National Dislocated Worker Grants (DWGs) are discretionary grants awarded by the Secretary of Labor, under Section 170 of Workforce Innovation and Opportunity Act (WIOA). DWGs provide resources to states and other eligible applicants to respond to large, unexpected layoff events causing significant job losses. This funding is intended to temporarily expand capacity to serve dislocated workers, including military service members, and meet the increased demand for WIOA employment and training services, with a purpose to reemploy laid off workers and enhance their employability and earnings. The Department funds two types of DWGs: Disaster Recovery and Employment Recovery. Disaster DWGs provide funding to create temporary employment opportunities to assist with clean-up and recovery efforts, when an area impacted by disaster is declared eligible for public assistance by the Federal Emergency Management Agency or otherwise recognized by a federal agency with authority or jurisdiction over federal response to the emergency or disaster. Employment Recovery DWGs temporarily expand capacity to serve dislocated workers and to meet the increased demand for employment and training services following a qualifying event such as major economic dislocations or mass layoffs.
The following grantee results reflect the most complete performance information reported for the quarter ending June 30, 2024 for active grants within PY 2023.
In June 2021, the Department of Labor announced the CAREER Employment Recovery Dislocated Worker Grants (DWG) of up to $3 million via Training and Employment Guidance Letter No. 25-20. Authorized by the Workforce Innovation and Opportunity Act, Dislocated Worker Grants temporarily expand the service capacity of dislocated worker programs by providing funding assistance in response to large, unexpected economic events that cause significant job losses.
The CAREER DWG initiative provided nearly $90 million to support the recovery from the unprecedented unemployment and economic impacts of the COVID-19 pandemic. CAREER DWG activities include expanding comprehensive employment services and enhancing the accessibility and capacity of the workforce system through virtual platforms and other technology.
The U.S. Department of Health and Human Services (HHS) declared COVID-19 a nationwide public health emergency on January 27, 2020, enabling eligible applicants to request funding for Disaster Recovery Dislocated Worker Grants (DWGs). The President also declared a national emergency on March 13, 2020. Economic Recovery DWGs were also available to states and other eligible applicants that were affected by major economic dislocations, such as mass layoffs, related to COVID-19. The National Dislocated Worker Grant Program Guidance transmitted by Training and Employment Guidance Letter No. 12-19 - Change 1 explained how eligible applicants could apply for DWGs, including emergency funding requests.
Disaster Dislocated Worker Grant (DWG) funds are awarded to states, outlying areas, or Tribal governments to assist with employment and training activities and to create temporary employment opportunities to assist with clean-up and recovery efforts. ETA awards Disaster DWGs under three circumstances: 1. Emergencies and major disasters declared by FEMA, 2. Federal agency declarations, other than FEMA, of an emergency or disaster of national significance, or 3. Relocation of large group after a disaster.
Employment Recovery DWGs temporarily expand capacity to serve dislocated workers and to meet the increased demand for employment and training services following a qualifying event. Qualifying events include major economic dislocations, such as plant closures, mass layoffs, or higher-than-average demand for employment and training activities for dislocated members of the Armed Forces and their spouses.
The public workforce system complements the role of health, law enforcement, and social service agencies to address the impact of opioid addiction and other substance use disorders. The Secretary of Health and Human Services (HHS) declared the opioid crisis a national public health emergency in October 2017.
Since 2018, the Department of Labor has issued grant opportunities addressing the workforce impacts of the opioid addiction and other substance abuse disorders. Under these grants, grantees provide reemployment services for individuals impacted by the crisis; train individuals to transition into professions that can impact the crisis, such as alternative pain management, mental health treatment, and addiction treatment; and create temporary employment opportunities for peer recovery counselors and other positions that have a direct impact on the crisis.
On May 5, 2023, the department announced the availability of funds for 2023 QUEST Disaster Recovery National Dislocated Worker Grants through Training and Employment Guidance Letter No. 2-22 Change 2. The QUEST DWG projects serve unemployed and underemployed workers through worker and business engagement, that enabled dislocated workers to enter, return to, or advance in Good Jobs in infrastructure, environment and climate, the care economy, and other critical and growing industries. These grants prioritized individuals whose employment has been negatively impacted by the pandemic and workers from historically marginalized and underserved populations.
Table Notes:
The WIOA Performance Indicators are: