Reopened ARPA grants for 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
                                                           May 24, 2023


 ADVISORY:        UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 23-21,
                  Change 5

 TO:             STATE WORKFORCE AGENCIES

 FROM:           BRENT PARTON
                 Acting Assistant Secretary

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

1. Purpose. To temporarily re-open the application period for states, which did not submit
   prior applications, to apply for UI equity grants described in UIPL No. 23-21 for activities
   eliminating administrative barriers to benefit application, reducing state workload backlogs,
   improving the timeliness of unemployment compensation (UC) payments to eligible
   individuals, and ensuring equity in fraud prevention, detection, and recovery activities. This
   UIPL also announces the opportunity for all states to receive amounts in addition to their
   original allocation described in Attachment I to UIPL No. 23-21.

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

   •   States that previously did not apply for grants under UIPL No. 23-21 must submit
       their Initial Application by July 24, 2023 (see Section 4.b. of this UIPL).
   •   States with existing awards or pending applications seeking to request an additional
       allotment must submit their Grant Application by July 24, 2023 (see Section 4.c. of
       this UIPL).
   •   States that have submitted an application prior to publication of this UIPL and whose
       funds have not yet been awarded must resolve any outstanding items on their Grant
       Application Package by July 24, 2023 or ETA will consider their application non-
       responsive and will reject the application (see Section 4.d. of this UIPL).

3. Summary and Background.

   a. Summary – In support of the goal to promote equitable access to the Unemployment
      Insurance (UI) program under Section 9032 of the American Rescue Plan Act
      (ARPA), the Department issued UIPL No. 23-21 announcing a grant opportunity for
      states. With publication of this UIPL, states that did not submit an application for
   RESCISSIONS                                              EXPIRATION DATE
   None                                                     Continuing

   UIPL No. 23-21 have an additional opportunity to apply for the funds allotted in
   Attachment I of UIPL No. 23-21. Refer to Section 4.a. of this UIPL for further detail.

   This UIPL also provides for an additional allotment of up to $1 million for a limited
   number of states. ETA will award funds to complete and responsive applications on a
   first come, first served basis while funding remains available. ETA may stop accepting
   applications for the additional allotment at an earlier date if all available funds are
   awarded before the official closing date. Refer to Section 4.b. of this UIPL for additional
   detail.

   As of May 19, 2023, the Department awarded more than $206 million to 42 states in
   accordance with UIPL No. 23-21 and its changes. The Department is currently
   providing feedback and technical assistance to the remaining state applicants that
   have submitted an application to help them meet the requirements for approval
   described in the funding opportunity announcement under UIPL No. 23-21, and to
   help ensure their proposed projects and activities have the best possible outcomes.

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.

   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, 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. On August 17, 2021, the
   Department issued UIPL No. 23-21 advising states of the availability of funding for


       activities that promote equitable access to UC programs. The Department issued
       Changes 1 and 2 to this UIPL to extend the period of time to apply for an equity grant. In
       Change 3, the Department determined that states may need additional time to perform
       their projects and activities and, therefore, announced an extension of the period of
       performance for awards from September 30, 2023 to March 31, 2024. On December 21,
       2022, the Department issued UIPL No. 23-21, Change 4. In that UIPL, the Department
       determined that as a result of the time this process requires as well as the competing
       priorities state workforce agencies are facing, for grant awards made after issuance
       (December 21, 2022), the period of performance would be 27 months from the date of
       any new grant award.

       The UC program is a vital safety net for unemployed workers. 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. Guidance. This UIPL provides additional funding for states to further promote equitable
   access in the UI program, as described in Section 4.a. Additionally, the application window
   is being reopened for states that did not previously apply under UIPL No. 23-21.

