State grants to promote equitable access to unemployment benefits

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


ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 23-21

TO:             STATE WORKFORCE AGENCIES

FROM:           SUZAN G. LEVINE
                Acting Assistant Secretary

SUBJECT:        Grant Opportunity for Promoting Equitable Access to Unemployment
                Compensation (UC) Programs

1. Purpose. To notify State Workforce Agencies of the availability of up to $260 million for
   activities that promote equitable access to UC programs, which include eliminating
   administrative barriers to benefit application, reducing state workload backlogs, improving
   the timeliness of UC payments to eligible individuals, and ensuring equity in fraud
   prevention, detection, and recovery activities.

2. Action Requested. The U.S. Department of Labor’s (Department) Employment and
   Training Administration (ETA) requests that State Administrators:

      Review the funding opportunity to determine if the state will apply for funds under this
       solicitation;
      Coordinate with appropriate state staff to develop an application under this solicitation;
      Work with the appropriate ETA regional office to develop a grant application that will
       best serve the needs of the state; and
      Submit the state grant application by e-mail to [email protected] by the close of
       business on October 18, 2021, with an electronic copy to the appropriate regional office.
       The subject line of the e-mail should include the name of the state and the title “UI
       Equity Grant 2021.”

3. Summary and Background.

   a. Summary – The Department is providing up to $260 million for grants to states that
      promote equitable access to UC programs, which include eliminating administrative
      barriers to benefit applications, reducing state workload backlogs, improving the
      timeliness of UC payments to eligible individuals, and ensuring equity in fraud
      prevention, detection, and recovery activities. The Department determined the amount
      available for each state’s grant based on its covered employment for calendar year 2020.
      States may use the funds to support innovative strategies and solutions to promote
      equitable access to UC programs. In their applications, states must provide an

   RESCISSIONS                                             EXPIRATION DATE
   None                                                    Continuing

   assessment of the problem or issue they would like to address, an explanation of how
   their proposed use of funds would address the problem or issue, and the outcome metrics
   that will demonstrate the effectiveness of their actions in improving program equity
   alongside related evaluation activity, if any. ETA will review and approve proposed
   projects prior to awarding the funds. States will be required to report on the quarterly
   progress and implementation of each project to the regional offices.

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 for a $2,000,000,000 appropriation to the Secretary of
   Labor (Secretary) for fraud detection and prevention, and to promote equitable access and
   ensure timely payment of benefits to eligible workers. ARPA sets out the allowable uses
   of these funds, including to make grants to states or territories administering
   unemployment compensation (UC) programs for such purposes.

   The Department issued additional funding opportunities for detecting and preventing
   fraud for the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency
   Unemployment Compensation (PEUC) programs authorized under the CARES Act, as
   amended, as well as for the regular UC program. See Unemployment Insurance Program
   Letter (UIPL) No. 28-20, Change 2 and UIPL No. 22-21. States may want to consider
   these additional funding sources for fraud-related equity activities when preparing their
   strategies to promote equitable access for UC programs with UI equity grant funds to
   design a coordinated strategy.

   Promoting Program Equity. On January 20, 2021, the President issued Executive
   Order (EO) 13985 concerning advancing racial equity and support for underserved
   communities. This EO articulates the importance of advancing equity for all, including
   people of color and others who have been historically underserved, marginalized, and
   adversely affected by persistent poverty and inequality. This includes addressing
   disparities in accessing government programs facing individuals and communities
   including, but not limited to, low wage workers, Black and Hispanic/Latinx workers,
   individuals with disabilities, and individuals with limited English proficiency, women,
   and individuals living in rural areas. Advancing equity requires a systematic approach to
   embedding fairness in decision making processes and eliminating barriers to access.
   Public programs must be designed to serve all individuals. For this reason, the Federal
   Government should, consistent with applicable law, allocate resources to address the
   historic failure to invest equitably in underserved communities along with the individuals
   from those communities.

   Ensuring access to UC is a longstanding priority of the Department. On October 1, 2015,
   UIPL No. 02-16 was issued, which articulates the applicable requirements under federal
   law and provides states guidance to assist with their compliance with these requirements.
   Change 1 to UIPL No. 02-16, which was issued on May 11, 2020, highlights additional
   state responsibilities regarding access to UC. Given the fundamental importance of

        equity to the Department’s mission, the Department is prioritizing equity in its Strategic
        Planning and goal setting.

        The UC program is a vital safety net for unemployed workers. However, the U.S.
        Government Accountability Office (GAO) recently shared preliminary information
        suggesting potential racial and ethnic disparities in the receipt of unemployment
        insurance (UI) benefits in some states during the COVID-19 pandemic. 1 At the most
        fundamental level, equity within the UC program means the provision of UC payments to
        eligible workers, regardless of one’s background, in a timely and fair manner, with an
        application process that is readily accessible to all workers. Specifically, equity within
        the UC program includes a wide variety of factors such as eliminating administrative
        barriers to benefit receipt for eligible individuals, reducing workload backlogs, improving
        the timeliness and accuracy of UC payments, and ensuring equity in fraud prevention,
        detection, and recovery activities. This grant opportunity provides states with dedicated
        funding to support efforts to provide meaningful and equitable access to the UC
        application process and, when eligible, receipt of UC payments for all unemployed
        workers.

