The purpose of UIPL 22-20: CARES Act - STC Program Grants is to encourage and assist states in applying for grant funds for STC programs and issue guidance on the process to apply for the grants provided for under Section 2110 of the CARES Act.

Grants Purpose and Eligibility

  • Grants are available for:
  • To qualify for any STC grant:
    • UC law must be certified under Section 3304, FUTA, and Section 303, SSA;
    • STC law must:
      • Conform to Section 3306(v), FUTA; and
      • Not be subject to discontinuation.
  • A state must have submitted an application for an implementation/improvement grant to be eligible for a promotion/enrollment grant.
  • Programs in states with new STC laws must become effective with 12 months of certification for grant receipt.

Grant Amounts and Use

  • Secretary of Labor is authorized to use 0.25% of the $100 million to provide outreach and share best practices for STC.
  • Each state’s share of the remaining $99.75 million is based on its proportionate share of FUTA taxable wages on 10/1/19. UIPL 22-20 Attachment IV.  

Grant Applications

  • States must submit complete applications by December 31, 2023.
  • A separate application must be submitted for each grant, and each application must include:
    • Copy of state STC law and explanation of its conformity to Section 3306(v), FUTA;
    • Cover letter signed by the state agency administrator;
    • Narrative description of funding request and a detailed project plan, including a quarterly timeline for all activities;
    • Description of quarterly and cumulative goals and desired outcomes resulting from the grant;
    • Assurances that state will follow grant requirements, submit required reports, recover any overpayments, and monitor approved plans and payments, and
    • Forms 424 and 424A.
  • Implementation or Improved Administration applications must also include:
    • Any planned infrastructure improvements (e.g., automation/operational upgrades), and
    • Any plans to hire/train staff.
  • Promotion/enrollment applications must also include:
    • Any plans to create/support Rapid Response teams, education or assistance to employers, and outreach tools;
    •  Description/copy of MOU between UI agency and appropriate workforce system partners, and
    • Description of how the state will sustain activities that were funded by the grant.
  • Secretary will notify state within 30 days of receipt of a complete application if it met requirements for grant receipt.