Back to Federal guidance
2009 supplemental TAA funds and reserve requests
Summary ETA explained the formula for supplemental fiscal year 2009 Trade Adjustment Assistance training funds and the separate case-management allotments and how states could request additional reserve funds. An attachment lists distributions. The change supplements TEGL 4-08; ETA now lists it Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 4-08, Change 1
Date issued
June 9, 2009
Status
Withdrawn
ETA lists this change advisory Canceled as of 2026-10-24; its signed letter prints Expiration Date: Continuing and Rescissions: None. It supplements TEGL 4-08 with fiscal year 2009 distributions without expressly rescinding the base.
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This document has been withdrawn.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.
Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2009/TEGL04-08Ch1acc.pdf
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION TAA
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
ONR
U.S. DEPARTMENT OF LABOR
DATE
Washington, D.C. 20210 June 9, 2009
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO: 4-08, Change 1
TO: STATE WORKFORCE AGENCIES
STATE WORKFORCE LIAISONS
STATE TRADE COORDINATORS
FROM: DOUGLAS F. SMALL /s/
Deputy Assistant Secretary
SUBJECT: Fiscal Year (FY) 2009 State Supplemental Training Fund Distributions Including
Case Management Funds and the Process for Requesting Additional Trade
Adjustment Assistance (TAA) Program Reserve Funds
1. Purpose. The American Recovery and Reinvestment Act of 2009 (Recovery Act) amended
the Trade Act of 1974 (Trade Act) to increase the maximum annual amount of TAA funds that
may be spent on training. The Department will use some of the funds appropriated for TAA
in FY 2009 under the Consolidated Omnibus Appropriations Act, 2009 (P.L. No. 111-8)
(Omnibus Appropriations) for a supplemental distribution to the states, and will also hold
funds in reserve. This program letter explains the formula methodology used in distributing
this supplemental distribution and describes the process for states to request additional TAA
program reserve funds for training.
2. References. Training and Employment Guidance Letter (TEGL) No. 4-08, “FY 2009 State
Base Allocations and the Process for Requesting Additional TAA Program Reserve Funds”;
TEGL No. 6-03, “FY 2004 State Planning Estimates and Process for Requesting Additional
TAA Funds for Training and Administration”; TEGL No. 2-04, “Trade Adjustment Assistance
(TAA) Program Reserve Funds”; TEGL No. 22-08, “Operating Instructions for Implementing
the Amendments to the Trade Act of 1974 Enacted by the Trade and Globalization
Adjustment Assistance Act of 2009”; The Trade and Globalization Adjustment Assistance Act
of 2009 (TGAAA) (Division B, Title I, Subtitle I of the Recovery Act, Public Law (P.L.) No. 111-
5 (enacted February 17, 2009); Trade Adjustment Assistance Reform Act of 2002 (P.L. No. 107-
210); the Trade Act, as amended (P.L. No. 93-618, as amended).
3. Background. On October 1, 2003, the Employment and Training Administration (ETA)
revised its fund allocation process for the TAA program to implement an annual formula-
based methodology for distributing training funds. TEGL No. 6-03 announced this formula
methodology. Under this approach, the annual allocation process used a set formula for
distributing 75 percent of available TAA training funds. The remaining 25 percent were held
in reserve for distribution to states to meet unanticipated needs. Additionally, the formula
contained a “hold harmless” provision which guaranteed each state a base formula allocation
of at least 85 percent of the total base allocation that state received in the previous year.
RESCISSIONS EXPIRATION DATE
None Continuing
On October 28, 2008, ETA announced the FY 2009 base allocations of TAA training funds in
TEGL No. 4-08, based on the $220 million in training funds expected to be available in FY
2009. These allocations were based on the formula articulated in TEGL No. 4-08.
On February 17, 2009, President Obama signed the Recovery Act. The Trade and
Globalization Adjustment Assistance Act of 2009 (TGAAA), a part of the Recovery Act,
reauthorized and made substantial changes to the TAA program. Section 1828 of the TGAAA
amended Section 236(a)(2)(A) of the Trade Act to increase the cap on TAA training funds from
$220 million to $575 million annually in both FY 2009 and FY 2010, and capped the first
quarter of FY 2011 (October 1, 2010 through December 31, 2010) at $143,750,000.
