Administer the state?s unemployment insurance program activities

The Department of Labor Employment and Training Administration awarded the Department of Workforce Development (Kentucky) $24.523 million under the Unemployment Insurance formula grant (CFDA 17.225) on October 1, 2025, with obligation through December 31, 2028.

The funding covers operational costs for Kentucky's unemployment insurance program, including administrative workload, claims processing capability, operation of claimant systems, staffing levels, and overhead. The recipient will maintain or improve performance in timeliness and quality of claims processing, handling of improper payments, identification of fraudulent claims, and reduction of improper payment rates. Unemployment compensation claimants are the intended beneficiaries.

The Department of Workforce Development will not subaward funds under this grant. Performance occurs in Kentucky.

Purpose

The purpose of this grant is to administer the state?s unemployment insurance program activities.

Activities

Funding provided to the state is for costs incurred for the operation of their unemployment insurance program. This includes the state?s unemployment insurance administrative workload and their ability to process claims. This also includes the operation of the state?s claimant systems as well as staffing levels and overhead costs.

Expected outcomes

The state is able to maintain or improve levels of performance regarding the timeliness and quality of processing unemployment insurance claims, as well as effectively handling improper payments. The state?s ability to identify fraudulent claims and reduce improper payment rates is maintained or improved.

Intended beneficiaries

Unemployment compensation claimants.

Subrecipient activities

The recipient does not intend to subaward funds.