EMPLOYMENT AND TRAINING
ADMINISTRATION, DEPARTMENT OF LABOR
Social Security Act, as amended, 42 U.S.C. 501- 504,
1101-1109; Trade Act of 1974, as amended, Public Law 93-618, 88 Stat. 2024, 19
U.S.C. 2311; Federal Unemployment Tax Act, as amended, 26 U.S.C. 3404 note;
Federal Employees and Ex-Service Members, 5 U.S.C. 8501 and 8521; Robert T.
Stafford Disaster Relief and Emergency Assistance Act, as amended, Public Law
100-707, 88 Stat. 153, 42 U.S.C. 5171.
To administer this program of unemployment insurance for
eligible workers through Federal and State cooperation; to administer payment
of trade adjustment assistance; disaster unemployment assistance; unemployment
compensation for Federal employees and ex-service members.
TYPES OF ASSISTANCE:
Formula Grants. Place Cursor Here for Definition
Direct Payments with Unrestricted Use. Place Cursor Here for Definition
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 after October 1, 1983, former members of the Armed Forces,
(including postal workers) are paid out of the Federal Employees Compensation
Account (FECA) in the Unemployment Trust Fund, subject to reimbursement by the
former employing agency. Under the Trade Adjustment Assistance (TAA) program,
weekly trade readjustment allowances (TRA), TAA training costs (including
subsistence and transportation), job search allowances, relocation allowances,
and the administration of TAA training are paid out of funds of the Federal
Unemployment Benefits and Allowance Appropriation Account (FUBA).
Applicant Eligibility: State
unemployment insurance agencies, including the District of Columbia, Puerto
Rico and the Virgin Islands.
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 as a result of product imports, 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 and eligibility
requirements are available from local employment offices.
Award 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 practice complies with State law. Costs will be determined in
accordance with OMB Circular No. A-87 for State and local governments.
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. This program is excluded from
coverage under E.O. 12372.
State applies for grants to the regional office of the Employment and Training
Administration, based on target performance levels issued to the States
through ETA regional offices pursuant to a nationally developed workload
estimates. All plans are 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
Deadlines: State plans are
submitted to the appropriate Regional Office for final approval no later than
Range of Approval/Disapproval Time:
Approximately 45 days at the Regional Office level.
Appeals: Contact Federal
Renewals: Not applicable.
Formula and Matching Requirements:
Matching requirements - not applicable. No formula imposed by law.
Length and Time Phasing of Assistance:
Annual grants. Financing of administrative costs is accomplished through
Letter of Credit drawdowns needed to meet immediate cash requirements.
POST ASSISTANCE REQUIREMENTS:
Reports: Weekly, monthly,
quarterly, and yearly statistical reports of unemployment insurance workloads.
Audits: Subject to audits
by the U.S. Department of Labor or other authorized Government agencies. In
accordance with the provisions of OMB Circular No. A-133 (Revised, June 24,
1997), Audits of States, Local Governments, and Non-Profit Organizations,
nonfederal entities that expend financial assistance of $300,000 or more in
Federal awards will have a single or a program-specific audit conducted for
that year. Nonfederal entities that expend less than $300,000 a year in
Federal awards are exempt from Federal audit requirements for that year,
except as noted in Circular No. A-133.
Records: State requirements
are to be in conformity with Federal statutes.
Obligations: (Grants) FY 01
$2,251,906,000; FY 02 est $2,348,923,000; and FY 03 est $2,413,923,000.
(Benefits) FY 01 $20,936,000,000; FY 02 est 27,678,000,000; and FY 03 est
Range and Average of Financial Assistance:
Grants: $2,000,000 to $355,000,000. Average: $42,500,000.
State agencies pay unemployment compensation to eligible
workers and collect State unemployment taxes from employers. These agencies
also pay unemployment benefits and adjustment allowances to eligible former
Federal civilian employees (UCFE), ex-service members (UCX), disaster
unemployment assistance (DUA), and trade-impacted workers (TRA).
REGULATIONS, GUIDELINES, AND LITERATURE:
"If Imports Cost You Your Job...Apply for Trade
Adjustment Assistance"; "Unemployment Insurance, How It Works For
You"; "If Disaster Strikes --- You Should Know About Disaster
Unemployment Assistance"; "Unemployment Insurance For Ex-Service
Members"; "Unemployment Insurance For Federal Workers";
"Significant Provisions of State Unemployment Insurance Laws;"
"Comparison of State Unemployment Insurance Laws," available on the
Regional or Local Office:
Local office of the State Employment Service; local office of the State
Unemployment Insurance Agency; Employment and Training Administration regional
offices listed in Appendix IV of the Catalog.
Administrator, Office of Workforce Security, Employment and Training
Administration, Department of Labor, Washington, DC 20210. Telephone: (202)
693-3200. Contact: Cheryl Atkinson.
Web Site Address: http://workforcesecurity.doleta.gov/
EXAMPLES OF FUNDED PROJECTS:
See Uses and Use Restrictions Section of the program.