Although the Recovery Act reauthorized the TAA program and raised the cap on training
funds, it did not appropriate any funds for the TAA program. Rather, the Omnibus
Appropriations Act 2009, Pub. L. 111-8, appropriated to the Department administrative and
program funds for the TAA program under the Employment and Training Administration’s
Federal Unemployment Benefits and Allowances account. Therefore, separate tracking and
reporting requirements, which apply specifically to Recovery Act funds, do not apply to the
TAA funds provided to the states from the later appropriation. However, as discussed in
TEGL No. 22-08, the TGAAA provides new reporting requirements specific to the TAA
program that increase the transparency and accountability of the program. The Department
will soon be issuing additional guidance on those requirements.
The TGAAA also amended Section 236(a)(2)(B) and (C) of the Trade Act of 1974 by further
directing the distribution of training funds and providing specific formula factors that the
Secretary must consider. These provisions for distributing training funds go into effect
October 1, 2009, for fiscal year 2010. ETA has elected to distribute the remaining FY 2009
training funds using a preliminary version of the factors identified for the FY 2010 formula.
4. Overview of Funding Process. As noted above, the TGAAA increased the cap on TAA
training funds from $220 million annually to $575 million in both FY 2009 and FY 2010. TEGL
No. 4-08 distributed a base allocation for FY 2009 of $165 million using the methodology then
in effect.
Based upon the increased training cap and the Omnibus Appropriations Act, 2009, ETA is
making a supplemental distribution by formula for FY 2009 in the amount of $381,250,000, in
order to ensure states have funds available to implement the changes to the program made by
the TGAAA and to address anticipated high levels of enrollment through the remainder of FY
2009. The training funds will be distributed based on a formula using the four factors set
forth in the new Section 236(a)(2)(C)(ii) of the Trade Act of 1974, as amended, specifically: (1)
the trend in the number of workers covered by certifications of eligibility during the most
recent four consecutive calendar quarters for which data is available; (2) the trend in the
number of workers participating in training during the most recent four consecutive calendar
quarters for which data is available; (3) the number of workers estimated to be participating in
training during the fiscal year; and (4) the amount of funding estimated to be necessary to
provide approved training during the fiscal year. ETA has decided not to use the
discretionary fifth factor “such other factors as the Secretary considers appropriate,” in this
preliminary formula.
Given the unique nature of this supplemental distribution, with the majority of the need
falling in the final quarter of the fiscal year, the version of the formula used for this
distribution will differ from the formula used for the FY 2010 distribution, when the factors in
2
the new Section 236 (a)(2)(C)(ii), become mandatory. ETA is developing regulations
implementing the amendments to Section 236 (a)(2)(A)-(C), and, as this rulemaking proceeds
and ETA gathers comments and additional data, the formula may be modified.
Five percent of the total training funds available will be reserved for distribution to states
experiencing large, unexpected layoffs, to states that did not receive either a base or
supplemental allocation, and to states that otherwise have training needs that exceed their
base and supplemental allocations. States that would receive less than $100,000 in
supplemental distribution funds will not receive funds in this additional distribution. States
that do not receive a supplemental distribution may submit a reserve-funding request, if
existing funds in the state are insufficient to address their remaining 2009 activity levels.
In accordance with the new Section 235A(a), an additional 15 percent will be added on to the
amount states receive for training funds to be used for program administration and the
delivery of reemployment and case management services. Not more than two-thirds of these
additional funds may be used to cover administrative expenses, and not less than one-third of
such funds may be used to provide employment and case management services.
Also as provided by the new Section 235A, each state that received either a base or
supplemental allocation will receive $350,000 in funds specifically for the provision of
employment and case management services for FY 2009. States that do not receive the
$350,000 for case management services will likely receive funds if they submit a reserve
funding request.
