DIRECTIVE	:	GENERAL ADMINISTRATION LETTER NO. 03-99
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	DAVID HENSON Director Office of Regional Management
SUBJECT	:	Continuation of Trade Adjustment Assistance (TAA) and NAFTA-Transitional Adjustment Assistance (NAFTA-TAA) Programs

1. Purpose. To provide State Employment Security Agencies with guidance in the event that the TAA and NAFTA-TAA programs' sunset date is not amended before October 1, 1999.

2. References.  Section 285(c) of the Trade Act of 1974, as amended, General Administration Letter (GAL) 8-98, GAL 8-98, Changes 1, 2, and 3, and 71 Comptroller General Decision 378.

3. strongBackground. The Fiscal Year (FY) 1999 Omnibus Appropriations Act (P.L. 105-277), signed by the President on October 21, 1998, included a provision for the extension of the TAA and NAFTA-TAA programs through June 30, 1999. On May 21, 1999, the President signed into law the 1999 Emergency Supplemental Appropriations Act (P.L. 106-31). Section 5005(a) of this latter Act amended the 1999 Department of Labor Appropriations Act to clarify that funds were appropriated to carry out the TAA and NAFTA-TAA programs through September 30, 1999, and thereby extended the programs until that date.

   A bill to extend the TAA and NAFTA-TAA programs through September 30, 2001, has been reported out by the appropriate committee in the Senate, but there has been no similar action in the House. It is unknown when a bill to continue the programs will be enacted. This legislation might be considered as part of a larger trade package.

   It is important to note that, even in the absence of reauthorization legislation, the programs will operate as long as funds are provided through appropriations (See 71 Comptroller General Decision 378). Current expectations are that, for an interim period, a continuing resolution will fund the programs of the Department of Labor, including the TAA and NAFTA-TAA programs, at their current levels.

4. Action Required. Contingent upon the enactment of a continuing resolution, or the enactment of the Department of Labor's FY 2000 appropriation, States are instructed to continue operation of the TAA and NAFTA-TAA programs for the duration of that continuing resolution, or through September 30, 2000, as appropriate. The Employment and Training Administration will advise the States of further developments as they occur.

5. Inquiries. Inquiries regarding these instructions should be directed to the appropriate Regional Office.