42 U.S.C. § 506 — Grants to States for reemployment services

Page 2131 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 506 ity (under the laws of the State) for the meas- ures to be tested, as well as the period of time during which such demonstration project would be conducted; (2) if a waiver under subsection (c) is re- quested, a statement describing the specific aspects of the project to which the waiver would apply and the reasons why such waiver is needed; (3) a description of the goals and the ex- pected programmatic outcomes of the dem- onstration project, including how the project would contribute to the objective described in subsection (a)(1), subsection (a)(2), or both; (4) assurances (accompanied by supporting analysis) that the demonstration project would operate for a period of at least 1 cal- endar year and not result in any increased net costs to the State’s account in the Unemploy- ment Trust Fund; (5) a description of the manner in which the State— (A) will conduct an impact evaluation, using a methodology appropriate to deter- mine the effects of the demonstration project, including on individual skill levels, earnings, and employment retention; and (B) will determine the extent to which the goals and outcomes described in paragraph (3) were achieved; (6) assurances that the State will provide any reports relating to the demonstration project, after its approval, as the Secretary of Labor may require; and (7) assurances that employment meets the State’s suitable work requirement and the re- quirements of section 3304(a)(5) of the Internal Revenue Code of 1986. (c) Waiver of certain requirements allowed The Secretary of Labor may waive any of the requirements of section 3304(a)(4) of the Internal Revenue Code of 1986 or of paragraph (1) or (5) of section 503(a) of this title, to the extent and for the period the Secretary of Labor considers nec- essary to enable the State to carry out a dem- onstration project under this section. (d) Time for demonstration project A demonstration project under this section— (1) may be commenced any time after Feb- ruary 22, 2012; (2) may not be approved for a period of time greater than 3 years; and (3) must be completed by not later than De- cember 31, 2015. (e) Limitations on activities Activities that may be pursued under a dem- onstration project under this section are limited to— (1) subsidies for employer-provided training, such as wage subsidies; and (2) direct disbursements to employers who hire individuals receiving unemployment com- pensation, not to exceed the weekly benefit amount for each such individual, to pay part of the cost of wages that exceed the unem- ployed individual’s prior benefit level. (f) Notification of approval or denial of applica- tion The Secretary of Labor shall, in the case of any State for which an application is submitted under subsection (b)— (1) notify the State as to whether such appli- cation has been approved or denied within 30 days after receipt of a complete application; and (2) provide public notice of the decision within 10 days after providing notification to the State in accordance with paragraph (1). Public notice under paragraph (2) may be pro- vided through the Internet or other appropriate means. Any application under this section that has not been denied within the 30-day period de- scribed in paragraph (1) shall be deemed ap- proved, and public notice of any approval under this sentence shall be provided within 10 days thereafter. (g) Termination of demonstration project The Secretary of Labor may terminate a dem- onstration project under this section if the Sec- retary determines that the State has violated the substantive terms or conditions of the project. (h) Funding Funding certified under section 502(a) of this title may be used for an approved demonstration project. (Aug. 14, 1935, ch. 531, title III, § 305, as added Pub. L. 112–96, title II, § 2102, Feb. 22, 2012, 126 Stat. 159.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in sub- secs. (b)(7) and (c), is classified generally to Title 26, In- ternal Revenue Code. § 506. Grants to States for reemployment services and eligibility assessments (a) In general The Secretary of Labor (in this section re- ferred to as the ‘‘Secretary’’) shall award grants under this section for a fiscal year to eligible States to conduct a program of reemployment services and eligibility assessments for claim- ants for regular compensation, including claim- ants referred to reemployment services as de- scribed in section 503(j) of this title, for weeks in such fiscal year for which such claimants re- ceive unemployment compensation. (b) Purposes The purposes of this section are to accomplish the following goals: (1) To improve employment outcomes of in- dividuals that receive unemployment com- pensation and to reduce the average duration of receipt of such compensation through em- ployment. (2) To strengthen program integrity and re- duce improper payments of unemployment compensation by States through the detection and prevention of such payments to individ- uals who are not eligible for such compensa- tion. Page 2132 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 506 (3) To promote alignment with the broader vision of the Workforce Innovation and Oppor- tunity Act (29 U.S.C. 3101 et seq.) of increased program integration and service delivery for job seekers, including claimants for unemploy- ment compensation. (4) To establish reemployment services and eligibility assessments as an entry point for individuals receiving unemployment com- pensation into other workforce system partner programs. (c) Evidence-based standards (1) In general In carrying out a State program of reem- ployment services and eligibility assessments using grant funds awarded to the State under this section, a State shall use such funds only for interventions demonstrated to reduce the number of weeks for which program partici- pants receive unemployment compensation by improving employment outcomes for program participants. (2) Expanding evidence-based interventions In addition to the requirement imposed by paragraph (1), a State shall— (A) for fiscal years 2023 and 2024, use no less than 25 percent of the grant funds awarded to the State under this section for interventions with a high or moderate caus- al evidence rating that show a demonstrated capacity to improve employment and earn- ings outcomes for program participants; (B) for fiscal years 2025 and 2026, use no less than 40 percent of such grant funds for interventions described in subparagraph (A); and (C) for fiscal years beginning after fiscal year 2026, use no less than 50 percent of such grant funds for interventions described in subparagraph (A). (d) Evaluations (1) Required evaluations Any intervention without a high or mod- erate causal evidence rating used by a State in carrying out a State program of reemploy- ment services and eligibility assessments under this section shall be under evaluation at the time of use. (2) Funding limitation A State shall use not more than 10 percent of grant funds awarded to the State under this section to conduct or cause to be conducted evaluations of interventions used in carrying out a program under this section (including evaluations conducted pursuant to paragraph (1)). (e) State plan (1) In general As a condition of eligibility to receive a grant under this section for a fiscal year, a State shall submit to the Secretary, at such time and in such manner as the Secretary may require, a State plan that outlines how the State intends to conduct a program of reem- ployment services and eligibility assessments under this section, including— (A) assurances that, and a description of how, the program will provide— (i) proper notification to participating individuals of the program’s eligibility conditions, requirements, and benefits, in- cluding the issuance of warnings and sim- ple, clear notifications to ensure that par- ticipating individuals are fully aware of the consequences of failing to adhere to such requirements, including policies re- lated to non-attendance or non-fulfillment of work search requirements; and (ii) reasonable scheduling accommoda- tions to maximize participation for eligi- ble individuals; (B) assurances that, and a description of how, the program will conform with the pur- poses outlined in subsection (b) and satisfy the requirement to use evidence-based standards under subsection (c), including— (i) a description of the evidence-based interventions the State plans to use to speed reemployment; (ii) an explanation of how such interven- tions are appropriate to the population served; and (iii) if applicable, a description of the evaluation structure the State plans to use for interventions without at least a mod- erate or high causal evidence rating, which may include national evaluations con- ducted by the Department of Labor or by other entities; and (C) a description of any reemployment ac- tivities and evaluations conducted in the prior fiscal year, and any data collected on— (i) characteristics of program partici- pants; (ii) the number of weeks for which pro- gram participants receive unemployment compensation; and (iii) employment and other outcomes for program participants consistent with State performance accountability meas- ures provided by the State unemployment compensation program and in section 116(b) of the Workforce Innovation and Op- portunity Act (29 U.S.C. 3141(b)). (2) Approval The Secretary shall approve any State plan, that is timely submitted to the Secretary, in such manner as the Secretary may require, that satisfies the conditions described in para- graph (1). (3) Disapproval and revision If the Secretary determines that a State plan submitted pursuant to this subsection fails to satisfy the conditions described in paragraph (1), the Secretary shall— (A) disapprove such plan; (B) provide to the State, not later than 30 days after the date of receipt of the State plan, a written notice of such disapproval that includes a description of any portion of the plan that was not approved and the rea- son for the disapproval of each such portion; and (C) provide the State with an opportunity to correct any such failure and submit a re- vised State plan. Page 2133 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 506 (f) Allocation of funds (1) Base funding (A) In general For each fiscal year after fiscal year 2020, the Secretary shall allocate a percentage equal to the base funding percentage for such fiscal year of the funds made available for grants under this section among the States awarded such a grant for such fiscal year using a formula prescribed by the Sec- retary based on the rate of insured unem- ployment (as defined in section 203(e)(1) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note)) in the State for a period to be deter- mined by the Secretary. In developing such formula with respect to a State, the Sec- retary shall consider the importance of avoiding sharp reductions in grant funding to a State over time. (B) Base funding percentage For purposes of subparagraph (A), the term ‘‘base funding percentage’’ means— (i) for fiscal years 2021 through 2026, 89 percent; and (ii) for fiscal years after 2026, 84 percent. (2) Reservation for outcome payments (A) In general Of the amounts made available for grants under this section for each fiscal year after 2020, the Secretary shall reserve a percent- age equal to the outcome reservation per- centage for such fiscal year for outcome pay- ments to increase the amount otherwise awarded to a State under paragraph (1). Such outcome payments shall be paid to States conducting reemployment services and eligibility assessments under this sec- tion that, during the previous fiscal year, met or exceeded the outcome goals provided in subsection (b)(1) related to reducing the average duration of receipt of unemploy- ment compensation by improving employ- ment outcomes. (B) Outcome reservation percentage For purposes of subparagraph (A), the term ‘‘outcome reservation percentage’’ means— (i) for fiscal years 2021 through 2026, 10 percent; and (ii) for fiscal years after 2026, 15 percent. (3) Reservation for research and technical as- sistance Of the amounts made available for grants under this section for each fiscal year after 2020, the Secretary may reserve not more than 1 percent to conduct research and provide technical assistance to States. (4) Consultation and public comment Not later than September 30, 2019, the Sec- retary shall— (A) consult with the States and seek public comment in developing the allocation for- mula under paragraph (1) and the criteria for carrying out the reservations under para- graph (2); and (B) make publicly available the allocation formula and criteria developed pursuant to subclause (A). (g) Notification to Congress Not later than 90 days prior to making any changes to the allocation formula or the criteria developed pursuant to subsection (f)(5)(A), the Secretary shall submit to Congress, including to the Committee on Ways and Means and the Committee on Appropriations of the House of Representatives and the Committee on Finance and the Committee on Appropriations of the Senate, a notification of any such change. (h) Supplement not supplant Funds made available to carry out this section shall be used to supplement the level of Federal, State, and local public funds that, in the ab- sence of such availability, would be expended to provide reemployment services and eligibility assessments to individuals receiving unemploy- ment compensation, and in no case to supplant such Federal, State, or local public funds. (i) Definitions In this section: (1) Causal evidence rating The terms ‘‘high causal evidence rating’’ and ‘‘moderate causal evidence rating’’ shall have the meaning given such terms by the Sec- retary of Labor. (2) Eligible state The term ‘‘eligible State’’ means a State that has in effect a State plan approved by the Secretary in accordance with subsection (e). (3) Intervention The term ‘‘intervention’’ means a service de- livery strategy for the provision of State re- employment services and eligibility assess- ment activities under this section. (4) State The term ‘‘State’’ has the meaning given the term in section 205 of the Federal-State Ex- tended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note). (5) Unemployment compensation The term unemployment compensation means ‘‘regular compensation’’, ‘‘extended compensation’’, and ‘‘additional compensa- tion’’ (as such terms are defined by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note)). (Aug. 14, 1935, ch. 531, title III, § 306, as added Pub. L. 115–123, div. C, title II, § 30206(a), Feb. 9, 2018, 132 Stat. 127; amended Pub. L. 118–120, § 2(a), Nov. 25, 2024, 138 Stat. 1626.) Editorial Notes REFERENCES IN TEXT The Workforce Innovation and Opportunity Act, re- ferred to in subsec. (b)(3), is Pub. L. 113–128, July 22, 2014, 128 Stat. 1425, which enacted chapter 32 (§ 3101 et seq.) of Title 29, Labor, repealed chapter 30 (§ 2801 et seq.) of Title 29 and chapter 73 (§ 9201 et seq.) of Title 20, Education, and made amendments to numerous other sections and notes in the Code. For complete classifica- tion of this Act to the Code, see section 1(a) of Pub. L. 113–128, set out as a Short Title note under section 3101 of Title 29 and Tables. The Federal-State Extended Unemployment Com- pensation Act of 1970, referred to in subsecs. (f)(1)(A) Page 2134 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 601 and (i)(4), (5), is title II of Pub. L. 91–373, Aug. 10, 1970, 84 Stat. 708, which is classified generally as a note under section 3304 of Title 26, Internal Revenue Code. For complete classification of this Act to the Code, see Tables. AMENDMENTS 2024—Subsec. (a). Pub. L. 118–120 substituted ‘‘claim- ants for regular compensation, including claimants re- ferred to reemployment services as described in section 503(j) of this title,’’ for ‘‘individuals referred to reem- ployment services as described in section 503(j) of this title’’ and ‘‘such claimants’’ for ‘‘such individuals’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2024 AMENDMENT Pub. L. 118–120, § 2(b), Nov. 25, 2024, 138 Stat. 1626, pro- vided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [Nov. 25, 2024].’’ SUBCHAPTER IV—GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WEL- FARE SERVICES Editorial Notes CODIFICATION Pub. L. 90–248, title II, § 240(a), Jan. 2, 1968, 81 Stat. 911, inserted ‘‘AND FOR CHILD-WELFARE SERV- ICES’’ at end of subchapter heading. Pub. L. 87–543, title I, § 104(a)(1), July 25, 1962, 76 Stat. 185, substituted ‘‘AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN’’ for ‘‘AID TO DEPEND- ENT CHILDREN’’ in subchapter heading. PART A—BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES Editorial Notes PRIOR PROVISIONS A prior part A relating to aid to families with de- pendent children and consisting of sections 601 to 618 of this title was repealed, except for section 618, by Pub. L. 104–193, title I, § 103(a)(1), Aug. 22, 1996, 110 Stat. 2112. § 601. Purpose (a) In general The purpose of this part is to increase the flexibility of States in operating a program de- signed to— (1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; (2) end the dependence of needy parents on government benefits by promoting job prepa- ration, work, and marriage; (3) prevent and reduce the incidence of out- of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and (4) encourage the formation and mainte- nance of two-parent families. (b) No individual entitlement This part shall not be interpreted to entitle any individual or family to assistance under any State program funded under this part. (Aug. 14, 1935, ch. 531, title IV, § 401, as added Pub. L. 104–193, title I, § 103(a)(1), Aug. 22, 1996, 110 Stat. 2112; amended Pub. L. 105–33, title V, § 5514(c), Aug. 5, 1997, 111 Stat. 620.) Editorial Notes PRIOR PROVISIONS A prior section 601, acts Aug. 14, 1935, ch. 531, title IV, § 401, 49 Stat. 627; 1946 Reorg. Plan No. 2, § 4, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; 1953 Reorg. Plan No. 1, §§ 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Aug. 1, 1956, ch. 836, title III, § 312(a), 70 Stat. 848; July 25, 1962, Pub. L. 87–543, title I, § 104(a)(4), (c)(2), 76 Stat. 185, 186; Jan. 2, 1968, Pub. L. 90–248, title II, § 241(b)(1), 81 Stat. 916, related to authorization of appropriations for Aid to Families With Dependent Children program prior to repeal by Pub. L. 104–193, § 103(a)(1), as amended by Pub. L. 105–33, title V, § 5514(c), Aug. 5, 1997, 111 Stat. 620. AMENDMENTS 1997—Pub. L. 105–33 made technical amendment to di- rectory language of Pub. L. 104–193, § 103(a)(1), which en- acted this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–33 effective as if included in the provision of Pub. L. 104–193 amended at the time the provision became law, see section 5518(d) of Pub. L. 105–33, set out as a note under section 862a of Title 21, Food and Drugs. EFFECTIVE DATE Pub. L. 104–193, title I, § 116, Aug. 22, 1996, 110 Stat. 2181, as amended by Pub. L. 104–327, § 1(a), (c), Oct. 19, 1996, 110 Stat. 4002, 4003; Pub. L. 105–33, title V, §§ 5516(b), 5517, Aug. 5, 1997, 111 Stat. 620, 621, provided that: ‘‘(a) EFFECTIVE DATES.— ‘‘(1) IN GENERAL.—Except as otherwise provided in this title [see Tables for classification], this title and the amendments made by this title shall take effect on July 1, 1997. ‘‘(2) DELAYED EFFECTIVE DATE FOR CERTAIN PROVI- SIONS.—Notwithstanding any other provision of this section (but subject to subsection (b)(1)(A)(ii)), para- graphs (2), (3), (4), (5), (8), and (10) of section 409(a) and section 411(a) of the Social Security Act [42 U.S.C. 609(a), 611(a)] (as added by the amendments made by section 103(a) of this Act) shall not take effect with respect to a State until, and shall apply only with re- spect to conduct that occurs on or after, the later of— ‘‘(A) July 1, 1997; or ‘‘(B) the date that is 6 months after the date the Secretary of Health and Human Services receives from the State a plan described in section 402(a) of the Social Security Act [42 U.S.C. 602(a)] (as added by such amendment). ‘‘(3) GRANTS TO OUTLYING AREAS.—The amendments made by section 103(b) [amending section 1308 of this title] shall take effect on October 1, 1996. ‘‘(4) ELIMINATION OF CHILD CARE PROGRAMS.—The amendments made by section 103(c) [amending sec- tions 602 and 603 of this title] shall take effect on Oc- tober 1, 1996. ‘‘(5) DEFINITIONS APPLICABLE TO NEW CHILD CARE EN- TITLEMENT.—Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the Social Security Act [42 U.S.C. 603(a)(1)(C), (D), 619(4)], as added by the amendments made by section 103(a) of this Act, shall take effect on October 1, 1996. ‘‘(6) RESEARCH, EVALUATIONS, AND NATIONAL STUD- IES.—Section 413 of the Social Security Act [42 U.S.C. 613], as added by the amendment made by section 103(a) of this Act, shall take effect on the date of the enactment of this Act [Aug. 22, 1996]. ‘‘(b) TRANSITION RULES.—Effective on the date of the enactment of this Act [Aug. 22, 1996]: ‘‘(1) STATE OPTION TO ACCELERATE EFFECTIVE DATE; LIMITATION ON FISCAL YEARS 1996 AND 1997 PAYMENTS.—