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Second 2016 Trade Adjustment Assistance distribution

Summary ETA gave states the second 2016 distribution of Trade Adjustment Assistance training and related funds and explained its allocation formula. The letter also describes how states could request reserve funds for training, case management, job-search and relocation services; the attachment lists state amounts. ETA now lists the letter as Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 3-16
Date issued
July 15, 2016
Status
Withdrawn
ETA lists this advisory Canceled as of 2026-10-24, although its PDF prints Expiration Date: Continuing.
Status last verified October 24, 2026

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This document has been withdrawn
ETA lists this advisory Canceled as of 2026-10-24, although its PDF prints Expiration Date: Continuing. It no longer reflects the agency's current position. Treat this page as historical context, not current guidance, and verify current law before relying on anything here.
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                 TAA
                ADVISORY SYSTEM                             CORRESPONDENCE SYMBOL
           U.S. DEPARTMENT OF LABOR                         OTAA
                                                            DATE
              Washington, D.C. 20210
                                                            July 15, 2016


ADVISORY:         TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 3-16

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
                  TRADE ADJUSTMENT ASSISTANCE LEADS

FROM:             PORTIA WU /s/
                  Assistant Secretary

SUBJECT:          Second Distribution of Fiscal Year (FY) 2016 Trade Adjustment Assistance
                  (TAA) Training and Other Activities Funds and the Process for Requesting
                  TAA Program Reserve Funds

1. Purpose. To assist State Workforce Agencies or agencies designated by Governors as
   “Cooperating State Agencies” (CSAs) (also jointly referred to as “states”) in administering the
   TAA program (as described below in Section 3) by identifying the FY 2016 Second Distribution
   amounts to states and describing the formula methodology the Department of Labor (Department)
   used to calculate these amounts; and to describe the process for states to request TAA Program
   reserve funds for training, employment and case management services, job search allowances,
   relocation allowances, and related state administration.

2.    References.
       Consolidated Appropriations Act, 2016, Division H, Title I (Pub. L. 114-113);
       Chapter 2 of Title II of the Trade Act of 1974, as amended (Pub. L. 93-618) (1974 Act, as
        amended) (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)) (TAARA);
      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) (TGAAA);
      Trade Adjustment Assistance Extension Act of 2011 (Pub. L. 112-40) (TAAEA);
      Trade Adjustment Assistance Reauthorization Act of 2015 (Pub. L. 114-27) (TAARA2015);
      Balanced Budget and Emergency Deficit Control Act (BBEDCA), as amended by the
        Budget Control Act of 2011 (Pub. L. 112-25) (BCA);
      20 CFR Part 618, Trade Adjustment Assistance, Subpart I;

 RESCISSIONS                                                EXPIRATION DATE
 None                                                       Continuing


      TEGL No. 05-15, Operating Instructions for Implementing the Amendments to the Trade Act
       of 1974 Enacted by the Trade Adjustment Assistance Reauthorization Act of 2015;
      TEGL No. 21-15, Fiscal Year (FY) 2016 State Initial Allocations for Trade Adjustment
       Assistance (TAA) Training and Other Activities and the Process for Requesting TAA
       Reserve Funds; and
      Trade Adjustment Assistance (TAA) Annual Funding Agreement (AFA) Fiscal Year 2016.
3. Background. The Trade Act of 1974 (Pub. L. No. 93-618), as amended (the Act) (codified
   at 19 U.S.C. §§ 2271 et seq.), Title II, Chapter 2, established the Trade Adjustment
   Assistance for Workers (TAA), 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. 21-15 explained that the regulations codified
   at 20 CFR 618.910 through 618.940 govern the distribution of funds. The regulations at 20
   CFR 618.910 provide that 65 percent of the fiscal year Training and Other Activities funds
   are to be distributed by formula in an Initial Allocation of funds to states when the
   appropriation for the full fiscal year is available. The remaining 35 percent of these funds are
   held in reserve for later distribution or provided to states in need of reserve funds, in
   accordance with 20 CFR 618.920. The regulations at 20 CFR 618.930 prescribe how and
   when the Department must provide funds in the Second Distribution. This Second
   Distribution is the subject of this TEGL.
   TEGL No. 21-15 also explains how the Consolidated Appropriations Act, 2016, governs the use
   of FY 2016 funds. FY 2016 funds may be used to provide Training and Other Activities to
   workers who are eligible for these activities under the 2002 Program, the 2009 Program, the
   2011 Program, and the 2015 Program in accordance with the requirements of the TAA law in
   effect relating to those activities that were in effect at the time of filing of the petition for
   certification that covers these workers. Please refer to TEGL No. 21-15 for the definitions of
   these programs.
4. Second Distribution of FY 2016 Funds. In accordance with 20 CFR 618.930, by July 15 of
   each fiscal year, at least 90 percent of the funds appropriated for Training and Other
   Activities for the entire fiscal year will be allocated to states. Any funds that remain after the
   Second Distribution of funds and any subsequent reserve requests will be allocated to the
   states before the end of the fiscal year.

