I 
110TH CONGRESS 
1ST SESSION H. R. 3943 
To amend the Trade Act of 1974 to reauthorize the trade adjustment 
assistance for workers program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 23, 2007 
Mr. HERGER (for himself, Mr. BRADY of Texas, Mr. WELLER of Illinois, Mr. 
RAMSTAD, Mr. RYAN of Wisconsin, Mr. TIBERI, Mr. NUNES, and Mr. 
SAM JOHNSON of Texas) introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Trade Act of 1974 to reauthorize the trade 
adjustment assistance for workers program, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Trade Adjustment Assistance and Training Improve-
ments Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
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TITLE I—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS 
Subtitle A—Petitions and Determinations 
Sec. 101. Petitions. 
Sec. 102. Group eligibility requirements. 
Sec. 103. Determinations by Secretary of Labor. 
Sec. 104. Benefit information to workers. 
Sec. 105. Administrative reconsideration of determinations by Secretary of 
Labor. 
Subtitle B—Program Benefits 
CHAPTER 1—TRADE READJUSTMENT ALLOWANCES 
Sec. 111. Qualifying requirements for workers. 
Sec. 112. Weekly amounts. 
Sec. 113. Limitations on trade readjustment allowances. 
CHAPTER 2—TRAINING, OTHER REEMPLOYMENT SERVICES, AND 
ALLOWANCES 
Sec. 121. Reemployment services. 
Sec. 122. Training. 
Sec. 123. Job search allowances. 
Sec. 124. Relocation allowances. 
Subtitle C—General Provisions 
Sec. 131. Agreements with States. 
Sec. 132. Authorization of appropriations; incentive payments to States. 
Sec. 133. Phase-out of demonstration project for alternative trade adjustment 
assistance for older workers. 
Sec. 134. Wage supplement program. 
Sec. 135. Definitions. 
Sec. 136. Capacity-building grants to enhance training for workers. 
Subtitle D—Effective Date 
Sec. 141. Effective date. 
TITLE II—OTHER TRADE ADJUSTMENT ASSISTANCE PROGRAMS 
AND RELATED PROVISIONS 
Sec. 201. Technical assistance for firms. 
Sec. 202. Extension of trade adjustment assistance for firms. 
Sec. 203. Extension of trade adjustment assistance for farmers. 
Sec. 204. Judicial review. 
Sec. 205. Termination. 
TITLE III—MISCELLANEOUS PROVISIONS 
Sec. 301. Credit reduction for failures relating to co-enrollment of participants 
and program performance reports. 
Sec. 302. TAA wage supplement participants eligibility for credit for health in-
surance costs. 
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lowing: ‘‘and contributed importantly to the workers’ 
separation or threat of separation determined under 
paragraph (1)’’. 
(c) DEFINITIONS.—Subsection (c) of such section is 
amended— 
(1) in paragraph (3), by striking ‘‘, if the cer-
tification of eligibility under subsection (a) is based 
on an increase in imports from, or a shift in produc-
tion to, Canada or Mexico’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(5) The term ‘article’ means— 
‘‘(A) a tangible product subject to duty 
under the Harmonized Tariff Schedule of the 
United States which is not incidental to the 
provision of a service; or 
‘‘(B) an intangible product, such as a dig-
ital product (including computer programs, 
text, video, image and sound recordings, and 
similar products), that would be subject to duty 
under the Harmonized Tariff Schedule of the 
United States if the intangible product were 
embodied in a physical medium and which is 
not incidental to the provision of a service. 
‘‘(6) The term ‘worker’ means— 
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‘‘(A) with respect to a firm described in 
subsection (a)— 
‘‘(i) an individual directly employed by 
the firm that produces an article that is 
the basis for a determination under sub-
section (a) and who performs tasks relat-
ing to the production of the article; or 
‘‘(ii) an individual who is under the 
operational control of the firm that pro-
duces an article that is the basis for a de-
termination under subsection (a) pursuant 
to a contract or leasing arrangement and 
who performs tasks relating to the produc-
tion of the article; 
‘‘(B) with respect to a firm that is a sup-
plier described in subsection (b)— 
‘‘(i) an individual directly employed by 
the firm that is a supplier and who per-
forms tasks relating to the production of 
component parts for an article that is the 
basis for a determination under subsection 
(a); or 
‘‘(ii) an individual who is under the 
operational control of the firm that is a 
supplier pursuant to a contract or leasing 
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arrangement and who performs tasks relat-
ing to the production of component parts 
for an article that is the basis for a deter-
mination under subsection (a); and 
‘‘(C) with respect to a firm that is a down-
stream producer described in subsection (b)— 
‘‘(i) an individual directly employed by 
the firm that is a downstream producer 
and who perform tasks relating to the pro-
vision of additional, value-added production 
processes for an article that is the basis for 
a determination under subsection (a); or 
‘‘(ii) an individual who is under the 
operational control of the firm that is a 
downstream producer pursuant to a con-
tract or leasing arrangement and who per-
forms tasks relating to the provision of ad-
ditional, value-added production processes 
for an article that is the basis for a deter-
mination under subsection (a).’’. 
