National Emergency Grants: 

Increasing Flexibility for Displaced Workers 

September 23, 2005

 

 Hurricane Katrina has disrupted the lives of an unprecedented number of Gulf Coast residents.  Among the harshest realities of the hurricane is that tens of thousands of workers have been displaced not just from their homes, but their jobs as well.  Through both legislative initiatives in Congress and administrative actions by the U.S. Department of Labor, the federal government is working to eliminate bureaucratic red tape so workers and their families in impacted areas may access immediate assistance, including temporary job placement.  One way to do so is through National Emergency Grants (NEGs).

 

NATIONAL EMERGENCY GRANTS

 

Under the Workforce Investment Act, after a disaster occurs, states may apply for NEGs.  These grants – awarded by the Department of Labor – are used to provide temporary disaster relief employment (of up to six months) to individuals who participate in projects that provide food, clothing, shelter, and other humanitarian assistance for victims of that particular disaster.  Grant funds may also be used to provide jobs for those participating in the demolition, cleaning, repair, renovation, and reconstruction of facilities and lands within the disaster area.  NEG funds may be used by public or private entities which provide employment and training activities.

 

In the wake of Hurricane Katrina, the Labor Department has awarded $191.1 million in NEGs thus far, which will help provide more than 40,000 temporary jobs in the Gulf Coast region. 

 

LEGISLATION INCREASES FLEXIBILITY FOR NATIONAL EMERGENCY GRANTS

 

On September 20, 2005, the House approved the Flexibility for Displaced Workers Act (H.R. 3761), a measure to significantly expand the flexibility of NEGs for Gulf Coast workers with the goal of making more jobs and training available to individuals more quickly.  President Bush signed the bill into law on September 23, 2005.  Specifically, this legislation:

 

  • Makes NEG funds available to displaced workers for employment projects outside the designated Hurricane Katrina disaster area; 

  • Permits previously-awarded NEG funds to be directed to workers impacted by Hurricane Katrina;

  • Allows displaced workers to obtain public sector jobs not directly related to the disaster;

  • Expands NEG eligibility to displaced individuals who currently are unemployed, as well as those with no prior work history;

  • Empowers the Secretary of Labor to extend the duration of the NEG projects from six months to 12 months, if necessary; and

  • Authorizes NEG payments to Gulf Coast residents not eligible for unemployment compensation or whose unemployment compensation has expired and who are participating in reemployment activities.