   We derived the FY 2016 Second Distribution amount by using 90 percent of the FY 2016
   Federal Unemployment Benefits and Allowances (FUBA) appropriation Training and Other
   Activities amount, post-sequestration, as the starting point. Note: The FY 2016 FUBA
   appropriation is described in TEGL No. 21-15 including a discussion of the derivation of
   pre-sequestration and post-sequestration amounts in accordance with the BBEDCA. Next,
   we subtracted the Initial Allocation from this amount. The remaining amount is the total
   Second Distribution amount to be distributed by formula to states, as announced in the
   Attachment of this TEGL. The Second Distribution of funds will be distributed to those states
   that received an Initial Allocation, using the same methodology as used for the Initial
   Allocation and according to the requirements set forth in 20 CFR 618.930.
5. Funding Formula and the Process for Requesting Reserve Funds. The Attachment to
   this TEGL provides the amounts of FY 2016 Training and Other Activities funds, by state,


that the Department will allocate by July 15 in the Second Distribution. These amounts were
determined under the TAA funding formula as described in 20 CFR 618.910(f):
    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 was established using the most recent four quarters (FY 2015 Quarter 3
        through FY 2016 Quarter 2) of data for certified workers by state, and the quarters
        were weighted 40 percent; 30 percent; 20 percent; and 10 percent, respectively, from
        the most recent to the earliest quarter. This approach establishes a trend, giving the
        most recent quarters a greater impact on each factor than an earlier quarter.
        Factor 2 was established using the most recent four quarters (FY 2015 Quarter 3
        through FY 2016 Quarter 2) of data for workers participating in training by state, and
        the quarters were weighted 40 percent; 30 percent; 20 percent; and 10 percent,
        respectively, from the most recent quarter to least recent quarter. As with Factor 1,
        this approach establishes a trend, giving the most recent quarters a greater impact on
        each factor than an earlier quarter.
        Factor 3 was 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 and multiplying the resulting ratio by the projected national average of
        training participants for the fiscal year, using the estimates underlying the
        Department’s most recent budget submission or update.
        Factor 4 was 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 was 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 were determined for each state under 20 CFR
        618.910(f)(3), all four factors were assigned an equal weight. For FY 2016, the
        weight is 25 percent of the total for each factor.
        Using the steps above, the Department determined each state’s percentage of the
        national total for each factor. Using each state’s percentage of each of these
        weighted factors, we determined the unadjusted percentage that the state will receive
        of the amount available for the Second Distribution.
    B. TAA Program Reserve Funds: States may also request reserve funds in accordance
       with 20 CFR 618.920(b) at any other time during the fiscal year. The procedures for


            requesting reserve funds and the eligibility for receiving reserve funds have not
            changed since the issuance of TEGL No. 21-15.
            States must use the Reserve Funding Request Form ETA-9117 (OMB Approval No.
            1205-0275) to request these funds. To be eligible for TAA reserve funds, a state
            must demonstrate that at least 50 percent of TAA funds made available to that state
            in the current fiscal year and the 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 fiscal year. States must base their estimate on
            an analysis that includes at least the following:
               • The average cost of training in the state;
               • The expected number of participants in Training and Other Activities through
                 the end of the fiscal year; and
               • The remaining funds the state has available for Training and Other Activities.

