Back to Federal guidance
FY 2021 second Trade Adjustment Assistance fund distribution
Summary ETA gave state agencies their second distribution of FY 2021 Trade Adjustment Assistance Training and Other Activities funds. It explained the formula and how states could request reserve funds for additional expenses. ETA now labels this funding letter Canceled, so its FY 2021 amounts and instructions are historical.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 02-21
Date issued
July 12, 2021
Status
Withdrawn
ETA marks this listing entry Canceled as of October 24, 2026, but the letter prints an expiration date of Continuing and does not identify a cancellation instrument.
Status last verified October 24, 2026
Is this still the rule?
This document has been withdrawn. Ezel checks what federal law requires today, under current federal labor law, and answers your situation with citations.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION Trade Adjustment Assistance
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OTAA
Washington, D.C. 20210 DATE
July 12, 2021
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 2-21
TO: STATE WORKFORCE AGENCIES
STATE WORKFORCE LIAISONS
AFFILIATE AMERICAN JOB CENTER MANAGERS
COMPREHENSIVE AMERICAN JOB CENTER MANAGERS
STATE WORKFORCE ADMINISTRATORS
STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
STATE LABOR COMMISSIONERS
RAPID RESPONSE COORDINATORS
TRADE ADJUSTMENT ASSISTANCE LEADS
FROM: SUZAN G. LEVINE
Principal Deputy Assistant Secretary
SUBJECT: Second Distribution of Fiscal Year (FY) 2021 Trade Adjustment Assistance
(TAA) Training and Other Activities (TaOA) Funds and Process for Requesting
TAA Reserve Funds
1. Purpose. To assist State Workforce Agencies or agencies designated by Governors as
“Cooperating State Agencies” (also jointly referred to as “states”) by: 1) identifying the FY
2021 Second Distribution of TaOA funding amounts to states; 2) describing the formula
methodology used by the Department of Labor (Department) to calculate these amounts; and
3) providing the process for states to request TAA Program reserve funds for TaOA. TaOA
includes training, job search allowances, relocation allowances, employment and case
management services, and related state administration.
2. Action Requested. States are required to implement the guidance set forth herein and must
continue to administer the TAA Program in accordance with applicable regulations and
administrative guidance. States must inform all appropriate staff of the contents of this
guidance.
3. Summary and Background.
a) Summary - The Department distributes TaOA funding according to regulations at 20 CFR
618.900 through 618.940, which provide, among other things, for an initial allocation
according to a prescribed formula (the Initial Allocation), potential reserve fund
distributions in response to state requests, and a “second distribution” of TaOA funds.
The second distribution is implemented according to 20 CFR 618.930, which provides
that at least 90 percent of the funds appropriated for TaOA must be distributed by July 15
RESCISSIONS EXPIRATION DATE
None Continuing
of the FY (the Second Distribution) according to the prescribed formula, which specifies
distribution of such funds to those states that received an Initial Allocation. The
Department will distribute the remaining 10 percent of FY TaOA funds not distributed in
the Second Distribution to states in a “final distribution” of FY 2021 TaOA funds before
the end of the FY (Final Distribution). The Second Distribution, as described at 20 CFR
618.930, is the subject of this Training and Employment Guidance Letter (TEGL).
b) Background - The Trade Act of 1974 (Pub. L. No. 93-618), as amended (the Trade Act)
(codified at 19 U.S.C. §§ 2271 et seq.), Title II, Chapter 2, established the TAA for
Workers, Alternative Trade Adjustment Assistance (ATAA), and Reemployment Trade
Adjustment Assistance (RTAA) programs. These programs, collectively referred to as
the TAA Program, provide assistance to workers who have been adversely affected by
foreign trade.
TEGL No. 14-20 describes the provisions of the Consolidated Appropriations Act, 2021,
Division H, (Pub. L. 116-260), enacted December 27, 2020, that govern the use of FY
2021 TaOA funds. States may use these funds to provide TaOA to workers certified
under the 2002 Program, the 2009 Program, the 2011 Program, the 2015 Program, and
Reversion 2021 in accordance with the requirements of the TAA law in effect at the time
of filing of a petition for certification. Please refer to TEGL No. 14-20 for the definitions
of these programs, and TEGL No. 24-20 for guidance on states’ use of FY 2021 funds for
workers covered by petitions certified under Reversion 2021.
Funds provided under the FY 2021 FUBA appropriation for TaOA are available for
expenditure for three fiscal years (i.e., FY 2021, FY 2022, and FY 2023). The
expenditure period for funds provided under the FY 2021 FUBA appropriation for Trade
Readjustment Assistance (TRA), ATAA, and RTAA is one fiscal year (i.e., through
September 30, 2021). States may refer to the FY 2021 TAA Annual Funding Agreement
and Notice of Award for additional information on the expenditure period for TaOA
funds, and the Unemployment Insurance (UI) Annual Funding Agreement for additional
information on TRA, ATAA, and RTAA expenditure periods.
