States can apply to the federal government for an American Rescue Plan Act (ARPA) Unemployment Insurance grant of up to $3 million to help provide unemployment insurance services to underserved communities. The deadline for the grant is 4 p.m. Eastern time March 31 and the U.S. Department of Labor asks states planning to apply by Feb. 28 so the department can expect the application.
The total amount of money available for the ARPA UI Navigator grants is $15 million, meaning that up to five states will be able to receive grant funding, according to an interview with Michele Evermore, the Employment and Training Administration (ETA) senior policy adviser on jobless aid, by Bloomberg Law. The five states will act as a test bed to look for ways to improve access to underserved communities, she said.
“Instead of having navigators in 53 states all at once, there were decisions made to narrow it down so we could try it in about five states first, and make sure that we understand how it works,” Evermore told Bloomberg Law. “So, we’ll be able to make any tweaks necessary to make this a bigger thing if it does what we think it will do. But, right now, we need a proof of concept.”
The U.S. Department of Labor announced the grant opportunity on Jan. 31.
What are Underserved Communities?
The U.S. Department of Labor is doing this because not everyone has equal access to unemployment insurance benefits, particularly during the COVID-19 pandemic. For example, Department of Labor research found that Black unemployed workers were 30% less likely to receive unemployment benefits compared with white workers throughout the pandemic.
“Unfortunately, for many workers – especially women, people of color, and those who have faced historic challenges accessing benefits – the pandemic exacerbated delays and lack of access to benefits,” the department wrote in a blog post explaining the program.
These underserved communities include women; racial and ethnic minorities, including Blacks, Hispanics, American Indian and Native Americans, Asian Americans, Native Hawaiians, Pacific Islanders and Indigenous Persons; low-wage workers; individuals with disabilities; members of religious minorities; LGTBQI+ individuals; individuals with limited English proficiency; formerly incarcerated individuals; and individuals living in rural areas.
According to a pre-pandemic survey conducted by the Bureau of Labor Statistics, 59% of unemployed people who didn’t apply for jobless benefits mistakenly thought they were ineligible. Another 12% cited “attitudes about or barriers to applying,” including that “they did not know about UI, or they had problems with the application process,” Bloomberg Law wrote.
The purpose of the Unemployment Insurance grant is to help address these disparities and continue to strengthen state unemployment insurance systems by helping workers understand the application process for claiming and receiving benefits and related services, the department said.
These funds are intended to help workers learn about, apply for, and, if eligible, receive unemployment insurance benefits and related services, as well as to support state agencies in delivering timely benefits to workers – especially individuals in underserved groups.
How do States Apply?
The department will award ARPA UI Navigator grants to states to partner with community-based organizations to deliver outreach, training, education and general assistance with completing applications for unemployment benefits. Community-based organizations include labor unions or other entities representing workers, colleges or other institutions of higher education and other nonprofit groups. In particular, states are encouraged to partner with American Indian/Native American Tribal governments, the Department of Labor said.
Community-based organizations partnering with states for the ARPA UI Navigator Program should be able to demonstrate they have
- a successful track record of serving the same or similar communities they expect to support with this program
- relationships with unemployed workers likely to need assistance applying for and, if eligible, receiving UI benefits and related services
- experience in helping workers navigate government programs, especially on unemployment insurance-related issues, and building skills they need to effectively represent themselves and their communities in government programs
In addition, these organizations must have experience in supporting worker voice through assisting workers in navigating the UI program and must be able to demonstrate that they have experience working with the community or communities in gaining access to unemployment insurance benefits and/or benefits provided through other federal entitlement programs.
While the applications will be judged by a panel, the grant officer can consider other factors, such as the geographic distribution of funds or diversity of program focus areas, the department said.
What’s Required for Grant Recipients
The grants are being awarded for a 36-month period of performance, with an anticipated start date of July 1. No cost sharing or matching is required.
States that receive grants will be required to report on the quarterly progress and implementation of the program. Selected states also agree to share any relevant studies, reports, findings and/or audits with their respective ETA regional office. Finally, states must also agree to participate in equity data analytics activities and an evaluation sponsored by the Department, including sharing performance and progress reports, data related to the administration of the UI Navigator Program, and individual-level information on participants.
It’s also possible that more funds could become available. In that case, the Department said it could use such funds to select additional grantees from submitted applications.
The preliminary document, due by Feb. 28, is optional. Potential applicants are encouraged to notify the department of their intent to submit an application for this funding opportunity by emailing the appropriate ETA regional office with the subject line of the email message reading “Intent to Apply – ARPA UI Navigator Program.” The email message should also identify the entity planning to submit the application for funding. While the notification is optional, it will help the department plan for the review of applications, as well as award issuance.
The complete grant application, due by March 31, should be sent by e-mail to the appropriate ETA regional office. The subject line of the email message should include the name of the state and the title “ARPA UI Navigator Program,” according to the grant opportunity letter.
The grant opportunity letter has complete details on what’s required in the application, including a suggested format, and how applications will be judged.
