Administer the state?s unemployment insurance program activities

The Department of Labor Employment and Training Administration awarded the Commonwealth of Pennsylvania Department of Labor & Industry $100,929,933 on October 1, 2025, under the Unemployment Insurance program (CFDA 17.225) to administer the state's unemployment insurance program activities.

Funding covers operational costs of Pennsylvania's unemployment insurance program, including administrative workload, claims processing capability, claimant systems operation, staffing levels, and overhead costs. Expected outcomes include maintaining or improving performance levels regarding timeliness and quality of claims processing, effective handling of improper payments, and identification and reduction of fraudulent claims. Intended beneficiaries are unemployment compensation claimants. The recipient does not intend to subaward funds.

Performance period runs through December 31, 2028, with work performed in Pennsylvania. The Unemployment Insurance program provides annual grants for base operation based on workload projections and economic assumptions, with additional quarterly funding based on actual workloads. Financing occurs through letter of credit draw downs to meet immediate cash requirements. States must submit a State Quality Service Plan to the appropriate ETA regional office and maintain compliance with federal statutes; state workforce agencies are subject to audits by the Department of Labor or other authorized government agencies.

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.