Trade Adjustment Assistance Announcement of a Supplemental Appropriation Request for Unemployment Compensation Payments.

The President decided today to request a supplemental appropriation of $1,498 million to meet unemployment compensation payments of $1.1 billion in FY 1980 and $400 million in FY 1981 anticipated under the trade adjustment assistance program. Most of the benefits will go to auto industry workers.

Trade adjustment benefits are provided to workers laid off at plants where production has been affected by imports. The President had announced previously that he would seek additional funds for the program to assist auto workers until new jobs could be provided as U.S. auto manufacturers produce more of the energy efficient cars now in demand.

The administration estimates that nearly 600,000 workers will receive a total of $1,440 million in the current fiscal year, ending September 30, and about 375,000 workers will receive $816 million in the following year.

Trade adjustment benefits are reduced by the amount of regular unemployment compensation a worker receives. They are available to employees in any industry adversely impacted by imports. Although autoworkers are the group primarily affected, substantial numbers of workers in other industries are also receiving these benefits. Unemployed workers from plants certified by the Department of Labor as adversely affected by imports are generally eligible for up to 52 weeks of benefits.

Outlays resulting from the supplemental appropriation will still leave the budget for the 1981 fiscal year, beginning next October 1, in surplus.