4. Funding for Improving Program Equity. With the goal of providing incentives for all
   states to take advantage of this funding opportunity, ETA is structuring this grant opportunity
   to provide states with broad flexibility to develop their own state-specific strategies to
   address their immediate needs in the short-term to promote UC program equity. All state
   applications, as discussed in Section 6 of this UIPL, will be evaluated by ETA based on the
   potential impact of the strategy on equity-related outcome metrics, as discussed in Section
   4.c. of this UIPL.

    a. Amount Available to States2. The Department is providing up to $260 million to states
       to promote equitable access to UC programs. The methodology for state funding levels is
       based on state size. For purposes of this methodology, states are assigned to four groups
       (Small, Medium, Large, and Extra Large) based on the 12-month average of UC covered
       employment for the four quarters in calendar year 2020 reported on the ES 202
       (Employment, Wages and Contributions). States are assigned to groups as follows:

            Small: covered employment under 1 million employees
            Medium: covered employment between 1 million and 2 million employees
            Large: covered employment between 2 million and 7 million employees
            Extra Large: covered employment greater than 7 million employees

        Attachment I lists the amount of funding available for each state.

    b. Allowable Uses of Funds. States may use the funds made available under this UIPL to
       support innovative strategies and solutions to promote equitable access to UC programs.

1
  https://www.gao.gov/products/gao-21-599r.
2
  Since Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Federated States of
Micronesia, the Republic of the Marshall Islands, and the Republic of Palau do not operate regular UC programs,
this grant opportunity is not being made available to these jurisdictions.

This includes strategies to: 1) improve public awareness of the program so more people/
apply; 2) improve service delivery so people have a better experience and receive their
first benefit payments sooner and continue to receive benefits as long as they are eligible;
and 3) develop a better understanding of the equity challenges that need to be addressed.
States have broad flexibility to determine what types of activities to support with grant
funds and how to conduct these activities. However, states must explain in their
applications how these activities will improve equity in the UC program. See Section 4.c.
of this UIPL for identifying corresponding outcome measures and Section 6 of this UIPL
for information about the application process. In addition, states may use a portion of
their grant funds for evaluations of any/all of their grant activities to determine their
effectiveness. Permissible uses of these funds include, but are not limited to, the
following activities.

   Improve Claimant Communications. States may incorporate more “plain
    language” in written documents, incorporate behavioral science and/or human-
    centered design into communication, or invest in better or expanded translation
    services. States may also conduct readability assessments, which may include user
    research sessions with claimants, and related feedback activities of public documents
    and implement changes to improve claimant’s ability to understand the information
    provided in these documents.

   Improve Claimant Outreach. States may engage in targeted outreach to workers in
    different communities that may historically experience barriers to access or have been
    underserved by the program. States may also incorporate an ombuds-person function
    to help claimants navigate the application process, including mitigating the effects of
    the “digital divide” (i.e., assisting claimants with technology issues or concerns in
    navigating online application systems).

   Measure Delivery of Benefits and Claimant Experience. States may measure the
    overall claimant experience (which includes timeliness of resolution, claimant
    participation rates during the steps of the eligibility process, and claimant use of
    different methods to attempt to resolve issues). This measurement would provide
    states with baseline metrics that identify which groups may not be receiving equitable
    benefit delivery and how states can target efforts to address these items.

   Improve Customer Service. States may consider process reengineering for faster
    resolution of eligibility determinations, incorporate behavioral science and/or human-
    centered design into program operations, automate the password reset process, or
    expand hours and other capacity for call center operations.

   Reduce Backlogs. States may take action to reduce backlogs that may have a
    disparate impact on individuals with barriers to access, which may include process
    reengineering. For example, states may hire more translators for participation in
    adjudications and appeals hearings.

   Facilitate Establishment of Entitlement to Benefits. States with UI laws that
    provide for use of an alternative base period (ABP) under certain circumstances for
    purposes of qualifying for UC payments may automate and make process
    improvements to the required ABP methods of administration as set out in UIPL No.
    17-19 when establishing monetary eligibility. In addition, states may take action to
    reduce false positives in fraud detection efforts, which includes identity verification
    activities.

   Business Process Analysis (BPA) for Equity. States may conduct a BPA focused
    on program equity if one has not been performed during the last two calendar years
    (i.e., 2019 or 2020), or implement one or more recommendations to improve program
    equity, which were included in a BPA that was performed during the last two
    calendar years. This operational business process review, which may include tools
    from human-centered design best practices such as claimant interviews, of a state’s
    benefits system must identify areas where changes in business processes could lead to
    overall improvement in program equity. The review may be conducted by state staff
    and/or an independent third party contracted by the state, and recommendations from
    this review should be included in the state’s strategic plan to the extent feasible.

   BPA for First Payment and/or First Level Appeals Promptness. States may
    conduct a BPA if one has not been performed in the last two calendar years (i.e., 2019
    or 2020) or implement at least one recommendation to improve program equity as
    included in a BPA that was performed in the last two calendar years. This operational
    business process review, which may include tools from human-centered design such
    as claimant interviews, of state benefit systems must identify areas where changes in
    business processes will lead to performance improvement. The review may be
    conducted by state staff and/or an independent third party contracted by the state, and
    recommendations from this review should be included in the next State Quality
    Service Plan (SQSP) to the extent feasible.

   Expanding and Improving Collection of Demographic Data. States may improve
    UC program data collection to construct and analyze equity-related measures, such as
    measures to assess progress in improving equity in claimants accessing UC payments.
    This could include collecting new information from claimants (such as demographic
    characteristics), analyzing existing data, or disaggregating data. States choosing this
    activity must describe the types of data that will be collected or analyzed and the
    collection or assessment approach. The Department’s Chief Evaluation Office is
    available to provide technical assistance to states on new data collections and/or
    support states interested in constructing and analyzing new equity measures. States
    piloting advances in demographic data collection may serve as a model for future
    system-wide changes in data collection and performance measurement efforts.

   Hiring Merit Staff and/or Securing Contract Support. States may hire merit staff
    and/or obtain contract support for their efforts to increase equity in the UC program.
    For example, states may hire designers with experience building service delivery
    systems that focus on equity and access. States must attest that staff hired with these

       funds will not be used to replace or supplant existing merit staff and resources
       (maintenance of effort) and that the additional merit staff will be used to improve
       equitable access to the UC program. States must develop a detailed budget for these
       projects and identify projected outcomes.