6. Use of Funds. A state’s allocation of FY 2016 funds in this distribution may be used to pay
   the costs for the provision of Training and Other Activities, including costs of related state
   administration and employment and case management services that states incur in the
   provision of these benefits and services. However, use of the FY 2016 funds is subject to the
   following restrictions under the FY 2016 TAA Annual Funding Agreement:
      State Administration. The maximum amounts of FY 2016 Training and Other Activities
       funds available for state administration are provided in the Attachment to this TEGL and
       the Attachment to TEGL No. 21-15. Until the Final Distribution of FY 2016 funds are
       provided to states, which will occur before the end of FY 2016, these amounts represent
       the maximum amount of FY 2016 Training and Other Activities funds that may be used
       for expenditures for state administration. These amounts were established to ensure that
       states have sufficient resources to provide continuity of service for the programs, as
       specified in TEGL No. 5-15, Attachment A, Section D.1. Note: A state may NOT use
       more than 10 percent of its FY 2016 Training and Other Activities Allocation for costs
       related to state administration. However, a state may use a portion of the funds available
       for state administration for training, if needed, as long as these funds are not needed for
       state administration.
      Employment and Case Management Services. The minimum amounts of FY 2016
       Training and Other Activities funds a state may use to provide Employment and Case
       Management Services are provided in the Attachment to this TEGL and the Attachment
       to TEGL No. 21-15. Until the Final Distribution of FY 2016 funds, which will occur
       before the end of FY 2016, these amounts represent the minimum amount of FY 2016
       funds that must be used for these purposes. States must use at least 5 percent of their FY
       2016 Training and Other Activities funds to provide employment and case management
       services to TAA Program participants certified under the 2009 Program, the 2011
       Program, and the 2015 Program. These funds may not be used to provide employment
       and case management services to workers covered by petitions certified under the 2002
       Program. This five percent minimum is required to ensure TAA funds are available to
       provide the employment and case management activities to which workers under those
       programs are entitled, as specified in TEGL No. 5-15, Attachment A, Section G. Note: A
       state may use more than the five percent (minimum) of the amount allocated to it for


       Training and Other Activities to provide TAA-funded employment and case management
       services if it determines that more funds are needed to provide such services to adversely
       affected workers in its state.

7. Action Requested. CSAs are required to implement the guidance set forth herein and must
   continue to administer the TAA Program in accordance with applicable Operating Instructions for
   the 2002 Program, the 2009 Program, the 2011 Program, and the 2015 Program. CSAs must
   inform all appropriate staff of the contents of this guidance.

8. Inquiries. Inquiries regarding this guidance should be directed to the appropriate Regional
   Office.

9. Attachment. Attachment A: TAA FY 2016 Second Distribution Funding Amounts by State

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2016/TEGL_3-16_Attachment_A_acc.pdf)