As described in TEGL No. 22-08, at a minimum, TAA participants must be offered the
following as employment and case management services: comprehensive and specialized
assessments of skill levels and needs; individual employment plans for each impacted worker;
information on available training and how to apply for training (if appropriate); information
on how to apply for financial aid; short-term prevocational services (if appropriate);
individual career counseling; employment statistics information (labor market information);
and information on the availability of supportive services.
5. FY 2009 Supplemental Distribution Process. Because it is so late in the year for FY 2009,
ETA is only keeping 5 percent of the FY 2009 training funds in reserve and is distributing
$381,250,000 through this supplemental process.
A. TAA Formula Funds: Of the available TAA training funds in FY 2009, the remaining
training funds will distributed to states using the following formula factors:
Trend in Number of Workers Covered by Certifications
Trend in Number of Workers Participating In Training
Number of Workers Estimated to be Participating In Training
Estimated Amount of Funding Needed to Provide Approved Training
The trend in the number of certified workers will be established using the most recent
four quarters of data for certified workers by state, and the trend in workers
participating in training will use the most recent four quarters of data for workers
participating in training by state. For each of these factors, the most recent quarters will
be given a greater weight to establish the trend giving those quarters a larger share of
the factor. This will enable the most recent state activity to influence the trend in activity
and meet Congress’s intent of not relying too heavily on historical data. The number of
3
workers estimated to be participating in training will use the most recent four quarters
of data on workers that entered training by state, but with an additional 30 percent
added of that number to account for actuarial predictions for growth of the program as
newly reauthorized. The estimated amount of funding needed to provide approved
training will be determined using the total FY 2008 training expenditures by state, and
again adding 30 percent of that amount as a projected growth rate. Each of the four
factors will be weighted equally for the 2009 supplemental distribution.
A “hold-harmless” provision does not apply to this FY 2009 Supplemental Distribution
since the 85 percent hold harmless factor was applied to the initial $165 million base
allocation in October of 2008.
As noted above, in those instances where the formula approach would give a state less
than $100,000, that state will not receive a supplemental distribution and will need to
use WIA formula funds for TAA training and/or request TAA reserve funds in
accordance with the procedures described in Section B.
The supplemental allocations for each state are attached.
B. TAA Reserve Funds: Reserve funds will be distributed to states on an as-needed basis
and are designed to provide monies to those states that experience large, unexpected
layoffs or otherwise have training needs which are not met by their base or
supplemental allocation (including those states that did not receive either a base
allocation or a supplemental allocation for FY 2009). In order to be eligible for TAA
reserve funds, states must demonstrate that at least 50 percent of all available TAA
training funds during FY 2009 have been accrued as expenditures, or otherwise
demonstrate need. States should follow the procedures outlined in TEGL No. 4-08 and
TEGL No. 2-04 to submit a request for reserve funds.
C. Job Search and Relocation Allowances: States may also request job search and
relocation allowances for trade-affected workers who have no reasonable expectation of
obtaining suitable employment within their local commuting area. These funds must be
requested using the ETA-9117 (OMB No. 1205-0275) and may be submitted at any time
or in combination with a request for reserve training funds.
D. TAA Program Administration Funds: States will receive an additional 15 percent of all
supplemental allocation and reserve funds for program administration. Not more than
two-thirds of these additional funds may be used to cover administrative expenses, and
not less than one-third of such funds may be used for the purpose of providing
employment and case management services. The administrative funds will be included
each time funds are obligated to states by ETA. The program administration allocations
for each state are also included in the attachment.
E. Case Management Funds: Each state that received FY 2009 TAA funds will receive
$350,000 for the purpose of providing employment and case management service to
TAA participants. But, as noted above, states that do not receive these funds may
submit a reserve funding request.
6. Recapture of TAA Funds. Consistent with the TAA Annual Cooperative Financial
Agreement, ETA may recapture any funds distributed to any state in the same fiscal year as
4
they were given if it is determined that the state will not expend the funds, but only after
consultation with, and appropriate notification to, state officials.
7. Action Requested. States should ensure that all trade and workforce investment program
staff are informed and knowledgeable of this funding methodology.
