A first-round of more than $20 million in grants from the U.S. Department of Labor will help several states resolve disparities revealed during the pandemic in how they delivered unemployment insurance benefits.
Funds from the American Rescue Plant will help Oregon, Pennsylvania, Virginia and the District of Columbia with equitable access through public awareness and service delivery to fix the problems resulting from outdated systems, the Department of Labor reported March 1.
“We are working closely with states to improve the delivery of benefits and services to America's workers and job seekers. These grants are the first of their kind to advance equity in state unemployment insurance programs,” Secretary of Labor Marty Walsh said.
The Department of Labor is committed to addressing disparities in the administration and delivery of unemployment insurance benefits that discriminate based on race, ethnicity, language proficiency and disability status, among others.
Walsh said the unemployment insurance system was critical for millions of workers. Too many reportedly had difficulties in accessing those benefits. Part of the grant funds can be used to determine if their efforts are successful, the department said.
The grants are funded through the American Rescue Plan Act. The department’s Employment and Training Administration announced it had $260 million available in August 2021 in grants for equitable access. The grant awards would be used to cut administrative problems for unemployment benefits applicants, to reduce backlogs in the states, improve timeliness in payments and to ensure equity in areas of fraud prevention, detection and recovery.
