Trade Adjustment Assistance Modernization Act

Bill Number

H.R. 7805

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2026-03-04: Referred to the House Committee on Ways and Means.

Last Updated

2026-07-01T08:08:01Z

AI-Generated Summary

Purpose of the Legislation

The Trade Adjustment Assistance Modernization Act (H.R. 7805) aims to reauthorize and update Trade Adjustment Assistance (TAA) programs under the Trade Act of 1974. These programs provide support to workers, firms, farmers, and communities harmed by international trade, such as job losses due to imports or export declines. The Act extends these programs through fiscal year 2033, modernizes eligibility and benefits, expands outreach (especially to underserved groups), and makes related tax credits permanent to help affected individuals and economies adjust and recover.

Key Provisions

The Act is structured into six titles, amending and adding to the Trade Act of 1974:

Title I: Trade Adjustment Assistance for Workers

• Petitions and Eligibility (Secs. 101–103, 113): Allows petitions by individual workers, state units, or workforce intermediaries (e.g., labor-management groups). Expands group eligibility to include cases of production decreases, export/import shifts, or threats of job loss; covers staffed workers (e.g., contractors), teleworkers, and public agency employees (e.g., state/local government workers displaced by foreign outsourcing). Extends eligibility to successors-in-interest (e.g., new owners of a firm).
• Outreach and Information (Secs. 104, 108, 111): Requires multilingual notices, follow-up alerts before unemployment benefits end, and sustained outreach via email, unions, peer workers, and social media. States must review layoffs over 5 workers for trade impacts, coordinate with workforce boards, and prioritize underserved communities (e.g., low-income, minority, rural, or disabled populations).
• Benefits and Training (Secs. 105–107, 109–110, 112): Simplifies qualifying rules (e.g., removes some prior conditions for allowances); extends trade readjustment allowances (TRA) up to 130 weeks for remedial education, plus 26 more for completion, and automatic 26-week extensions during high unemployment (over 5.5%). Adds waivers for training if nearing retirement or recall. Enhances training to include apprenticeships and providers with strong job placement records; reimburses pre-certification expenses. Increases job search/relocation allowances to $2,000 (inflation-adjusted), mandates 100% funding, and introduces child/dependent care allowances up to $2,000 per dependent. Boosts reemployment TRA wage subsidies (e.g., up to $70,000 cap, inflation-adjusted).
• Administration (Secs. 114–116): Defines "underserved community" (e.g., groups facing inequality like people of color, immigrants, rural residents). Extends to territories (e.g., Guam, American Samoa); grants subpoena power for data collection.

Title II: Trade Adjustment Assistance for Firms

• Petitions and Certification (Sec. 201): Speeds reviews (15 days to acknowledge, 55 days for decision; auto-certify if delayed). Broadens eligibility for sales/production declines, import competition, or export/input drops; includes oil/gas firms.
• Assistance (Secs. 202–203): Approvals now require employment outcome assessments; caps aid at $300,000 (inflation-adjusted) with 1:1 matching funds. Adds skills training to technical assistance.
• Outreach and Definitions (Secs. 204–205): Adopts "underserved community" definition; requires annual outreach plan to at-risk firms (e.g., small, minority-owned, service sector).

Title III: Trade Adjustment Assistance for Communities and Community Colleges

• Communities Program (Secs. 301, 274–277): Establishes new grants (up to $25 million per community over 2027–2031) for strategic plans addressing trade impacts (e.g., job loss certifications). Plans must consult stakeholders (e.g., governments, unions, civil rights groups) and include projects like infrastructure, training, brownfield redevelopment, or revolving loans. Prioritizes distressed areas; ensures geographic diversity. Secretary of Commerce coordinates federal aid.
• Community Colleges and Career Training (Sec. 302): Increases grants to $2.5 million per institution or $15 million for consortia; requires 15% for student supports (e.g., childcare, financial aid, mentorship). Focuses on underserved outreach plan; ensures geographic diversity.

Title IV: Trade Adjustment Assistance for Farmers

• Eligibility and Outreach (Secs. 401–403): Lowers export decline threshold (from 85% to any decrease contributing to price/production drops); adds underserved outreach plan.
• Benefits (Sec. 404): Extends application window to 120 days; triples cash benefits (e.g., $12,000 max for technical assistance, inflation-adjusted).

Title V: Authorizations of Appropriations and Other Matters

• Extensions and Funding (Sec. 501): Extends all TAA programs to 2033; boosts worker training funds to $1 billion annually (2027–2031); authorizes $50 million/year for firms, $1 billion/year for communities (2027–2031, with $40 million for admin), $1.3 billion/year for colleges (2027–2033), and $50 million/year for farmers. Allows reservations for pilots/evaluations (up to 5%).
• Applicability (Sec. 502): Applies new rules to post-enactment petitions; reconsiders denials since 2021; ensures parity for pre-enactment certifications. Repeals prior temporary extensions.

