Unemployment Insurance (17.225)

Program

17.225 Unemployment Insurance

Federal Agency

Agency: Department of Labor
Office: Employment Training Administration

Authorization

Federal Unemployment Tax Act, 26 U.S.C 3301 et seq.; Social Security Act (Titles III, IX, XI, XII) 42 USC 501-504; 1101-1110; 1320b-7; 1321-1324; Supplemental Appropriations Act of 2008, Public Law 110-252; American Recovery and Reinvestment Act of 2009, Public Law 111-5; Unemployment Compensation for Federal Civilian Employees, 5 U.S.C 8521 et seq.; Unemployment Compensation for Ex-Servicemembers, 5 U.S.C 8521 et seq.; Trade and Globalization Adjustment Assistance Act of 2009, Public Law 111-5; Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C 5177; Trade Act of 2002, 19 U.S.C 2291 et seq.; Federal-State Extended Unemployment Compensation Act, 26 U.S.C 3304(a)(11).

Program Number

17.225

Last Known Status

Active

Objectives

To administer a program of unemployment insurance for eligible workers through Federal and State cooperation; to administer payment of trade adjustment assistance, alternative trade adjustment assistance, disaster unemployment assistance, unemployment compensation for Federal employees and ex-service members.

Types of Assistance

DIRECT PAYMENTS WITH UNRESTRICTED USE; FORMULA GRANTS

Uses and Use Restrictions

The states have the direct responsibility for establishing and operating their own unemployment insurance programs, while the Federal Government finances the cost of administration. State unemployment insurance tax collections are used solely for the payment of benefits. Federal unemployment insurance tax collections are used to finance expenses deemed necessary for proper and efficient administration of the state unemployment insurance laws; to reimburse state funds for one-half the costs of extended benefits paid under the provisions of state laws which conform to the provisions of the Social Security Act and the Federal Unemployment Tax Act; and to make repayable advances to states when needed to pay benefit costs. Funds used for benefit payments may not be used for any program administration costs nor for training, job search, and job relocation payments. Disaster Unemployment Assistance (DUA) is paid out of funds provided by the Federal Emergency Management Agency (FEMA). Benefits for former Federal civilian employees, including postal workers, and former members of the Armed Forces are paid out of the Federal Employees Compensation Account (FECA) in the Unemployment Trust Fund, subject to reimbursement by the former employing agency.

Eligibility Requirements

Applicant Eligibility

State workforce agencies, including those in the District of Columbia, Puerto Rico and the Virgin Islands.

Beneficiary Eligibility

All workers whose wages are subject to State unemployment insurance laws, Federal civilian employees, ex-service members, trade readjustment allowance for workers who become unemployed or underemployed because of the adverse effect of increased imports or because of shifts in production outside the U.S., and workers whose unemployment is caused by a Presidentially declared disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, are eligible if they are involuntarily unemployed, able to work, available for work, meet the eligibility and qualifying requirements of the state law, and are free from disqualifications. Individual State information on eligibility requirements is available from local One-Stop Career Centers. The American Recovery and Reinvestment Act (ARRA) provides for a temporary $25 increase in weekly benefit amounts. The temporary emergency unemployment compensation program was also extended in ARRA.

Credentials/Documentation

Awards of grants to states are conditioned on the Secretary of Labor's determination that the states' unemployment compensation laws are in conformity with the Social Security Act and the Federal Unemployment Tax Act and that State practices substantially comply with these laws. Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments. OMB Circular No. A-87 applies to this program.

Application and Award Process

Preapplication Coordination

National and Regional Offices issues guidance to states annually regarding the procedures and documents for the application process. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. The standard application forms as furnished by the Federal agency and required by OMB Circular No. A-102 must be used for this program. Eligible applicants are furnished applications (State Quality Service Plan) by the Employment and Training Administration for this program. States submit the plans to apply for grants to the appropriate regional office of the Employment and Training Administration, based on target performance levels issued to the states through ETA regional offices pursuant to nationally-developed workload estimates. All plans are to be constructed in terms of selected workloads to be undertaken and the resources and numbers of employees needed to accomplish them. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure

The Regional Administrator for Employment and Training issues a preliminary approval for a State within the dollar target provided by the ETA National Office, based on the State plan submitted.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

From 30 to 60 days. Approximately 45 days at the Regional Office level.

