Labor Secretary Marty Walsh told members of Congress last week that between $600 and $700 million of Federal funding approved under the American Rescue Plan Act will be used to pay for technical assistance to states to improve their unemployment insurance (UI) systems.

Federal lawmakers in both the House and Senate have included an additional $2 billion for the Department of Labor (DoL) to distribute to help states upgrade unemployment insurance (UI) infrastructure. The funding was included in both the version of the American Rescue Act that passed the House on Feb. 27 and a draft of the Senate companion bill MeriTalk has obtained.

President Biden’s Labor Secretary nominee – Boston mayor Marty Walsh – emphasized that state unemployment insurance systems are in sore need of technology upgrades during testimony at a Feb. 4 confirmation hearing before the Senate Committee on Health, Education, Labor and Pensions.

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