Title VI: Health Coverage Tax Credit

• Permanent Credit (Sec. 601): Makes the tax credit for health insurance (80% of premiums) permanent (previously expired); applies retroactively from 2022 with advance payments.

Significant Changes to Existing Law

• Program Extension and Repeal: Replaces temporary authorizations (expiring 2021) with permanent ones through 2033; repeals the 2015 "snapback" provision reverting to pre-2015 rules.
• Eligibility Expansion: Broadens criteria beyond just import "importance" to include export declines, non-increases in production/sales, public workers, teleworkers, and territories; auto-certifies delayed firm petitions.
• Benefit Enhancements: Increases durations, caps, and types of aid (e.g., new dependent care, inflation adjustments via Consumer Price Index); mandates rather than allows certain payments.
• Outreach and Equity Focus: Introduces sustained, targeted outreach; defines and prioritizes "underserved communities"; requires staffing by merit-system state employees.
• New Programs: Adds community grants and strategic planning; boosts college funding with student supports.
• Administrative Shifts: Faster timelines, subpoena enforcement, coordination across agencies (Labor, Commerce, Agriculture).

Potential Impacts

• On Government Agencies: Increases workload and funding for Departments of Labor (worker/firm/farmer programs), Commerce (communities/firms), and Agriculture (farmers); enables fund transfers for coordination but caps admin reservations (1–5%). States gain subpoena powers and must enhance outreach/staffing.
• On Citizens: Provides more financial/training support to trade-displaced workers/farmers (e.g., longer benefits, higher subsidies), aiding reemployment and economic security, especially in underserved/rural areas. Communities gain infrastructure/job creation tools; college students get expanded career pathways. Taxpayers may see higher federal spending (e.g., billions annually) offset by economic recovery in affected regions.
• On International Relations: No direct changes, but strengthens U.S. domestic resilience to trade disruptions (e.g., imports/exports), potentially supporting negotiation leverage in trade deals by mitigating worker/firm harms.

Main Stakeholders Affected

• Workers and Farmers: Dislocated individuals (e.g., manufacturing, service, public sector, agricultural producers) gain easier access to benefits/training.
• Firms and Businesses: Small/medium, minority/women-owned, or export-reliant companies receive technical/financial aid for adjustment.
• Communities and Educational Institutions: Local governments, tribes, economic districts, and community colleges benefit from grants for planning/projects and career programs.
• Underserved Groups: Minorities, low-income, rural, disabled, or immigrant populations prioritized via outreach and equity measures.
• Government Entities: Federal agencies (e.g., Labor, Commerce) for implementation; states for administration/outreach.

Notable Legal, Constitutional, or Political Implications

• Legal: Enhances administrative efficiency (e.g., subpoenas, auto-certifications) without altering core Trade Act structure; ensures retroactive fairness for pre-2021 cases via reconsiderations/parity rules. Inflation adjustments maintain benefit value over time.
• Constitutional: No apparent challenges; supports equal protection by targeting underserved groups and territories, aligning with federal spending powers under Article I.
• Political: Promotes bipartisan trade equity (introduced by Democrats but builds on prior laws); increases federal role in workforce/economic development, potentially sparking debates on spending (e.g., $1B+ annually) vs. benefits for globalization's "losers." Focus on underserved communities advances social justice goals without mandating quotas.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Sánchez, Linda T. [D-CA-38]

Cosponsors (28)

Rep. McGarvey, Morgan [D-KY-3], Rep. Neal, Richard E. [D-MA-1], Rep. Doggett, Lloyd [D-TX-37], Rep. Thompson, Mike [D-CA-4], Rep. Larson, John B. [D-CT-1], Rep. Davis, Danny K. [D-IL-7], Rep. Sewell, Terri A. [D-AL-7], Rep. DelBene, Suzan K. [D-WA-1], Rep. Chu, Judy [D-CA-28], Rep. Moore, Gwen [D-WI-4], Rep. Boyle, Brendan F. [D-PA-2], Rep. Beyer, Donald S. [D-VA-8], Rep. Evans, Dwight [D-PA-3], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Panetta, Jimmy [D-CA-19], Rep. Gomez, Jimmy [D-CA-34], Rep. Horsford, Steven [D-NV-4], Del. Plaskett, Stacey E. [D-VI-At Large], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Brownley, Julia [D-CA-26], Rep. Deluzio, Christopher R. [D-PA-17], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Mannion, John W. [D-NY-22], Rep. DeLauro, Rosa L. [D-CT-3], Rep. Stevens, Haley M. [D-MI-11], Rep. Salinas, Andrea [D-OR-6], Rep. Waters, Maxine [D-CA-43]

Recent Actions

• 2026-03-04: Referred to the House Committee on Ways and Means.
• 2026-03-04: Introduced in House
• 2026-03-04: Introduced in House

Bill Versions

• Trade Adjustment Assistance Modernization Act — issued 2026-03-04 — PDF (82 pages)