The Trade Adjustment Assistance Modernization Act reauthorizes and modernizes federal assistance programs for workers, firms, communities, and farmers affected by international trade, with provisions effective upon enactment for all new petitions filed afterward. For workers, the bill expands benefits by providing automatic 26-week extensions of trade readjustment allowances during high unemployment periods, raising job search and relocation allowance caps from $1,250 to $2,000 with annual inflation adjustments, adding a new $2,000 annual dependent care allowance, and increasing wage supplements from $10,000 to $20,000. The legislation also extends coverage to public agency workers and residents of U.S. territories, strengthens state administration through proactive outreach and workforce coordination, and establishes a new Trade Adjustment Assistance for Communities program providing grants up to $25 million to communities impacted by trade-related job losses for fiscal years 2027–2031. Additionally, the bill makes the Health Coverage Tax Credit permanent and increases it from 72.5% to 80% of health insurance costs for eligible trade-displaced workers, with government reimbursement required within 90 days, while authorizing $1 billion annually for worker training and community college career programs through 2033.
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