SEC. 103. DETERMINATIONS BY SECRETARY OF LABOR. 
(a) WORKERS COVERED BY CERTIFICATION.—Sub-
section (b) of section 223 of the Trade Act of 1974 (19 
U.S.C. 2273) is amended— 
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(1) in the matter preceding paragraph (1), by 
striking ‘‘under this section’’ and inserting ‘‘under 
subsection (a) or (d) of this section’’; and 
(2) in paragraph (2), to read as follows: 
‘‘(2) after the earliest of— 
‘‘(A) the date that is two years after the 
date on which certification is granted under 
subsection (a); 
‘‘(B) the date that is two years after the 
date of the earliest determination, if any, deny-
ing certification under subsection (a); or 
‘‘(C) the termination date, if any, deter-
mined under subsection (e).’’. 
(b) PUBLICATION OF DETERMINATION.—Subsection 
(c) of such section is amended— 
(1) by striking ‘‘his determination’’ and insert-
ing ‘‘a determination’’; 
(2) by inserting ‘‘and on the Website of the De-
partment of Labor’’ after ‘‘in the Federal Register’’; 
and 
(3) by striking ‘‘his reasons’’ and inserting ‘‘the 
Secretary’s reasons’’. 
(c) AMENDMENT TO CERTIFICATION.—Such section 
is further amended— 
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(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) Whenever the Secretary determines, with respect 
to any certification of eligibility of the workers of a firm 
or subdivision of the firm, and subject to such regulations 
as the Secretary may prescribe, that good cause exists to 
amend such certification, the Secretary shall amend such 
certification and promptly publish notice of such amend-
ment in the Federal Register and on the Website of the 
Department of Labor together with the reasons for mak-
ing such determination.’’. 
(d) TERMINATION OF CERTIFICATION.—Subsection 
(e) of such section (as redesignated by subsection (c)(1) 
of this section) is amended— 
(1) by striking ‘‘he shall’’ and inserting ‘‘the 
Secretary shall’’; 
(2) by inserting ‘‘and on the Website of the De-
partment of Labor’’ after ‘‘in the Federal Register’’; 
and 
(3) by striking ‘‘his reasons’’ and inserting ‘‘the 
Secretary’s reasons’’. 
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shall include an opportunity for interested persons to 
submit additional information. 
‘‘(3) FINAL
DETERMINATION.—The Secretary 
shall issue a final determination on the request for 
administrative reconsideration not later than 60 
days after the date on which the Secretary publishes 
notice of the request for reconsideration pursuant to 
paragraph (1). Upon reaching a determination on a 
reconsideration, the Secretary shall promptly publish 
a summary of the determination in the Federal Reg-
ister and on the Website of the Department of 
Labor, together with the reasons for making such 
determination. The requirements relating to judicial 
review under section 284 shall apply to any deter-
mination made by the Secretary under this sub-
section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1 of the Trade Act of 1974 is amended by in-
serting after the item relating to section 225 the following: 
‘‘Sec. 226. Administrative reconsideration of determinations by Secretary of 
Labor.’’. 
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Subtitle B—Program Benefits 
CHAPTER 1—TRADE READJUSTMENT 
ALLOWANCES 
SEC. 111. QUALIFYING REQUIREMENTS FOR WORKERS. 
(a) BASIC TRADE READJUSTMENT ALLOWANCE.— 
Subsection (a) of section 231 of the Trade Act of 1974 
(19 U.S.C. 2291) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘60 days’’ and inserting ‘‘40 days’’; 
(2) in paragraph (1), by striking ‘‘occurred—’’ 
and all that follows and inserting ‘‘occurred during 
the period described in section 223(b).’’; and 
(3) by striking paragraphs (4) and (5). 
(b) PAYMENT OF ADDITIONAL TRADE READJUST-
MENT ALLOWANCE.—Such section is further amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) In addition to the payment of a trade readjust-
ment allowance under subsection (a), payment of an addi-
tional trade readjustment allowance shall be made to an 
adversely affected worker who is covered by a certification 
under subchapter A and who— 
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‘‘(1) files an application for such allowance for 
any week of unemployment which begins after the 
worker has received the maximum amount of trade 
readjustment allowances payable under subsection 
(a); 
‘‘(2) meets the conditions described in para-
graphs (1) through (3) of subsection (a); and 
‘‘(3) is either— 
‘‘(A) totally unemployed and is enrolled in 
a full-time training program approved by the 
Secretary under section 236(a); or 
‘‘(B) partially unemployed and is enrolled 
in a full-time or part-time training program ap-
proved by the Secretary under section 236(a).’’. 
