Trade Adjustment Assistance for Firms

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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)

$7.5M FY2026

$14.6M

FY24

$7.5M

FY26*

* estimated

Funded Projects

Examples of what this program has supported.

FY2025 The statutory authorization for the TAAF program has expired, having done so in two stages. The first phase went into effect on July 1, 2021, with authorization of the program being reverted to a prior, more limited form. The two most significant reversions in this phase were to narrow the definition of an eligible “firm” to exclude service-sector firms, and to reduce eligibility look-back periods (the period of time used for demonstrating import impact). The second phase went into effect on July 1, 2022, with TAAF assistance being limited only to firms that had submitted a petition to EDA by June 30, 2022. As of July 1, 2022, no new firms are eligible to enter the program. In Fiscal Years 2010 – FY 2025, 1,385 firms with combined total annual sales of $23.1 billion, and a combined workforce of 106,101 employees received approval of an Adjustment Proposal (customized business recovery plan). A total of $175 million in technical assistance was approved: $96 million Federal share and $79 million firm share. From program completion to one year after completing the program, firms reported that average sales had increased by 7 percent and average employment had increased by 21 Average sales increased in 10 of the 13 years analyzed. Average employment increased 9 of the 13 years analyzed. From program completion to two years after completing the program, firms reported that average sales had increased by 11 percent and average employment had increased by 22 Average sales increased in 10 of the 13 years analyzed. Average employment increased 9 of the 13 years analyzed. In considering these results, it is important to recognize that TAAF clients are operating in the same economic environment as other firms but are also attempting to adjust to import pressures that may not impact other firms as severely, making the success of the TAAF-assisted firms measured notable. TAAF program success stories are included in the TAAF Annual Reports - EDA Annual Reports | U.S. Economic Development Administration

Program Objective

The Trade Adjustment Assistance for Firms (TAAF) program helps import-impacted U.S. firms develop and implement projects to regain global competitiveness, expand markets, strengthen operations, increase profitability, thereby increasing U.S. jobs. Key portions of the statutory authorization of EDA’s TAAF program expired on June 30, 2022. As of July 1, 2022, EDA was unable to accept new petitions from firms for certification of eligibility for trade adjustment assistance (“petitions”) through the TAAF program. Current Trade Adjustment Assistance Centers will utilize previously awarded funds to serve existing clients until such funding is exhausted.

Eligibility

Eligible Applicants

Nonprofit Organization
Other
U.S. State Government

Section 253 of the Trade Act (19 U.S.C. § 2343(b)) provides that grants may be awarded to "intermediary organizations (including Trade Adjustment Assistance Centers)" to provide assistance to trade-injured firms. For an industry association or other organizations to be eligible for industry assistance under section 265 of the Trade Act (19 U.S.C. § 2355(a)), the applicant must submit evidence demonstrating that the industry faces import competition and includes a substantial number of Trade Act-certified firms or worker groups.

Current funding is limited to the existing Trade Adjustment Assistance Centers.

Beneficiaries

Small Business Person
For-Profit Organization
Nonprofit Organization

Only firms certified by EDA on behalf of the Secretary of Commerce are eligible for assistance under the Trade Adjustment Assistance for Firms (TAAF) program. The principal benefit is cost-shared technical assistance: the TAAF program pays up to one-half of the cost of assistance by private-sector consultants and contractors for operational improvements at certified firms. There are no direct cash grants or awards to firms.

How to Apply

Award Procedure

Awards are made based upon the quality of submitted applications, previous performance under cooperative agreements with EDA, and the availability of funds. Acceptance of an application or amended application for a cooperative agreement does not guarantee funding by EDA.

Decision Timeline

Approval: From 30 to 60 days
Renewal interval: > 180 Days

Program details & compliance

Description

The TAAF program provides technical assistance to U.S. businesses that have lost sales and employment due to increased imports of similar goods and services. Technical assistance is provided through a nationwide network of eleven Economic Development Administration (EDA) funded Trade Adjustment Assistance Centers (TAACs).

Mission Categories

Primary: Small Business

Other categories:
InternationalEconomic Injury and Natural Disaster

Use of Funds

Allowed Uses

Under Chapters 3 and 5 of Title II of Trade Act of 1974, as amended (19 U.S.C. § 2341 et seq.), a firm may apply to the applicable TAAC supported by the Economic Development Administration (EDA) of the Department of Commerce for certification of eligibility to apply for trade adjustment assistance (TAA) related technical assistance. Interested firms that believe they meet the requirements set forth in 13 CFR part 315 may contact EDA or one of the EDA-funded TAACs. TAACs will assist firms, at no cost, in completing and submitting a petition (Form ED-840P or any successor form) to EDA. Before a firm receives technical assistance under the program, the firm must have an adjustment proposal approved by EDA. Usually the adjustment proposal, which includes an unbiased diagnostic of the firm's strengths, weaknesses, opportunities, and threats, is prepared by the TAAC in cooperation with the certified firm.

Required Documentation

The Trade Adjustment Assistance for Firms Centers (TAACs) are EDA grantees that act as intermediaries for this program between EDA and the firm. Entities seeking assistance must contact their regional TAAC Center discuss their needs, describe the import injury and determine if funding is available for industry-wide projects. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Reporting & Compliance

Audit Required

Yes — Annual

Records Retention

3 years

Applicable 2 CFR 200 Subparts

Subpart B — General Provisions
Subpart C — Pre-Federal Award Requirements
Subpart D — Post-Federal Award Requirements
Subpart E — Cost Principles
Subpart F — Audit Requirements