       Section 9015 of ARPA provides states with temporary emergency staffing
       flexibilities through September 6, 2021, for responding to workload and increased
       demand resulting from the spread of COVID-19 (See Section 4.b. of UIPL No. 14-
       21). After the expiration of the emergency staffing flexibilities, contract staff may
       not perform inherently governmental functions and are limited to the activities
       that non-merit staff employees may perform, as described in UIPL No. 12-01, Change
       2. For example, contract staff may be used to contact claimants in order to provide
       instructions about claimant requirements to report for additional fact-finding, but
       contract staff may not provide any advice to claimants beyond the approved
       instructions.

c. Examples of Outcome Metrics. States must identify specific outcome measures by
   which the effect of their selected strategies/activities will be measured (See Section 4.b.
   of this UIPL for a list of strategies/activity examples). For example, if a state were to
   propose using UI equity grant funds to increase adjudications, the state must clearly
   explain how the proposal will advance equity and how such progress will be monitored.
   In general, reducing backlogs is an important objective and funds may be used for this
   purpose if this use will advance equity. For example, if grant funds were to be used to
   secure additional translation services in order to reduce the backlog of adjudications that
   require translators, the potential for equity improvements would be evident. Or, if grant
   funds were used to modify IT systems to allow individuals with two-letter last names or
   two-word last names to successfully submit an initial claim electronically, the potential
   equity impact on first payment timeliness for some groups of claimants would be clear.
   In recognition of the fact that existing performance measures reported to the Department
   are not sufficiently detailed to demonstrate equity-related effects, states have broad
   flexibility in identifying the appropriate outcome measures based on demographic data
   they collect and the specific grant activities proposed. See Section 4 of UIPL No. 11-14
   for further information concerning the requirements for data collection and maintenance
   by demographic group. Progress towards achieving such metrics must be reported as
   described in Section 5 of this UIPL. Permissible outcome metrics include but are not
   limited to the following items.

      Increased Recipiency Rate for Individuals with Barriers to Access. A state must
       identify group(s) of individuals with barriers to access in their state (e.g., individuals
       with disabilities) and commit to increasing the recipiency rates for such individuals
       and/or improving parity of recipiency rates when comparing across all demographic
       groups. The state may consider using ETA’s definition of “recipiency rate” within
       the context of federal reporting, or some other definition of recipiency rate, broken
       out by demographic group (see Section 4.a. of TEN 16-20).

          Improved Timeliness of Issuing First Payments and/or Resolving Nonmonetary
           Determinations. A state must identify group(s) of individuals with barriers to access
           in their state (e.g., individuals with limited English proficiency) and commit to
           improving the timeliness of issuing first payments and/or resolving nonmonetary
           determinations issues for such individuals and/or improving parity of timeliness rates
           when comparing across all demographic groups. The state may consider using the
           percentages calculated from the ETA 9050 or ETA 9052 reports broken out by
           demographic group, using an in-house calculation of the average number of days until
           the first payment or nonmonetary determination (i.e., a “case aging” measure) broken
           out by demographic group, or another timeliness measure.

          Improved Fraud-Related Activity Accuracy. Improved timeliness in identifying
           and resolving fraud “hits” and improved accuracy of fraud hits (i.e., fewer false
           positives for fraud) to be adjudicated for individuals with barriers to access in their
           state (e.g., individuals who do not have access to technology to present evidence of
           identity, such as a photograph that one has taken of oneself, typically one taken with a
           smartphone or webcam, or low-income individuals who may convert benefits to cash
           quickly, which may be flagged as potential fraudulent action) and/or improved parity
           of fraud rates when comparing across all demographic groups. This could include a
           metric measuring access for individuals with barriers, such as the provision of
           efficient, alternative access methods for those individuals that are timely and free of
           charge for the individual.

          Improved Nonmonetary Adjudication Quality. A state must identify group(s) of
           individuals with barriers to access in their state (e.g., individuals with low reading or
           digital literacy) and commit to improving the quality of nonmonetary adjudication for
           such individuals and/or improving parity of nonmonetary adjudication quality when
           comparing across all demographic groups. The state may consider using the
           percentages calculated from the ETA 9056 broken out by demographic group or some
           other measure of nonmonetary adjudication quality.

5. Quarterly Reporting Requirements. States must provide a narrative Quarterly Progress
   Report (ETA 9178-ARPA) and Quarterly Financial Report (ETA 9130) containing updates
   on the progress and implementation of each grant project. The form ETA 9178-ARPA is
   provided in Attachment V. ETA will use the ETA 9178-ARPA report to track each state’s
   progress towards implementing the strategy/activity and achieving the identified outcome
   metric(s) as described in Section 4.c of this UIPL with ARPA funds, ensuring that a state’s
   use of funds is consistent with the permissible activities outlined in Section 4.b. of this UIPL.

   States must provide ETA with an ETA 9178-ARPAnarrative update that identifies the
   specific issue(s) a state’s proposed activities will impact and report specific outcome metrics
   as they relate to the activities (see Section 4.b. of this UIPL). Please refer to Attachment V
   for instructions for completion and the timeline of submission for the ETA 9178-ARPA.

6. Application and Award of UI Equity Grant Funds. To apply for these funds, a state must
   submit a grant package as described below. Applications that do not follow this prescribed

format will be returned to the states for correction without review. States may be required to
submit a revised Budget Narrative, SF-424 and SF-424A if the final award amount is
different from the initial request.

ETA may award supplemental awards if additional money becomes available. If
supplemental awards are made under this UIPL, modifications to the grant agreement will be
executed. If the state has capacity and need for funding beyond the provided funding level,
please provide the amount of additional funds requested and a description of the additional
activities that would be conducted using the increased funds.

