Explanation:
The American Recovery and Reinvestment Act (ARRA) made a total of $7 billion available in UI Modernization incentive payments to states that include certain eligibility provisions in their state UI programs. The incentive payments are available to states that have expanded eligibility for UI benefits in specific ways.
States receive one-third of their share when they use recent wages when determining UI eligibility.
States receive the remaining two-thirds of their share when they also provide for two of the following four eligibility provisions:
- Pay UI to individuals seeking only part-time work.
- Ease qualifying requirements for workers who quit because of certain family responsibilities. These relate to workers who leave work to escape domestic violence, to care for an ill family member, or who quit following a spouse who moves to a new job.
- Extend benefits to workers in training who exhaust regular UI.
- Add dependents' allowances to weekly benefits.
The maximum incentive payment allowable for a state would be distributed to the state UTF accounts based on the state's share of estimated federal unemployment taxes (excluding reduced credit payments) made by the state's employers as estimated at the end of FY2008.
DOL may take up to 30 days to make a determination as to whether a state qualifies (is certified) to receive the unemployment modernization incentive payment.
Applications are due to DOL by August 22, 2011. All incentive payments must be made before October 1, 2011.
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