---
kind: "section"
citation: "42 U.S.C. § 506"
title: "42"
title_heading: "The Public Health and Welfare"
number: "506"
heading: "Grants to States for reemployment services and eligibility assessments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/506"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter III — Grants to States for Unemployment Compensation Administration"
---

# §506. Grants to States for reemployment services and eligibility assessments

- (a) **In general—** The [Secretary](/usc/42/1301.md?p=a-6) of Labor (in this section referred to as the “[Secretary](/usc/42/1301.md?p=a-6)”) shall award [grants](/usc/42/1397j.md?p=10) under this section for a [fiscal year](/usc/42/619.md?p=3) to eligible [States](/usc/42/410.md?p=h) to conduct a program of reemployment services and eligibility assessments for claimants for regular compensation, [including](/usc/42/1301.md?p=b) claimants referred to reemployment services as described in [section 503(j) of this title](/usc/42/503.md?p=j), for weeks in such [fiscal year](/usc/42/619.md?p=3) for which such claimants receive unemployment compensation.
- (b) **Purposes—** The purposes of this section are to accomplish the following goals:
  - (1) To improve [employment](/usc/42/410.md?p=a) outcomes of individuals that receive unemployment compensation and to reduce the average duration of receipt of such compensation through [employment](/usc/42/410.md?p=a).
  - (2) To strengthen program integrity and reduce improper payments of unemployment compensation by [States](/usc/42/410.md?p=h) through the detection and prevention of such payments to individuals who are not eligible for such compensation.
  - (3) To promote alignment with the broader vision of the Workforce Innovation and Opportunity Act ([29 U.S.C. 3101](/usc/29/3101.md) et seq.) of increased program integration and service delivery for job seekers, [including](/usc/42/1301.md?p=b) claimants for unemployment compensation.
  - (4) To establish reemployment services and eligibility assessments as an entry point for individuals receiving unemployment compensation into other workforce system [partner](/usc/42/411.md?p=d) programs.
- (c) **Evidence-based standards—**
  - (1) **In general—** In carrying out a [State](/usc/42/410.md?p=h) program of reemployment services and eligibility assessments using [grant](/usc/42/1397j.md?p=10) funds awarded to the [State](/usc/42/410.md?p=h) under this section, a [State](/usc/42/410.md?p=h) shall use such funds only for [interventions](/usc/42/1397n–12.md?p=2) demonstrated to reduce the number of weeks for which program participants receive unemployment compensation by improving [employment](/usc/42/410.md?p=a) outcomes for program participants.
  - (2) **Expanding evidence-based interventions—** In addition to the requirement imposed by [paragraph (1)](#c-1), a [State](/usc/42/410.md?p=h) shall—
    - (A) for [fiscal years](/usc/42/619.md?p=3) 2023 and 2024, use no less than 25 percent of the [grant](/usc/42/1397j.md?p=10) funds awarded to the [State](/usc/42/410.md?p=h) under this section for [interventions](/usc/42/1397n–12.md?p=2) with a high or moderate causal evidence rating that show a demonstrated capacity to improve [employment](/usc/42/410.md?p=a) and earnings outcomes for program participants;
    - (B) for [fiscal years](/usc/42/619.md?p=3) 2025 and 2026, use no less than 40 percent of such [grant](/usc/42/1397j.md?p=10) funds for [interventions](/usc/42/1397n–12.md?p=2) described in [subparagraph (A)](#c-2-A); and
    - (C) for [fiscal years](/usc/42/619.md?p=3) beginning after [fiscal year](/usc/42/619.md?p=3) 2026, use no less than 50 percent of such [grant](/usc/42/1397j.md?p=10) funds for [interventions](/usc/42/1397n–12.md?p=2) described in [subparagraph (A)](#c-2-A).
- (d) **Evaluations—**
  - (1) **Required evaluations—** Any [intervention](/usc/42/1397n–12.md?p=2) without a high or moderate causal evidence rating used by a [State](/usc/42/410.md?p=h) in carrying out a [State](/usc/42/410.md?p=h) program of reemployment services and eligibility assessments under this section shall be under evaluation at the time of use.
  - (2) **Funding limitation—** A [State](/usc/42/410.md?p=h) shall use not more than 10 percent of [grant](/usc/42/1397j.md?p=10) funds awarded to the [State](/usc/42/410.md?p=h) under this section to conduct or cause to be conducted evaluations of [interventions](/usc/42/1397n–12.md?p=2) used in carrying out a program under this section ([including](/usc/42/1301.md?p=b) evaluations conducted pursuant to [paragraph (1)](#d-1)).
- (e) **State plan—**
