I 
109TH CONGRESS 
2D SESSION 
H. R. 5718 
To amend the Trade Act of 1974 with respect to the trade adjustment 
assistance program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2006 
Mr. HAYES introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Trade Act of 1974 with respect to the trade 
adjustment assistance 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. 
This Act may be cited as the ‘‘Trade Adjustment As-
sistance Reform Act’’. 
SEC. 2. ELIGIBILITY OF DISPLACED TEXTILE AND AND AP-
PAREL WORKERS FOR TRADE ADJUSTMENT 
ASSISTANCE. 
Section 222 of the Trade Act of 1974 (19 U.S.C. 
2272) is amended— 
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(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘A group’’ and inserting ‘‘Subject to 
subsection (d), a group’’; and 
(B) in paragraph (2)(B), by amending 
clause (ii) to read as follows: 
‘‘(ii) there has been or is likely to be an in-
crease in imports of articles that are like or directly 
competitive with articles which are or were produced 
by such firm or subdivision.’’; and 
(2) by adding at the end the following: 
‘‘(d) TEXTILE AND APPAREL WORKERS.—In the case 
of workers in a firm that produces textiles or apparel prod-
ucts, the Secretary shall make the determination under 
subsection (a) of the eligibility of such workers for trade 
adjustment assistance under this chapter without regard 
to paragraph (2) of subsection (a).’’. 
SEC. 3. STUDY AND REPORT ON USE OF FUNDS FOR ADMIN-
ISTRATIVE EXPENSES. 
(a) STUDY.—The Secretary of Labor shall conduct 
a study on the feasibility of allowing States to use a great-
er portion of funds received under the adjustment assist-
ance for workers program under chapter 2 of title II of 
the Trade Act of 1974 (19 U.S.C. 2271 et seq.) for admin-
istrative expenses. In conducting the study, the Secretary 
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shall compare applicable requirements under the adjust-
ment assistance for workers program with requirements 
under other similar programs, such as programs under the 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
seq.). 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to Congress a report that contains— 
(1) the results of the study conducted under 
subsection (a); and 
(2) recommendations for legislation, administra-
tive actions, or other actions the Secretary considers 
appropriate. 
SEC. 4. INCREASE IN FUNDING FOR TRAINING. 
Section 236(a)(2)(A) of the Trade Act of 1974 (19 
U.S.C. 
2296(a)(2)(A)) 
is 
amended 
by 
striking 
‘‘$220,000,000’’ and inserting ‘‘$300,000,000’’. 
SEC. 5. INCREASE IN CREDIT FOR HEALTH INSURANCE 
COSTS OF TAA AND PBGC PENSION RECIPI-
ENTS; SIMPLIFICATION OF ELIGIBILITY DE-
TERMINATIONS. 
(a) IN GENERAL.—Subsection (a) of section 35 of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘65 percent’’ and inserting ‘‘80 percent’’. 
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(b) CONFORMING AMENDMENT.—Subsection (b) of 
section 7527 of such Code is amended by striking ‘‘65 per-
cent’’ and inserting ‘‘80 percent’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid in taxable years 
beginning after the date of the enactment of this Act. 
(d) JOINT PROGRAM TO SIMPLIFY TAA PROCESS.— 
The Secretary of the Treasury and the Secretary of Labor 
shall each, after consultation with each other, carry out 
compatible and coordinated programs to simplify the proc-
ess for individuals to become eligible for a trade readjust-
ment allowance, the credit allowed under section 35 of the 
Internal Revenue Code of 1986, and the program for the 
advance payment of such credit under section 7527 of 
such Code. 
Æ 
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