Fiscal 2021 RESEA outcome payments to state agencies

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 UI RESEA
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OUI/DL
             Washington, D.C. 20210                       DATE
                                                          December 21, 2021


ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 6-22

TO:            STATE WORKFORCE AGENCIES

FROM:         ANGELA HANKS
              Acting Assistant Secretary

SUBJECT:      Announcing Reemployment Services and Eligibility Assessments (RESEA)
              Program Outcome Payments for Fiscal Year (FY) 2021

1. Purpose. To announce RESEA outcome payments for FY 2021, as required by section
   306(f)(2) of the Social Security Act (SSA), and provide eligible states with information on
   how to obtain their outcome payment allocation.

2. Action Requested. The U.S. Department of Labor’s (Department’s) Employment and
   Training Administration (ETA) requests that state agency administrators provide information
   contained in this Unemployment Insurance Program Letter (UIPL) to appropriate staff. ETA
   will award outcome payments by December 31, 2021. A state receiving a RESEA outcome
   payment must submit information described in this UIPL via [email protected] with a
   copy to the appropriate ETA Regional Office no later than 10 days after receiving the
   outcome payment award notice.

3. Summary and Background.

   a. Summary – Based on the applicable FY 2020 RESEA program performance data, ETA
      identified 30 states eligible for FY 2021 RESEA outcome payments. This UIPL
      announces the allocation of the $20,000,000 set-aside for outcome payments, as required
      by section 306(f)(2), SSA, and provides eligible states with additional instructions on
      how to obtain their outcome payment allocation.

       As described in Section 4.a. of this UIPL, states must utilize RESEA outcome payments
       under FY 2021 RESEA operating guidance. However, Section 4.b. of this UIPL advises
       that the administrative cost limit does not apply to these outcome payment amounts.

   b. Background –The Bipartisan Budget Act of 2018, Public Law 115-123 (BBA), enacted
      on February 9, 2018, amended the SSA to create a permanent authorization for the
      RESEA program. The RESEA provisions are contained in section 30206 of the BBA,
      enacting new section 306 of the SSA.



   RESCISSIONS                                             EXPIRATION DATE
   None                                                    Continuing

     In addition to numerous new program requirements, section 306, SSA, contains
     provisions for the funding of the RESEA program. The law specifies three uses for the
     funding and designates the proportion of annual appropriations to be assigned to these
     uses:

         1) Base funding for states to operate the RESEA program (89 percent for fiscal years
            2021 through 2026, and 84 percent for fiscal years after 2026);
         2) Outcome payments designed to reward states meeting or exceeding certain criteria
            (10 percent for fiscal years 2021 through 2026, and 15 percent for fiscal years
            after 2026); and
         3) National technical assistance and research (the Secretary may reserve up to one
            percent each year after FY 2020).

     On May 7, 2020, ETA published a notice in the Federal Register requesting public
     comment concerning the proposed methodology to distribute RESEA outcome payments
     to states each fiscal year after FY 2020 (85 Fed. Reg. 27,249 (2020)). On October 19,
     2021, ETA published a second notice in the Federal Register (86 Fed. Reg. 57,856
     (2021)) announcing the final methodology to distribute RESEA outcome payments,
     including ETA’s responses to public comments received following the first published
     notice, identification of the data sources that would be used, and a detailed description of
     the methodology. Additionally, the October 19, 2021 notice identified a modified
     performance period applied solely to FY 2021 outcome payments intended to capture
     state performance under pre-pandemic conditions. The RESEA performance period for
     FY 2021 RESEA outcome payments was modified from the entire FY 2020 period to a
     review of outcome data from October 2019 through March 2020. This UIPL reflects the
     modified FY 2021 implementation of the outcome payment methodology.

4. FY 2021 RESEA Outcome Payments.

  a. Allowable Use of Funds and Period of Performance – RESEA outcome payments are
     administered as an increase to an eligible state’s current FY 2021 RESEA base-funding
     grant. Except for changes to the administrative cost limit identified in Section 4.b. of this
     UIPL, states must utilize RESEA outcome payments under FY 2021 RESEA operating
     guidance. FY 2021 RESEA operating guidance was published concurrently as UIPL No.
     13-21 and Training and Employment Guidance Letter (TEGL) No. 12-20. These
     guidance documents are identical other than non-substantive changes to formatting.

     As described in Section 6.g. of UIPL No. 13-21/TEGL 12-20, the official period of
     performance for FY 2021 RESEA funds will be January 1, 2021, through September 30,
     2022. Funding must be liquidated by December 31, 2022.

  b. Administrative Cost Limit – As described in section 6.d. of FY 2021 RESEA operating
     guidance (UIPL No. 13-21/ TEGL No. 12-20), the administrative costs for a state’s
     RESEA base-funding grant are limited to 15 percent of the total grant award. Given
     states’ limited period of availability to obligate and expend the outcome payments, ETA
     is removing the administrative cost limit on FY 2021 outcome payments. This change is


       intended to support states in fully utilizing the outcome payments to strengthen RESEA
       service delivery.

