Updated National Dislocated Worker Grant Program Guidance and Application Information

The National Dislocated Worker Grant (DWG) Program, administered by the U.S. Department of Labor Employment and Training Administration, is a federal discretionary funding initiative authorized under the Workforce Innovation and Opportunity Act. This program is designed to provide supplemental resources to state and local workforce systems when significant economic disruptions or disaster events create workforce service demands that exceed existing formula funding. The guidance document outlines updated policies and priorities, including specific changes related to disaster recovery efforts and public health emergencies such as the opioid crisis. The primary purpose of the DWG program is to support employment-related services for dislocated workers and other eligible individuals impacted by major economic dislocations or disasters. The program includes two major funding streams: Disaster Recovery DWGs and Employment Recovery DWGs. Disaster Recovery grants focus on temporary employment and workforce services following federally declared disasters or emergencies, including public health crises. Employment Recovery grants support reemployment services after layoffs, plant closures, or other economic disruptions. These grants are intended to stabilize communities, support workforce reintegration, and strengthen economic recovery. Funding supports a range of allowable activities including disaster-relief employment, employment and training services, and supportive services necessary for participant success. Disaster-relief employment must directly address cleanup, recovery, or humanitarian needs resulting from a declared event and cannot be used for new construction or future disaster prevention. Employment and training services may include career services, occupational training, work-based learning, and supportive services such as transportation or childcare. Administrative costs are generally capped at 10 percent of the total award, and funding must align with federal cost principles requiring expenses to be necessary, reasonable, and allocable. Eligible applicants vary depending on the grant type but generally include state workforce agencies, local workforce development boards, tribal governments, and certain other entities capable of managing federal workforce programs. Eligible participants include dislocated workers, individuals laid off due to disasters, long-term unemployed individuals, and self-employed individuals affected by qualifying events. For opioid-related disaster grants, participants do not need to be personally affected by opioid use but must fall within broader eligibility categories. Applicants must demonstrate need through data, including economic impact or workforce shortages, and show that existing resources are insufficient. Applications must be submitted through Grants.gov and must include a comprehensive project plan, community needs assessment, budget, and supporting documentation. Applicants may submit either emergency applications shortly after a disaster declaration or full applications detailing the full scope of activities. Emergency applications allow for rapid deployment of funds, while full applications must be submitted within specified timelines following initial awards. Additional requirements include SAM registration, a Unique Entity Identifier, and coordination with local workforce and emergency management agencies. The evaluation and award process is conducted by the Department of Labor, which reviews applications based on need, project viability, alignment with program goals, and applicant capacity. Awards are typically issued within 45 days of receiving a complete application. Funding levels are subject to availability and may be awarded in full or incrementally. Disaster Recovery DWGs generally have funding caps of up to $5 million, with higher limits in exceptional cases, while Employment Recovery DWGs typically have a cap of $2 million. The period of performance for DWG awards generally does not exceed 36 months, with the possibility of a one-time extension of up to 12 months under exceptional circumstances. The program operates on a rolling basis, with applications accepted year-round for most grant types, except for opioid-related grants which are limited to submissions during the fourth quarter of the federal fiscal year. Overall, the DWG program plays a critical role in supporting workforce resilience and recovery in response to economic and disaster-related disruptions.

Demonstrate clear workforce impact using data; align project with local economic needs; ensure coordination with workforce and emergency partners; justify funding request with detailed participant and service projections