Administer the state?s unemployment insurance program activities

The Department of Labor Employment and Training Administration awarded the Arkansas Division of Workforce Services $14,684,754 in formula grant funding on October 1, 2025, to administer the state's unemployment insurance program under CFDA 17.225 (Unemployment Insurance).

The award funds operational costs of Arkansas's unemployment insurance program, including administrative workload, claims processing capability, operation of claimant systems, staffing levels, and overhead costs. The expected outcomes are to maintain or improve performance in timeliness and quality of unemployment insurance claims processing, effective handling of improper payments, and the state's ability to identify fraudulent claims and reduce improper payment rates.

The period of performance runs through December 31, 2028, with place of performance in Arkansas. The recipient does not intend to subaward funds. The assistance type is formula grant, with funding based on workload formula. Annual base operational funding is established through 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.