   The grant application and award process will be completed in two stages: an Initial
   Application/Grant Application to request additional funds, followed by a Full Project
   Amendment.

       a. Additional Grant Funds to Further Support the Promotion of Equitable Access
          in the UI Program. ETA is making additional funding available for states using the
          unawarded amounts from the original $260 million allocation under UIPL No. 23-21.
          Each state that has been awarded a UI equity grant under UIPL No. 23-21, has a
          pending application as described in Section 4.d. of this UIPL, or is applying for a
          grant as described in Section 4.b. of this UIPL has the opportunity to request up to $1
          million in addition to the allotment provided in Attachment I to UIPL No. 23-21.

           States may apply to receive a portion of these funds to expand a previously approved
           project (e.g., translate claimant portal into an additional language) or if they have
           identified a new need that can address an equity issue in the state (e.g., hire or extend
           staffing plan with additional Spanish-speaking call center/adjudication staff), in line
           with any of the examples reflected in UIPL No. 23-21.





   These funds will be awarded to complete and responsive applications on a first come,
   first served basis based on the order received. ETA may stop accepting applications
   earlier than this date if available funds are exhausted before the official closing date.
   Final award amounts will be determined subject to the availability of funds. All states
   will have the opportunity to apply for additional funding up to $1 million, regardless
   of their current application status. This additional funding does not affect the
   availability of funds for states that did not previously apply for a UI Equity Grant
   award or for states with a currently pending application.

   States that have received a UI Equity Grant under UIPL No. 23-21 that amounts to
   less than their original allocation, as described in Attachment I to UIPL No. 23-21,
   are only eligible to apply for up to an additional $1 million (i.e., states may not apply
   for the difference between their original allocation and funds received as part of the
   UI Equity Grant if that difference is more than $1 million).

   As described in UIPL No. 03-23, the Department is making available to states
   operational and technical resources and services, at no cost to the state, to further
   support execution of their ARPA-related grant projects, including future ARPA-
   formula funded projects. These resources and services are available to states that
   have been, or will be, awarded grants in one of the ARPA-formula funded grant
   programs, including equity grants as described in UIPL No. 03-23.

b. States that did not previously apply for a UI Equity Grant under UIPL No. 23-

    21. States that did not apply for a UI equity grant may now apply for their state
   allocation described in Attachment I to UIPL No. 23-21, as well as the additional
   funding described in Section 4.a. of this UIPL. Additional funds will be awarded to
   complete and responsive applications on a first come, first served basis based on the
   order received. Therefore, a state that did not previously apply but is now applying
   for their state allocation as well as up to $1 million in additional funds may be
   awarded only their state allocation, depending upon availability of the additional
   grant funds.

        i. Condition of Receiving the UI Equity Grant. By submitting an Initial
           Application as described in Section 4.b.ii. of this UIPL, the state agrees to
           submit a Full Project Amendment, as described in Section 4.b.ii of this UIPL,
           within 60 calendar days of receiving the Notice of Award (NOA).

           States who anticipate significant challenges with meeting the timeframe for
           submitting a Full Project Amendment may request an extension. States who
           anticipate significant challenges with meeting the timeframe for submitting a
           Full Project Amendment may request an extension. ETA expects that requests
           for an extension will be rare and approvals must be provided by the Grant
           Officer.

       ii. Initial Application. The Initial Application must be submitted via
           www.grants.gov, with an electronic copy to the appropriate ETA Regional


          Office, as soon as possible and no later than the close of business on July 24,
          2023. The Initial Application package consists of a completed SF-424 (as
          described in Attachment I of UIPL No. 23-21, Change 4) to reflect up to the
          full amount of the state’s allocation (see Attachment I to UIPL No. 23-21)
          plus any of the additional amount described in Section 4.a. of this UIPL.

          To demonstrate that the state agrees to comply with the condition described in
          Section 4.b.i. of this UIPL, when completing the SF-424, the state must check
          the “I AGREE” box under Item 21 and include the appropriate language in
          Item 15. States should maintain any supporting documentation that serves as
          evidence for meeting the required condition.

