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FY 2007 Trade Adjustment Assistance state allocations
Summary ETA explained the formula behind fiscal 2007 state Trade Adjustment Assistance training allocations and the process for requesting reserve funds for training, job search and relocation allowances. Its attachment lists state allocations and administrative allotments. ETA now lists the fiscal-year letter as Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 09-06
Date issued
November 16, 2006
Status
Withdrawn
ETA lists this fiscal-year letter Canceled as of 2026-10-24, although its PDF prints Expiration Date: Continuing; no rescission instrument is identified on its advisory page.
Status last verified October 24, 2026
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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/2006/TEGL09-06_508.pdf
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION TAA
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR ONR
Washington, D.C. 20210 DATE
November 16, 2006
TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 09-06
TO: STATE WORKFORCE AGENCIES
STATE WORKFORCE LIAISONS
STATE TRADE COORDINATORS
FROM: EMILY STOVER DeROCCO /s /
Assistant Secretary
SUBJECT: Fiscal Year (FY) 2007 State Base Allocations and the Process for
Requesting Additional Trade Adjustment Assistance (TAA) Program
Reserve Funds
1. Purpose. To provide states with the formula methodology used in developing the
Fiscal Year (FY) 2007 base allocations and to describe the process for requesting
additional TAA program reserve funds for training and job search and relocation
allowances.
2. References. The Trade Act of 1974, as amended; the Governor-Secretary
Agreement; 2 CFR Part 225 (codifying OMB Circular A-87); 20 CFR Part 617; 29 CFR
Parts 96, 97, 98, and 99; Training and Employment Guidance Letter (TEGL) 2-04
“Trade Adjustment Assistance (TAA) Program Reserve Funds,” dated July 14, 2004;
and TEGL 4-05 “Fiscal Year 2006 State Base Allocations and the Process for
Requesting Additional Trade Adjustment Assistance (TAA) Program Reserve
Funds,” dated September 8, 2005.
3. Background. The Employment and Training Administration (ETA) revised its fund
allocation process for the TAA program and implemented a formula-based
methodology for distributing training funds on October 1, 2003. This approach
enables states to receive a base allocation at the beginning of the fiscal year. The
formula has proven effective in allowing states to better plan and manage resources
for addressing the employment and training needs of trade-certified workers.
The funding formula facilitates the fair and equitable distribution of available
resources for training; encourages states to serve the greatest number of people with
the resources available in the current fiscal year; provides an incentive for states to
fund training plans through the end of the current fiscal year rather than
mortgaging this year’s funds for next year’s needs; provides states with the ability to
more effectively plan and manage the use of their TAA training resources; and is
consistent with ETA’s goal to secure rapid, suitable, and long-term employment for
adversely affected workers.
4. Overview of Funding Process. The training appropriation for the TAA program
will be $220 million once the Department’s appropriations bill for FY 2007 is
enacted. The total base allocation level is equal to 75 percent, or $165 million, of
available TAA training funds. The factors used in determining each state’s share of
the formula funds include previous year accrued expenditures and participant
levels. The remaining 25 percent, or $55 million, is reserved for distribution to states
experiencing large, unexpected layoffs or having training needs that exceed
available funds.
States must submit a fund request and demonstrate that at least 50 percent of all
available TAA training funds have been accrued as expenditures, or otherwise
demonstrate need, in order to access reserve funds. To apply for reserve funds, as
well as job search and relocation allowance funds, states must use the Standard
Form (SF) 424, Application for Federal Assistance and the ETA-9117, Trade
Adjustment Assistance Reserve Funding Request Form (OMB Approval Number
1205-0275).
An additional 15 percent will be added for program administration to any base
allocation, reserve training funds or job search and relocation allowance funds
awarded to states.
5. FY 2007 Fund Allocation Process. For FY 2007, the formula is the same as the
formula used for FY 2006 -- 75 percent of training funds are available to states by
formula, and 25 percent will be held in reserve. The process is as follows:
A. TAA Formula Funds: 75 percent of the $220 million available for TAA
training—or $165 million—is being distributed to states using the following
formula:
50 percent of TAA formula funds, or $82.5 million, is being distributed based
on accrued training expenditures reported for FY 2004, FY 2005 and the first
two quarters of FY 2006 on the SF-269, Financial Status Report (i.e., the sum of
each state’s accrued expenditures for training for FY 2004, FY 2005 and the
first two quarters of FY 2006, divided by 2.5).
50 percent of TAA formula funds, or $82.5 million, is being distributed based
on the average number of training participants for FY 2004, FY 2005 and the
first two quarters of FY 2006 as reported on the ETA-563, Quarterly
Determinations, Allowance Activities and Employability Services (OMB
Approval Number 1205-0016) (i.e., the sum of each state’s reported
participants for FY 2004, FY 2005 and the first two quarters of FY 2006,
divided by 2.5).
With regard to participant data, each fiscal year’s participants are calculated
by taking new participants reported as enrolling in training during that year
and adding them to individuals reported in training on the last day of the
prior fiscal year. Participant level data includes all trade-affected workers
with an approved training plan, regardless of funding source.
To minimize significant fluctuations in state funding from prior years, the
formula for FY 2007 also contains the “hold-harmless” feature used since
implementation of the formula. The “hold-harmless” factor ensures that each
state’s base allocation is at least 85 percent of the base allocation the state
received in FY 2006.
In those instances where the formula approach would have given states less
than $100,000, those states will not receive a base allocation 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 base allocations for each state are attached.