  - (1) **In general—** As a condition of eligibility to receive a [grant](/usc/42/1397j.md?p=10) under this section for a [fiscal year](/usc/42/619.md?p=3), a [State](/usc/42/410.md?p=h) shall submit to the [Secretary](/usc/42/1301.md?p=a-6), at such time and in such manner as the [Secretary](/usc/42/1301.md?p=a-6) may require, a [State](/usc/42/410.md?p=h) plan that outlines how the [State](/usc/42/410.md?p=h) intends to conduct a program of reemployment services and eligibility assessments under this section, [including](/usc/42/1301.md?p=b)—
    - (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, [including](/usc/42/1301.md?p=b) the issuance of warnings and simple, clear notifications to ensure that participating individuals are fully aware of the consequences of failing to adhere to such requirements, [including](/usc/42/1301.md?p=b) policies related to non-attendance or non-fulfillment of work search requirements; and
      - (ii) reasonable scheduling accommodations to maximize participation for eligible individuals;
    - (B) assurances that, and a description of how, the program will conform with the purposes outlined in [subsection (b)](#b) and satisfy the requirement to use evidence-based [standards](/usc/42/1320d.md?p=7) under [subsection (c)](#c), [including](/usc/42/1301.md?p=b)—
      - (i) a description of the evidence-based [interventions](/usc/42/1397n–12.md?p=2) the [State](/usc/42/410.md?p=h) plans to use to speed reemployment;
      - (ii) an explanation of how such [interventions](/usc/42/1397n–12.md?p=2) are appropriate to the population served; and
      - (iii) if applicable, a description of the evaluation structure the [State](/usc/42/410.md?p=h) plans to use for [interventions](/usc/42/1397n–12.md?p=2) without at least a moderate or high causal evidence rating, which may include national evaluations conducted by the Department of Labor or by other entities; and
    - (C) a description of any reemployment activities and evaluations conducted in the prior [fiscal year](/usc/42/619.md?p=3), and any data collected on—
      - (i) characteristics of program participants;
      - (ii) the number of weeks for which program participants receive unemployment compensation; and
      - (iii) [employment](/usc/42/410.md?p=a) and other outcomes for program participants consistent with [State](/usc/42/410.md?p=h) performance accountability measures provided by the [State](/usc/42/410.md?p=h) unemployment compensation program and in section 116(b) of the Workforce Innovation and Opportunity Act ([29 U.S.C. 3141(b)](/usc/29/3141.md?p=b)).
  - (2) **Approval—** The [Secretary](/usc/42/1301.md?p=a-6) shall approve any [State](/usc/42/410.md?p=h) plan, that is timely submitted to the [Secretary](/usc/42/1301.md?p=a-6), in such manner as the [Secretary](/usc/42/1301.md?p=a-6) may require, that satisfies the conditions described in [paragraph (1)](#e-1).
  - (3) **Disapproval and revision—** If the [Secretary](/usc/42/1301.md?p=a-6) determines that a [State](/usc/42/410.md?p=h) plan submitted pursuant to this subsection fails to satisfy the conditions described in [paragraph (1)](#e-1), the [Secretary](/usc/42/1301.md?p=a-6) shall—
    - (A) disapprove such plan;
    - (B) provide to the [State](/usc/42/410.md?p=h), not later than 30 days after the date of receipt of the [State](/usc/42/410.md?p=h) plan, a written notice of such disapproval that [includes](/usc/42/1301.md?p=b) a description of any portion of the plan that was not approved and the reason for the disapproval of each such portion; and
    - (C) provide the [State](/usc/42/410.md?p=h) with an opportunity to correct any such failure and submit a revised [State](/usc/42/410.md?p=h) plan.
- (f) **Allocation of funds—**
  - (1) **Base funding—**
    - (A) **In general—** For each [fiscal year](/usc/42/619.md?p=3) after [fiscal year](/usc/42/619.md?p=3) 2020, the [Secretary](/usc/42/1301.md?p=a-6) shall allocate a percentage equal to the base funding percentage for such [fiscal year](/usc/42/619.md?p=3) of the funds made available for [grants](/usc/42/1397j.md?p=10) under this section among the [States](/usc/42/410.md?p=h) awarded such a [grant](/usc/42/1397j.md?p=10) for such [fiscal year](/usc/42/619.md?p=3) using a formula prescribed by the [Secretary](/usc/42/1301.md?p=a-6) based on the rate of insured unemployment (as defined in [section 203(e)(1)](/usc/42/203.md) of the Federal-[State](/usc/42/410.md?p=h) Extended Unemployment Compensation Act of 1970 ([26 U.S.C. 3304](/usc/26/3304.md) note)) in the [State](/usc/42/410.md?p=h) for a period to be determined by the [Secretary](/usc/42/1301.md?p=a-6). In developing such formula with respect to a [State](/usc/42/410.md?p=h), the [Secretary](/usc/42/1301.md?p=a-6) shall consider the importance of avoiding sharp reductions in [grant](/usc/42/1397j.md?p=10) funding to a [State](/usc/42/410.md?p=h) over time.
