Updated National Dislocated Worker Grant Program Guidance and Application Information

The National Dislocated Worker Grant (DWG) Program is administered by the U.S. Department of Labor through the Employment and Training Administration under the authority of the Workforce Innovation and Opportunity Act. This program provides discretionary funding to state workforce agencies, local workforce boards, and other eligible entities to respond to significant economic disruptions such as natural disasters, public health emergencies, mass layoffs, and other large-scale employment impacts. The guidance outlined in Training and Employment Guidance Letter 09-24 Change 1 reflects updated federal priorities and policies governing the administration of these grants, including enhancements related to opioid crisis response and overall program delivery. The primary purpose of the DWG program is to provide supplemental workforce funding in situations where existing formula funds are insufficient to meet the needs of dislocated workers and affected communities. The program supports two major types of grants: Disaster Recovery DWGs and Employment Recovery DWGs. Disaster Recovery DWGs focus on temporary employment and recovery activities following federally declared disasters or emergencies, including public health crises such as the opioid epidemic. Employment Recovery DWGs, on the other hand, address economic dislocations such as plant closures, mass layoffs, or increased demand for workforce services among specific populations like transitioning military personnel. Funding under the DWG program may be used for a range of allowable activities, including disaster-relief employment, employment and training services, career services, supportive services, and other interventions designed to facilitate reemployment and economic recovery. Disaster-relief employment includes cleanup, reconstruction, and humanitarian assistance activities, while training services may include occupational training, apprenticeships, and on-the-job training. The program prohibits the use of funds for new construction or preventative disaster planning unless incidental to current recovery needs. Administrative costs are generally capped at 10 percent of the total award, and all expenditures must comply with federal cost principles. Eligible applicants include state workforce agencies administering WIOA funds, 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, long-term unemployed individuals, and self-employed individuals impacted by economic disruptions. For opioid-related grants, applicants must demonstrate significant workforce impacts, insufficient existing resources, and plans for sustaining activities beyond the grant period. Applications must be submitted through Grants.gov and include a comprehensive set of materials such as a community needs assessment, project timeline, budget justification, and documentation of coordination with relevant agencies. Emergency applications may be submitted shortly after a qualifying disaster declaration to allow rapid response, followed by a full application within 60 business days. The Department of Labor evaluates applications based on need, feasibility, alignment with program goals, and the applicant’s capacity to manage federal funds. There is no fixed application deadline for most DWG funding opportunities, as applications are accepted on a rolling basis depending on qualifying events. However, opioid-related Disaster Recovery DWG applications are only accepted during the fourth quarter of the federal fiscal year, from July 1 through September 30. Awards are typically issued within 45 days of a complete application, and grant periods generally last up to 36 months, with the possibility of a 12-month extension under exceptional circumstances. Overall, the DWG program serves as a critical federal mechanism for rapid workforce response and recovery, enabling communities to address immediate employment needs while building long-term resilience. The program emphasizes coordination with existing workforce systems, alignment with economic development strategies, and measurable outcomes related to employment and training success.