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ETA News Release: [09/15/2004]
Contact Name: Lorette Post
Phone Number: (202) 693-4676

Labor Department Awards States $18.6 Million to Continue Unemployment Insurance System Improvements

WASHINGTON—The U.S. Labor Department’s Employment and Training Administration (ETA) today awarded $18.6 million to 37 states, the District of Columbia and the Virgin Islands for unemployment insurance system improvements. The funds will make tax and wage reporting easier for employers, ensure employees get the benefits to which they are entitled, protect the security of information the states collect and prevent fraud and abuse.

“These grants for $18.6 million will upgrade the unemployment insurance system and help ensure that workers receive the benefits that they deserve on time,” said U.S. Secretary of Labor Elaine L. Chao. “Complete and accurate employer information helps workers who are eligible for benefits get them as quickly as possible.”

Over $10 million in grants will improve efficiency in the unemployment insurance system by providing employers Internet access for registration and tax and wage reporting. Another $5.5 million will fund Information Technology security projects, while the remaining $2.3 million will allow states to better detect and prevent unemployment insurance overpayments.

“These grants save time and money for the employers who support the unemployment insurance system by giving them access through the Internet,” said Assistant Secretary for Employment and Training Emily Stover DeRocco. “The information collected will be safer because of upgraded Internet security improvements and states will also benefit from lower administrative costs and fewer erroneous payments.”

The grants are based on measurable improvements in quality, reduced costs to employers, strategic design, system security and technical merit. Several state workforce agencies that submitted proposals for funding received awards for more than one project.