End of CARES Act short time compensation grant applications

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                Unemployment Insurance
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DUIO
             Washington, D.C. 20210                      DATE
                                                         July 19, 2023



ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 22-20,
                Change 1

TO:             STATE WORKFORCE AGENCIES

FROM:           BRENT PARTON
                Acting Assistant Secretary

SUBJECT:        New End Date of the Application Period for Coronavirus Aid, Relief, and
                Economic Security (CARES) Act of 2020 Short-Time Compensation (STC)
                Program Grants

1. Purpose. To announce the end of the application period for STC grants under Section
   2110(g) of the CARES Act effective June 3, 2023.

2. Action Requested. The U.S. Department of Labor’s (the Department) Employment and
   Training Administration (ETA) requests that State Workforce Agency Administrators
   provide information contained in this Unemployment Insurance Program Letter (UIPL) to the
   appropriate state staff.

3. Summary and Background.

   a. Summary – This UIPL announces the new end date of June 3, 2023, concerning the
      application period for states to apply for grants for the implementation, improvement,
      and/or promotion and enrollment of an STC program through Section 2110(g) of the
      CARES Act.

   b. Background – On March 20, 2020, the President signed the Coronavirus Aid, Relief, and
      Economic Security (CARES) Act (Pub. L. 116-136) into law. Section 2110 of the
      CARES Act provided for up to $100 million in grant funds to states with STC programs
      in their laws that conform to the requirements of section 3306(v), Federal Unemployment
      Tax Act (FUTA) (26 U.S.C. § 3306(v)). UIPL No. 22-20 provided states with a deadline
      of December 31, 2023, to apply for these two grants. The first grant was for the
      implementation or improvement of an STC program. The second grant was for the
      promotion of the STC program or the enrollment of employers into the STC program.

       On June 3, 2023, the President signed into law the Fiscal Responsibility Act (FRA) of
       2023 (Pub. L. 118-5). Division B, Title I. Section 74, of FRA, permanently rescinds the
       unobligated balance of amounts made available by Section 2110(g) of the CARES Act.

  RESCISSIONS                                             EXPIRATION DATE
  None                                                    Continuing

4. Guidance. Due to the permanent rescission in FRA of the unobligated CARES Act funds
   under Section 2110(g) of the CARES Act, the Department has closed the application period
   for states to apply for STC grants under Section 2110 of the CARES Act. Effective June 3,
   2023, the Department has stopped accepting or processing any new grant applications. The
   FRA has no impact on previously awarded STC grants.

5. Inquiries. States should direct inquiries to the appropriate ETA Regional Office.

6. References.

   •   Division B, Title I, Section 74, of the Fiscal Responsibility Act of 2023 (Pub. L. 118-5);
       and
   •   Section 2110 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub.
       L. 116-136); and
   •   UIPL No. 22-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 -
       Short-Time Compensation (STC) Program Grants, issued May 10, 2020,
       https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
       22-20.

7. Attachments. None.