Case Study

Summary

Unemployment insurance (UI) is a crucial program for partial income replacement during times of financial crisis. During the pandemic, UI was a lifeline to millions. But the unprecedented surge in unemployment claims during that time exposed weaknesses within our country’s UI system. As a result, the U.S. Department of Labor (the Department) and state UI agencies received a historic $1 billion in American Rescue Plan Act (ARPA) funding to help states modernize their UI programs. This was the first time the Department received significant resources to collaborate with states on technology modernization projects. Nearly three years into this effort, Nava helped the Department publish a report on the ways states are using ARPA funds. “Insights and Successes: American Rescue Plan Act Investments in Unemployment Insurance Modernization” outlines how ARPA funding is helping states detect and prevent fraud, promote equitable access to UI, and ensure timely payment of benefits. 

Telling the story of UI modernization and why this funding matters helps the Department share out the great work they’ve put into improving critical UI programs across the country. This project also demonstrates Nava’s work partnering with a government agency to execute on several strategic communications initiatives. 

To learn about how we partnered with the Department on a qualitative research project aimed at improving claimant experiences, read this case study.

Approach

Our shared goal for this work was to make decision-makers in the UI space aware of modernization efforts that happened as a result of ARPA funding. To achieve this goal, we supported the Department in researching, editing, designing, and publishing the report and accompanying blog posts on the Department’s reference site. We also helped conduct outreach to make stakeholders aware of the publications, and we provided event support for the Department’s congressional briefing webinar.  

Outcomes

The Department’s blog posts, published on the Department’s blog and the Office of Unemployment Insurance Modernization’s (OUIM) Reference Site, helped drive engagement around the report. Once the Department published the report, we helped them send it to over 600 contacts from approximately 145 organizations in the UI space. 

For the congressional briefing, we supported the Department in crafting an invite list and designing the run-of-show. Over 200 people attended the congressional briefing, demonstrating great interest among decision-makers in modernizing UI. 

The report

After the pandemic led to record numbers of UI claimants and exposed shortcomings in our UI system, the Department identified the most urgent UI system needs: detecting and preventing fraud, promoting equitable access, and ensuring timely payments. The report documents how historic ARPA funding enabled the Department to partner with states on modernization projects across these three pillars. It is based on data from states’ grant applications and quarterly progress reports, as well as interviews with state agency staff. 

Detecting and preventing fraud

The Department helped states carry out several efforts aimed at detecting and preventing fraud. States can now verify peoples’ identities online through Login.gov or in-person at Post Offices across the country, helping to detect claims filed with stolen identities. States have also made progress in how they leverage data analytics and system security enhancements to detect fraud. Finally, ARPA spurred several state audits and investigations into fraud, giving the Department more insight into how states are administering UI. 

Promoting equitable access

Although UI benefits have helped millions of people, it can be difficult for workers from underserved or marginalized communities to access benefits. That’s why states are using ARPA funding to promote equitable access to UI, including for people with disabilities, those who speak languages other than English, workers of color, and those living in rural areas. States are making efforts to provide resources in plain language to help people more easily understand benefit programs. Additionally, states are using Equity and Navigator Grants to provide better customer assistance, which can help people from underserved communities navigate UI.

Ensuring timely payment of benefits

The surge of UI claims during the pandemic contributed to backlogs, which in turn has made it difficult for states to pay out benefits in a timely manner. To help address this, some states have adopted Robotic Process Automation and enhanced Document Management Systems that free up time for agency staff to focus on helping eligible claimants get benefits. The Department is also helping states adopt a tool that streamlines the exchange of claims information among states, employers, and other stakeholders. 

Fostering collaborations between the Department and states

The Department gave 36 states free assessments by Tiger Teams, or multi-disciplinary UI experts. These assessments yielded 344 state-specific recommendations that states can obtain funding to execute. Moreover, OUIM provided product development expertise to over half the states to develop technology solutions that are adaptable, human-centered, and resilient. 

Conclusion

Through $1 billion in ARPA-funded investments, the Department and state UI agencies have successfully worked together to help states begin modernizing their UI programs. In order to promote continued improvement, we’ve supported the Department as they evangelize their approach through the report, blog posts, and an accompanying congressional briefing webinar. With these efforts, we’ve supported the Department in fostering a stronger UI system that’s more fraud-resistant, equitable, and human-centered. 

Special thanks to Chloe Hilles for contributing to this article.