By accepting these funds, each state agrees to meet the commitment(s) made in its
application. States may not elect to abandon an approved project and move funds to a
different project. State progress in achieving the timelines, outcome metrics, and completing
the deliverables established in the grant’s application will be monitored on a quarterly basis
using the reporting format discussed in Section 5 of this UIPL. A state’s failure to meet these
performance requirements could result in disallowed costs that must be repaid.

a. Grant Application Package. An application package must contain the following:

   i. As provided in Attachment II, the state must provide a single Request Abstract for the
      state’s application package plus an individual Project Application for each proposed
      strategy/activity. An electronic version of Attachment II will be made available to
      states through the ETA regional offices. In their applications, states must provide an
      assessment of the problem or issue they would like to address, an explanation of how
      their proposed use of funds would address the problem or issue, and the outcome
      metrics that will demonstrate the effectiveness of their actions in promoting program
      equity.

       Each proposed strategy/activity must have its own application and each
       strategy/activity will be evaluated separately. When the same expenditures are
       referred to in two different parts of the application and would be duplicated if both
       were funded, the state must provide a brief description in both sections explaining
       why the funds are duplicated to ensure that the same costs are not funded twice.

       The proposal must clearly indicate total project costs, including a breakdown of
       individual state costs and how much funding, if any, the state is contributing to the
       project. States must indicate the minimum funds necessary to complete the proposed
       project(s). In their proposals, states may include costs for activities that were
       incurred prior to receipt of the grant but no earlier than 90 calendar days before the
       Federal award of the grant, if appropriate.

   ii. Form SF-424 (OMB No. 4040-0004)
       https://apply07.grants.gov/apply/forms/sample/SF424_4_0-V4.0.pdf and SF-424A
       (OMB No. 4040-0006) https://apply07.grants.gov/apply/forms/sample/SF424A-
       V1.0.pdf covering all projects in the grant proposal. Please refer to Attachment III
       for additional instructions on completing the SF-424 and SF-424A.

   iii. A Budget Narrative to explain the projected costs reflected in each line item of the
        SF-424A, demonstrating how grant funds will be used. See Attachment IV for
        instructions on completing the budget narrative.

   iv. Indirect Costs: Applicant states that include indirect costs in the budget, must include
       either:
        The approved indirect cost rate with a copy of the Negotiated Indirect Cost Rate
           Agreement (NICRA), a description of the base used to calculate indirect costs
           along with the amount of the base, and the total indirect costs requested; OR
        For those applicant states that meet the requirements to use the 10 percent de
           minimis rate as described in 2 CFR 200.414(f), a description of the modified total
           direct cost base (see 2 CFR 200.68 for definition) used in the calculation along
           with the amount of the base, and the total indirect costs requested based on the 10
           percent de minimis rate. The following link contains information regarding the
           NICRA at DOL: https://www.dol.gov/agencies/oasam/centers-offices/office-of-
           the-senior-procurement-executive/cost-price-determination-division.

b. Timeframe for Obligation and Liquidation of Funds. These UI equity grant funds
   must be obligated by states by September 30, 2023, and liquidated within 90 days
   thereafter. Funding for state staff may not be obligated for use at a future date and the
   obligation may only occur at the time the staff performs services on the project.

c. Grant Award. Once projects have been approved, a Letter of Award will be issued to
   the state(s) listing the proposal that is being funded and the funding level. Additionally,
   the state will also receive a grant award package that includes a Notice of Award as well
   as the Grant Terms and Conditions. The standard Federal award terms and conditions for
   FY 2021 ETA grants are available here:
   https://www.dol.gov/agencies/eta/grants/resources.

d. Project Modifications. If, during the performance period, a state wishes to reallocate
   funds among categories/projects within its grant and the amount to be moved is equal to
   or exceeds 10 percent of the total grant award received under this UIPL, the state must
   submit a new SF-424A (OMB No. 4040-0006) by email to [email protected] with a
   copy to the appropriate ETA Regional Office for approval. The state must also submit a
   request for modification of the grant signed by the state’s signatory authority. This
   information will be submitted to the Grants Officer with a request for modification of the
   grant to reflect the requested changes.

7. OMB Information Collection. In general, under the Paperwork Reduction Act of 1995
   (PRA), no person is required to respond to a collection of information unless such collection
   displays a valid OMB control number. However, Section 2116 of the Coronavirus Aid,
   Relief, and Economic Security (CARES) Act provides that the PRA does not apply to
   Subtitle A of Title II of Division A of the CARES Act. ARPA amended Subtitle A of Title II
   of Division A of the CARES Act by adding section 2118, which provides funding and
   authority for these UI equity grants to states. Thus, the non-application of the PRA applies to
   information collections required for these UI equity grants.

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

9. References.

          American Rescue Plan Act of 2021 (ARPA), including Title IX, Subtitle A, Crisis
           Support for Unemployed Workers (Pub. L. 117-2);
          Consolidated Appropriations Act, 2021, including Division N, Title II, Subtitle A,
           the Continued Assistance for Unemployed Workers Act of 2020 (Pub. L. 116-260);
          Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136),
           Title II, Subtitle A – Relief for Workers Affected by Coronavirus Act;
          Families First Coronavirus Response Act (Pub. L. 116-127), including Division D
           Emergency Unemployment Insurance Stabilization and Access Act of 2020
           (EUISAA);
          Section 303 of the Social Security Act (42 U.S.C. 503);
          Executive Order 13985 of January 20, 2021; 86 FR 7009, page 7009-7013,
           https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-
           racial-equity-and-support-for-underserved-communities-through-the-federal-
           government;
          Claim Determination (CD) Standards set forth at 20 C.F.R. 614 Appendix B;
          Standard for Benefit Payment Promptness - Unemployment Compensation, 20 C.F.R.
           Part 640;
          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;
          UIPL No. 14-21, American Rescue Plan Act of 2021 (ARPA) - Key Unemployment
           Insurance (UI) Provisions, issued March 15, 2021,
           https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5669;
          UIPL No. 09-21, Continued Assistance for Unemployed Workers Act of 2020
           (Continued Assistance Act) - Summary of Key Unemployment Insurance (UI)
           Provisions, issued December 30, 2020,
           https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3831;
          UIPL No. 28-20, Change 2, Additional Funding to Assist with Strengthening Fraud
           Detection and Prevention Efforts and the Recovery of Overpayments in the Pandemic
           Unemployment Assistance (PUA) and Pandemic Emergency Unemployment
           Compensation (PEUC) Programs, as well as Guidance on Processes for Combatting

