Administer the state?s unemployment insurance program activities

The Department of Labor Employment and Training Administration awarded the Texas Workforce Commission $130.520 million on October 1, 2025, under the Unemployment Insurance formula grant program (CFDA 17.225) to administer the state's unemployment insurance program activities through December 31, 2028.

Funding covers costs for operation of Texas's unemployment insurance program, including administrative workload, claims processing capability, claimant system operations, staffing levels, and overhead costs. The expected outcomes are maintenance or improvement of performance levels regarding timeliness and quality of unemployment insurance claims processing, effective handling of improper payments, and sustained or improved ability to identify fraudulent claims and reduce improper payment rates. The intended beneficiaries are unemployment compensation claimants.

The award is a formula grant based on workload projections pursuant to economic assumptions and nationally developed workload estimates, with additional quarterly funding based on actual workloads. Annual grants for base operation are financed through letter of credit draw downs. The recipient does not intend to subaward funds. Place of performance is Texas.

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.