The $2 trillion federal aid bill enacted last week was the third bill related to COVID-19. The second aid bill, the Families First Coronavirus Response Act, was signed March 18, 2020. It includes $1 billion in unemployment insurance administrative grants for states.

The U.S. Department of Labor (DOL) has issued guidance for state workforce agencies on the use of these grants. The funds may only be used for administration—not for payment of UI benefits. Half of each state’s allotment will be transferred to the state by May 15, 2020 (if the state meets the conditions in the bill). The second half will transferred “if the state’s initial claims for unemployment have increased by 10 percent over the same rolling quarter in the previous calendar year” and meets other conditions in the bill (including “modifying or suspending work search requirements and the waiting week, and non-charging employers directly impacted by COVID-19”).

(In Washington, work search requirements and the waiting period have been suspended, and EHB 2965 included funds to allow for not charging employers if their employees are laid off due to COVID-19.)

DOL notes, “States may want to consider tracking claims activity related to COVID-19 separately from regular UI program administration for research and informational purposes.”

The amount that will go to each state is based on its share of 2018 UI taxable wages. According to DOL, if Washington meets all the conditions, it will receive $23.7 million in emergency administrative grants.

Additionally, the second aid bill requires employers with fewer than 500 employees to provide paid sick leave to employees who can’t work because of COVID-19. This provision takes effect today. DOL has fact sheets about the provisions for employers and employees.