          Identity Fraud, issued August 11, 2021,
          https://wdr.doleta.gov/directives/corr_doc.cfm?docn=7207;
         UIPL No. 14-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of
          2020 - Summary of Key Unemployment Insurance (UI) Provisions and Guidance
          Regarding Temporary Emergency State Staffing Flexibility, issued April 2, 2020,
          https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3390;
         UIPL No. 17-19, Federal Requirements Regarding State Unemployment
          Compensation (UC) Alternative Base Period (ABP) Determination Procedures,
          issued September 16, 2019,
          https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5769;
         UIPL No. 02-16, Change 1, State Responsibilities for Ensuring Access to
          Unemployment Insurance Benefits, Services, and Information, issued May 11, 2020,
          https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5491;
         UIPL No. 02-16, State Responsibilities for Ensuring Access to Unemployment
          Insurance Benefits, issued October 1, 2015,
          https://wdr.doleta.gov/directives/corr_doc.cfm?docn=4233;
         UIPL No. 01-16, Change 1, Federal Requirements to Protect Claimant Rights in
          State Unemployment Compensation Overpayment Prevention and Recovery
          Procedures - Questions and Answers, issued January 13, 2017,
          https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7706;
         UIPL No. 01-16, Federal Requirements to Protect Individual Rights in State
          Unemployment Compensation Overpayment Prevention and Recovery Procedures,
          issued October 1, 2015, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5763;
         UIPL No. 11-14, Collection and Analysis of Claimant Demographic Data, issued
          May 15, 2014, http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9075;
         UIPL No. 12-01, Change 2, States’ Ability to Exercise Flexibility in Staffing Models
          for the Performance of Certain Unemployment Compensation (UC) Administrative
          Activities, issued January 8, 2021,
          https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8998;
         UIPL No. 04-01, Payment of Compensation and Timeliness of Determinations during
          a Continued Claims Series, issued October 27, 2000,
          https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=1746;
         UIPL No. 35-95, The Department of Labor’s Position on Issues and Concerns
          Associated with the Utilization of Telephone and Other Electronic Methods in the
          Unemployment Insurance (UI) Program, issued June 28, 1995,
          https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=1901;
         ET Handbook No. 401, 5th edition, Unemployment Insurance Reports Handbook,
          August 2017; and
         ET Handbook No. 301, 5th edition, UI Performs: Nonmonetary Determinations
          Quality Review, July 29, 2005.

10. Attachments.

         Attachment I: State Size Classifications and Funding Allocation for UI Equity Grants
         Attachment II: UI Equity Grant Application
         Attachment III: Instructions to Complete the SF-424 and SF-424A

   Attachment IV: General Instructions for the Completion of a Budget Information
    Narrative
   Attachment V: ETA 9178-ARPA Quarterly Narrative Progress Report American
    Rescue Plan Act (ARPA) Grants

                                                         Attachment I to UIPL No. 23-21

          State Size Classifications and Funding Allocation for UI Equity Grants

State                     Size Classification       UI Equity Grant Funding Allotment
Alabama                   Medium                    4,562,000
Alaska                    Small                     2,283,000
Arizona                   Large                     6,840,000
Arkansas                  Medium                    4,562,000
California                Extra Large               9,120,000
Colorado                  Large                     6,840,000
Connecticut               Medium                    4,562,000
Delaware                  Small                     2,283,000
District of Columbia      Small                     2,283,000
Florida                   Extra Large               9,120,000
Georgia                   Large                     6,840,000
Hawaii                    Small                     2,283,000
Idaho                     Small                     2,283,000
Illinois                  Large                     6,840,000
Indiana                   Large                     6,840,000
Iowa                      Medium                    4,562,000
Kansas                    Medium                    4,562,000
Kentucky                  Medium                    4,562,000
Louisiana                 Medium                    4,562,000
Maine                     Small                     2,283,000
Maryland                  Large                     6,840,000
Massachusetts             Large                     6,840,000
Michigan                  Large                     6,840,000
Minnesota                 Large                     6,840,000
Mississippi               Medium                    4,562,000
Missouri                  Large                     6,840,000
Montana                   Small                     2,283,000
Nebraska                  Small                     2,283,000
Nevada                    Medium                    4,562,000
New Hampshire             Small                     2,283,000
New Jersey                Large                     6,840,000
New Mexico                Small                     2,283,000
New York                  Extra Large               9,120,000
North Carolina            Large                     6,840,000
North Dakota              Small                     2,283,000
Ohio                      Large                     6,840,000
Oklahoma                  Medium                    4,562,000
Oregon                    Medium                    4,562,000
Pennsylvania              Large                     6,840,000
Puerto Rico               Small                     2,283,000
Rhode Island              Small                     2,283,000
South Carolina            Medium                    4,562,000
South Dakota              Small                     2,283,000

Tennessee        Large               6,840,000
Texas            Extra Large         9,120,000
Utah             Medium              4,562,000
Vermont          Small               2,283,000
Virgin Islands   Small               2,283,000
Virginia         Large               6,840,000
Washington       Large               6,840,000
West Virginia    Small               2,283,000
Wisconsin        Large               6,840,000
Wyoming          Small               2,283,000
U.S. TOTAL                           $260,000,000

                                                            Attachment II to UIPL No. 23-21

                                 UI Equity Grant Application

Instructions: States must complete a separate document using the suggested format and
instructions below for each activity for which the state is seeking funding. This document is to
be combined in a single grant application package along with a completed SF-424, an SF-424A,
and Budget Narrative covering all projects. Refer to Section 6.a. of this UIPL for additional
instruction.

