. 


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(b) If rapid response activities have 

been provided previously in response to 

a layoff or plant closure or other event, 

then the Governor must determine 

whether the provision of any additional 

information or assistance related to the 

TAA program is necessary due to the 

filing of the petition. This may include 

information about training 

opportunities, income support, 

employment services, and potential 

HCTC assistance. 

(c) If rapid response activities or 

assistance have not been provided 

previously in response to a layoff or 

plant closure or other event, then the 

Governor must ensure that appropriate 

rapid response assistance is provided. 

The Governor may develop and 

implement appropriate methods of 

achieving the goals of rapid response in 

situations where the full range of rapid 

response activities required by 20 CFR 

665.310 is not appropriate. The 

alternative methods should be cost 

effective and responsive to the workers’

needs. At a minimum, information and 

access to unemployment compensation 

benefits, comprehensive One-Stop 

system services, employment services, 

and TAA program benefits, must be 

provided. 

PART 671—NATIONAL EMERGENCY 

GRANTS FOR DISLOCATED 

WORKERS 

8. The authority citation for part 671 

continues to read as follows: 

Authority: Sec. 506(c), Public Law 105–

220; 20 U.S.C. 9276(c). 

9. Section 671.105 is revised to read 

as follows: 

§ 671.105 What funds are available for 

national emergency grants? 

(a) We use funds reserved under WIA 

section 132(a)(2)(A) to provide financial 

assistance to eligible applicants for 

grants under WIA section 173. 

(b) We use funds made available 

under WIA section 174 to make grants 

to provide health insurance coverage 

assistance under WIA section 173(f) and 

(g). 

10. Section § 671.115 is added to read 

as follows: 

§ 671.115 Under what circumstances are 

NEG grants available to provide assistance 

under WIA section 173(f) and (g)? 

(a) WIA section 173(f) authorizes 

NEGs to pay for health insurance 

coverage and administrative and startup expenses related to the enrollment of 

TAA-eligible individuals and certain 

others, and their qualifying family 

members, in qualified health insurance. 

(b) WIA section 173(g) authorizes 

NEGs to pay for health insurance 

coverage for individuals eligible for 

health coverage tax credit. NEG funds 

under this section may also be used to 

provide other assistance and support 

services to eligible individuals, 

including transportation, childcare, 

dependent care and income assistance. 

For both health insurance coverage and 

income support assistance, the 

assistance cannot supplant other 

federal, state, or local assistance for 

which the individual is eligible. 

(c) In order to qualify for assistance 

funded under WIA section 173(g), an 

individual must be: 

(1) ‘‘An eligible TAA recipient,’’

which is defined as an individual who 

is receiving a trade readjustment 

allowance (TRA) under the TAA 

program, or would be eligible for TRA 

except that he/she has not yet exhausted 

Unemployment Insurance benefits; 

(2) ‘‘An eligible alternative TAA 

recipient,’’ which is defined as an 

individual who is receiving benefits 

under a demonstration program of 

alternative trade adjustment assistance 

for older workers under subpart I of this 

part; or, 

(3) ‘‘An eligible PBGC pension 

recipient,’’ which is defined as an 

individual who is 55 years of age or 

older and is receiving a pension benefit 

paid in whole or part by the Pension 

Benefit Guaranty Corporation (PBGC). 

(d) A determination that an individual 

is an eligible TAA recipient, an eligible 

alternative TAA recipient, or an eligible 

PBGC pension recipient does not mean 

that individual is eligible for the health 

coverage tax credit; eligibility is 

determined by the Internal Revenue 

Service based upon whether other 

eligibility criteria are met. 

[FR Doc. 06–7067 Filed 8–24–06; 8:45 am] 

BILLING CODE 4510–30–P 


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