The Labor Department has announced the termination of unemployment modernization grant funding aimed at helping states improve their jobless aid systems. This decision follows the struggles of these systems during the pandemic and is part of a broader review of how American Rescue Plan Act (ARPA) funds are allocated. Initially granted $2 billion, funding was later halved, and the department is now re-evaluating payment use to align with its priorities effectively. Over $780 million in grants was distributed, leading to completion of over 225 projects, but an estimated $400 million in unspent funds may be impacted by this decision.
The termination of unemployment modernization grants by the Labor Department reflects a shift in priorities and a comprehensive review of ARPA funding.
The department's decision is aimed at aligning funding use with agency priorities, allowing for potential future funding opportunities after a thorough review.
#labor-department #unemployment-modernization #arpa-funding #biden-administration #grant-termination
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