Everything you need to know about getting Recovery Act funds
March 9, 2009 by Jim GiulianoPosted in: COBRA, Employment law, In this week's e-newsletter, Latest News & Views, Money, Records documentation
The U.S. Department of Labor has set up a Web page to help employers and employees figure out whether they’re eligible for money flowing from the Recovery Act and how to access the money.
Here are the some of the categories of information on the DOL Web page, which has links to key information centers:
Workforce Investment Act (WIA) programs: Provides $3.95 billion for WIA programs, including:
- Adult Employment and Training Activities funded by $500 million. Priority use of funds is for services to public assistance recipients and other low income individuals.
- Dislocated Worker Employment and Training Activities funded by $1.25 billion to award National Emergency Grants to respond to plant closings, mass layoffs and other worker dislocations.
- Program of Competitive Grants for Worker Training and Placement in High Growth and Emerging Industry Sectors funded by $750 million. Provides for a program of competitive grants for worker training and placement in high growth and emerging industry sectors. Of the total, $500 million 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 healthcare sector.
Community Service Employment for Older Americans funded by $120 million. Provided for part-time employment opportunities for low income seniors.
Employment Service Grants to States funded by $400 million. Provides 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.
- 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.
- 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 million 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.
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.
COBRA Continuation Coverage: Provides funding for a 65% reduction in COBRA premiums for eligible individuals.
Tags: department of labor, EUC, Recovery Act, WIA
HRMorning.com delivers the latest HR news once a week to the inboxes of over 200,000 HR professionals.
Click here to sign up and start your FREE subscription to HRMorning!
follow us on Twitter
join our group on Facebook


March 9th, 2009 at 11:36 pm
[...] Everything you need to know about getting Recovery Act funds … By Jim Giuliano Karin: Oh Danielle, if you haven’t documented the issues, you have no grounds to terminate her. You are asking for a law suit … Danielle: I have an employee who just had a baby and she is due to come back from her FMLA. … HRMorning.com – http://www.hrmorning.com/ [...]
March 16th, 2009 at 1:08 pm
Just one question…..how are we going to PAY FOR ALL OF THIS!!
March 16th, 2009 at 2:14 pm
Question is: How are we going to pay? as an example look at what they are doing in the area of Cobra coverage. “COBRA Continution Coverage” This is supposed to be funded by the “Recovery Act” In reality they are putting on the backs of businesses. They just don’t get it, businesses lay employees off for one reason, they cannot afford to pay them. Along cones uncle sam and requires those businesses to pay for benefits of people who they are not employing any more.
March 16th, 2009 at 3:10 pm
King Obama and his court are giving away the country to the masses. No matter that it doesn’t belong to him-his socialist dream state will bankrupt the US. Stop these bullies-scream at your Congressional representatives to rein in this fool and his cronies. The Chicago mob should not run rampant at our expense.
March 16th, 2009 at 4:50 pm
If you think Obama will do so bad, why don’t you do what you did when Bush was getting us into this situation…………Sit back, Shut up and let him fall on his face?
March 18th, 2009 at 12:10 pm
Kudos Liz. . . .