TEGL No. 14-20 also describes the application of sequestration, the FY 2021 national
aggregate TaOA amounts, the process for requesting reserve funds, and the Initial
Allocation. Please refer to TEGL No. 14-20 for detailed information regarding these
aspects of TaOA funding.
4. Second Distribution of FY 2021 TaOA Funds. In accordance with 20 CFR § 618.930, by
July 15 of each FY, the Department will distribute at least 90 percent of the funds
appropriated for the entire FY for TaOA to the states. To allow adequate processing of these
funds, the Department interprets this requirement to mean that it will announce the amount of
funds available to states in the Second Distribution by July 15 of each FY. The Department
will allocate any funds that remain after the Second Distribution to the states before the end
of the fiscal year.
a) FY 2021 Second Distribution State Amounts of TaOA Funds — The Department
applies the same formula and methodology used to determine the state amounts of
TaOA funds in the FY 2021 Initial Allocation to determine the amounts available in the
FY 2021 Second Distribution of TaOA funds. This formula and methodology are based
on the regulations at 20 CFR 618.910 through 618.940. For FY 2021, the amounts to
be provided to states in the Second Distribution are set out in the Attachment to this
TEGL and were determined under the TAA funding formula as described in 20 CFR
618.910(f) and summarized below:
A. TAA Formula Funds:
1. Trend in number of workers covered by certifications during the most recent four
consecutive calendar quarters for which data are available;
2. Trend in number of workers participating in training during the most recent four
consecutive calendar quarters for which data are available;
3. Number of workers estimated to be participating in training during the fiscal year;
and
4. Estimated amount of funding needed to provide approved training to such workers
during the fiscal year.
Factor 1 will be established using the most recent four quarters (FY 2020 Quarter
1 through FY 2020 Quarter 4) of data for certified workers by state, and the
quarters will be weighted 40 percent, 30 percent, 20 percent, and 10 percent from
the most recent to the earliest quarter. This approach will establish a trend, giving
the most recent quarters a greater impact on the factor than earlier quarters.
Factor 2 will be established using the most recent four quarters (FY 2020 Quarter
1 through FY 2020 Quarter 4) of data for workers participating in training by
state, and the quarters will be weighted 40 percent, 30 percent, 20 percent, and 10
percent from the most recent quarter to the earliest quarter. As with Factor 1, this
approach will establish a trend, giving the most recent quarters a greater impact on
the factor than earlier quarters.
Factor 3 will be determined by dividing the weighted average number of training
participants for the state determined in Factor 2 by the sum of the weighted
averages for all states. The next step in determining this factor is to multiply the
resulting ratio by the projected national average of training participants for the
fiscal year, using estimates from the Department’s most recent budget submission
or update.
Factor 4 will be calculated by multiplying the estimated number of participants in
Factor 3 by the average training cost per participant in the state. The average
training cost will be calculated by dividing total training expenditures for the most
recent four quarters by the average number of training participants for the same
period.
Once each of the four factors have been determined for each state, under 20 CFR
618.910(f)(3), all four factors will be assigned an equal weight. For FY 2021, the
weight is 25 percent of the total for each factor.
The Department determined each state’s percentage of the national aggregate
amount for each factor. Using each state’s percentage of each of these weighted
factors, the Department determined the unadjusted percentage that the state will
receive of the total amount available for the Second Distribution.
B. States that did not Receive Funds in the Initial Allocation:
As TEGL No. 14-20 explains, consistent with 20 CFR 618.910(e)(2)(i), in instances
where the formula approach would give a state less than $100,000, the state will not
receive funds in the Initial Allocation of FY 2021 TaOA funds. In addition, as
provided in 20 CFR 618.930, only states that received funds in the Initial Allocation
may receive funds in the Second Distribution. Those states that do not receive funds
through the Initial Allocation or Second Distribution may request TAA Program
TaOA reserve funds in accordance with 20 CFR 618.920(b) and the procedures
described in TEGL No. 14-20 and in Section 4.a.D. below. The Attachment to TEGL
No. 14-20 identifies Alaska, Delaware, the District of Columbia, Puerto Rico, and
Wyoming as states that did not receive an FY 2021 Initial Allocation; however, using
the reserve fund process, the States of Delaware and Wyoming requested and the
Department approved $200,000 and $151,956, respectively, in FY 2021 TaOA
reserve funds. The Department will deduct the sum of all FY 2021 TaOA funds
provided to states via reserve fund requests from the amount of funds available in the
Final Distribution.
