---
kind: "section"
citation: "15 U.S.C. § 9028"
title: "15"
title_heading: "Commerce and Trade"
number: "9028"
heading: "Grants for short-time compensation programs"
release: "119-102"
url: "https://uscodex.org/usc/15/9028"
units:
  - "Chapter 116 — Coronavirus Economic Stabilization (cares Act)"
  - "Subchapter II — Unemployment Insurance Provisions"
---

# §9028. Grants for short-time compensation programs

- (a) **Grants—**
  - (1) **For implementation or improved administration—** The [Secretary](#i-1) shall award grants to [States](#i-3) that enact [short-time compensation programs](#i-2) (as defined in [subsection (i)(2)](#i-2)) for the purpose of implementation or improved [administration](/usc/15/2203.md?p=2) of such [programs](/usc/15/2921.md?p=6).
  - (2) **For promotion and enrollment—** The [Secretary](#i-1) shall award grants to [States](#i-3) that are eligible and submit plans for a grant under [paragraph (1)](#a-1) for such [States](#i-3) to promote and enroll employers in [short-time compensation programs](#i-2) (as so defined).
  - (3) **Eligibility—**
    - (A) **In general—** The [Secretary](#i-1) shall determine eligibility criteria for the grants under paragraphs [(1)](#a-1) and [(2)](#a-2).
    - (B) **Clarification—** A [State](#i-3) administering a [short-time compensation program](#i-2) that does not meet the definition of a [short-time compensation program](#i-2) under [section 3306(v) of title 26](/usc/26/3306.md?p=v), and a [State](#i-3) with an [agreement](/usc/15/7a.md?p=2) under [section 9027 of this title](/usc/15/9027.md), shall not be eligible to receive a grant under this section until such time as the [State law](#i-3) of the [State](#i-3) provides for payments under a [short-time compensation program](#i-2) that meets such definition and such law.
- (b) **Amount of grants—**
  - (1) **In general—** The maximum amount available for making grants to a [State](#i-3) under paragraphs [(1)](#b-1) and [(2)](#b-2) shall be equal to the amount obtained by multiplying $100,000,000 (less the amount used by the [Secretary](#i-1) under [subsection (e)](#e)) by the same ratio as would apply under subsection (a)(2)(B) of [section 1103 of title 42](/usc/42/1103.md) for purposes of determining such [State](#i-3)’s share of any excess amount (as described in [subsection (a)(1)](/usc/42/1103.md?p=a-1) of such section) that would have been subject to transfer to [State](#i-3) [accounts](/usc/15/1681a.md?p=r-4), as of October 1, 2019, under the provisions of [subsection (a)](/usc/42/1103.md?p=a) of such section.
  - (2) **Amount available for different grants—** Of the maximum incentive payment determined under [paragraph (1)](#b-1) with respect to a [State](#i-3)—
    - (A) one-third shall be available for a grant under [subsection (a)(1)](#a-1); and
    - (B) two-thirds shall be available for a grant under [subsection (a)(2)](#a-2).
- (c) **Grant application and disbursal—**
  - (1) **Application—** Any [State](#i-3) seeking a grant under paragraph [(1)](#a-1) or [(2)](#a-2) of subsection (a) shall submit an [application](/usc/15/77ccc.md?p=8) to the [Secretary](#i-1) at such time, in such manner, and complete with such information as the [Secretary](#i-1) may require. In no case may the [Secretary](#i-1) award a grant under this section with respect to an [application](/usc/15/77ccc.md?p=8) that is submitted after December 31, 2023.
  - (2) **Notice—** The [Secretary](#i-1) shall, within 30 days after receiving a complete [application](/usc/15/77ccc.md?p=8), notify the [State agency](#i-3) of the [State](#i-3) of the [Secretary](#i-1)’s findings with respect to the requirements for a grant under paragraph [(1)](#c-1) or [(2)](#c-2) (or both) of [subsection (a)](#a).