    - (B) **Base funding percentage—** For purposes of [subparagraph (A)](#f-1-A), the term “base funding percentage” means—
      - (i) for [fiscal years](/usc/42/619.md?p=3) 2021 through 2026, 89 percent; and
      - (ii) for [fiscal years](/usc/42/619.md?p=3) after 2026, 84 percent.
  - (2) **Reservation for outcome payments—**
    - (A) **In general—** Of the amounts made available for [grants](/usc/42/1397j.md?p=10) under this section for each [fiscal year](/usc/42/619.md?p=3) after 2020, the [Secretary](/usc/42/1301.md?p=a-6) shall reserve a percentage equal to the outcome reservation percentage for such [fiscal year](/usc/42/619.md?p=3) for outcome payments to increase the amount otherwise awarded to a [State](/usc/42/410.md?p=h) under [paragraph (1)](#f-1). Such outcome payments shall be paid to [States](/usc/42/410.md?p=h) conducting reemployment services and eligibility assessments under this section that, during the previous [fiscal year](/usc/42/619.md?p=3), met or exceeded the outcome goals provided in [subsection (b)(1)](#b-1) related to reducing the average duration of receipt of unemployment compensation by improving [employment](/usc/42/410.md?p=a) outcomes.
    - (B) **Outcome reservation percentage—** For purposes of [subparagraph (A)](#f-2-A), the term “outcome reservation percentage” means—
      - (i) for [fiscal years](/usc/42/619.md?p=3) 2021 through 2026, 10 percent; and
      - (ii) for [fiscal years](/usc/42/619.md?p=3) after 2026, 15 percent.
  - (3) **Reservation for research and technical assistance—** Of the amounts made available for [grants](/usc/42/1397j.md?p=10) under this section for each [fiscal year](/usc/42/619.md?p=3) after 2020, the [Secretary](/usc/42/1301.md?p=a-6) may reserve not more than 1 percent to conduct research and provide technical assistance to [States](/usc/42/410.md?p=h).
  - (4) **Consultation and public comment—** Not later than September 30, 2019, the [Secretary](/usc/42/1301.md?p=a-6) shall—
    - (A) consult with the [States](/usc/42/410.md?p=h) and seek public comment in developing the [allocation](/usc/42/2021b.md?p=2) formula under [paragraph (1)](#f-1) and the criteria for carrying out the reservations under [paragraph (2)](#f-2); and
    - (B) make publicly available the [allocation](/usc/42/2021b.md?p=2) 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](/usc/42/2021b.md?p=2) formula or the criteria developed pursuant to subsection (f)(5)(A), the [Secretary](/usc/42/1301.md?p=a-6) shall submit to Congress, [including](/usc/42/1301.md?p=b) 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](/usc/42/410.md?p=h), and local public funds that, in the absence of such availability, would be expended to provide reemployment services and eligibility assessments to individuals receiving unemployment compensation, and in no case to supplant such Federal, [State](/usc/42/410.md?p=h), 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 [Secretary](/usc/42/1301.md?p=a-6) of Labor.
  - (2) **Eligible state—** The term “eligible [State](/usc/42/410.md?p=h)” means a [State](/usc/42/410.md?p=h) that has in effect a [State](/usc/42/410.md?p=h) plan approved by the [Secretary](/usc/42/1301.md?p=a-6) in accordance with [subsection (e)](#e).
  - (3) **Intervention—** The term “[intervention](/usc/42/1397n–12.md?p=2)” means a service delivery strategy for the provision of [State](/usc/42/410.md?p=h) reemployment services and eligibility assessment activities under this section.
  - (4) **State—** The term “[State](/usc/42/410.md?p=h)” has the meaning given the term in [section 205](/usc/42/205.md) of the Federal-[State](/usc/42/410.md?p=h) Extended Unemployment Compensation Act of 1970 ([26 U.S.C. 3304](/usc/26/3304.md) note).
  - (5) **Unemployment compensation—** The term unemployment compensation means “regular compensation”, “extended compensation”, and “additional compensation” (as such terms are defined by [section 205](/usc/42/205.md) of the Federal-[State](/usc/42/410.md?p=h) Extended Unemployment Compensation Act of 1970 ([26 U.S.C. 3304](/usc/26/3304.md) note)).

## Source credit

(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.)

## Notes

### Editorial Notes

### References in Text

The Workforce Innovation and Opportunity Act, referred 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 classification 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 Compensation Act of 1970, referred to in subsecs. (f)(1)(A) 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 “claimants for regular compensation, including claimants referred to reemployment services as described in section 503(j) of this title,” for “individuals referred to reemployment 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, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [Nov. 25, 2024].”