Administer the state?s unemployment insurance program activities

The Department of Labor Employment and Training Administration awarded the Illinois Department of Employment Security $124,979,964 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 Illinois's unemployment insurance program, including administrative workload, claims processing capability, claimant system operation, staffing levels, and overhead costs. Expected outcomes include maintaining or improving 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. Unemployment compensation claimants are the intended beneficiaries.

Performance occurs in Illinois. The period of performance extends through December 31, 2028. The Illinois Department of Employment Security, a division of the State of Illinois, will not subaward funds to sub-recipients. Annual grants for base operations are based on workload projections pursuant to nationally developed workload estimates, with additional quarterly funding based on actual workloads. Assistance type is formula grant.

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.