DEFINITION of 'Trade Adjustment Allowance'

A federal government subsidy paid to individuals who have lost work because of increased foreign imports or the export to other countries of work in their fields. The U.S. Department of Labor must certify a worker's employer/former employer as an affected employer for the worker to be eligible for the trade adjustment allowance.

BREAKING DOWN 'Trade Adjustment Allowance'

In addition to income support, the trade adjustment allowance provides job training, job search and relocation allowances. Workers may be required to participate in a program to train them for work in a new field as a condition of receiving trade adjustment allowance payments.



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