Grant Details

The purpose of this program guidance is to provide an implementation framework for the National Dislocated Worker Grant (DWG) program, including policies, priorities, and requirements. The Employment and Training Administration (ETA) accepts applications in two categories: Disaster Recovery and Employment Recovery. Employment Recovery DWGs include DWGs for Dislocated Service Members.

DWGs are time-limited funding assistance in response to major economic dislocations or other events that cause significant impact on states and local areas that exceed the capacity of existing formula funds and other relevant resources to address. ETA considers DWGs to be supplemental resources that provide flexibility to states and communities in responding to and recovering from unexpected events that cause large-scale job loss that exceed the capacity of the state or local area to address with formula resources. As such, ETA expects that projects funded with DWG resources be aligned with existing state and local strategic priorities, resources, and programs and not operated as stand-alone projects. Applicants should design and carry out DWG projects to operate in alignment with other state and local programs, including Rapid Response, layoff aversion, and the formula Dislocated Worker program and focused on addressing employment and training needs in states and local areas.

Types of DWGs

Disaster Recovery DWGs: Disaster Recovery DWGs provide disaster-relief and humanitarian assistance employment, as well as employment and training services, as appropriate, to minimize the employment and economic impact of declared disasters and emergency situations, in disaster-declared areas as defined in 20 CFR 687.110(b). DWG funds may also provide employment and training services to dislocated workers and other eligible participants. The following events are eligible for Disaster Recovery DWGs:

• Emergencies and major disasters, as defined under Section 102 of the Stafford Act (42 U.S.C. 5122(6)), declared by FEMA as eligible for Public Assistance under any category (A through G).
• Emergencies or disaster situations of national significance, natural or man-made, that could result in a potentially large loss of employment, as declared or otherwise recognized and issued in writing by the chief official of a Federal agency with jurisdiction over the Federal response to the disaster or emergency. Note: Not every Federal declaration of a disaster qualifies an applicant for Disaster Recovery DWG assistance. Applicants must demonstrate that a potentially large loss of employment could result from the disaster or emergency. ETA defines this as the potential loss of at least 50 jobs. The application for Disaster Recovery DWG funds must include a rationale justifying the projected level of job loss. WIOA does not allow declarations by a governor to qualify an applicant for Disaster Recovery DWG assistance.
• Relocation of a substantial number of individuals from a state, tribal area, or outlying area affected by a disaster or emergency to other states, tribal areas, or outlying areas outside the disaster or emergency area.

Allowable Grant Activities - Disaster Relief Employment. Disaster Recovery DWGs provide funding for the creation of disaster relief employment, which is temporary employment of eligible individuals for the purposes described in WIOA Section 170(b)(1)(B) and (d), as well as 20 CFR 687.180(b) and (c).1 Applicants must demonstrate that disaster-relief employment created under a Disaster Recovery DWG aligns with the following categories:

• Clean-up and recovery efforts including demolition, repair, renovation and reconstruction of damaged and destroyed structures, facilities and lands located within the disaster area and in offshore areas related to the emergency or disaster; or,
• Employment related to the delivery of appropriate humanitarian assistance in the immediate aftermath of the disaster or emergency; more information on humanitarian assistance is provided below.

Employment Recovery DWGs: Employment Recovery DWGs provide resources to states and other eligible applicants to respond to major economic dislocations, such as large, unexpected layoff events that cause significant job losses. The Secretary of Labor has the discretion to award DWGs to eligible entities where the eligible entity can demonstrate the need for additional funds to provide employment and training assistance to workers affected by major economic dislocations, such as plant closures and mass layoffs. This also could include closures and realignments of military installations. ETA will examine each application on a case by-case basis to determine if the applicant has demonstrated need. Employment Recovery DWGs provide employment and training assistance to dislocated workers and other eligible participants as described below.

Qualifying Layoff Events The following dislocation scenarios could qualify for Employment Recovery DWGs under 20 CFR 687.110(a).

• Mass Layoff or Plant Closure. Layoffs or plant closures affecting 50 or more workers from one employer within the service area of the applicant may qualify for Mass Layoff or Plant Closure Employment Recovery DWGs. An applicant may include smaller layoffs at other companies in the area if the primary layoff caused or contributed to the smaller layoffs.
• Industry-Wide Layoffs. Layoff events from multiple companies in the same industry, as determined by the two-digit code level in the North American Industrial Classification System (NAICS), may qualify for Industry-Wide Employment Recovery DWGs. Additional layoffs affecting fewer than 50 workers may be included in an industry-wide DWG application when there is at least one company with a layoff affecting 50 or more workers included in the application, and the additional companies are in the same NAICS two-digit code level.
• Community Impact. Multiple small dislocations occurring over a period of up to 12 months that have significantly increased the number of unemployed individuals in a regional or local workforce area may qualify for a Community Impact Employment Recovery DWG. Community impact grants typically serve rural areas where the employer base is predominantly smaller companies with fewer than 50 employees each, and where layoffs may not meet the definition of mass layoffs” noted above.

Special Populations DWGs: One sub-type of Employment Recovery DWGs targets a specific population: DWGs for Dislocated Service Members. DWGs may provide assistance to areas where there is a higher-than-average demand for employment and training activities from dislocated military service members and dislocated military spouses that exceeds state and local resources for providing such activities.