8. Inquiries. States should direct all inquiries to the appropriate ETA regional office.
9. Attachment. FY 2009 Supplemental Distribution and Administrative Allotments.
5
Linked official document 1: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2009/TEGL04-08Ch1a.pdf
Attachment
FY 2009 Supplemental Distribution and Administrative Allotments
FY 2009 FY 2009 Employment
State Supplemental Supplemental and Case Total FY 2009
Training Administrative Management Supplemental
Distribution Distribution Funds Distribution
Alabama $7,691,232 $1,153,685 $350,000 $9,194,917
Alaska $212,202 $31,830 $350,000 $594,032
Arizona $2,068,971 $310,346 $350,000 $2,729,317
Arkansas $15,951,698 $2,392,755 $350,000 $18,694,453
California $18,603,936 $2,790,590 $350,000 $21,744,526
Colorado $2,539,865 $380,980 $350,000 $3,270,845
Connecticut $5,297,960 $794,694 $350,000 $6,442,654
Delaware $0 $0 $0 $0
Dist. Of Columbia $0 $0 $0 $0
Florida $1,441,603 $216,240 $350,000 $2,007,843
Georgia $13,708,826 $2,056,324 $350,000 $16,115,150
Hawaii $115,447 $17,317 $350,000 $482,764
Idaho $2,219,514 $332,927 $350,000 $2,902,441
Illinois $13,849,589 $2,077,438 $350,000 $16,277,027
Indiana $17,987,789 $2,698,168 $350,000 $21,035,957
Iowa $7,633,140 $1,144,971 $350,000 $9,128,111
Kansas $896,796 $134,519 $350,000 $1,381,315
Kentucky $10,192,726 $1,528,909 $350,000 $12,071,635
Louisiana $1,879,924 $281,989 $350,000 $2,511,913
Maine $2,317,399 $347,610 $350,000 $3,015,009
Maryland $1,227,191 $184,079 $350,000 $1,761,270
Massachusetts $10,358,558 $1,553,784 $350,000 $12,262,342
Michigan $43,117,747 $6,467,662 $350,000 $49,935,409
Minnesota $5,297,265 $794,590 $350,000 $6,441,855
Mississippi $4,437,667 $665,650 $350,000 $5,453,317
Missouri $8,789,425 $1,318,414 $350,000 $10,457,839
Montana $566,070 $84,911 $350,000 $1,000,981
Nebraska $639,967 $95,995 $350,000 $1,085,962
Nevada $226,887 $34,033 $350,000 $610,920
New Hampshire $867,611 $130,142 $350,000 $1,347,753
New Jersey $4,513,827 $677,074 $350,000 $5,540,901
New Mexico $2,448,975 $367,346 $350,000 $3,166,321
New York $8,412,596 $1,261,889 $350,000 $10,024,485
North Carolina $37,921,728 $5,688,259 $350,000 $43,959,987
North Dakota $372,177 $55,827 $350,000 $778,004
Ohio $16,338,684 $2,450,803 $350,000 $19,139,487
Oklahoma $3,334,470 $500,171 $350,000 $4,184,641
6
Oregon $8,371,530 $1,255,730 $350,000 $9,977,260
Pennsylvania $18,699,222 $2,804,883 $350,000 $21,854,105
Puerto Rico $500,934 $75,140 $350,000 $926,074
Rhode Island $2,862,119 $429,318 $350,000 $3,641,437
South Carolina $16,142,220 $2,421,333 $350,000 $18,913,553
South Dakota $656,329 $98,449 $350,000 $1,104,778
Tennessee $10,063,209 $1,509,481 $350,000 $11,922,690
Texas $14,918,251 $2,237,738 $350,000 $17,505,989
Utah $3,458,005 $518,701 $350,000 $4,326,706
Vermont $180,941 $27,141 $350,000 $558,082
Virginia $9,748,909 $1,462,336 $350,000 $11,561,245
Washington $5,317,389 $797,608 $350,000 $6,464,997
West Virginia $4,241,638 $636,246 $350,000 $5,227,884
Wisconsin $12,609,842 $1,891,476 $350,000 $14,851,318
Wyoming $0 $0 $0 $0
Totals: $381,250,000 $57,187,500 $17,150,000 $455,587,500
7
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