          Upon receipt and processing of the SF-424, the state will receive a NOA.
          These grants are subject to the requirements of 2 CFR Parts 200 and 2900,
          Uniform Administrative Requirements, Cost Principles, and Audit
          Requirements for Federal Awards.

      iii. Full Project Amendment. As noted in Section 4.b.i. of this UIPL, the Full
           Project Amendment must be submitted to the appropriate ETA Regional
           Office, as soon as possible and no later than, within 60 calendar days of
           receiving the NOA. The Full Project Amendment package must include:

          A. A copy of the completed SF-424 from the Initial Application;
          B. A completed SF-424A;
          C. If indirect cost is indicated on the SF-424A, then a Negotiated Indirect
             Cost Rate Agreement (NICRA); and
          D. A completed “UI Equity Grant Application” (as described in Section 6.a.i.
             and Attachment II to UIPL No. 23-21).

       ETA encourages states to work closely with their ETA Regional Office to develop
       the project narrative as described in UIPL No. 23-21, especially the outcome
       metrics section. States should also ensure that all project costs are consistent
       across all application documents.

       The submission of the required documents does not constitute approval by the
       Department. Upon receipt of the Full Project Amendment, the Department will
       review and work with the state to approve the proposal. Once approved by the
       Grant Officer, the Full Project Amendment will be an official amendment to the
       initial NOA, and the condition of the award that previously restricted access to the
       funds will be resolved.

c. States that have received an UI Equity Grant under UIPL No. 23-21. States that
   have already received an UI Equity Grant under UIPL No. 23-21 and wish to request
   an additional amount as described in Section 4.a. of this UIPL must take the
   following actions.




 i. Condition of Receiving the Additional Amount. By submitting a Grant
    Application to request additional funds as described in Section 4.c.ii. of this
    UIPL, the state agrees to submit a Full Project Amendment, as described in
    Section 4.c.iii. of this UIPL, within 60 calendar days of receiving the Notice
    of Award (NOA) modifying the original grant.

    States who anticipate significant challenges with meeting the timeframe for
    submitting a Full Project Amendment may request an extension.
    ETA expects that requests for an extension will be rare and approvals must be
    provided by the Grant Officer.

ii. Grant Application. The Grant Application to request additional funds must
    be submitted via www.grants.gov, with an electronic copy to the appropriate
    ETA Regional Office, as soon as possible and no later than the close of
    business on July 24, 2023. The Grant Application package consists of a
    completed SF-424 (as described in Attachment I of UIPL No. 23-21, Change
    4) to reflect the additional amount requested (as described in Section 4.a. of
    this UIPL).

    To demonstrate that the state agrees to comply with the condition described in
    Section 4.c.i. of this UIPL, when completing the SF-424, the state must check
    the “I AGREE” box under Item 21 and include the appropriate language in
    Item 15. States should maintain any supporting documentation that serves as
    evidence for meeting the required condition.

    Upon receipt and processing of the SF-424, the state will receive a NOA
    modifying the original grant.

iii. Full Project Amendment. As noted in Section 4.c.i. of this UIPL, the Full
     Project Amendment must be submitted to the appropriate ETA Regional
     Office, as soon as possible and no later than, within 60 calendar days of
     receiving the NOA. The Full Project Amendment package must include:

    A. A copy of the completed SF-424 from the Initial Application;
    B. A completed SF-424A;
    C. If indirect cost is indicated on the SF-424A, then a Negotiated Indirect
       Cost Rate Agreement (NICRA); and
    D. A completed “UI Equity Grant Application” (as described in Section 6.a.i.
       and Attachment II to UIPL No. 23-21).

ETA encourages states to work closely with their ETA Regional Office to develop
the project narrative as described in UIPL No. 23-21, especially the outcome
metrics section. States should also ensure that all project costs are consistent
across all application documents.





