The U.S. Department of Labor has announced $653 million in American Rescue Plan funds to assist states in modernizing their unemployment insurance systems, combating fraud and improving service delivery to claimants and employers.
The grants, funded by the American Rescue Plan Act, aim to enhance states' unemployment insurance technology, improve flexibility, prevent fraud and streamline claims processing, according to a May 26 news release. An additional $53 million will be allocated to states participating in IT modernization programs sponsored by the Department of Labor.
“The U.S. Department of Labor is committed to working in partnership with states as they modernize their unemployment insurance systems and improve service delivery,” Acting Assistant Secretary for Employment and Training Brent Parton said in the release.
These grants, administered by the Employment and Training Administration, will enable states to upgrade their unemployment insurance systems and enhance service delivery to claimants and employers, the release reported. The focus is on improving IT system flexibility through evidence-driven approaches and modular solutions.
Parton highlighted the historic investment in the nation's unemployment insurance infrastructure to strengthen systems and improve their effectiveness, the release said.
The availability of these funds aligns with the Biden-Harris administration's commitment to modernize state unemployment insurance systems, combat fraud and enhance efficiency, according to the release. It follows a previous announcement of $200 million for identity verification and fraud prevention measures.
The overall investment of $1.6 billion in ARPA funding includes grants for modernizing state IT systems, anti-fraud initiatives, equity enhancements and the deployment of Tiger Teams to assist states in implementing fraud prevention solutions and improving program integrity, the release reported.
The DOL is also providing direct assistance and resources to support states in modernizing their unemployment insurance programs and ensuring equitable access to benefits, according to the release.
"Its Office of Unemployment Insurance Modernization is leading and coordinating the department's efforts to help states with strategic projects to continue to automate benefits processing, improve customer experience, develop claims status tracking tools, improve the user experience when using state systems on mobile devices and simplify forms and web pages to comply with federal Plain Language standards," the release reported.
