National Dislocated Worker Grants (DWGs) are discretionary grants awarded by the Secretary of Labor, under Section 170 of Workforce Innovation and Opportunity Act (WIOA).
DWGs provide supplemental funding in response to major economic dislocations or other events that cause or contribute to a shortage of existing WIOA Dislocated Worker formula funds and other relevant resources in states and local areas, creating challenges in their ability to provide workforce services to eligible participants. DWGs enable states and communities to respond to and recover from large, often unexpected dislocation events and their associated impacts.
The WIOA statute allows the Employment and Training Administration (ETA) to fund two types of DWGs: Disaster Recovery and Employment Recovery.
Disaster Recovery DWGs provide funding to create temporary employment opportunities to assist with clean-up and recovery efforts when an area impacted by an emergency or major disaster is declared eligible for public assistance by the Federal Emergency Management Agency (FEMA) or is declared or recognized as an emergency or disaster of national significance by a Federal agency with authority or jurisdiction over Federal response to the disaster or emergency, including public health emergencies.
Employment Recovery DWGs expand capacity to serve dislocated workers and to meet the increased demand for employment and training services following a qualifying dislocation event such as a mass layoff, plant closure, or higher-than-average demand for employment and training activities for dislocated members of the Armed Forces and their spouses. While the two DWG types serve different purposes, both play an important role in helping communities, individuals, and businesses recover from large-scale economic events.