C. TaOA Funds Available as of the Second Distribution:
The total amount of FY 2021 TaOA funds available in the Second Distribution is
comprised of 90 percent of the aggregate FY 2021 TaOA funds after sequestration
(i.e., 90 percent of $370,484,800)1 minus the Initial Allocation ($240,815,120) or
$92,621,200.00.
D. Process for Requesting TaOA Reserve Funds:
States may request TaOA reserve funds in accordance with 20 CFR 618.920(b) at any
time during this fiscal year. States must use the Trade Adjustment Assistance (TAA)
for Workers Funding Request Form, ETA-9117 (OMB No. 1205-0275, Expiration
Date September 30, 2022) to request these funds.
To be eligible for TaOA reserve funds, a state must demonstrate that at least 50
percent of TaOA funds made available to that state in the current fiscal year and the
1
See section 4.b. of TEGL No. 14-20 for more information on the National Aggregate of TaOA funds and the
application of sequestration for FUBA funds.
two preceding fiscal years have been expended or that the state needs additional funds
to meet unusual or unexpected events. A state requesting reserve funds must also
provide a documented estimate of expected funding needs through the end of the
current fiscal year.
A state must base its estimate on an analysis that includes at least the following:
o The average cost of training in the state;
o The expected number of participants in training through the end of the fiscal
year; and
o The remaining funds the state has available for TaOA.
E. Recapture and Reallotment of TaOA Funds — Section 245(c) of the Trade Act
provides authority for the Department to recapture unobligated TaOA funds from
states that have not fully used their funding in the second and third fiscal year after the
fiscal year in which the funds were provided to the state, and reallot those funds to
other states to provide and administer TaOA. The Department may implement
Section 245(c) by establishing procedures for recapture of these funds and realloting
them to meet state funding needs for TaOA.
5. Inquiries. Direct inquiries regarding this guidance to the appropriate Regional Office.
6. References.
a. References
Consolidated Appropriations Act, 2021, Division H, (Pub. L. 116-260), enacted
on December 27, 2020;
Chapter 2 of Title II of the Trade Act of 1974, as amended (Pub. L. 93-618)
(Trade Act);
Trade Adjustment Assistance Reform Act of 2002, Division A, Title I, Subtitle A
of the Trade Act of 2002 (Pub. L. 107-210) (as amended by the Miscellaneous
Trade and Technical Corrections Act of 2004 (Pub. L. 108-429));
Trade and Globalization Adjustment Assistance Act of 2009, Division B, Title I,
Subtitle I of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-
5);
Trade Adjustment Assistance Extension Act of 2011 (Pub. L. 112-40);
The Balanced Budget and Emergency Deficit Control Act of 1985 (Pub. L. 99-
177), as amended by the Budget Control Act of 2011(Pub. L. 112-25), and further
amended by The American Taxpayer Relief Act of 2012 (Pub. L.112-240);
Trade Adjustment Assistance Reauthorization Act of 2015 (Pub. L. 114-27, Title
IV);
20 CFR part 618, Trade Adjustment Assistance, subpart I;
Training and Employment Guidance Letters No. 17-19, Fiscal Year (FY) 2020
Trade Adjustment Assistance (TAA) Training and Other Activities (TaOA) Grant
Management Guidance;
TEGL No. 14-20, Initial Allocation of Fiscal Year (FY) 2021 Trade Adjustment
Assistance (TAA) Program Training and Other Activities (TaOA) Funds and
Process for Requesting TAA Reserve Funds; and
TEGL No. 24-20, Operating Instructions for Implementing the Reversion
Provisions of the Amendments to the Trade Act of 1974 Enacted by the Trade
Adjustment Assistance Reauthorization Act of 2015.