B. TAA Reserve Funds: The remaining 25 percent of the $220 million requested for
TAA training—or $55 million—is being designated as reserve funding. 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 have
training needs that are not met by their base allocation. 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 2007 have been expended on an accrual
basis, or otherwise demonstrate need. States requesting reserve funds must
complete the SF-424 and ETA-9117 and submit them in accordance with
instructions contained in TEGL 2-04.
In addition to the criteria contained in TEGL 2-04, factors that will be taken into
consideration during the review of these funding requests will include: the
expenditure of FY 2007 base allocation funds; the expenditure of prior fiscal year
TAA funds; the availability of WIA and other sources of funds; the number of
participants currently enrolled in training; the number of participants with
approved training plans who have not started training; the number of
anticipated new enrollees; the number of petitions certified; the average take-up
rate for training; the average training cost per participant; the average training
duration; and the average training completion rate.
C. Job Search and Relocation Allowances: States may also request job search and
relocation allowances for trade-affected workers who are unable to find
employment within their local commuting area. These funds must be requested
using the ETA-9117 and may be submitted at any time or in combination with a
request for reserve training funds.
D. TAA Program Administration Funds: States will continue receiving an
additional 15 percent of all base allocation, reserve, and job search/relocation
allowances for program administration. The administrative funds will be
included each time funds are obligated to states by ETA.
The program administration estimates for each state are also included in the
attached.
Consistent with the TAA Annual Cooperative Financial Agreement, ETA may
recapture any funds that states are unable to utilize within a reasonable period of
time, but only after consultation with and appropriate notification to state officials.
6. Program Reporting. The formula approach to distributing TAA funds emphasizes
the importance of accurate and timely reporting of training participant and
expenditure data on the ETA-563 and SF-269. Reported data on these forms are
critical in determining the level of funds states will receive each year for serving
trade-affected workers. It is in each state’s best interest to ensure accuracy and
timeliness of reported data in the ETA-563, SF-269, and the Trade Act Participant
Report (TAPR) (OMB Number 1205-0392). Data on the TAPR are used to derive the
average training duration and the training completion rate when evaluating state
requests for TAA reserve funds. Moreover, reported outcomes data on the TAPR
will be given serious consideration for use in subsequent year TAA formula
funding. In addition, accurate information on the SF-424 and ETA-9117 submitted
by states is essential for assessing requests for TAA reserve funds and job search and
relocation allowances.
7. Action Required. 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 2007 State Base Allocations and Administrative Allotments.
Attachment: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2006/TEGL09-06_Att1.pdf
Fiscal Year (FY) 2007 TAA Training Base Allocations and Administrative Allotments
FY 2007
FY 2007 Training Base Administrative Total FY 2007 TAA
State Allocation Allotment* Base Allocation**
Alabama $2,709,283 $406,392 $3,115,675
Alaska $441,342 $66,201 $507,543
Arizona $2,074,840 $311,226 $2,386,066
Arkansas $1,867,055 $280,058 $2,147,113
California $7,376,829 $1,106,524 $8,483,353
Colorado $1,212,856 $181,928 $1,394,784
Connecticut $1,566,539 $234,981 $1,801,520
Delaware $0 $0 $0
District of Columbia $0 $0 $0
Florida $2,847,962 $427,194 $3,275,156
Georgia $2,100,287 $315,043 $2,415,330
Hawaii $0 $0 $0
Idaho $2,031,823 $304,773 $2,336,596
Illinois $5,339,750 $800,962 $6,140,712
Indiana $5,341,113 $801,167 $6,142,280
Iowa $2,410,549 $361,582 $2,772,131
Kansas $2,359,376 $353,906 $2,713,282
Kentucky $3,830,061 $574,509 $4,404,570
Louisiana $520,687 $78,103 $598,790
Maine $4,258,591 $638,789 $4,897,380
Maryland $630,432 $94,565 $724,997
Massachusetts $4,760,745 $714,112 $5,474,857
Michigan $6,144,974 $921,746 $7,066,720
Minnesota $3,404,879 $510,732 $3,915,611
Mississippi $1,764,613 $264,692 $2,029,305
Missouri $3,608,088 $541,213 $4,149,301
Montana $943,024 $141,454 $1,084,478
Nebraska $494,212 $74,132 $568,344
Nevada $215,496 $32,324 $247,820
New Hampshire $433,717 $65,058 $498,775
New Jersey $1,904,545 $285,682 $2,190,227
New Mexico $396,303 $59,445 $455,748
New York $2,850,870 $427,631 $3,278,501
North Carolina $12,237,219 $1,835,583 $14,072,802
North Dakota $0 $0 $0
Ohio $5,012,856 $751,928 $5,764,784
Oklahoma $1,577,252 $236,588 $1,813,840
Oregon $5,424,650 $813,697 $6,238,347
Pennsylvania $15,352,937 $2,302,943 $17,655,880
Puerto Rico $0 $0 $0
Rhode Island $812,935 $121,940 $934,875
South Carolina $4,499,254 $674,888 $5,174,142
South Dakota $424,546 $63,682 $488,228
Tennessee $2,813,324 $421,999 $3,235,323
Texas $11,460,562 $1,719,084 $13,179,646
Utah $1,542,212 $231,332 $1,773,544
Vermont $252,420 $37,863 $290,283
Virginia $6,093,702 $914,055 $7,007,757
Washington $12,203,705 $1,830,556 $14,034,261
West Virginia $1,425,746 $213,862 $1,639,608
Wisconsin $8,025,839 $1,203,876 $9,229,715
Wyoming $0 $0 $0
US Total $165,000,000 $24,750,000 $189,750,000
* Each state’s administrative allotment represents 15% of its FY 2007 base allocation.
** Each state’s allocation represents the sum of its FY 2007 base allocation and administrative allotment.
RESCISSIONS: None
EXPIRATION DATE: Continuing
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