Department of Labor UI Modernization Grant Program

About the Grant

The U.S. Department of Labor has announced a series of actions to modernize and reform a cornerstone of the U.S. economic infrastructure, the unemployment insurance system. Over the last year alone, the unemployment insurance system has helped nearly 53 million workers stay afloat during a pandemic and economic crisis and put nearly $800 billion into the economy – staving off an even deeper recession.

At the same time, this crisis only further exposed longstanding challenges in UI. While the core of these challenges will need to be addressed through comprehensive UI reform, the department will start with the $2 billion allocated as a part of the American Rescue Plan Act, aimed specifically at addressing the most acute challenges states have faced over the last year.

“The pandemic underscored the need for modernization of the 53 different systems that administer unemployment insurance benefits in the United States, and it exposed significant vulnerabilities in state technology to criminals looking for an opportunity,” said U.S. Secretary of Labor Marty Walsh.

Administered by the department’s Employment and Training Administration, ARPA Fraud Grants totaling $140 million will be awarded to states for fraud prevention measures, including identification verification subscription costs, establishing and expanding data analytics and implementing cybersecurity defense strategies.

***The application deadline to receive this important funding is September 13, 2021 and is quickly approaching.***

Work With A Single Service Provider

As mentioned in the two program letters published by DOL (22-2 and 28-20 Change 2), permissible use of the funds is listed in Section 5b, which include but is not limited to strengthening:

• Equitable identity verification 
• Fraud detection and prevention
• Data analytics capabilities to address fraud 
• Cross-matching to detect fraud 
• Cybersecurity 
• Investigative support
• Overpayment recovery efforts 

States must also provide at least two options to individuals upfront to verify their identity (i.e., online, by phone, and/or in-person).

Work With A Single Service Provider

LexisNexis® Risk Solutions can address all of the uses listed above by providing solutions that ensure equitable access while preventing fraud on the front-end of your systems as well as cleaning up your current backlog. LexisNexis can also provide your agency with investigative solutions that can detect fraud that has occurred and stop fraud before it happens. 

LexisNexis has been a trusted partner in the unemployment insurance space for over 20 years and works with 26 states. Why work with multiple service providers who require multiple implementations and contracts when you can contract with a vendor who has been there with you before and will be in the future?

We are ready to support you with your UI modernization project – please fill out the form and a team member will be in touch shortly!