(c) WITHHOLDING OF TRADE READJUSTMENT AL-
LOWANCE PENDING BEGINNING OR RESUMPTION OF PAR-
TICIPATION IN TRAINING PROGRAM; PERIOD OF APPLICA-
BILITY.—Subsection (c) of such section (as redesignated 
by subsection (b)(1) of this section) is amended to read 
as follows: 
‘‘(c) If the Secretary determines that— 
‘‘(1) the adversely affected worker— 
‘‘(A) has failed to begin participation in 
the training program the enrollment in which 
meets the requirement of subsection (b)(3), or 
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‘‘(B) has ceased to participate in such 
training program before completing such train-
ing program, and 
‘‘(2) there is no justifiable cause for such fail-
ure or cessation, 
no trade readjustment allowance may be paid to the ad-
versely affected worker under this part for the week in 
which such failure, cessation, or revocation occurred, or 
any succeeding week, until the adversely affected worker 
begins or resumes participation in a training program ap-
proved under section 236(a).’’. 
(d) WAIVERS OF TRAINING REQUIREMENTS.—Sub-
section (d) of such section (as redesignated by subsection 
(b)(1) of this section) is hereby repealed. 
SEC. 112. WEEKLY AMOUNTS. 
(a) IN GENERAL.—Subsection (a) of section 232 of 
the Trade Act of 1974 (19 U.S.C. 2292) is amended— 
(1) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’; 
(2) by inserting ‘‘paragraph (2) and’’ after 
‘‘Subject to’’; 
(3) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; and 
(4) by adding at the end the following new 
paragraph: 
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‘‘(2)(A) Notwithstanding section 231(a)(3)(B), if an 
adversely affected worker who is participating in training 
qualifies for unemployment insurance under State law, 
based in whole or in part upon part-time or short-term 
employment following approval of the worker’s initial 
trade readjustment allowance application under section 
231(a), then for any week for which unemployment insur-
ance is payable and for which the worker would otherwise 
be entitled to a trade readjustment allowance based upon 
the certification under section 223, the worker shall be 
paid a trade readjustment allowance in the amount de-
scribed in subparagraph (B). 
‘‘(B) The trade readjustment allowance payable 
under subparagraph (A) shall be equal to the weekly ben-
efit amount of the unemployment insurance upon which 
the worker’s trade readjustment allowance was initially de-
termined under paragraph (1), reduced by— 
‘‘(i) the amount of the unemployment insurance 
benefit payable to such worker for that week of un-
employment for which a trade readjustment allow-
ance is payable under subparagraph (A) of this 
paragraph; and 
‘‘(ii) the amounts described in subparagraphs 
(A) and (B) of paragraph (1).’’. 
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(b) ADVERSELY AFFECTED WORKERS WHO ARE UN-
DERGOING TRAINING.—Subsection (b) of such section is 
amended— 
(1) by inserting ‘‘under section 231(b)’’ after 
‘‘who is entitled to trade readjustment allowances’’; 
and 
(2) by striking ‘‘he is undergoing any such’’ 
and inserting ‘‘such worker is undergoing’’. 
SEC. 113. LIMITATIONS ON TRADE READJUSTMENT ALLOW-
ANCES. 
Section 233 of the Trade Act of 1974 (19 U.S.C. 
2293) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) 
by 
striking 
‘‘The 
maximum 
amount’’ and inserting ‘‘Except as pro-
vided in paragraph (3), the maximum 
amount’’; and 
(ii) by striking ‘‘52’’ and inserting 
‘‘39’’; and 
(B) in paragraph (3), by striking ‘‘52’’ 
each place it appears and inserting ‘‘65’’; 
(2) by striking subsection (b); 
(3) by redesignating subsections (c) through (g) 
as subsections (b) through (f), respectively; and 
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(subject to the limitations imposed by this section) 
paid on the worker’s behalf by the Secretary directly 
or through a voucher system. The costs of such 
training shall include the costs of tuition, books, re-
quired tools, and fees related to education, licensing, 
or certification. 
‘‘(2) CRITERIA
FOR
APPROVAL
OF
TRAINING 
PROGRAM.—For purposes of paragraph (1), training 
for an adversely affected worker or an adversely af-
fected incumbent worker, shall be approved if the 
Secretary determines that— 
‘‘(A) the worker needs additional market-
able skills to obtain or retain employment com-
parable to the worker’s adversely affected em-
ployment; 
‘‘(B) there is a reasonable expectation of 
such employment following the completion of 
the training; and 
‘‘(C) the worker is qualified to undertake 
and complete the training sought. 
‘‘(3) ENROLLMENT DEADLINE.— 
‘‘(A) IN GENERAL.—In order to receive as-
sistance under this section, a worker shall enroll 
in a training program approved under para-
graph (1) not later than the later of— 
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‘‘(i) the last day of the 39th week 
after the worker’s most recent separation 
from adversely affected employment which 
meets the requirements of paragraphs (1) 
and (2) of section 231(a); or 
‘‘(ii) the last day of the 13th week 
after the week in which the Secretary 
issues a certification under subchapter A 
covering such worker. 
‘‘(B) 
EXTENSION
FOR
JUSTIFIABLE 
CAUSE.—The Secretary may grant an extension 
of the enrollment period described in subpara-
graph (A) for a worker if the Secretary deter-
mines that there is justifiable cause for such an 
extension. 
‘‘(b) FUNDING FOR TRAINING.— 
‘‘(1) ANNUAL LIMIT ON AGGREGATE PAYMENTS 
UNDER PROGRAM.— 
‘‘(A) IN GENERAL.—The total amount of 
payments that may be made under subsection 
(a)(1) for any fiscal year shall not exceed 
$220,000,000. 
‘‘(B) APPORTIONMENT AMONG STATES.— 
The Secretary shall establish a method for ap-
portioning among States the funds that are 
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available for training under this chapter in any 
fiscal year. Such method may include the use of 
formula allotments and reallotments, and the 
establishment of a reserve that is used to assist 
in apportioning funds to those States in need of 
additional funding during the fiscal year. 
‘‘(2) LIMITATIONS APPLICABLE TO WORKERS.— 
‘‘(A) DURATION.—Subject to subpara-
graph (C), the costs of a training program ap-
proved under subsection (a)(1) for an adversely 
affected worker or an adversely affected incum-
bent worker shall be paid under this section for 
a period not to exceed four years from the date 
the worker first enrolled in the training pro-
gram. A worker may participate in such train-
ing program during such period on a full-time 
or part-time basis. During the period of partici-
pation the worker shall make adequate yearly 
progress, as determined by the Secretary, to-
ward the attainment of a license, certificate, or 
degree pursuant to such training program in 
order to remain eligible for assistance under 
this section. 
‘‘(B) AMOUNT.—Subject to subparagraph 
(C), the payments for a training program under 
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subsection (a)(1) for a worker may not exceed 
$4,000 for any one-year period, or a total of 
$8,000 over the maximum four-year period de-
scribed in subparagraph (A). 
‘‘(C) EXCEPTIONS.— 
‘‘(i) LITERACY
TRAINING
AND
PRE-
REQUISITES.—If the Secretary determines 
that an adversely affected worker or an ad-
versely affected incumbent worker needs 
literacy training, English as a second lan-
guage instruction, remedial education, edu-
cational assistance to obtain a high school 
diploma or General Equivalency Degree, or 
prerequisites in order to participate in a 
training program for occupations in de-
mand, the Secretary shall approve the pro-
vision of such activities and provide up to 
$1,000 in payments for such activities. 
Such payments shall not be included for 
purposes of applying the limits on pay-
ments described in subparagraph (B). 
‘‘(ii) 
ON-THE-JOB
TRAINING.—The 
provisions of subparagraphs (A) and (B) 
shall not be applicable to on-the-job train-
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ing programs, except as provided in sub-
section (f)(2). 
‘‘(3) DUPLICATIVE PAYMENTS PROHIBITED.— 
No payment may be made under subsection (a)(1) of 
the costs of training an adversely affected worker or 
an adversely affected incumbent worker if such costs 
are payable or have already been paid under any 
other provision of Federal law. 
‘‘(4) REPORT.— 
‘‘(A) IN GENERAL.—Not later than May 
31 and November 30 of each year, the Sec-
retary shall submit to the Committee on Fi-
nance of the Senate and the Committee on 
Ways and Means of the House of Representa-
tives a report on— 
‘‘(i) the initial allocation among 
States of funds for training approved 
under this section; 
‘‘(ii) any additional distributions of 
funds for training approved under this sec-
tion during the two most recent fiscal 
quarters and cumulatively during the fiscal 
year; 
‘‘(iii) the amount of funds obligated 
and expended by the States to provide 
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training approved under this section dur-
ing the two most recent fiscal quarters and 
cumulatively during the fiscal year; and 
‘‘(iv) the efforts of the Department of 
Labor to ensure that each State receives 
an appropriate level of funds during the 
fiscal year to provide training approved 
under this section to all eligible workers. 
‘‘(B) DEFINITION.—In this paragraph, the 
term ‘fiscal quarter’ means any 3-month period 
beginning on October 1, January 1, April 1, or 
July 1 of a fiscal year. 
