Administer the state?s unemployment insurance program activities

The Department of Labor Employment and Training Administration awarded the Tennessee Department of Labor & Workforce Development $31,959,042 on October 1, 2025, under the Unemployment Insurance program (CFDA 17.225) to administer the state's unemployment insurance program activities.

Funding covers the operational costs of Tennessee's unemployment insurance program, including administrative workload, claims processing capability, operation of claimant systems, staffing levels, and overhead costs. The award supports the state's ability to maintain or improve performance in the timeliness and quality of unemployment insurance claims processing, handle improper payments, identify fraudulent claims, and reduce improper payment rates. Intended beneficiaries are unemployment compensation claimants. The recipient does not intend to subaward funds.

Performance period runs through December 31, 2028, with place of performance in Tennessee. This is a formula grant; funding is based on workload projections pursuant to economic assumptions and nationally developed workload estimates, with additional quarterly funding based on actual workloads.

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.