Trade Adjustment Assistance Reform and Extension Act of 1985

Trade Adjustment Assistance Reform and Extension Act of 1985 - Amends the Trade Act of 1974 to add as a condition for receiving a trade readjustment allowance the requirement that the adversely affected worker is enrolled in, or has completed, a training program for which a voucher is available. Suspends payment of such allowance to an adversely affected worker who has failed to begin, or has ceased to participate in, such a program when there is no justifiable cause for such failure or cessation, until the worker begins or resumes participation in a training program.

Increases the maximum trade readjustment allowance to an amount equal to 78 (currently 52) times the amount of one week's trade readjustment allowance. Extends the coverage for trade readjustment allowances to 78 weeks. Deletes the provisions that permits an additional 26 weeks of trade readjustment allowances to finish a training program.

Changes the provision dealing with job training. Makes each adversely affected worker covered by a certification eligible for a job training voucher. Declares that such voucher shall be in the amount of $4,000. Requires it to be used to defray the cost of any of the following training programs: (1) a training program provided by the State pursuant to the Job Training Partnership Act; (2) a training program provided by a private entity if it has been approved by a private industry council established under the Job Training Partnership Act; (3) training provided by an employer who agrees to employ the worker upon completion of the training for at least 26 weeks; (4) a training program approved by the Secretary of Labor (the Secretary) if the Secretary determines that there is a reasonable expectation that the adversely affected worker will obtain employment upon completion of the program. Authorizes the State or the operator of the training program to redeem the training voucher from the Secretary when the adversely affected worker completes the training program.

Prohibits an employer who provided training, and agreed to employ the worker for 26 weeks, from redeeming the training voucher if such employer: (1) is engaged in the same occupation from which the employee was separated and which was certified as an adversely affected occupation; (2) has not provided the worker with training and employment for at least 26 weeks; or (3) has terminated the employment of an employee in order to hire and train such worker.

Requires any entity which redeems a training voucher pursuant to a training program purportedly approved by a private industry council to repay the amount of such voucher plus ten percent if the entity's training program was not in fact approved by a private industry council.

Prohibits disqualifying a worker for unemployment insurance or for trade adjustment benefits because: (1) the individual is in training for which a voucher is provided; (2) the individual terminated employment which was not suitable employment to enter such training; or (3) of the application of certain State or Federal laws relating to availability for work, active search for work, or refusal to accept work to any week in which the worker participates in such training.

Limits the amounts of subsistence expenses and travel expenses reimbursable under the job search allowance provision of such Act.

Provides that adjustment assistance for firms shall be in the form of technical assistance only. (Current law provides for technical and financial aid.) Prohibits making any direct loans or loan guarantees for adjustment assistance for firms after enactment of this Act.

Extends trade adjustment assistance programs for six years after enactment of this Act.

Extends funding for adjustment assistance for workers and firms through FY 1988.

Establishes within the Treasury a Trade Adjustment Assistance Trust Fund to carry out trade adjustment assistance for workers and firms. Provides for funding the Trust Fund.

Directs the President to undertake negotiations to change the General Agreement on Tariffs and Trade to allow countries to impose a small uniform duty on all imports in order to use the revenue from such duty to fund trade adjustment assistance programs. Directs the President to report to the Congress six months after enactment of this Act on the progress of such negotations. Authorizes the President to submit a bill to the Congress that delays the imposition of such negotiations. Authorizes the President to submit a bill to the Congress that delays the imposition of such an import duty and that extends the funding of trade adjustment assistance for workers and firms for an additional year. Provides for expedited consideration of such a bill.

Directs the President to report to the Congress as soon as the GATT allows the imposition of such a duty.

Imposes an additional duty on all imports into the United States, including those imports granted duty-free treatment.

Amends the Internal Revenue Code to exempt from tax a job training voucher received under a trade adjustment assistance program.