Text of Senator Charles Schumer's Letter to Linda Angello, Commissioner New York State Department of Labor

Dear Commissioner Angello:

I write to respectfully urge your administration to take advantage of a new federal health care opportunity, the Health Coverage Tax Credit Program, that could benefit at least 12,000 hard working New Yorker steelworkers and their families now in jeopardy of losing their health benefits. This initiative is all the more welcome because it enables New York State to provide health care to families in need at virtually no cost.

The recent sale of Bethlehem Steel to the International Steel Group of Cleveland has put 8,200 Western New York retirees and an additional 4,000 family members in jeopardy of losing their health care benefits as of May 31. Fortunately, the newly available Health Coverage Tax Credit Program, established pursuant to the Trade Adjustment Assistance Reform Act of 2002, will enable qualifying individuals to apply for a federal tax credit to cover 65 percent of their premiums. Eligible individuals must either lose their jobs due to the effects of international trade or be beneficiaries of the Pension Benefit Guaranty Corporation.

It is my understanding that New York has not yet applied for money now available to administer the Health Coverage Tax Credit Program. While the full program (to be administered by the Internal Revenue Service) will not be up and running until August of this year, the U.S. Department of Labor is offering National Emergency Grants (NEG) to states in the interim. States can apply for NEG funds under the Workforce Investment Act (WIA) to provide "interim health care." These funds are intended to pay 65% of the cost of coverage for eligible individuals until the tax credit program is fully implemented in August.

There is not a moment to waste, as the urgency of the steelworkers' plight in western New York requires that we get this program funded with all due speed. These New Yorkers worked hard for years so that they could at least enjoy a decent standard of living for them and their families in their retirement. With that hope now dashed, it is imperative that New York State takes full and immediate advantage of a federal program designed to help people in this terrible situation. This program is especially important because it targets disenfranchised groups of individuals that states such as New York are not currently able to help. As I'm sure you recognize, it is a blessing for people such as retired steelworkers in Western New York who are being hit particularly hard.

It is my understanding that the Secretaries of the Treasury, Labor, and Health and Human Services have contacted you regarding this program. I stand ready to assist your administration in overcoming any obstacles that would prevent New York from taking advantage of this opportunity. Thank you for your consideration of my request.

Sincerely,
Charles E. Schumer
United States Senate