Appeals

Contact Federal agency. A hearing is required if state law is not certified to be in conformity.
Funding is based on workload formula.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

This program has no matching requirements.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

Annual grants for base operation of programs based on workload projections pursuant to economic assumptions and nationally developed workload estimates. Additional quarterly funding based on actual workloads. Financing of administrative costs is accomplished through Letter of Credit drawdowns needed to meet immediate cash requirements. Method of awarding/releasing assistance: by letter of credit.

Post Assistance Requirements

Reports

Weekly, monthly, quarterly and yearly statistical reports of unemployment insurance workloads. Cash reports include the following transactions: federal cash receipts/disbursements; Federal expenditures and unobligated balance; Recipient share of obligations and expenditures; program income. Additional expenditure data required includes other federal funds expended and real property proceeds expended. The comprehensive performance management system requires a State Quality Service Plan (SQSP) be submitted as part of the application. Where performance is below the established minimum criteria, a corrective action plan (CAP) is required as part of the SQSP. The CAP identifies state activities and planning targets for performance improvement activities. Weekly, monthly, quarterly and yearly statistical reports of unemployment insurance workloads. Separate quarterly financial status reports are required for grants used for administration of each type of program. Data and progress towards performance targets are reviewed by the Regional and National Office staff. The State Quality Service Plan and corrective action plans are reviewed quarterly by Regional Office staff.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Subject to audits by the Department of Labor or other authorized Government agencies.

Records

State laws and requirements are to be in conformity with Federal statutes. States are expected to report any legislative and regulatory changes to the federal agency.

National office staff provide guidance on the time frame for data and corrections to data reports.

Program Accomplishments

Fiscal Year 2008: Quarterly Workforce System Results Website: http://www.doleta.gov/performance/results/Archive_Reports.cfm. Fiscal Year 2009: Quarterly Workforce System Results Website: http://www.doleta.gov/performance/results/Reports.cfm?#etaqr. Fiscal Year 2010: Budget Performance Information is available at www.dol.gov/dol/aboutdol/main.htm#budget.

Financial Information

Account Identification

16-0326-0-1-999 - Benefits; 16-0179-0-1-999 - Grants; 20-8042-0-7-999 - Benefits.

Obligations

(Direct Payments with Unrestricted Use) FY 08 $0; FY 09 est $16,104,000,000; FY 10 est $16,279,000,000. (Direct Payments with Unrestricted Use) FY 08 $43,592,000,000; FY 09 est $98,309,000,000; FY 10 est $85,063,000,000. (Formula Grants) FY 08 $2,642,000,000; FY 09 est $3,879,000,000; FY 10 est $3,267,000,000. (Formula Grants) FY 08 $0; FY 09 est $192,000,000; FY 10 est $234,000,000

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines and Literature

"Unemployment Insurance For Ex-Service Members;" "Unemployment Insurance For Federal Workers;" "Significant Provisions of State Unemployment Insurance Laws;" "Comparison of State Unemployment Insurance Laws;" and regulations, factsheets, and other program information are available on the Internet at http://workforcesecurity.doleta.gov/unemploy.

Related Programs

17.207 Employment Service/Wagner-Peyser Funded Activities; 17.245 Trade Adjustment Assistance; 57.001 Social Insurance for Railroad Workers; 97.034 Disaster Unemployment Assistance

Information Contacts

Regional or Local Office

None. Local One-Stop center; State Workforce Agency; Employment and Training Administration regional offices listed in Appendix IV of the Catalog.

Headquarters Office

Gay Gilbert Francis Perkins Building - 200 Constitution Avenue, Room S4231, Washington, District of Columbia 20210 Email: gilbert.gay@dol.gov Phone: 202-693-3029 Fax: 202-693-3229

Web Site Address

http://workforcesecurity.doleta.gov/.

Examples of Funded Projects

Fiscal Year 2008: See section on uses and restrictions. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Criteria for Selecting Proposals

Not Applicable.