                              UI Equity Grant Request Abstract


 State Name:
 Total Funds Requested for All Projects:
 Name, Title, and Address of Grant Notification Contact (Typically the State Workforce
 Agency Administrator)
 Name:
 Title:
 Address:

 Name, E-Mail Address, and Phone Number of Grant Project or Fiscal Manager
 Name:
 E-Mail Address:
 Telephone Number:

 Provide the following information for each project (add additional rows as needed):
 Individual Project Name         Total Cost of Project            Proposed Completion Date

                         UI Equity Grant Project Application
Complete a separate document for each activity for which the state seeks funding, including
            planned supplemental activities if additional funding is available.
Name of Project



Amount of Funding Request for this Project



State Contact
Name:
E-Mail Address:
Telephone Number:




Project Description



Project Timeline




Description of Costs

State Agency Staff Costs:

Type of Position        Total Hours           Cost Per Hour           Total


Contract Staff Costs:

Type of Position        Total Hours           Cost Per Hour           Total

Hardware, Software and Telecommunications Equipment:

Item Description     Cost Per Item        Quantity            Total




Other Costs:

Item                        Cost                         Explanation




Strategic Design:




Outcome Metric Demonstrating Improvements Expected in UI Operations:

                      UI Equity Grant Project Application Instructions

Name of Project: Provide the name of the proposed equity project to be carried out. If the state
is submitting requests to fund more than one project, each project should be identified by a
different name that describes each project. The state must provide a separate Grant Project
Application for each project they are seeking to have funded by the grant (the applications should
match the projects in the Request Abstract).

Amount of Funding Request for this Project: Provide the total amount of funds requested in
this individual project.

State Contact: Provide name, telephone number, and e-mail address of the individual who can
answer any questions relating to the proposal.

Project Description: Provide a brief description of the equity project for which the state is
seeking funding and explain how the project will support promoting equitable access to UC
programs for the participating state.

Project Timeline: Provide a list of the dates and the milestones for this project. The timeline
should include the completion of the work, the designation of specific tasks to appropriate
parties, the issuance of a request for proposal, if appropriate, the projected start date, the
proposed dates to begin and complete testing (if necessary), and the proposed date for full
implementation of the project. These milestones and dates will be used to monitor the
implementation of the project. Any additional work needed to identify and provide progress on
the identified outcome metric should be included in this project timeline.

Description of Costs: Provide an explanation of all costs included in the project.

      State Agency Staff Costs: Use the table format provided in this attachment to request
       state staff to support project implementation.
      Contract Staff Costs: Use the table format provided in this attachment to request
       contract staff to support project implementation.
      Hardware, Software, and Telecommunications Equipment: Provide an itemized list
       of hardware, software, and telecommunications equipment including the cost per item
       and the number of each item requested. A description of each item must provide any
       information needed to identify the specific item and a description of the size and capacity
       of each item if applicable.
      Other: Identify each item of cost not covered elsewhere and provide the expected cost
       per item. The need for each item must be explained.

Strategic Design: The strategic design of the equity project should provide evidence of a
thorough analysis of current operations and show that the design will meet the needs of the state
in promoting equitable access to UC programs.

Outcome Metric Demonstrating Improvements Expected in UI Operations: Identify the
outcome metrics which will be used to monitor progress towards improving equitable access to
UC programs. See Section 4.c. of this UIPL for examples. All improvements must be quantified
rather than generalized. If undertaking more than one intervention or project that may impact the
same outcome metrics, please describe the evaluation activities that will be undertaken, if any,
that will allow for understanding how your proposed intervention or project contributed to the
improvements in those metrics, or not.

                                                            Attachment III to UIPL No. 23-21

                    Instructions for Completing the SF-424 and SF-424A

I. Application for Federal Assistance (SF-424)

       Use the current version of the form for submission. Expired forms will not be
       accepted. SF-424, Expiration Date 12/31/2022, Office of Management and
       Budget (OMB) Control No. 4040-0004 (Grants.gov).
       https://apply07.grants.gov/apply/forms/sample/SF424_4_0-V4.0.pdf

       Section # 8, APPLICANT INFORMATION:
        Legal Name: The legal name must match the name submitted with the System for
          Award Management (SAM). Please refer to instructions at
          https://www.sam.gov/SAM/.
        Employer/Tax Identification Number (EIN/TIN): Input your correct 9-digit EIN and
          ensure that it is recorded within SAM.
        Organizational DUNS: All applicants for Federal grant and funding opportunities are
          required to have a 9-digit Data Universal Numbering System (D-U-N-S®) number,
          and must supply their D-U-N-S® number on the SF-424. Please ensure that your
          state is registered with the SAM. Instructions for registering with SAM can be found
          at https://www.sam.gov. Additionally, the state must maintain an active SAM
          registration with current information at all times during which it has an active Federal
          award or an application under consideration. To remain registered in the SAM
          database after the initial registration, there is a requirement to review and update the
          registration at least every 12 months from the date of initial registration or
          subsequently update the information in the SAM database to ensure it is current,
          accurate, and complete. Failure to register with SAM and maintain an active account
          will result in a rejection of your submission.
        Address: Input your complete address including Zipcode+4; Example: 20110-831.
          For lookup, use link at https://tools.usps.com/go/ZipLookupAction_input.
        Organizational Unit: Input appropriate Department Name and Division Name, if
          applicable.
        Name and contact information of person to be contacted on matters involving this
          application: Provide complete and accurate contact information including telephone
          number and email address for the point of contact.

       Section # 9, Type of Applicant 1: Select Applicant Type: Input “State Government”.

       Section # 10, Name of the Federal Agency: Input “Employment and Training
       Administration”.