              The submission of the required documents does not constitute approval by the
              Department. Upon receipt of the Full Project Amendment, the Department will
              review and work with the state to approve the proposal. Once approved by the
              Grant Officer, the Full Project Amendment will be an official amendment to the
              initial NOA, and the condition of the award that previously restricted access to the
              additional funds will be resolved.

       d. States that submitted an application for a UI Equity Grant prior to publication
          of this UIPL and whose funds have not yet been awarded. States with pending UI
          equity grant applications under UIPL No. 23-21 have 60 calendar days from the
          publication of this guidance to resolve any outstanding items in their Grant
          Application Package (as described in Section 6.a.i. and Attachment II to UIPL No.
          23-21). If states wish to withdraw their grant application, states must notify their
          ETA Regional Office by email. Note that the 60 calendar day deadline is not
          inclusive of any processing time needed by ETA to disburse funds. States that
          submitted an application for a UI Equity Grant prior to publication of this UIPL, and
          whose funds have not yet been awarded, may also request additional funds on a first
          come, first served basis under Section 4.a. of this guidance. Note that states which are
          unable to successfully resolve outstanding items in their initial equity application
          package to complete their grant award will be removed from consideration for
          additional equity funding under Section 4.a.

       e. Timeframe for Obligation and Liquidation of Funds under this UIPL. The
          period of performance for new grant awards made on or after the date of this UIPL
          will be the end of the 27-month-period that begins on the date of the award, as
          described in Section 4 of UIPL No. 23-21, Change 4, except for additional funds
          awarded, which will have the same period of performance which applies to their
          original equity grant. This approach is being used to ensure that states receive the
          same length of the period of performance for their UI equity grant activities
          regardless of when or whether the state has already received an equity grant award.

           States with existing equity grants that may not be able to complete all grant activities
           within the current approved period of performance should notify the assigned federal
           project officer in their Regional Office to discuss no-cost grant extensions.

       f. All other terms and conditions remain in place. Except as explicitly noted in this
          UIPL, all other guidance from UIPL No. 23-21 and Changes 1-4, remain the same.

5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.

6. References.

   •   American Rescue Plan Act, Pub L. 117-2, enacted March 11, 2021;
   •   Coronavirus Aid, Relief, and Economic Security (CARES) Act, Pub. L. 116-136, enacted
       March 23, 2020;



   •   UIPL No. 23-21, Grant Opportunity for Promoting Equitable Access to Unemployment
       Compensation (UC) Programs, issued August 17, 2021,
       https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
       23-21;
   •   UIPL No. 23-21, Change 1, Extension of Time to Submit Request for Funding under
       Grant Opportunity Announced in Unemployment Insurance Program Letter (UIPL) No.
       23-21, issued November 1, 2021,
       https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
       23-21-change-1;
   •   UIPL No. 23-21, Change 2, Further Extension of Time to Submit Request for Funding
       under Grant Opportunity Announced in Unemployment Insurance Program Letter
       (UIPL) No. 23-21, issued December 20, 2021,
       https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
       23-21-change-2;
   •   UIPL No. 23-21, Change 3, Extension of Period of Performance for Awards related to
       Grant Opportunity Announced in Unemployment Insurance Program Letter (UIPL) No.
       23-21, issued April 4, 2022, https://www.dol.gov/agencies/eta/advisories/unemployment-
       insurance-program-letter-no-23-21-change-3;
   •   UIPL No. 23-21, Change 4, Updated Guidance for Awards related to Grant Opportunity
       Announced in Unemployment Insurance Program Letter (UIPL) No. 23-21, issued
       December 21, 2022; https://www.dol.gov/agencies/eta/advisories/uipl-23-21-change-4;
       and
   •   UIPL No. 03-23, Availability of U.S. Department of Labor (Department) Funded
       Resources and Services to State American Rescue Plan Act (ARPA) Grantees, issued
       March 6, 2023, https://www.dol.gov/agencies/eta/advisories/uipl-03-23.

7. Attachment(s). N/A