7. Attachment.
Attachment I: FY 2021 TAA Training and Other Activies (TaOA) Second
Distribution Amounts, by State
Attachment I
FY 2021 TAA Training and Other Activities (TaOA) Second Distribution Amounts, by State
State Second Distribution Amounts2 State Admin. Max. 10%3 Case Management Min. 5%4
Alabama $ 1,632,935.00 $ 163,293.50 $ 81,646.75
Alaska $ 0 $ 0 $ 0
Arizona $ 479,753.00 $ 47,975.30 $ 23,987.65
Arkansas $ 1,261,244.00 $ 126,124.40 $ 63,062.20
California $ 7,683,506.00 $ 768,350.60 $ 384,175.30
Colorado $ 593,680.00 $ 59,368.00 $ 29,684.00
Connecticut $ 1,138,733.00 $ 113,873.30 $ 56,936.65
Delaware $ 0 $ 0 $ 0
District Of Columbia $ 0 $ 0 $ 0
Florida $ 859,812.00 $ 85,981.20 $ 42,990.60
Georgia $ 1,883,810.00 $ 188,381.00 $ 94,190.50
Hawaii $ 36,432.00 $ 3,643.20 $ 1,821.60
Idaho $ 448,609.00 $ 44,860.90 $ 22,430.45
Illinois $ 4,161,702.00 $ 416,170.20 $ 208,085.10
Indiana $ 4,332,215.00 $ 433,221.50 $ 216,610.75
Iowa $ 1,195,824.00 $ 119,582.40 $ 59,791.20
Kansas $ 3,237,854.00 $ 323,785.40 $ 161,892.70
Kentucky $ 1,912,535.00 $ 191,253.50 $ 95,626.75
Louisiana $ 208,405.00 $ 20,840.50 $ 10,420.25
Maine $ 139,317.00 $ 13,931.70 $ 6,965.85
Maryland $ 1,082,236.00 $ 108,223.60 $ 54,111.80
Massachusetts $ 2,968,124.00 $ 296,812.40 $ 148,406.20
Michigan $ 3,489,413.00 $ 348,941.30 $ 174,470.65
Minnesota $ 3,361,887.00 $ 336,188.70 $ 168,094.35
Mississippi $ 80,783.00 $ 8,078.30 $ 4,039.15
Missouri $ 2,087,089.00 $ 208,708.90 $ 104,354.45
Montana $ 26,767.00 $ 2,676.70 $ 1,338.35
Nebraska $ 437,977.00 $ 43,797.70 $ 21,898.85
Nevada $ 143,480.00 $ 14,348.00 $ 7,174.00
New Hampshire $ 203,480.00 $ 20,348.00 $ 10,174.00
New Jersey $ 2,091,610.00 $ 209,161.00 $ 104,580.50
New Mexico $ 1,300,265.00 $ 130,026.50 $ 65,013.25
New York $ 3,022,234.00 $ 302,223.40 $ 151,111.70
North Carolina $ 1,403,839.00 $ 140,383.90 $ 70,191.95
North Dakota $ 86,749.00 $ 8,674.90 $ 4,337.45
Ohio $ 3,910,341.00 $ 391,034.10 $ 195,517.05
Oklahoma $ 786,704.00 $ 78,670.40 $ 39,335.20
Oregon $ 7,793,222.00 $ 779,322.20 $ 389,661.10
Pennsylvania $ 6,985,553.00 $ 698,555.30 $ 349,277.65
Puerto Rico $ 0 $ 0 $ 0
Rhode Island $ 91,607.00 $ 9,160.70 $ 4,580.35
South Carolina $ 1,536,609.00 $ 153,660.90 $ 76,830.45
South Dakota $ 552,005.00 $ 55,200.50 $ 27,600.25
Tennessee $ 1,412,834.00 $ 141,283.40 $ 70,641.70
Texas $ 4,856,832.00 $ 485,683.20 $ 242,841.60
Utah $ 1,217,461.00 $ 121,746.10 $ 60,873.05
Vermont $ 138,236.00 $ 13,823.60 $ 6,911.80
Virginia $ 1,891,754.00 $ 189,175.40 $ 94,587.70
Washington $ 5,193,812.00 $ 519,381.20 $ 259,690.60
West Virginia $ 1,370,490.00 $ 137,049.00 $ 68,524.50
Wisconsin $ 1,891,441.00 $ 189,144.10 $ 94,572.05
Wyoming $ 0 $ 0 $ 0
TOTAL $92,621,200.00 $9,262,120.00 $4,631,060.00
1
The Second Distribution Amounts column sets out the TaOA Second Distribution amount for each state, in accordance with 20 CFR § 618.930 which
requires the Department to advise states of their share of 90 percent of the FY allocation of funds by July 15.
2
The state administration maximum (State Admin. Max. 10%) column sets out the maximum amount from the TaOA funds each state receives in the
Second Distribution that the state may use for related state administration by that state.
3
The employment and case management minimum (Case Management Min. 5%) column sets out the minimum amount from these TaOA funds that each
state must use for the provision of employment and case management services. See Section 4.b. of TEGL No. 14-20, including the statutory requirements
for the use of TaOA funds to provide employment and case management services, and note 3, which addresses the restriction on use of FY 2021 TaOA funds
to provide employment and case management services for workers covered by petitions certified under the 2002 Program. Section G of TEGL 24-20
describes the the restriction on use of FY 2021 TaOA funds to provide employment and case management services for workers covered by petitions certified
under the Reversion 2021 Program.
What does federal law require today?
This guidance has been withdrawn. Ezel checks current federal labor law as it stands now and answers your situation with citations.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace