CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION
ADVISORY SYSTEM
U.S. DEPARTMENT OF LABOR
Washington, D.C. 20210

Unemployment Insurance
CORRESPONDENCE SYMBOL

OUI/DFAS
DATE

August 12, 2020

ADVISORY:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 27-20

TO:

STATE WORKFORCE AGENCIES

FROM:

JOHN PALLASCH /s/
Assistant Secretary

SUBJECT:

Presidential Memorandum on Authorizing the Other Needs Assistance Program
for Major Disaster Declarations Related to Coronavirus Disease 2019 (COVID19)—Unemployment Insurance (UI)-Related Technical Assistance for States
Administering Lost Wages Assistance (LWA)

1. Purpose. To provide states with Unemployment Insurance (UI)-related technical assistance
for administering LWA provided under Section 408(e)(2) in the Robert T. Stafford Disaster
Relief and Emergency Assistance (Stafford) Act (42 U.S.C. 5174(e)(2)), as authorized by the
Presidential Memorandum, Authorizing the Other Needs Assistance Program for Major
Disaster Declarations Related to Coronavirus Disease 2019, issued on August 8, 2020.
2. Action Requested. The U.S. Department of Labor’s (Department) Employment and
Training Administration (ETA) requests State Workforce Administrators to provide the
information contained in this Unemployment Insurance Program Letter (UIPL) to appropriate
program and other staff in state workforce systems.
3. Summary and Background.
a. Summary – On August 8, 2020, the President issued a memorandum, Authorizing the
Other Needs Assistance Program for Major Disaster Declarations Related to
Coronavirus Disease 2019 (Presidential Memo), instructing the Secretary of Homeland
Security, acting through the Federal Emergency Management Agency (FEMA), to make
available other needs assistance (ONA) for lost wages in accordance with Section
408(e)(2) of the Stafford Act (42 U.S.C. 5174(e)(2)). LWA will be administered by
states and territories through a grant agreement with FEMA. FEMA will not administer
benefits directly to individuals. The states and territories will distribute the funds through
their UI system, as a supplemental payment. The Presidential Memo also directed the
Department to provide FEMA and the states with technical assistance in the
implementation of the program through their existing UI systems.
To apply for a grant from FEMA to implement the LWA program, states may find
information on the application process at the FEMA website at
https://www.fema.gov/disasters/coronavirus/supplementa l-payments-lost-wages and at
RESCISSIONS

EXPIRATION DATE

None

Continuing

 Grants.gov application at https://www.grants.gov/web/grants/viewopportunity.html?oppId=328611.
Upon a grant award by FEMA, states and territories may provide eligible claimants $400
per week, with a $300 federal contribution, in addition to the individual’s underlying
unemployment benefit. LWA is funded using a 75 percent federal cost share and a 25
percent state match. If states wish to provide this maximum $400 benefit to their
claimants, they may fund $100 out of amounts allocated to them out of the Coronavirus
Relief Fund (CRF), provided under Title V of the Coronavirus Aid, Relief, and Economic
Security (CARES) Act (Public Law 116-136), or other state funding to cover the 25
percent state match.
Alternatively, states may count funds that are already used to provide regular state UI
payments toward the state match, if they choose to do so, eligible claimants will receive a
LWA payment of $300 from the Federal Government in addition to their weekly benefit
amount. This is discussed further below.
We acknowledge that American Samoa, Guam, and the Commonwealth of the Northern
Mariana Islands are eligible to participate in the LWA program, though they do not have
an underlying UI program. Technical assistance will be provided separately to these
territories regarding the state match.
LWA is payable to eligible claimants beginning with weeks of unemployment ending on
or after August 1, 2020, through weeks of unemployment ending no later than December
27, 2020.
The LWA program may terminate earlier than December 27, 2020, if:
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FEMA expends the $44 billion from the Disaster Relief Fund (DRF) account
designated by the President for the LWA program; or
The total balance of the DRF account decreases to $25 billion; or
Legislation is enacted that provides, due to the COVID-19 outbreak, supplemental
federal unemployment compensation or similar compensation for unemployed or
underemployed individuals.

The Presidential Memo requires the Secretary of Labor to provide, as appropriate, and
consistent with applicable law, technical assistance to FEMA and state governors in the
implementation of LWA programs. This UIPL provides technical assistance to states and
includes: (i) a summary of the requirements for “eligible claimants,” as further described
on the FEMA website; (ii) important program dates; and (iii) financial instructions related
to benefit costs and administrative costs.
b. Background—The CARES Act was signed into law by the President on March 27, 2020,
and includes the Relief for Workers Affected by Coronavirus Act set out in Division A,
Title II, Subtitle A, as well as the CRF set out in Title V. The CARES Act provides

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 emergency assistance for certain individuals, families, and businesses affected by the
COVID-19 pandemic.
Section 2104 of the CARES Act provided for a temporary emergency increase in
unemployment compensation benefits, referred to as Federal Pandemic Unemployment
Compensation (FPUC), and included funding to states for the administration of such
program. This program previously provided eligible individuals with $600 per week in
addition to the weekly benefit amount they received from certain other unemployment
compensation (UC) programs. The Department issued UIPL Nos. 15-20 and 15-20,
Change 1, setting forth operating and financial instructions for the FPUC program.
If a state chooses to implement LWA, an otherwise eligible individual could receive his
or her last payment of FPUC for the week-ending July 25, 2020 and then his or her first
week of LWA for the week-ending August 1, 2020 or later.
4. Guidance.
a. Eligible Claimants. As provided in the Presidential Memo, an “eligible claimant” is an
individual who: (1) provides self-certification that he or she is unemployed or partially
unemployed due to disruptions caused by COVID-19 and (2) receives, for the week of
unemployment with respect to which LWA is sought, at least $100 of regular UC or any
of the following UC programs:
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Unemployment Compensation for Federal Employees (UCFE);
Unemployment Compensation for Ex-Servicemembers (UCX);
Pandemic Emergency Unemployment Compensation (PEUC);
Pandemic Unemployment Assistance (PUA);
Extended Benefits (EB);
Short-Time Compensation (STC);
Trade Readjustment Allowances (TRA); and
Payments under the Self-Employment Assistance (SEA) program.

States will need to develop a self-certification process in accordance with FEMA
instructions for claimants to certify weekly that they are unemployed or partially
unemployed due to disruptions caused by COVID-19.
LWA is not payable to individuals collecting Disaster Unemployment Assistance (DUA).
Additionally, a number of state laws include provisions for extending the potential
duration of benefits during periods of high unemployment for individuals in approved
training who exhaust benefits, or for a variety of other reasons. Although some state laws
call these programs “extended benefits,” the Department uses the term “additional
benefits” (AB) for these state programs to avoid confusion with the Federal-State EB
program. LWA is not payable to individuals who are receiving AB payments.
For additional information for identifying eligible claimants, refer to the FEMA website.

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 b. Important Program Dates. LWA is payable for weeks of unemployment ending on or
after August 1, 2020, through weeks of unemployment ending before December 27, 2020
contingent upon sufficient balances remaining in the DRF.
Accordingly, in states where the week of unemployment ends on a Saturday, the first
week that LWA may be paid is the week ending August 1, 2020. For states where the
week of unemployment ends on a Sunday, the first week that LWA is payable is the week
ending August 2, 2020.
LWA is not payable for any week of unemployment ending after December 27, 2020.
Accordingly, for states where the week of unemployment ends on a Saturday, the last
week that LWA may be paid is the week ending December 26, 2020. For states where
the week of unemployment ends on a Sunday, the last week that LWA is payable is the
week ending December 27, 2020.
However, the LWA program may terminate earlier if:




FEMA expends the $44 billion from the DRF account designated by the President for
the LWA program; or
The balance of the DRF decreases to $25 billion; or
Legislation is enacted that provides, due to the COVID-19 outbreak, supplemental
federal unemployment compensation or similar compensation for unemployed or
underemployed individuals.

For additional information regarding termination of the program, refer to the FEMA
website.
c. Financial Instructions.
Benefit Costs. Upon a grant award by FEMA, states and territories may provide eligible
claimants $400 per week, with a $300 federal contribution. LWA is funded using a 75
percent federal cost share and 25 percent state match. For information regarding the
federal cost share, refer to the FEMA website.
If states wish to provide this maximum benefit to their claimants, they may pay an
additional $100 per claimant per week using amounts allocated to them out of the CRF,
provided under Title V of the CARES Act (Public Law 116-136), or other state funding
to cover the 25 percent state match.
States may meet the $100 per claimant per week state match with the payments they
make for regular state UI benefits to claimants that also meet the requirement to be
unemployed or partially unemployed as a result of COVID-19 if they choose to do so.
This includes states in borrowing status pursuant to Title XII of the Social Security Act.
In this case eligible claimants will only receive a LWA payment of $300 in addition to
their weekly benefit amount.

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 If a state chooses to use another state funding source (e.g., CRF or general revenue)
besides those currently supporting the state UI program to cover the 25 percent state
match, eligible claimants will receive a total LWA payment of $400 in addition to their
weekly benefit amount. The $400 consists of $300 from the federal cost share and $100
from the state match. The Presidential Memo does not change any requirements for
using a state’s unemployment account within the Unemployment Trust Fund.
Administrative Costs. Administrative funding for the LWA program, including changes
to existing UI systems to accommodate the program, is provided by FEMA. For
information regarding the available federal administrative funds, refer to the FEMA
website.
Federal grants for administration of state UC law may not be used to pay for any part of
the costs of administration of LWA. In addition, if any state staff or other assets (e.g.,
information technology, office space, utilities) are normally paid for with UC
administrative funding, including from the state’s UC state administrative grant or other
sources of funding for UC administration (e.g., Reed Act funding) and are used to
support the LWA program, then cost sharing agreements must be in place. LWA
administrative funding must pay for the proportionate share of these resources used to
support administration of LWA. Training and Employment Guidance Letter (TEGL) No.
06-02 provides additional information regarding indirect cost rates and cost allocation
plans.
5. Inquiries. States should direct inquiries regarding LWA to
FEMA-IHPHelpdesk@fema.dhs.gov. States may direct inquiries regarding the intersection
of LWA with unemployment benefit programs to covid-19@dol.gov.
6. References.
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Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136),
including Division A, Title II, Subtitle A—Relief for Workers Affected by Coronavirus
Act and Title V—Coronavirus Relief Funds (CRF);
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.);
Presidential Memorandum, Authorizing the Other Needs Assistance Program for Major
Disaster Declarations Related to Coronavirus Disease 2019, issued August 8, 2020;
UIPL No. 15-20, Change 1, Coronavirus Aid, Relief, and Economic Security (CARES)
Act of 2020 – Federal Pandemic Unemployment Compensation (FPUC) Program
Reporting Instructions and Questions and Answers, issued May 9, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3946;
UIPL No. 15-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
Federal Pandemic Unemployment Compensation (FPUC) Program Operating,
Financial, and Reporting Instructions, issued April 4, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9297;
TEGL No. 06-02, Guidance on the Recovery of Indirect Costs, issued August 21, 2002,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=1416;
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Grants.gov Application at https://www.grants.gov/web/grants/viewopportunity.html?oppId=328611; and
FEMA Website at https://www.fema.gov/disasters/coronavirus/supplementa l-paymentslost-wages.

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