‘‘(c) TRAINING PROGRAMS THAT MAY BE AP-
PROVED.—The training programs that may be approved 
under subsection (a) include— 
‘‘(1) employer-based training, including— 
‘‘(A) on-the-job training; 
‘‘(B) customized training; and 
‘‘(C) apprenticeship programs registered 
under the National Apprenticeship Act (29 
U.S.C. 50 et seq.); 
‘‘(2) a training program that leads to a license, 
certificate, or degree and is linked to occupations in 
demand, which may include training provided in 
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classroom, distance learning, and technology-based 
learning; 
‘‘(3) a training program that has been deter-
mined by a State to be eligible to receive payments 
under section 122 of the Workforce Investment Act 
of 1998 (29 U.S.C. 2842); 
‘‘(4) a program of remedial education that will 
enable a worker to obtain employment or to enroll 
in a training program described in paragraph (2) or 
(3); and 
‘‘(5) a training program for which all, or any 
portion, of the costs of training the worker are 
paid— 
‘‘(A) under any Federal or State program 
other than this chapter; or 
‘‘(B) from any source other than this sec-
tion. 
‘‘(d) SHARING OF COSTS.— 
‘‘(1) IN GENERAL.—The Secretary is not re-
quired under subsection (a) to pay the costs of any 
training approved under such subsection to the ex-
tent that such costs are paid— 
‘‘(A) under any Federal or State program 
other than this chapter; or 
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‘‘(B) from any source other than this sec-
tion. 
‘‘(2) COST-SHARING AGREEMENT.—Before ap-
proving any training to which paragraph (1) may 
apply, the Secretary may require that the adversely 
affected worker or the adversely affected incumbent 
worker enter into an agreement with the Secretary 
under which the Secretary will not be required to 
pay under this section the portion of the costs of 
such training that the worker has reason to believe 
will be paid under the program, or by the source, de-
scribed in subparagraph (A) or (B) of paragraph 
(1). 
‘‘(e) SUPPLEMENTAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary may, where 
appropriate, authorize supplemental assistance nec-
essary to defray reasonable transportation and sub-
sistence expenses for separate maintenance when 
training is provided in facilities that are not within 
commuting distance of a worker’s regular place of 
residence. 
‘‘(2) LIMITATIONS.—The Secretary may not au-
thorize— 
‘‘(A) payments for subsistence that exceed 
whichever is the lesser of— 
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‘‘(i) the actual per diem expenses for 
subsistence; or 
‘‘(ii) payments at 50 percent of the 
prevailing per diem allowance rate author-
ized under the Federal travel regulations; 
or 
‘‘(B) payments for travel expenses exceed-
ing the prevailing mileage rate authorized under 
the Federal travel regulations. 
‘‘(f) PAYMENT OF COSTS OF ON-THE-JOB TRAIN-
ING.— 
‘‘(1) IN GENERAL.—The Secretary shall pay the 
costs of any on-the-job training of an adversely af-
fected worker that is approved under subsection 
(a)(l), but the Secretary may pay such costs, not-
withstanding any other provision of this section, only 
if— 
‘‘(A) no currently employed worker is dis-
placed by such adversely affected worker (in-
cluding partial displacement such as a reduction 
in the hours of nonovertime work, wages, or 
employment benefits); 
‘‘(B) such training does not impair existing 
contracts for services or collective bargaining 
agreements; 
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‘‘(C) in the case of training which would be 
inconsistent with the terms of a collective bar-
gaining agreement, the written concurrence of 
the labor organization concerned has been ob-
tained; 
‘‘(D) no other individual is on layoff from 
the same, or any substantially equivalent, job 
for which such adversely affected worker is 
being trained; 
‘‘(E) the employer has not terminated the 
employment of any regular employee or other-
wise reduced the work force of the employer 
with the intention of filling the vacancy so cre-
ated by hiring such adversely affected worker; 
‘‘(F) the job for which such adversely af-
fected worker is being trained is not being cre-
ated in a promotional line that will infringe in 
any way upon the promotional opportunities of 
currently employed individuals; 
‘‘(G) such training is not for the same oc-
cupation from which the worker was separated 
and with respect to which such worker’s group 
was certified pursuant to section 222; 
‘‘(H) the employer is provided reimburse-
ment of not more than 50 percent of the wage 
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rate of the participant, for the cost of providing 
the training and additional supervision related 
to the training; 
‘‘(I) the duration of such training does not 
exceed 1 year; and 
‘‘(J) the employer has not received pay-
ment under subsection (a)(1) with respect to 
any other on-the-job training provided by such 
employer which failed to meet the requirements 
of subparagraphs (A), (B), (C), (D), (E), and 
(F). 
