Recent action to zero out the proposed supplemental funding for dislocated workers in the Supplemental Appropriations Conference Report has served to raise the stakes in the FY 2003 Labor-HHS Appropriations process. This action came despite earlier approval by both houses of both a restoration of the formula rescission and additional funding for National Emergency Grants (NEGs).

In one step in a long appropriations process, the Senate Appropriations Committee reported out the Labor/HHS FY 03 appropriations bill on July 18. The Committee recommended increases over the President's proposed budget in several key areas. The House is expected to take up the bill in September.

The following are some of the highlights regarding WIA and related programs in the Senate bill:

WIA Adult Programs - $950 million ($50 million more than the Administration's proposal).

WIA Dislocated Worker Programs - $1.549 billion - an increase of $177.5 million over the 2002 level and $166 million over the Bush budget proposal of $1.383 billion for FY 2003.

The Committee report specifies that $1.239 billion is to be designated for state formula grants (an increase of $110 million, parallel to the FY 2002 formula rescission) and that $309.8 million be available for the Secretary "for activities specified in WIA, primarily to respond to mass layoffs, plant and/or military base closings and natural disasters across the country, which cannot be otherwise anticipated, as well as technical assistance and training and demonstration projects." This later category is what funds NEG grants.

Youth programs - $1.127 billion for year round youth and $225 million for Youth Opportunity Grant programs.

TAA - $349.5 million and NAFTA-TAA - $66.1 million
Both were funded at 2002 levels pending enactment of renewed authorizing legislation. Resources for renewal legislation, which may include a significant expansion of these programs, will be considered upon enactment of any reform or expansion proposal.

H1-B -The Senate Appropriations Committee also rejected the Administration's proposals to transfer $138 million in H-1B training funds to the permanent labor certification program.

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