Federal Formula Grant Award Summary

The Virginia Employment Commission received a $11.7 million formula grant award from the U.S. Department of Labor's Employment and Training Administration under the Unemployment Insurance program (CFDA 17.225), effective October 1, 2025 through December 31, 2028. The grant funds the state's unemployment insurance program administration, including claims processing operations, claimant systems management, staffing, and overhead costs necessary to administer unemployment compensation benefits to eligible workers. The funding supports Virginia's administrative capacity to maintain service quality and timeliness in claims processing while effectively identifying and reducing improper and fraudulent payments.

The award represents core operational support for Virginia's unemployment insurance infrastructure, with no planned sub-award activities. Expected outcomes include maintaining or improving performance levels in the timeliness and quality of unemployment insurance claims processing, as well as enhanced capability to identify fraudulent claims and reduce improper payment rates. Primary beneficiaries are unemployment compensation claimants in Virginia. This formula-based grant aligns with the federal-state partnership model under which the Department of Labor provides funding while state workforce agencies maintain responsibility for benefit administration within their jurisdictions.