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Content provided by the Catalog of Federal Domestic Assistance
17.225 Unemployment Insurance




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.
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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.


Formula Grants.
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Direct Payments with Unrestricted Use.
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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.

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 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.

Credentials/Documentation:   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.

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Pre-application Coordination:   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.

Application Procedure:   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 mid-September.

Range of Approval/Disapproval Time:   Approximately 45 days at the Regional Office level.

Appeals:   Contact Federal agency.

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.


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.


Account Identification:   20-8042-0-7-999.

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 $31,063,000,000.

Range and Average of Financial Assistance:  
For FY 2014, the minimum grant award for state administration was $3,429,537 and the maximum award was $401,042,205. The average award for FY 2014 was $53,950,849.
For FY 2015, the minimum grant award for state administration was $1,585,278 and the maximum award was $376,955,755. The average award for FY 2014 was $52,239,778.
FY 2016 estimates are: $1.7 million minimum award, $380 million maximum award and a $52 million average award.

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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).


"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 Internet at


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.

Headquarters Office:   Gay Gilbert Frances Perkins Building - 200 Constitution Avenue NW, Room S4524, Washington, District of Columbia 20210 Email: Phone: 202-693-3029 Fax: 202-693-3229

Web Site Address:


See Uses and Use Restrictions Section of the program.


Not applicable.

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