Administer the state?S unemployment insurance program activities

The Department of Labor Employment and Training Administration awarded the Minnesota Department of Employment and Economic Development $47.945 million on October 1, 2025, under the Unemployment Insurance program (CFDA 17.225) to administer the state's unemployment insurance program activities through December 31, 2028.

The funding covers operational costs for Minnesota's unemployment insurance program, including administrative workload, claims processing capability, claimant systems operation, staffing levels, and overhead costs. The state will use the award to maintain or improve performance in timeliness and quality of unemployment insurance claims processing, effectively handle improper payments, and identify fraudulent claims while reducing improper payment rates. Unemployment compensation claimants are the intended beneficiaries. Performance of all work occurs in Minnesota. The recipient does not intend to subaward funds. This is a formula grant; funding is based on 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.