Attachment A
             Trade Adjustment Assistance Fiscal Year (FY) 2016 Second Distribution Funding Amounts by State
             State                      Total Second Distribution for                       State Administration                  Case Management Minimum
                                        Training and Other Activities1                        Maximum (10%)2                                (5%)3
Alabama                                               $      876,490.00                              $      87,649.00                         $    43,824.50
Alaska4                                               $                -                             $              -                         $            -
Arizona                                               $      825,178.00                              $      82,517.80                         $    41,258.90
Arkansas                                              $    3,237,458.00                              $     323,745.80                         $   161,872.90
California                                            $    4,065,126.00                              $     406,512.60                         $   203,256.30
Colorado                                              $      812,277.00                              $      81,227.70                         $    40,613.85
Connecticut                                           $    1,201,762.00                              $     120,176.20                         $    60,088.10
Delaware                                              $      108,022.00                              $      10,802.20                         $     5,401.10
District Of Columbia4                                 $                -                             $              -                         $            -
Florida                                               $    1,089,805.00                              $     108,980.50                         $    54,490.25
Georgia                                               $    1,540,759.00                              $     154,075.90                         $    77,037.95
Hawaii                                                $      268,109.00                              $      26,810.90                         $    13,405.45
Idaho                                                 $      992,875.00                              $      99,287.50                         $    49,643.75
Illinois                                              $    4,143,616.00                              $     414,361.60                         $   207,180.80
Indiana                                               $    1,819,125.00                              $     181,912.50                         $    90,956.25
Iowa                                                  $    2,283,621.00                              $     228,362.10                         $   114,181.05
Kansas                                                $    1,353,389.00                              $     135,338.90                         $    67,669.45
Kentucky                                              $    2,481,563.00                              $     248,156.30                         $   124,078.15
Louisiana                                             $      236,454.00                              $      23,645.40                         $    11,822.70
Maine                                                 $    2,176,774.00                              $     217,677.40                         $   108,838.70
Maryland                                              $      696,465.00                              $      69,646.50                         $    34,823.25
Massachusetts                                         $    2,841,769.00                              $     284,176.90                         $   142,088.45
Michigan                                              $    4,547,822.00                              $     454,782.20                         $   227,391.10
Minnesota                                             $    3,183,102.00                              $     318,310.20                         $   159,155.10
Mississippi                                           $      215,461.00                              $      21,546.10                         $    10,773.05
Missouri                                              $    3,183,801.00                              $     318,380.10                         $   159,190.05
Montana                                               $       50,245.00                              $       5,024.50                         $     2,512.25
Nebraska                                              $      159,674.00                              $      15,967.40                         $     7,983.70
Nevada                                                $       13,319.00                              $       1,331.90                         $       665.95
New Hampshire                                         $      260,606.00                              $      26,060.60                         $    13,030.30
New Jersey                                            $    1,620,891.00                              $     162,089.10                         $    81,044.55
New Mexico                                            $    1,155,194.00                              $     115,519.40                         $    57,759.70
New York                                              $    4,677,986.00                              $     467,798.60                         $   233,899.30
North Carolina                                        $    2,447,343.00                              $     244,734.30                         $   122,367.15
North Dakota4                                         $                -                             $              -                         $            -
Ohio                                                  $    3,494,562.00                              $     349,456.20                         $   174,728.10
Oklahoma                                              $    1,429,945.00                              $     142,994.50                         $    71,497.25
Oregon                                                $    3,229,407.00                              $     322,940.70                         $   161,470.35
Pennsylvania                                          $    9,235,660.00                              $     923,566.00                         $   461,783.00
Puerto Rico                                           $      577,097.00                              $      57,709.70                         $    28,854.85
Rhode Island                                          $      200,063.00                              $      20,006.30                         $    10,003.15
South Carolina                                        $    4,036,119.00                              $     403,611.90                         $   201,805.95
South Dakota                                          $      347,808.00                              $      34,780.80                         $    17,390.40
Tennessee                                             $    1,107,582.00                              $     110,758.20                         $    55,379.10
Texas                                                 $ 10,230,759.00                                $ 1,023,075.90                           $   511,537.95
Utah                                                  $    1,061,027.00                              $     106,102.70                         $    53,051.35
Vermont                                               $      253,679.00                              $      25,367.90                         $    12,683.95
Virginia                                              $      581,521.00                              $      58,152.10                         $    29,076.05
Washington                                            $    3,389,468.00                              $     338,946.80                         $   169,473.40
West Virginia                                         $    1,152,162.00                              $     115,216.20                         $    57,608.10
Wisconsin                                             $    2,940,455.00                              $     294,045.50                         $   147,022.75
Wyoming                                               $       29,605.00                              $       2,960.50                         $     1,480.25
TOTAL                                                       $    97,863,000.00                           $    9,786,300.00                          $     4,893,150.00

1
  The Total Second Distribution for Training and Other Activities (TaOA) column lists the entire TaOA Second Distribution amount.
2
  The State Administration Maximum (10%) column lists only the 10 percent maximum available from TaOA for related state administration in Second Distribution. States may use not more
than 10 percent of their FY 2016 TaOA funds for related state administration. Amounts listed illustrate the maximum amount of funds provided in the Second Distribution that a state may use
for related state administration
3
  Case Management Amount Minimum (5%) column lists the minimum 5 percent amount provided in the Second Distribution states may use in the provision of employment and case
management services. States must use a minimum of 5 percent of their FY 2016 TaOA funds for provision of Employment and Case Management services.
4
  These states will not receive TaOA funds in the Second Distribution as explained in Section 4 of this TEGL.

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