  - (3) **Certification—** If the [Secretary](#i-1) finds that the [State law](#i-3) provisions meet the requirements for a grant under [subsection (a)](#a), the [Secretary](#i-1) shall thereupon make a certification to that effect to the [Secretary](#i-1) of the Treasury, together with a certification as to the amount of the grant payment to be transferred to the [State](#i-3) [account](/usc/15/1681a.md?p=r-4) in the Unemployment Trust Fund (as established in [section 1104(a) of title 42](/usc/42/1104.md?p=a)) pursuant to that finding. The [Secretary](#i-1) of the Treasury shall make the appropriate transfer to the [State](#i-3) [account](/usc/15/1681a.md?p=r-4) within 7 days after receiving such certification.
  - (4) **Requirement—** No certification of compliance with the requirements for a grant under paragraph [(1)](#a-1) or [(2)](#a-2) of subsection (a) may be made with respect to any [State](#i-3) whose—
    - (A) [State law](#i-3) is not otherwise eligible for certification under [section 503 of title 42](/usc/42/503.md) or approvable under [section 3304 of title 26](/usc/26/3304.md); or
    - (B) [short-time compensation program](#i-2) is subject to discontinuation or is not scheduled to take effect within 12 months of the certification.
- (d) **Use of funds—** The amount of any grant awarded under this section shall be used for the implementation of [short-time compensation programs](#i-2) and the overall [administration](/usc/15/2203.md?p=2) of such [programs](/usc/15/2921.md?p=6) and the promotion and enrollment efforts associated with such [programs](/usc/15/2921.md?p=6), such as through—
  - (1) the creation or support of rapid response teams to advise employers about alternatives to layoffs;
  - (2) the provision of education or assistance to employers to enable them to assess the feasibility of participating in [short-time compensation programs](#i-2); and
  - (3) the development or enhancement of systems to automate—
    - (A) the submission and approval of plans; and
    - (B) the filing and approval of new and ongoing short-time compensation claims.
- (e) **Administration—** The [Secretary](#i-1) is authorized to use 0.25 percent of the funds available under [subsection (g)](#g) to provide for outreach and to share best practices with respect to this section and [short-time compensation programs](#i-2).
- (f) **Recoupment—** The [Secretary](#i-1) shall establish a process under which the [Secretary](#i-1) shall recoup the amount of any grant awarded under paragraph [(1)](#a-1) or [(2)](#a-2) of subsection (a) if the [Secretary](#i-1) determines that, during the 5-year period beginning on the first date that any such grant is awarded to the [State](#i-3), the [State](#i-3)—
  - (1) terminated the [State](#i-3)’s [short-time compensation program](#i-2); or
  - (2) failed to meet appropriate requirements with respect to such [program](/usc/15/2921.md?p=6) (as established by the [Secretary](#i-1)).
- (g) **Funding—** There are appropriated, out of moneys in the Treasury not otherwise appropriated, to the [Secretary](#i-1), $100,000,000 to carry out this section, to remain available without fiscal year limitation.
- (h) **Reporting—** The [Secretary](#i-1) may establish reporting requirements for [States](#i-3) receiving a grant under this section in [order](/usc/15/8702.md?p=14) to provide oversight of grant funds.
- (i) **Definitions—** In this section:
  - (1) **Secretary—** The term “Secretary” means the Secretary of Labor.
  - (2) **Short-time compensation program—** The term “short-time compensation program” has the meaning given such term in [section 3306(v) of title 26](/usc/26/3306.md?p=v).
  - (3) **State; State agency; State law—** The terms “State”, “State agency”, and “State law” have the meanings given those terms in [section 205](/usc/15/205.md) of the Federal-State Extended Unemployment Compensation Act of 1970 ([26 U.S.C. 3304](/usc/26/3304.md) note).

## Source credit

(Pub. L. 116–136, div. A, title II, § 2110, Mar. 27, 2020, 134 Stat. 331.)

## Notes

### Editorial Notes

### References in Text

Section 205 of the Federal-State Extended Unemployment Compensation Act of 1970, referred to in subsec. (i)(3), is section 205 of Pub. L. 91–373, which is set out in a note under section 3304 of Title 26, Internal Revenue Code.