Extended deadline for state unemployment fraud grants

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                     Unemployment Insurance
               ADVISORY SYSTEM                                CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                            OUI/DPM
             Washington, D.C. 20210                           DATE
                                                              September 17, 2021


ADVISORY:        UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 22-21,
                 Change 1

TO:              STATE WORKFORCE AGENCIES

FROM:             LENITA JACOBS-SIMMONS
                  Acting Assistant Secretary

SUBJECT:          Extension of Time to Submit Request for Funding under Grant Opportunity
                  Announced in Unemployment Insurance Program Letter (UIPL) No. 22-21

1. Purpose. The purpose of this UIPL is to advise states that the deadline for submitting an SF-
   424 for grants to assist states with fraud detection and prevention, including identity verification
   and overpayment recovery activities, in all unemployment compensation (UC) programs, is
   extended to October 31, 2021.

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

3. Summary and Background.

   a. Summary – On August 11, 2021, the Department issued UIPL No. 22-21 advising states
      of the availability of funding for fraud detection and prevention, including identity
      verification and overpayment recovery activities, in all UC programs. In that UIPL states
      were advised that SF-424 requests for grants should be submitted no later than September
      13, 2021. The Department has determined that states may need additional time to submit
      SF-424s, and is extending the deadline to October 31, 2021.

   b. Background – On March 11, 2021, the President signed the American Rescue Plan Act of
      2021 (ARPA) into law (Public Law (Pub. L.) 117-2). Section 9032, ARPA, creates a
      new Section 2118 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act
      (Pub. L. 116-136) and provides a $2,000,000,000 appropriation to the Secretary of Labor
      to detect and prevent fraud, to promote equitable access, and to ensure timely payment of
      benefits to eligible workers with respect to UC programs. See section 5.b. of UIPL No.
      22-21 for appropriate uses for such funds.

4. Guidance. Section 5.d. of UIPL No. 22-21 provides instructions for applying for a grant
   under this offering. That section notes that the deadline for submission of applications is
   September 13, 2021. One of the allowable uses for these funds is to procure, implement, and

   RESCISSIONS                                                 EXPIRATION DATE
   None                                                        Continuing

   pay reoccurring subscription costs and/or ongoing maintenance costs of identity verification
   and fraud detection solutions, including using funds to pay for services provided through an
   order issued for a state by the Department against one of the Department’s identity proofing
   Blanket Purchase Agreements (BPAs). The Department plans to issue instructions to states
   on the BPAs and the procedures for the Department to issue orders under those BPAs, in
   accordance with federal procurement regulations.

   The Department has determined that states may need additional time to review UIPL No. 22-
   21 and to develop an SF-424 in response to the solicitation. Therefore, the Department is
   extending the deadline for submission of the SF-424 to October 31, 2021. All other
   information in UIPL No. 22-21 remains the same.

5. Inquiries. Please direct inquiries to [email protected], with a copy to the appropriate
   ETA Regional Office.

6. References.

      American Rescue Plan Act, Pub L. 117-2, enacted March 11, 2021;
      CARES Act, Pub. L. 116-136, enacted March 23, 2020; and
      UIPL No. 22-21, Grant Opportunity to Support States with Fraud Detection and
       Prevention, Including Identity Verification and Overpayment Recovery Activities, in All
       Unemployment Compensation (UC) Programs, issued August 11, 2021,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4240.

7. Attachment(s). None.