Updated National Dislocated Worker Grant Program Guidance and Application Information

The National Dislocated Worker Grant program is administered by the U.S. Department of Labor through its Employment and Training Administration as a discretionary funding mechanism authorized under the Workforce Innovation and Opportunity Act, Section 170. The program is designed to provide supplemental resources to state and local workforce systems when significant economic disruptions or disaster events create a surge in demand for employment and training services that cannot be met through existing formula funding. This guidance outlines updated policies, priorities, and operational requirements governing the program, replacing prior guidance and aligning all grant types under a unified framework. The program serves two primary purposes through its two grant types: Disaster Recovery and Employment Recovery. Disaster Recovery grants support communities impacted by federally declared disasters or emergencies by funding temporary disaster-relief employment and related workforce services. These activities focus on cleanup, recovery, and humanitarian assistance efforts tied directly to the disaster’s impact. Employment Recovery grants, by contrast, respond to large-scale economic dislocations such as mass layoffs, plant closures, or significant increases in demand for workforce services. These grants expand the capacity of workforce systems to provide career services, training, and supportive services to dislocated workers and other eligible individuals. Funding under this program is flexible but must align with allowable activities defined under WIOA and federal regulations. Disaster Recovery grants may fund temporary employment for cleanup or humanitarian work, as well as training and supportive services. Employment Recovery grants focus on employment and training assistance, including career counseling, occupational training, on-the-job training, and supportive services. Funds cannot be used for new construction or activities aimed solely at preventing future disasters. Administrative costs are limited, and all expenditures must meet federal cost principles for allowability, reasonableness, and allocability. Eligible applicants vary by grant type but generally include state workforce agencies, local workforce development boards, tribal governments, and other entities capable of responding to workforce disruptions. Eligible participants include dislocated workers, individuals laid off due to disasters or economic events, long-term unemployed individuals, and certain members of the Armed Forces and their spouses. The program emphasizes inclusivity and allows flexibility in defining participant eligibility to maximize service reach. Applicants must demonstrate need through a community needs assessment and show that existing resources are insufficient to meet demand. Applications are submitted through Grants.gov and may be accepted on a rolling basis depending on the type of event. Disaster Recovery grants may include an emergency application option shortly after a qualifying disaster declaration, allowing rapid initial funding followed by a full application within a defined timeframe. Employment Recovery applications are generally expected within 120 days of a qualifying layoff event. Applications must include detailed information on project design, funding needs, participant targets, coordination with partners, and compliance with federal requirements. A Unique Entity Identifier and active SAM registration are required prior to submission. Applications are reviewed by the Department of Labor, and funding decisions are typically made within 45 days of receiving a complete application. Awards are discretionary and depend on funding availability, severity of the event, and applicant capacity. Grants are generally awarded for up to 36 months, with possible extensions. Funding levels are typically capped depending on the grant type, though exceptions may apply in large-scale events. The program operates continuously without fixed annual deadlines, allowing rapid response to emerging workforce needs. Applicants are encouraged to coordinate with emergency management agencies and workforce partners to ensure alignment with broader recovery efforts.