   c. FY 2022 Carry-Over Threshold – The final RESEA allocation formula for base funds
      was published in the Federal Register on August 8, 2019 (84 Fed. Reg. 39,018), and
      included a 30-percent carry-over threshold limiting the amount of funds that may be
      carried over from the previous fiscal year. In accordance with section 306(g), SSA, the
      Department may change the final allocation methodology upon providing a 90-day
      notification to Congress before the change may take effect. On October, 24, 2021, ETA
      notified Congress of a change to the formula to suspend the 30-percent carry-over limit
      for FY 2022 grants and phase in the requirement for FY 2023 grants at the modified level
      of 60 percent. This change will take effect on January 23, 2022.

   d. Terms and Conditions – In addition to the Department’s standard federal award terms and
      conditions, the RESEA outcome payment awards will include a special condition
      requiring states that receive an outcome payment to submit updated budget documents
      (SF-424 and SF-424A) within 10 days of the award. Additional information about the SF-
      424 and SF-424A revisions and submission is provided in section 4.e. of this UIPL. The
      Department’s standard federal award terms and conditions are available at:
      https://www.dol.gov/sites/dolgov/files/ETA/grants/pdfs/Grant_Terms_Library-
      7.1.21_FINAL.pdf

   e. SF-424 and SF-424A – After receiving a RESEA outcome payment award notification,
      an eligible state must submit revised budget documents (SF-424 and SF- 424A) that
      reflect the total of all FY 2021 RESEA funds awarded. States must use the current
      versions of the SF-424 and SF-42A available at
      http://www.grants.gov/web/grants/forms/sf-424-family.html. States receiving a RESEA
      outcome payment must submit revised forms via [email protected] with a copy to
      the appropriate ETA Regional Office within 10 days of the award.

   f. Grant Modifications –ETA recognizes that states will likely need to modify or extend
      their approved FY 2021 RESEA grants to reflect the addition of outcome payments.
      ETA will review and approve such requests on an individual basis. To ensure adequate
      time to process these modifications, which may include budget realignments and
      extensions, ETA requests that all modifications associated with the outcome payments be
      submitted to [email protected] and copy to the appropriate ETA Regional Office no
      later than June 30, 2022.

5. Inquiries. Please direct inquiries regarding the information in this UIPL to
   [email protected] and copy to the appropriate ETA Regional Office.

6. References.

      Section 306 of the Social Security Act (SSA) (42 U.S.C. 506);





      84 Fed. Reg. 39018, Allocating Grants to States for Reemployment Services and
       Eligibility Assessments (RESEA) in Accordance With Title III, Section 306 of the Social
       Security Act (SSA), published August 8, 2019;
      85 Fed. Reg. 27249, Notice Requesting Public Comment on the Proposed Methodology
       To Distribute Outcome Payments to States for the Unemployment Insurance (UI)
       Reemployment Services and Eligibility Assessments (RESEA) Program in Accordance
       With Title III, Section 306(f)(2) of the Social Security Act (SSA), published May 7, 2020,
       https://www.federalregister.gov/documents/2020/05/07/2020-09803/notice-requesting-
       public-comment-on-the-proposed-methodology-to-distribute-outcome-payments-to;
      86 Fed. Reg. 57856, Notice Announcing the Methodology to Distribute Outcome
       Payments to States for the Unemployment Insurance (UI) Reemployment Services and
       Eligibility Assessments (RESEA) Program in Accordance with Title III, Section 306(f)(2)
       of the Social Security Act (SSA), published October 19, 2021,
       https://www.federalregister.gov/documents/2021/10/19/2021-22704/notice-announcing-
       the-methodology-to-distribute-outcome-payments-to-states-for-the-unemployment; and
      UIPL No. 13-21/TEGL No. 12-20, Fiscal Year (FY) 2021 Funding Allotments and
       Operating Guidance for Unemployment Insurance (UI) Reemployment Services and
       Eligibility Assessments (RESEA) Grants, issued January 19, 2021,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6686.


7. Attachment(s).

      State Allocation of Fiscal Year 2021 Reemployment Services and Eligibility Assessments
       (RESEA) Outcome Payments





                                                                 Attachment

State Allocation of Fiscal Year 2021 Reemployment Services and Eligibility
                 Assessments (RESEA) Outcome Payments


                        Arkansas                   $248,000

                         Arizona                   $520,000

                        Colorado                   $520,000

                   District of Columbia             $82,000
                        Delaware                   $106,000
                         Florida                  $1,156,000
                         Georgia                  $1,420,000
                         Hawaii                    $204,000
                         Kansas                    $214,000
                        Louisiana                  $540,000
                      Massachusetts               $1,162,000
                        Maryland                   $622,000
                         Maine                     $180,000
                       Mississippi                 $318,000
                     North Carolina                $794,000
                        Nebraska                   $114,000
                     New Hampshire                 $168,000
                       New Jersey                 $1,406,000
                      New Mexico                   $208,000
                         Nevada                    $604,000
                       New York                   $3,170,000
                          Ohio                    $1,224,000
                       Oklahoma                    $338,000
                      Pennsylvania                $2,150,000
                     South Carolina                $456,000



                                                                 Attachment

State Allocation of Fiscal Year 2021 Reemployment Services and Eligibility
                 Assessments (RESEA) Outcome Payments


                         Utah                      $186,000
                       Vermont                     $106,000
                      Washington                  $1,120,000
                     West Virginia                 $626,000
                       Wisconsin                    $38,000
                         Total                   $20,000,000