TAA funding slashed; ABC urges reinstatement

The American Business Council (ABC) has expressed disappointment over U. S. Senator Judd Gregg's (R-NH) decision to slash funding for the Trade Adjuctment Assistance (TAA) program for manufacturers. Senator Gregg, chairman of the Senate Appropriations Subcommittee on Commerce, Justice, State authored and passed Fiscal Year 2005 legislation in his subcommittee that reduces funding to U.S. manufacturers.

In a letter to Senator Gregg, ABC Chairman Robert Velasquez questioned the decision to reduce TAA funding for U.S. companies harmed by imports at a time when the trade deficit is at a record high and when domestic manufacturing is suffering. "American manufacturers are being pounded by imports, and American jobs are being eliminated and/or shipped overseas at record rates. Congress has the opportunity to correct this downward spiral by assisting companies through the TAA program. Instead, you are reducing funds for manufacturers in New Hampshire and nationwide by 31 percent," Velasquez said.

The TAA program for firms provides federal funds to U.S. manufacturers that have lost employment and sales because of imports. President Bush requested $12 million in the coming fiscal year for the program. Gregg's subcommittee passed a bill that included $8.3 million for TAA for 2005.

TAA for firms helps manufacturers improve marketing, finance, distribution, production, and other operations. Without interfering with imports, the program is designed for each company and is intended to improve competitiveness. Over five years, approximately 560 companies with approximately 51,500 employees have participated in TAA. The program has a success rate of more than 98 percent. According to ABC, each job saved by TAA creates $8,000 in annual tax revenue.