The U.S. Department of Labor has allocated $5 million to aid Kentucky's ongoing recovery efforts following severe storms in 2023. This funding aims to support disaster-relief employment and workforce training for residents in the affected areas.

In July 2023, the department announced a National Dislocated Worker Grant of up to $20 million, initially awarding $6.6 million to the Kentucky Department of Workforce Development. The grant focuses on providing temporary jobs for debris removal and humanitarian assistance in Bell, Carter, Elliott, Harlan, Lawrence, Morgan, and Powell counties.

The severe weather in February 2023 compounded damage from a previous flood in 2022, severely impacting infrastructure. A major disaster declaration by the Federal Emergency Management Agency on May 9, 2023, allowed Kentucky to seek additional funding.

These grants are managed by the Employment and Training Administration under the Workforce Innovation and Opportunity Act of 2014. They aim to temporarily boost dislocated worker programs at state and local levels during significant economic disruptions that lead to job losses.