       Section # 11, Catalog of Federal Domestic Assistance Number: Input
       “17.225”; CFDA Title: Input “Unemployment Insurance”.

       Section # 12, Funding Opportunity Number and Title: Input “UI Equity Grant”.

      Section # 13, Competition Identification Number: Leave Blank.

      Section # 14, Areas Affected by Project: Input the place of performance for the project
      implementation; Example “NY” for New York.

      Section # 15, Descriptive Title of Applicant’s Project: Input “UI Equity Grant 2021”.

      Section # 16, Congressional Districts of:
         a. Applicant: Input the Congressional District of your home office. For lookup, use
             link at www.house.gov with Zipcode + 4
         b. Program/Project: Input the Congressional District where the project work is
             performed. If it is the same place as your home office, input the congressional
             district for your home office. For lookup, use link at www.house.gov with
             Zipcode+4

      Section # 17, Proposed Project Dates
         a. Start Date: Input a valid start date for the project (earliest start date will be
             October 1, 2021)
         b. End Date: Input a valid end date for the project (September 30, 2023)

      Section # 18, Estimated Funding ($):
      Input the applicable funding allotment as listed for your state in Attachment I. Ensure
      that the funding requested matches the TOTALS in Section B – Budget Categories of the
      SF424A.

      Section #s 19 – 20: Complete as per instructions for Form SF-424.

      Section # 21, Authorized Representative: Please select the “I AGREE” check box and
      provide complete information for your authorized signatory including contact
      information such as telephone number and email address. If your Authorized
      Representative has changed from your previous application submission for this program,
      please include a letter from higher-level leadership authorizing the new signatory for the
      application submission.

      Remember to have the SF-424 signed and dated by the Authorized Representative

II. Budget Information -Non-Construction Programs (SF-424A)

    Use the current version of the form for the submission. Expired forms will not be accepted.
     SF 424A, Expiration Date 02/28/2022, OMB Control No. 4040-0006
     https://apply07.grants.gov/apply/forms/sample/SF424A-V1.0.pdf
    Section B – Budget Categories: Ensure that TOTALS in Section 6, Object Class
     Categories matches the Estimated Funding requested in the SF-424.
    If indirect charges are specified in Section 6, Object Class Categories, then include either:
     (a) The approved indirect cost rate with a copy of the Negotiated Indirect Cost Rate

    Agreement (NICRA), a description of the base used to calculate indirect costs along
    with the amount of the base, and the total indirect costs requested; OR
(b) For those applicant states that meet the requirements to use the 10 percent de minimis
    rate as described in 2 CFR 200.414(f), a description of the modified total direct cost
    base (see 2 CFR 200.68 for definition) used in the calculation along with the amount of
    the base, and the total indirect costs requested based on the 10 percent de minimis rate.

                                                              Attachment IV to UIPL No. 23-21

                       General Instructions for the Completion of a Budget
                                      Information Narrative

The Budget Information Narrative must include the following information:
    Each line item on the SF‐424A must be explained, and the cost provided for each. Each
     line item on the SF‐424A pertains to projected costs at the recipient level, with the
     exception of the Contractual line item. Contractual should include costs at the project
     operator level.
    The total for each line item on the Budget Information Narrative must match the total for
     each line item on the SF‐424A.
    If a grant modification requests to realign the budget, the narrative must address the reason
     for the change in each affected line item.

1. Personnel – List all staff positions by title. State the annual salary of each person,
    the percentage of each person’s time devoted to the project, the amount of each
    person’s salary funded by the grant, and the total personnel cost for the period of
    performance.

2. Fringe Benefits – Provide the overall fringe benefit percentage which reflects the
    recipient’s organizational fringe, and list the components included, such as health
    insurance, FICA, retirement, etc. Provide the fringe benefit calculation for each
    staff position listed under the Personnel line item.

3. Travel – Specify the type and purpose of the travel, the number of travelers,
    approximate mileage, per diem rates, estimated number of trips, and other
    associated travel costs.

4. Equipment – Identify each item of equipment to be purchased. Equipment has an
    estimated acquisition cost per unit of $5,000 or more, and a useful life of one year
    or more. List the quantity and unit cost per item. Items with a unit cost of less
    than $5,000 are classified as supplies.

5. Supplies – Supplies include all tangible personal property other than “equipment.”
    Identify supply categories (e.g. office supplies, cell phones, personal tools for
    disaster clean‐up, etc.). List the cost associated with each category.

6. Contractual –
    • Identify each project operator and the funding allocation made to the
      organization.
    • Provide total projected costs (NOT for each project operator but as a lump sum)
      for each of the following categories: Administrative Costs, Career Services,
      Supportive Services, Training (itemize work-based training and classroom
      training), and Other Costs (itemized).

7. Construction – Construction costs are not allowed and this line must be left as
   zero. Minor alterations to adjust an existing space for grant activities (such as a
   classroom alteration) may be allowable. DOL does not consider this as
   construction and the costs must be shown on other appropriate lines such as
   Contractual.

8. Other – List each item in sufficient detail for DOL to determine whether the costs
   are reasonable or allowable. Costs included under Other should not fit into any
   other line item category.

9. Indirect Charges – If charging indirect costs to the grant, this line item must be
   populated. Include the current approved Negotiated Indirect Cost Rate Agreement,
   signed by the Federal cognizant agency, as an attachment to the grant application.

