The Unemployment Insurance Program Letter (UIPL) No. 02-25 provides guidance for states on requesting ongoing administrative funding for unemployment compensation (UC) programs established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and its amendments. These programs include Pandemic Emergency Unemployment Compensation (PEUC), Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC), and Mixed Earners Unemployment Compensation (MEUC). This guidance applies to states managing ongoing workloads, including benefit claims, appeals, and financial reconciliations.
The purpose of this funding is to ensure continued administration of CARES Act UC programs. States are required to submit program-specific grant applications for workload-based administrative funding, adhering to reporting and allocation requirements. The guidance applies to activities such as processing claims, addressing overpayments, and resolving audits related to these programs. Administrative funding is provided through new grants, as the original performance periods for the CARES Act grants have ended.
Eligible applicants are state workforce agencies operating unemployment insurance programs as defined by federal guidelines. To apply, states must submit a separate Standard Form (SF-424) for each UC program through Grants.gov, specifying estimated funding based on historical administrative earnings and workload data. States must ensure compliance with federal financial and reporting regulations, including prorating costs and providing detailed reports on program activities.
Submission requirements include the SF-424 form, along with estimated funding calculations derived from specific program workload reports such as the ETA 902P for PUA and ETA UI-3 for PEUC. Each grant application must include details such as the UIPL number, grant name, and accurate contact information for state representatives. Additionally, states must maintain active registrations with the System for Award Management (SAM) and Unique Entity Identifier (UEI) systems.
Evaluation criteria prioritize accurate workload reporting, adherence to program-specific funding allocation rules, and proper use of administrative funds. Grants are subject to a 5.7% sequestration reduction, and awards may be withheld or adjusted based on cumulative earnings or thresholds.
The timeline specifies that applications must be submitted within 30 days of the UIPL publication date. Reporting requirements include Quarterly Financial Reports (ETA 9130) reflecting grant activity. States are advised to submit reports promptly and to address any funding discrepancies or inquiries to the appropriate ETA regional office. The performance period for these grants begins July 1, 2024, and ends December 31, 2025.
