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

The Unemployment Insurance Program Letter No. 11-26 issued by the U.S. Department of Labor Employment and Training Administration establishes a federal funding opportunity to support State Workforce Agencies in continuing the administration of expired Coronavirus Aid, Relief, and Economic Security 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 expired in September 2021, states remain responsible for ongoing administrative activities such as fraud mitigation, reconciliation of accounts, recovery of overpayments, data retention, and resolution of outstanding claims. The Department is therefore making additional administrative funding available to ensure states can continue fulfilling these obligations. The primary purpose of this funding is to address residual administrative burdens associated with the CARES Act programs. The Department recognizes that while initial administrative grants covered earlier operational needs, ongoing responsibilities such as auditing, reporting, and fraud investigation persist beyond the original funding periods. This opportunity allows State Workforce Agencies to request funding tailored to their projected administrative costs for the period from January 1, 2026 through June 30, 2027. Funds are intended strictly for administrative activities and must be allocated appropriately across the respective programs based on cost principles outlined in federal regulations. Eligible applicants are limited to State Workforce Agencies that previously administered one or more of the CARES Act unemployment programs under formal agreements with the Department of Labor. Each agency may submit one application per program, and must justify the amount requested based on anticipated administrative needs. The allowable uses of funds include program integrity efforts such as fraud detection and recovery, data integrity and reporting compliance, audit and oversight activities, and other justified administrative costs. Any additional proposed cost categories must be clearly explained and will be evaluated individually for reasonableness and compliance with federal cost principles. The application process requires submission of a complete grant package including the SF-424 and SF-424A forms through Grants.gov, as well as supporting documentation submitted via email. Required components include a formal UI Grant Application detailing proposed activities and a comprehensive budget narrative aligned with projected expenditures. Applications must clearly outline how requested funds will support ongoing administrative functions and must correspond with federal reporting and cost allocation standards. Agencies are encouraged to apply early, as awards may be issued on a rolling basis throughout the application period. The deadline for submitting both the Grants.gov forms and the full application package is June 18, 2026. Failure to meet this deadline may result in loss of eligibility for funding. Following award, recipients are required to submit quarterly financial and progress reports, including the ETA 9130 and ETA 9178, to document fund usage and project progress. These reporting requirements ensure accountability and allow the Department to monitor compliance with allowable use guidelines. Funding amounts are not predetermined and must be requested by each applicant based on demonstrated need. Awards are subject to a 5.7 percent sequestration reduction in accordance with federal budget requirements. The period of performance begins January 1, 2026 and ends June 30, 2027, with costs only allowable if incurred within this timeframe. Agencies must ensure that all expenditures align with federal administrative cost principles and that funds are used exclusively for activities tied to the specified CARES Act programs. This funding opportunity is not a recurring grant in the traditional sense but represents a continuation of federal support tied to the long-term administration of pandemic-related unemployment programs. It reflects the Department’s ongoing commitment to ensuring program integrity, financial accountability, and proper resolution of all outstanding obligations associated with CARES Act unemployment benefits. Additional guidance, application templates, and reporting requirements are provided within the official UIPL document.

Ensure funding request fully accounts for all administrative costs across the full performance period; align budget narrative precisely with SF-424A; clearly justify any non-standard administrative cost categories; submit early to allow for rolling award consideration