‘‘(2) SUPPLEMENTARY TRAINING.—An on-the- 
job training program approved under this section 
may include, as a component of such program, the 
provision of training with a provider other than the 
employer that is not provided on-the-job and is de-
signed to enhance the occupational skills of the 
worker. The costs of such training shall be subject 
to the limitation described in subsection (b)(2)(B). 
‘‘(g) EFFECT OF APPROVED TRAINING ON ELIGI-
BILITY FOR UNEMPLOYMENT COMPENSATION.—A worker 
may not be determined to be ineligible or disqualified for 
unemployment insurance or program benefits under this 
subchapter because the individual is in training approved 
under subsection (a), because of leaving work which is not 
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comparable employment to enter such training, or because 
of the application to any such week in training of provi-
sions of State law or Federal unemployment insurance law 
relating to availability for work, active search for work, 
or refusal to accept work. 
‘‘(h) DEFINITION.—In this section, the term ‘cus-
tomized training’ means training that is— 
‘‘(1) designed to meet the special requirements 
of an employer or group of employers; 
‘‘(2) conducted with a commitment by the em-
ployer or group of employers to employ an individual 
upon successful completion of the training; and 
‘‘(3) for which the employer pays for a signifi-
cant portion of the cost of such training, as deter-
mined by the Secretary.’’. 
(b) CONFORMING AMENDMENTS.—Part II of sub-
chapter B of chapter 2 of title II of the Trade Act of 1974 
(19 U.S.C. 2295 et seq.) is amended— 
(1) in section 237(b)(2), by striking ‘‘section 
236(b)(1) and (2)’’ and inserting ‘‘section 236’’; and 
(2) in subsections (b)(1) and (c)(2) of section 
238, by striking ‘‘section 236(b)(1) and (2)’’ each 
place it appears and inserting ‘‘section 236’’. 
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SEC. 123. JOB SEARCH ALLOWANCES. 
Section 237(a)(2) of the Trade Act of 1974 (19 
U.S.C. 2297(a)(2)) is amended— 
(1) in subparagraph (B), by striking ‘‘suitable’’ 
and inserting ‘‘comparable’’; and 
(2) in subparagraph (C)(ii), by striking ‘‘, un-
less the worker received a waiver under section 
231(c)’’. 
SEC. 124. RELOCATION ALLOWANCES. 
Section 238(a)(2) of the Trade Act of 1974 (19 
U.S.C. 2298(a)(2)) is amended— 
(1) in subparagraph (B), by striking ‘‘suitable’’ 
and inserting ‘‘comparable’’; 
(2) in subparagraph (D)— 
(A) in the heading, by striking ‘‘SUIT-
ABLE’’ and inserting ‘‘OUT-OF-AREA’’; and 
(B) in clause (i) to read as follows: 
‘‘(i) has obtained employment afford-
ing a reasonable expectation of long-term 
duration in the area in which the worker 
wishes to relocate and which provides 
wages that are substantially greater than 
the wages for the employment that is likely 
to be available to the worker in the area 
from which the worker would be relocating; 
and’’; and 
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(3) in subparagraph (E)(ii), by striking ‘‘, un-
less the worker received a waiver under section 
231(c)’’. 
Subtitle C—General Provisions 
SEC. 131. AGREEMENTS WITH STATES. 
(a) IN GENERAL.—Subsection (a) of section 239 of 
the Trade Act of 1974 (19 U.S.C. 2311) is amended— 
(1) in the matter preceding clause (1), by strik-
ing ‘‘any State agency’’ and inserting ‘‘a State agen-
cy’’; 
(2) in clause (2), to read as follows: ‘‘(2) in ac-
cordance with subsections (e) and (f), will afford ad-
versely affected workers testing and assessments, ca-
reer counseling, referral to training and job search 
programs, and job placement services, and’’; 
(3) by striking clause (3); and 
(4) by redesignating clause (4) as clause (3). 
(b) ADMINISTRATION.—Subsection (e) of such sec-
tion is amended— 
(1) in the first sentence, to read as follows: 
‘‘Any agreement entered into under this section shall 
provide for the administration of the provision for 
reemployment services, training, and supplemental 
assistance under sections 235 and 236 of this Act by 
the same State agency responsible for the adminis-
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tration of the State workforce investment program 
funded under title I of the Workforce Investment 
Act of 1998 (29 U.S.C. 2801 et seq.) and shall in-
clude such terms and conditions as are established 
by the Secretary in consultation with the States and 
set forth in such agreement.’’; 
(2) in the second sentence, by striking ‘‘Any 
agency’’ and inserting ‘‘The agency’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘The terms and conditions set forth in the 
agreement shall include at a minimum that— 
‘‘(1) adversely affected workers applying for as-
sistance under this chapter shall be co-enrolled in 
the dislocated worker program authorized under 
chapter 5 of subtitle B of title I of the Workforce 
Investment Act of 1998 (29 U.S.C. 2861 et seq.); 
and 
‘‘(2) the services provided under this chapter 
shall be administered through the one-stop delivery 
system established under title I of such Act (29 
U.S.C. 2801 et seq.).’’. 
