Sequestration Update: DOL Guidance on Unemployment Insurance Supplemental Funding Opportunity




The Employment and Training Administration (ETA) at the U.S. Department of Labor (DOL) issued guidance to states on a new supplemental funding opportunity that will be available to help fund the costs associated with implementation of sequestration impacts on the Emergency Unemployment Compensation (EUC) program. Funds for the EUC program, including program administration, are subject to a 5.1 percentage reduction under the March 1, 2013 sequester as a mandatory spending program. $40,000 has been provided to each state workforce agency for EUC administration to facilitate implementing changes required by the sequester. DOL is announcing an opportunity for states to request additional funding beyond the $40,000 already made available through the Supplemental Budget Request (SBR) process. These additional funds are available to cover costs associated with programming of EUC entitlement reductions, benefit redeterminations, website and voice response systems, as well as staff training. Supplemental funds awarded for the purposes of implementing sequestration must be obligated or returned by September 30, 2013.

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