Funding to Support Ongoing Administration of Certain Coronavirus Aid, Relief, and Economic Security Act Programs - Mixed Earners Unemployment Compensation

The Unemployment Insurance Program Letter No. 11-26 issued by the U.S. Department of Labor, Employment and Training Administration, establishes a funding opportunity for State Workforce Agencies to support the continued administration of several expired CARES Act unemployment insurance programs. These programs include Pandemic Unemployment Assistance, Pandemic Emergency Unemployment Compensation, Mixed Earners Unemployment Compensation, and Federal Pandemic Unemployment Compensation. Although these programs officially ended in September 2021, the Department recognizes that significant administrative work remains, particularly in areas such as fraud prevention, overpayment recovery, and data reconciliation. This funding is intended to ensure that states can continue fulfilling these responsibilities through June 30, 2027. The purpose of this funding opportunity is to provide administrative support for residual activities associated with these pandemic-era programs. State Workforce Agencies are expected to use funds to address ongoing program integrity efforts, including identifying and combating fraud, resolving appeals, and processing backlog claims. Additional allowable uses include maintaining data integrity, fulfilling reporting requirements, retaining program records, and supporting audit and oversight activities. Agencies may also propose other administrative costs, provided they demonstrate that such costs are necessary, reasonable, and allowable under federal cost principles. Funding amounts are not predetermined and must be requested by each State Workforce Agency through a formal application process. Applicants are required to justify their funding request based on anticipated administrative needs for the entire period of performance. Awards are subject to a 5.7 percent sequestration reduction, meaning final funding levels will be slightly lower than requested amounts. Funds are reimbursed based on actual expenditures rather than estimates provided in the application. The performance period for all awards begins on January 1, 2026, and ends on June 30, 2027, unless modified. Eligibility for this funding is limited to State Workforce Agencies that previously administered CARES Act unemployment programs. These agencies must have existing agreements with the Department of Labor related to the implementation of these programs. Each agency may submit one application per program, meaning separate applications are required for PUA, PEUC, MEUC, and FPUC if funding is requested for multiple programs. All applicants must comply with federal regulations outlined in 2 CFR Parts 200 and 2900, including cost principles, audit requirements, and administrative standards. The application process requires submission of both standardized federal forms and program-specific documentation. Applicants must submit the SF-424 and SF-424A forms through Grants.gov and provide additional materials via email, including a completed UI Grant Application, copies of submitted forms, and a detailed budget narrative. The budget narrative must align with the financial data provided in the SF-424A and explain all projected costs. Applications must be submitted by June 18, 2026, and failure to meet this deadline may result in denial of funding. Evaluation of applications is conducted by the Department of Labor based on the completeness of the submission, justification of requested funds, and alignment with allowable activities. Funding decisions are made periodically throughout the application window, encouraging early submission for faster access to funds. Once awarded, recipients must comply with ongoing reporting requirements, including quarterly financial and progress reports detailing fund usage and program outcomes. This funding opportunity is not recurring in a traditional sense but represents a continuation of administrative support tied to previously authorized programs. The Department expects diminishing administrative needs over time as states resolve outstanding issues related to CARES Act programs. However, given the scale of fraud and reconciliation efforts still required, this funding serves as a critical bridge to ensure accountability, compliance, and completion of all outstanding administrative obligations.

Ensure budget narrative aligns exactly with SF-424A financials and submit early to receive funding sooner as applications are reviewed on a rolling basis