Pascrell Announces $11,250,000 to Modernize New Jersey’s Unemployment Insurance System

Funding provided by Democrats’ American Rescue Plan will help fix UI system strained by pandemic

PATERSON, NJ – Congressman Bill Pascrell, Jr. (D-NJ-09) announced today that the U.S. Department of Labor (DOL) has awarded $11,250,000 in American Rescue Plan funds to New Jersey to strengthen and modernize the Garden State’s unemployment insurance (UI) system. This federal award will help the New Jersey Department of Labor and Workforce Development make lasting changes to New Jersey’s UI system to improve its accessibility and reliability for Garden Staters in need of assistance.

“I am thrilled to announce that New Jersey will receive $11.25 million in crucial federal funding to overhaul and modernize our state’s unemployment insurance system. Made possible by Democrats’ American Rescue Plan, this significant federal award is a testament to the commitment of Congressional Democrats and President Biden to support working-class Americans, especially during times of economic uncertainty,” said Congressman Pascrell. “Make no mistake: the pandemic exposed the need to modernize our UI system. Countless New Jerseyans have relied on these benefits to make ends meet during challenging times, and it is our duty to ensure that this lifeline is not only available but also equipped to serve our constituents effectively. I thank the leadership of Commissioner Asaro-Angelo and the Murphy administration for helping protect New Jerseyans when times are tough.”

“We are excited to receive these funds to continue to modernize our Unemployment Insurance system, and proud of the confidence the US Department of Labor has shown in our process by awarding New Jersey the maximum grant amount. This award will help New Jersey re-imagine and replace inflexible technologies through human-centered, agile development – and, ultimately, to improve the claimant and employer experience and our ability to adapt to new situations as they arise,” said New Jersey Labor Commissioner Robert Asaro-Angelo.

Today’s award was announced as part of a larger federal investment in UI systems nationwide. The grants will enable recipients to adopt new strategies for upgrading and redesigning unemployment insurance programs, better defend systems against fraud and make systems easier to maintain and change. The funds will also support states’ use of cloud technology to make UI systems more flexible and more user friendly. As part of the effort, DOL will also encourage grant recipients to share models, lessons learned and software modifications with other states to allow them to also benefit.

Congressman Pascrell and his Democratic colleagues passed the American Rescue Plan in March 2021. Their landmark legislation continues to make generational investments in New Jersey and communities across the country.