(c) COOPERATING STATE AGENCY.—Subsection (f) 
of such section is amended— 
(1) in paragraph (2), by adding ‘‘and’’ at the end; 
(2) by striking paragraph (3); 
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(3) by redesignating paragraph (4) as paragraph (3); 
and 
(4) in paragraph (3) (as redesignated by paragraph 
(3) of this subsection), by striking ‘‘suitable’’. 
(d) PERFORMANCE ACCOUNTABILITY.—Such section 
is further amended by adding at the end the following new 
subsection: 
‘‘(h) PERFORMANCE ACCOUNTABILITY.— 
‘‘(1) IN
GENERAL.—Any agreement entered 
into under this section shall include performance 
measures that the cooperating State or State agency 
is expected to achieve with respect to the program 
carried out under this chapter. The performance 
measures shall consist of indicators of performance 
and levels of performance applicable to each indi-
cator. 
‘‘(2) INDICATORS OF PERFORMANCE.—The in-
dicators of performance shall be— 
‘‘(A) entry into employment; 
‘‘(B) retention in employment; 
‘‘(C) average earnings; and 
‘‘(D) such other indicators as the Sec-
retary determines are appropriate. 
‘‘(3) LEVELS OF PERFORMANCE.—The levels of 
performance for each State for the indicators of per-
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formance described in paragraph (2) shall be deter-
mined by the Secretary, after consultation with the 
State. 
‘‘(4) PERFORMANCE REPORTING.—Any agree-
ment shall also include a requirement that the State 
annually report to the Secretary the level of per-
formance achieved with respect to each indicator 
under the program carried out under this chapter in 
the preceding fiscal year, and the State shall submit 
such additional reports regarding the performance of 
programs as the Secretary may require. The Sec-
retary shall make the information contained in the 
annual reports available to the general public 
through publication on the Website of the Depart-
ment of Labor and other appropriate methods and 
shall provide copies of the reports to the Committee 
on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate. The 
Secretary shall also publish on the Website of the 
Department of Labor a list identifying those States 
that fail to submit reports to the Secretary on a 
timely basis or fail to submit accurate reports.’’. 
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SEC. 132. AUTHORIZATION OF APPROPRIATIONS; INCEN-
TIVE PAYMENTS TO STATES. 
(a) IN GENERAL.—Subsection (a) of section 245 of 
the Trade Act of 1974 (19 U.S.C. 2317) is amended by 
striking ‘‘December 31, 2007’’ and inserting ‘‘September 
30, 2012’’. 
(b) INCENTIVE PAYMENTS TO STATES.—Such sec-
tion is further amended by adding at the end the following 
new subsection: 
‘‘(c) INCENTIVE PAYMENTS TO STATES.—If, in the 
last quarter of any fiscal year, the Secretary determines 
that the amount of funds needed to make payments for 
the costs of training under this chapter for such fiscal year 
will not reach the amount of the limitation described in 
section 236(b)(1)(A) and funds appropriated to make pay-
ments for the costs of such training remain available for 
obligation, the Secretary may use not more than an 
amount equal to five percent of the amount of the limita-
tion described in such section 236(b)(1)(A) to award funds 
to States that the Secretary determines have dem-
onstrated exemplary performance in carrying out the pro-
gram under this chapter with respect to exceeding the per-
formance levels established pursuant to section 239(h) and 
with respect to such other factors as the Secretary deter-
mines appropriate. Such funds shall be available to the 
States for the purpose of enhancing the administration of 
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the program which may include improvements to manage-
ment information systems, targeted outreach, staff train-
ing, and enhanced services to participants.’’. 
(c) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) CONFORMING AMENDMENT.—Such section 
is further amended in the heading by inserting be-
fore the period at the end the following: ‘‘; INCEN-
TIVE PAYMENTS TO STATES’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of the Trade Act of 1974 is 
amended by striking the item relating to section 245 
and inserting the following: 
‘‘Sec. 245. Authorization of appropriations; incentive payments to States.’’. 
SEC. 133. PHASE-OUT OF DEMONSTRATION PROJECT FOR 
ALTERNATIVE TRADE ADJUSTMENT ASSIST-
ANCE FOR OLDER WORKERS. 
Section 246(b)(1) of the Trade Act of 1974 (19 
U.S.C. 2318(b)(1)) is amended by striking ‘‘the date that 
is 5 years after the date under which such program is im-
plemented by the State’’ and inserting ‘‘September 30, 
2008’’. 
