Unemployment Insurance

 

To oversee unemployment insurance programs for eligible workers through federal and state cooperation, including unemployment compensation for federal employees or ex-service members, Disaster Unemployment Assistance, and to assist in the oversight of Trade Adjustment Assistance and Alternative Trade Adjustment Assistance, and Reemployment Trade Adjustment Assistance programs.

General information about this opportunity
Last Known Status
Active
Program Number
17.225
Federal Agency/Office
Agency: Department of Labor
Office: Employment Training Administration
Type(s) of Assistance Offered
DIRECT PAYMENTS WITH UNRESTRICTED USE; FORMULA GRANTS
Program Accomplishments
Fiscal Year 2014: State agencies collected $46.9 billion in state unemployment taxes and paid $41.9 billion in federal and state unemployment benefits to 10.8 million beneficiaries. $2.9 billion in administrative dollars was provided to 53 states and territories to support program operations in FY 2014. Fiscal Year 2015: State agencies are expected to collect $47.8 billion in state unemployment taxes and pay an estimated $36.0 billion in federal and state unemployment benefits to 9.1 million beneficiaries. $2.8 billion in administrative dollars is anticipated to be provided to 53 states and territories to support program operations in FY 2015. Fiscal Year 2016: States are expected to collect $46.5 billion in state unemployment taxes and pay an estimated $35.7 billion in federal and state UI benefits to 9.2 million beneficiaries. $2.9 billion in administrative dollars is anticipated to be provided to 53 states and territories to support program operations in FY 2016.
Authorization
Federal Unemployment Tax Act


The Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) was passed on July 22, 2014. It supersedes titles I and II of the Workforce Investment Act of 1998, and amends the Wagner-Peyser Act and the Rehabilitation Act of 1973. The law went into effect on July 1, 2015. Also, unless otherwise stipulated, recipients are subject to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule on December 26, 2013 and found at 2 CFR Part 200 along with the OMB approved exceptions for DOL at 2 CFR Part 2900 published on December 19, 2014 in the Federal Register., 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; Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C 5177; Unemployment Compensation for Ex-Servicemembers, 5 U.S.C 8521 et seq.; Unemployment Compensation for Federal Civilian Employees, 5 U.S.C 8501 et seq.; Federal-State Extended Unemployment Compensation Act, Title II, Section 201 et seq., Public Law 91-373, 26 U.S.C 3304(a)(11).
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
State workforce agencies, including those in the District of Columbia, Puerto Rico and Virgin Islands.

The Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) was passed on July 22, 2014. It supersedes titles I and II of the Workforce Investment Act of 1998, and amends the Wagner-Peyser Act and the Rehabilitation Act of 1973. The law went into effect on July 1, 2015. Also, unless otherwise stipulated, recipients are subject to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule on December 26, 2013 and found at 2 CFR Part 200 along with the OMB approved exceptions for DOL at 2 CFR Part 2900 published on December 19, 2014 in the Federal Register.
Beneficiary Eligibility
All workers whose wages are subject to state unemployment insurance laws, federal civilian employees, ex-service members, 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. Some states provide Short Time Compensation or Self Employment Assistance for eligible individuals. Workers who became unemployed or underemployed because of the adverse effect of increased imports or because of shifts in production outside the U.S. may be eligible for Trade Readjustment Allowance, Alternative Trade Adjustment Assistance or Reemployment Adjustment Assistance and other types of Trade Adjustment Assistance (see program 57.001). Individual state information on eligibility requirements is available from local American Job Centers or at http://www.servicelocator.org/.
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. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to 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 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.

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.
Approval/Disapproval Decision Time
From 30 to 60 days. At the national office level 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.
How are proposals selected?
Not Applicable.
How may assistance be used?
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. Trade Adjustment Assistance payments are made by states for workers adversely affected by trade imports or shifts in production.
What are the requirements after being awarded this opportunity?
Reporting
Weekly, monthly, quarterly and yearly statistical reports of unemployment insurance workloads are required. Cash reports include the following transactions: Federal cash receipts/disbursements; Federal expenditures and un-obligated 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 that 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. 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 SQSP and CAPs are reviewed quarterly by regional office staff.
Auditing
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. State workforce agencies are 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 submission and corrections to data reports. The state determines the time period to maintain tax records; however, the IRS recommends 4 years after the date tax is due or is paid, whichever is later. The recommendation for performance records is 3 years.
Other 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 are based on workload projections pursuant to economic assumptions and nationally developed workload estimates. Additional quarterly funding is based on actual workloads. Financing of administrative costs is accomplished through Letter of Credit draw downs needed to meet immediate cash requirements. Method of awarding/releasing assistance: by letter of credit. Method of awarding/releasing assistance: by letter of credit.
Who do I contact about this opportunity?
Regional or Local Office
None. Employment and Training Administration regional offices listed in Appendix IV of the Catalog.
Headquarters Office
Gay Gilbert Frances Perkins Building - 200 Constitution Avenue, Room S4524, Washington, District of Columbia 20210 Email: gilbert.gay@dol.gov Phone: 202-693-3029 Fax: 202-693-3229
Website Address
http://ows.doleta.gov/unemploy/
Financial Information
Account Identification
16-0178-0-1-603 - Grants and Benefits; 16-8042-0-7-999 - Benefits; 16-0326-0-1-999 - Benefits; 16-0168-0-1-603 - Grants and Benefits; 16-1800-0-1-603 - Benefits; 16-0179-0-1-999 - Grants.
Obligations
(Direct Payments with Unrestricted Use) FY 14 $0; FY 15 est $0; and FY 16 est $0. (Direct Payments with Unrestricted Use) FY 14 $41,371,000,000; FY 15 est $36,334,000,000; and FY 16 est $35,887,000,000. (Formula Grants) FY 14 $0; FY 15 est $0; and FY 16 est $0. (Formula Grants) FY 14 $3,192,000,000; FY 15 est $2,801,000,000; and FY 16 est $2,908,000,000
Range and Average of Financial Assistance
For FY 2013, the minimum grant award for state administration was $4,561,208 and the maximum award was $419,563,611. The average award for FY 2013 was $55,299,143.
For FY 2014, the minimum grant award for state administration was $1,930,937 and the maximum award was $398,445,594. The average award for FY 2014 was $52,181,108.
FY 2015 estimates are: $1.5 million minimum award, $366 million maximum award and a $50 million average award.
Regulations, Guidelines and Literature
Regulations: 20 CFR Part 601, 602, 603, 604, 606, 609, 614, 615, 616, 617, 625, 640, 650.
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;" fact sheets, and other program information are available on the Internet at http://www.workforcesecurity.doleta.gov/unemploy/laws.asp#overview.
Examples of Funded Projects
Not Applicable.