                                                                         Attachment V to UIPL No. 23-21

                                            Form ETA 9178-ARPA

U.S. Department of Labor (DOL)                                                          OMB No. N/A3
Employment and Training Administration                                             Expiration Date: N/A
Form ETA 9178-ARPA

                                   Quarterly Narrative Progress Report
                                 American Rescue Plan Act (ARPA) Grants
                                                  General Information

    State Name:                        Grant Number:            Report Quarter Ending:        Date of Submission:




     Project Name:                                              UIPL Number:

                                             Project Contact Information
    Name:                                                       Agency:

    Title                                                       Address:

    Phone:                                 Ext:                 City:

    E-Mail:                                                     State:                       Zip Code:
                                                        Project Report
    A. Summary of Project
    Please limit your response to 1000 characters or less.
    States must use this section to provide a detailed executive summary of the project/activity/solution (project).
    Each funded project will have its own separate quarterly progress report (ETA 9178-ARPA) through the quarter
    the project ends. States must use this section to provide a short summary of the project’s purpose. This summary
    should only change during the life of the grant if the state has received an approved modification. Modifications
    only apply to grants that require a full application.
    B. Timeline for Grant Activities and Milestones or Deliverables
    Please limit your response to 1000 characters or less.
    States must use this section to provide the timelines for and the progress in completing grant activities, key
    milestones, and deliverables for this quarter. A timeline must still be developed for all project activities. The
    timeline must provide a project flow that includes start and end dates, schedule of activities, and projected
    outcomes. In order to reap the most benefit from the timeline, the timeline must be updated each quarter noting
    the actual date of completion as each activity is accomplished. Items to incorporate in the timeline include:
    project goals, milestones, special events, important deadlines and deliverables.




3
 Refer to section 2116(a) of P.L. 116-136, the Coronavirus Aid, Relief, and Economic Security Act, March 27,
2020.

C. Project Implementation and Funding Status


Please limit your response to 1000 characters or less.
States must use this section to provide a description of the implementation of key activities and/or project status
for the current quarter. Place an ‘X’ in one of the four check-boxes provided below to provide an assessment of
implementation progress. The assessment must be supported by the status narrative noting if the project is on
schedule, behind schedule, ahead of schedule, or complete this quarter. Once the project is marked as complete
this quarter, the state is no longer required to submit an ETA 9178-ARPA report for the project.
In addition, please provide the funding status for this project for the end of the quarter, including the total project
funding, total obligated, funding balance, and time remaining to expend funds/expenditure target.


                                               Behind                                               Complete this
State Self-          On Schedule                                     Ahead of Schedule
                                              Schedule                                                Quarter
Assessment:
 Total Project Funding              Total Obligated               Funding Balance              Expenditure Target

D. Project Challenges, Risk Mitigation Efforts/Modification Requests, and Technical Assistance Needs
Please limit your response to 1500 characters or less.
States must use this section to summarize any significant challenges to project implementation encountered
during the quarter, and describe any risk mitigation efforts or actions taken to address the identified challenges.
In addition, a status update must be provided on the resolution of challenges identified in previous quarters. This
section should also include any questions you have for DOL and note any identified needs for technical assistance
from DOL or others. The narrative must also indicate whether the grantee is requesting a modification to any
project strategies and how the modification request changes the original project proposal. If a modification has
been requested, the narrative must also indicate the status of the modification request. Modifications only apply
to grants that require a full application. If states have nothing to report, that should be specified.
E. Best Practices, Promising New Strategies and Success Stories
Please limit your response to 1000 characters or less.
States must use this section to describe promising approaches, innovative processes, or grant success stories.
States must also describe any lessons learned and how those lessons learned will be implemented. Throughout
the implementation of the project, states may discover new strategies that emerge as a result of data-driven
continuous improvement. As progress is made with a new and promising strategy, or as data is gathered to
support it, states must document the progress and data each quarter. If states have nothing to report, that must be
specified.
F. Additional Outcome Information
Please limit your response to 1000 characters or less.
This section requires states to report grant-specific outcomes not captured in other sections of the quarterly
narrative progress report, including, but not limited to, outcomes measuring equitable service delivery, outcomes
measuring fraud detection and prevention, outcomes measuring backlog reduction, specific outcomes included in
the grant application.
                                                     Certification
Name of Grantee Certifying Official:
Phone:
E-Mail Address:

                        Instructions to Complete ETA 9178-ARPA

Contact Information:
This section is to provide the contact information (i.e., Name, Title, Address, etc.) for the state
official who is responsible for the day-to-day operation and implementation of the project. This
may be a different person that the certifying official.

Certification:
    Name of Certifying Official
         Use this section to provide the name of the state official who is certifying submission of
         the report to the U.S. Department of Labor (Department).
    Telephone Number
         Provide the area code and telephone number ((###) ###-####) of the authorized state
         official.
    Email Address
         Provide the email address of the authorized state official.

General Instructions
States receiving ARPA Grant Funds are required to submit quarterly progress reports to the
Department’s Employment and Training Administration (ETA) in order to comply with the
reporting and record keeping requirements of these funds. Each state recipient of funds must
submit a narrative Quarterly Progress Report (QPR) containing updates on the progress and
implementation of the project(s) undertaken as a result of the funding.

Report Form and Instructions
The QPR provides narrative updates on the implementation of project(s) undertaken as a result of
the funding and the status of each project per quarter.

Due Dates
All quarterly reports are due to ETA no later than 45 days after the end of each reporting quarter.
The table below shows the expected due dates for each reporting quarter.

                          Reporting Quarters                 Due Dates
                     October 1 – December 31
                                st               st
                                                        February 14th
                     January 1st – March 31st           May 15th
                     April 1st – June 30th              August 14th
                     July 1ST – September 30th          November 14th

Should the due date of the report fall on a Saturday, Sunday, or holiday, the report is due the
previous business day.

Submission Procedures
Information contained in the quarterly report (ETA 9178-ARPA) must be submitted by email
directly to the ETA regional office. An ETA Federal Project Officer will review and accept the
report within 30 days of receipt.

   OMB Approval. Section 2116(a) of the CARES Act, 5 U.S.C. 9032(a), states that “Chapter 35
   of Title 44, United States Code, (commonly referred to as the ‘Paperwork Reduction Act of
   1995’) shall not apply to the provisions of, and the amendments made by, this subtitle.” As the
   OMB approval process is waived for these reporting instructions, these instructions should be
   considered final.