SEC. 134. WAGE SUPPLEMENT PROGRAM. 
(a) IN GENERAL.—Chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2271 et seq.) is amended by in-
serting after section 246 the following new section: 
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‘‘SEC. 246A. WAGE SUPPLEMENT PROGRAM. 
‘‘(a) ESTABLISHMENT.—Beginning on October 1, 
2008, the Secretary shall establish a program to provide 
the benefits described in subsection (b) to an adversely 
affected worker who meets the eligibility criteria described 
in subsection (c), including the requirement that such 
worker be employed for the minimum number of hours per 
week described in subsection (c)(3). 
‘‘(b) BENEFITS.— 
‘‘(1) AMOUNT
OF
PAYMENTS.—A State shall 
use the funds provided to the State under section 
241 to pay an hourly wage supplement to an eligible 
adversely affected worker for a period not to exceed 
2 years, in an amount equal to the difference, if any 
(but not less than zero) resulting from subtracting 
the amount described in paragraph (2)(B) from the 
amount described in paragraph (2)(A). 
‘‘(2) FACTORS.—(A) For purposes of paragraph 
(1), the amount described in this subparagraph is 
the sum of— 
‘‘(i) whichever is the highest of— 
‘‘(I) the hourly minimum wage that is 
applicable to a worker under the Fair 
Labor Standards Act of 1938 (29 U.S.C. 
201 et seq.), or if such worker is exempt 
under section 13 of such Act (29 U.S.C. 
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213), the hourly minimum wage that 
would be applicable if section 6(a)(1) of 
such Act (29 U.S.C. 206(a)(1)) were ap-
plied; or 
‘‘(II) the applicable State or local 
hourly minimum wage; and 
‘‘(ii) $2.40. 
‘‘(B) For purposes of paragraph (1), the 
amount described in this subparagraph is the hourly 
wage actually paid to such worker. 
‘‘(3) HEALTH
INSURANCE
ELIGIBILITY.—A 
worker described in subsection (c) who is partici-
pating in the program established under subsection 
(a) is eligible to receive, for a period not to exceed 
2 years, a credit for health insurance costs to the ex-
tent provided under section 35 of the Internal Rev-
enue Code of 1986. 
‘‘(c) ELIGIBILITY
FOR
WAGE
SUPPLEMENT.—A 
worker in a group that the Secretary has certified as eligi-
ble to apply for adjustment assistance under section 223 
may elect to receive the benefits described in subsection 
(b) if such worker— 
‘‘(1) is covered by a certification under sub-
chapter A of this chapter; 
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‘‘(2) meets the requirements of paragraphs (1) 
and (2) of section 231(a)); 
‘‘(3) is employed for an average of at least 30 
hours per week, which may include employment as 
part of an apprenticeship program registered under 
the National Apprenticeship Act (20 U.S.C. 50 et 
seq.); 
‘‘(4) does not return to the employment from 
which the worker was separated; and 
‘‘(5) has not received any payments under sec-
tion 246 while covered under the same certification 
as described in paragraph (1). 
‘‘(d) EFFECT ON OTHER BENEFITS.—A worker re-
ceiving payments under this section shall not be eligible 
to receive other benefits under this chapter except for 
training assistance provided under section 236 (provided 
that such worker otherwise meets the requirements of sec-
tion 236) or the assistance described in subsection (b)(3). 
A worker may receive payments under this section during 
breaks in training that exceed the period described in sec-
tion 233(e) if the worker otherwise meets the requirements 
of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1 of the Trade Act of 1974 is amended by in-
serting after the item relating to section 246 the following: 
‘‘Sec. 246A. Wage supplement program.’’. 
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SEC. 135. DEFINITIONS. 
Section 247 of the Trade Act of 1974 (19 U.S.C. 
2319) is amended by adding at the end the following new 
paragraphs: 
‘‘(18) The term ‘comparable employment’ 
means, with respect to a worker, work of a substan-
tially 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 work-
er’s average weekly wage. 
‘‘(19) The term ‘adversely affected incumbent 
worker’ means a worker who is a member of a group 
of workers who have been certified as eligible to 
apply for adjustment assistance under subchapter A 
and who has not been separated from adversely af-
fected employment.’’. 
SEC. 
136. 
CAPACITY-BUILDING 
GRANTS 
TO 
ENHANCE 
TRAINING FOR WORKERS. 
(a) IN GENERAL.—Chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2271 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 250. CAPACITY-BUILDING GRANTS TO ENHANCE 
TRAINING FOR WORKERS. 
‘‘(a) IN GENERAL.—The Secretary may award grants 
to eligible entities described in subsection (b) to tempo-
rarily increase the capacity of such entities, through the 
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