Trade Adjustment Assistance for Communities

In addition to providing Trade Adjustment Assistance (TAA) to both firms and workers, the stimulus extends the TAA concept for the first time to include funding for communities. A community can receive funding if designated by the secretary of Commerce as "affected by trade." In all, $517.5 million is authorized in the bill for the components of the Trade Adjustment Assistance for Communities provision, which distributes $230 million in FY09, $230 million in FY10, and $57.5 million in the three-month period from October 1, 2010 to December 31, 2010.

For each of the three fiscal periods, the funds for communities are distributed into three distinct programs. For FY09, the money is allocated in the following manner:

• $150 million for the secretary of Commerce to use for discretionary grants. Of these funds, $25 million is targeted to assist designated communities with the development of strategic plans. In conjunction with their strategic plan, eligible communities may receive a grant up to $5 million to implement a project. The federal share of the project may not exceed 95 percent of the project's total cost and priority will be given to small and mid-sized communities.
• For education institutions, $40 million for the secretary of Labor to use for Community College and Career Training grants. Eligible institutions cannot be awarded more than one grant, and the grant cannot exceed $1 million.
• For public/private partnerships, $40 million for the secretary of Labor to use for Sector Partnership grants to improve skill needs in a community looking to build a targeted industry. The partnerships can be awarded one grant, up to an amount of $3 million, or up to $2.5 million if the community is also receiving a Community College and Career Training grant.

The authorized amounts are the same for FY10, and subsequently prorated for the condensed three-month period in FY11.