DOL Information Related to the American Recovery and Reinvestment Act of 2009

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Implementing the Recovery Act

This page provides information about DOL programs funded by the Recovery Act.

• Workforce Investment Act (WIA) programs: Provides $3,950,000,000 for WIA programs, including:
• Adult Employment and Training Activities: $500,000,000 is provided for programs described at http://www.doleta.gov/programs/general_info.cfm. Priority use of funds is for services to public assistance recipients and other low income individuals.
• Youth Activities, including summer jobs for youth: $1,200,000,000 is provided for programs described at http://www.doleta.gov/youth_services/. Particular emphasis is placed on creating summer employment opportunities for youth, but year-round youth activities are also envisioned. Age eligibility for youth services with these funds is raised from 21 to 24.
• Dislocated Worker Employment and Training Activities: $1,250,000,000 is provided for formula funded programs described at http://www.doleta.gov/programs/ETA_default.cfm?#Dislocated. An additional $200,000,000 is provided for National Emergency Grants to respond to plant closings, mass layoffs and other worker dislocations, as described at http://www.doleta.gov/NEG/definition.cfm.
• Program of Competitive Grants for Worker Training and Placement in High Growth and Emerging Industry Sectors: $750,000,000 is provided for a program of competitive grants for worker training and placement in high growth and emerging industry sectors. Of the total, $500,000,000 is to be used for research, labor exchange, and job training projects that prepare workers for careers in energy efficiency and renewable industry industries. In awarding remaining funds, priority shall be given to projects that prepare workers for careers in the health care sector.
• YouthBuild Activities: $50,000,000 is provided for the program described at http://www.doleta.gov/youth_services/.
• Community Service Employment for Older Americans: $120,000,000 is provided for part-time employment opportunities for low income seniors, as described at http://www.doleta.gov/seniors/.
• Employment Service Grants to States: $400,000,000 is provided for services described at http://www.doleta.gov/programs/Wagner_Peyser.cfm. Of this total, $250,000,000 is to be used for reemployment services to connect unemployment insurance claimants to employment and training opportunities that will facilitate their reentry into employment.
• Unemployment Insurance (UI):
• EUC Extension: The Emergency Unemployment Compensation Act of 2008 (EUC) which would have expired on March 31, 2009 is extended through December 31, 2009. The EUC program is described at http://www.workforcesecurity.doleta.gov/unemploy/supp_act.asp.
• Increased UI Benefits: Benefit payments are increased by $25 per week through December 31, 2009 for individuals receiving Trade Readjustment Allowances, Disaster Unemployment Benefits, regular Unemployment Compensation, Extended Benefits, or EUC. The programs are described through links at http://www.workforcesecurity.doleta.gov/unemploy/.
• Special Transfers for Unemployment Compensation Modernization: Up to $7 billion is transferred from the Federal Unemployment Account to the state accounts as “incentive payments” to encourage states to enact specific reforms, such as coverage of part-time workers. Incentive payments expire October 1, 2011.
• Increased UI Administrative Funding: An additional $500,000,000 is provided to states to administer their UI programs.
• Temporary Suspension of Taxation of Unemployment Benefits: Federal income tax on the first $2,400 of unemployment benefits is suspended for 2009.
• Full Federal Funding of Unemployment Compensation for a Limited Period: Extended Benefits would be 100% federally financed through January 1, 2010. Extended benefits are described at http://www.workforcesecurity.doleta.gov/unemploy/extenben.asp.
• Temporary Assistance for States with UI Funding Advances: Interest payments and accrual of interest on loans received by State unemployment trust funds are waived through December 31, 2010.
• Work Opportunity Tax Credit (WOTC): A new targeted group is created for WOTC, which provides a tax credit to employers who hire members of targeted groups. The new group is unemployed veterans and disconnected youth who begin work in 2009 and 2010. The credit applies to individuals who begin work for the employer after December 31, 2008. WOTC is described at http://www.doleta.gov/business/incentives/opptax/.
• Trade Adjustment Assistance (TAA): All TAA programs are reauthorized through Dec. 31, 2010. Current Trade Adjustment Assistance is expanded to trade-affected services sector workers and workers affected by offshoring or outsourcing to all countries, including China or India. Training funds available to states are increased by 160%, to $575 million a year, and a new TAA program is created for trade-affected communities. In addition, the reauthorization allows for automatic TAA eligibility for workers suffering from import surges and subject to unfair trade determinations, makes training, healthcare and re-employment TAA benefits more accessible and flexible, and enhances benefits in the TAA for Firms and TAA for Farmers programs. The current TAA program (before reauthorization) is described at http://www.doleta.gov/tradeact/taa/WhoWeServe.cfm.
• COBRA Continuation Coverage: Provides funding for a 65% reduction in COBRA premiums for eligible individuals.