National Emergency Grant (NEG)
Last Updated 10/31/08
National Emergency Grants are discretionary grants awarded by the Secretary of Labor, pursuant to Section 173 of the Workforce Investment Act (WIA). Funds are awarded to provide employment related services for displaced workers. These funds are intended to temporarily expand service capacity at the state and local levels by providing time limited funding assistance in response to significant dislocation events. Significant events are those that create a sudden need for assistance that cannot be reasonably accommodated with WIA formula funds.
NEG funds are not available to replenish general Dislocated Worker formula allotments, but must be used in response to specific dislocation events. Maintaining adequate rates of expenditure of available formula funds on a program year basis is a major component in the evaluation process. These funds include those allocated to local areas as well as those reserved at the state level.
The NEG applications cover the following dislocation events:
- A single company layoff of 50 or more workers. Generally, projects that serve less than 50 workers should receive support from local formula Dislocated Worker program funds.
- Multiple company layoffs, where the dislocations from each company impact 50 or more workers.
- Industry wide layoff from companies in the same industry. Each layoff in an industry wide application must have 50 or more workers unless the Department of Labor (DOL) grants an exception.
- Community impact projects to assist workers in a local workforce investment area (primarily rural) where the employer base is primarily small employers and multiple small dislocations over a six month period. These dislocations have significant impact on the local labor force.
- Trade dual-enrollment projects with identified single or multi-company layoffs of more than 50 workers each, and where Department of Labor has determined that workers were trade-impacted.
- Disaster applications require verification that the Federal Emergency Management Agency (FEMA) has declared a disaster area eligible for public assistance. The primary purpose of a disaster project is to create temporary employment to assist with clean-up activities. The initial award will restrict the clean up period to six months from the date of the grant award until there is a subsequent modification (e.g., fully documented plan or other request) that justifies a longer clean-up period.
For more information please contact John Cole, OESC email@example.com (405) 557-5344