PROVIDENCE – Rhode Island is getting $2.3 million in federal funding to expand access to unemployment insurance benefits, the U.S. Department of Labor announced on Wednesday.
The grant, administered through the DOL’s Employee and Training Administration, comes from a larger, $260 million pot of federal funding aimed at helping people of color, those with disabilities, those with limited English proficiency and those in rural areas that apply for unemployment insurance benefits, according to a press release. Rhode Island is one of two states – the other is Wisconsin – awarded funding under the latest distribution.
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Rhode Island’s grant will go toward hiring more bilingual staff for the R.I. Department of Labor and Training, including those who deal with potential fraudulent claims, as well as document translation and multilingual online and call center service, according to John Willumsen, a DLT spokesperson.
The funding comes amid ongoing concerns about scammers taking advantage of Rhode Island’s outdated technology to obtain unemployment benefits. A report published earlier this month by the R.I. Office of the Auditor General concluded that there may be $480 million fraudulent unemployment benefits paid out in fiscal 2021 than what the state originally found. Combined with the $70 million in unwarranted benefits already paid during the year that ended June 30, 2021, this could mean that nearly 25% of the $2.3 billion the state paid out in unemployment insurance benefits in fiscal 2021 went to scammers.
Asked if the potential increase in claims spurred by new federal funding might open the state up to more fraud, Willumsen responded in an email by pointing to the enhancements in fraud protection and detection the state has added, such as multi-factor authentication, identify verification and cybersecurity screenings.
A portion of the federal grant will also add employees to the Unemployment Insurance Fraud Unit, Willumsen said.
“This funding will help expand access to our unemployment insurance program and further our efforts to serve all Rhode Islanders well,” DLT Director Matthew Weldon said in a statement. “From day one, I’ve stressed that we need to be intentional with our work to help historically marginalized communities access our programs and services. This equity grant will provide much-needed resources to do just that.”
The state’s unemployment insurance trust fund stands at $256.4 million.
(Update: Comments from R.I. Department of Labor and Training added through out)
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
