Senate Finance Chair Discusses TAA Program

February 4, 2008

Senate Finance Committee Chairman Max Baucus (D-MT) recently announced that he will not consider any trade bills, including pending free trade agreements, until a Trade Adjustment Assistance (TAA) program is passed.  He is expected to mark up a TAA bill within the coming weeks.

Baucus’ pending bill (S. 1848) identifies four key elements that are “indispensable” to a strong TAA bill.   TAA which now covers mostly workers in manufacturing jobs would be expanded to cover service jobs.  Workers would also be provided benefits if their firms moved production offshore to countries that do not have a free trade agreement (FTA) with the U.S.

Baucus’ version would also expand health care tax credits to pay for 85 percent of insurance premiums, from the current 65 percent. The bill would also double the money available for training funding, which is currently $220 million.

On October 31, 2007, the House approved their version of the TAA bill by a vote of 264-157 which includes the same four key elements.   This version expands money available for training funding to $660 million by 2008. President Bush has threatened to veto this bill, which does not have the two thirds necessary to override the veto. 

The Bush Administration has made the U.S.-Colombia Free Trade Agreement a top priority for 2008.  Until a TAA bill is passed, this legislation is likely to be held up.  U.S. Trade Representative Susan Schwab announced on January 29, 2008 that she is planning on meeting with chairmen and ranking members of both the House Ways and Means and Senate Finance committees to discuss the TAA.