February 16, 2022

Maryland Congressional Delegation Members Urge Maryland Department of Labor to Apply for American Rescue Plan Program to Improve Deeply Flawed Unemployment Insurance System

Today, U.S. Senators Chris Van Hollen and Ben Cardin and Congressmen Steny H. Hoyer, Dutch Ruppersberger, John Sarbanes, Kweisi Mfume, Anthony G. Brown, Jamie Raskin, and David Trone (all D-Md.) urged the Maryland Department of Labor to apply for a new program funded by the American Rescue Plan to improve the state’s unemployment insurance system, in the wake of the severe delays and errors encountered by tens of thousands of unemployed Marylanders amid the COVID-19 pandemic. The lawmakers’ offices have heard from thousands of their constituents who have struggled to receive their unemployment benefits from the Maryland Department of Labor. According to the U.S. Department of Labor, during 2020 and 2021 Maryland only disbursed 59.2 percent of initial payments for unemployment benefits within 21 days, below the national average of 65 percent for the same time period. Additionally, Maryland only resolved 24.3 percent of cases dealing with eligibility issues within 21 days, well below the national average of 51.1 percent.

In a letter, the lawmakers pressed Maryland Labor Secretary Tiffany Robinson to apply for the Unemployment Insurance (UI) Navigator Program, a new initiative recently launched by the U.S. Department of Labor to support states’ efforts to provide better UI service for struggling workers and families. The lawmakers helped create this program through the passage of the American Rescue Plan to better assist Marylanders as they face the twin challenges of the pandemic’s health and economic harms. As they note in the letter, the American Rescue Plan has already delivered $3,684,000 for Maryland to combat UI fraud.

“As members of the Maryland Congressional Delegation, we write to urge you to apply for the Unemployment Insurance (UI) Navigator Program offered by the U.S. Department of Labor to improve state unemployment insurance systems and delivery of benefits for the people of Maryland. This program is made possible by funding we supported in the American Rescue Plan Act to improve UI program administration, after the pandemic exposed severe problems with UI systems in Maryland and many other states across the country,” the lawmakers begin.

“When unemployment soared during the pandemic, our offices heard from thousands of Marylanders in dire financial situations who were unable to access their unemployment benefits; and individuals from marginalized communities faced especially severe problems. The American Rescue Plan’s UI Navigator Program would help address those problems with up to $15 million in grants for state UI agencies to partner with community-based organizations that conduct outreach and assistance to help unemployed workers navigate the UI system,” the lawmakers write.

“The UI Navigator Program is one of the many ways that the American Rescue Plan is helping families make it through the COVID-19 pandemic, and given the challenges that so many Marylanders faced accessing their UI benefits, this is a program that should be especially helpful for our state. We will continue to work in Congress to enact further measures to support workers and families as we rebuild from the pandemic with a better economy that works for everyone,” they conclude. 

The full letter is available here and below. 

Dear Secretary Robinson:

As members of the Maryland Congressional Delegation, we write to urge you to apply for the Unemployment Insurance (UI) Navigator Program offered by the U.S. Department of Labor to improve state unemployment insurance systems and delivery of benefits for the people of Maryland. This program is made possible by funding we supported in the American Rescue Plan Act to improve UI program administration, after the pandemic exposed severe problems with UI systems in Maryland and many other states across the country.

Unemployment Insurance is a federal-state partnership under which state UI agencies are responsible for processing claims and delivering benefits in a timely fashion. To help build a better UI system in Maryland, the American Rescue Plan has already delivered $3,684,000 for Maryland to combat UI fraud. This funding came on top of earlier federal grants of $2,133,900 and $405,900 to address fraud in Maryland’s Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation programs, respectively. 

When unemployment soared during the pandemic, our offices heard from thousands of Marylanders in dire financial situations who were unable to access their unemployment benefits; and individuals from marginalized communities faced especially severe problems. The American Rescue Plan’s UI Navigator Program would help address those problems with up to $15 million in grants for state UI agencies to partner with community-based organizations that conduct outreach and assistance to help unemployed workers navigate the UI system.

The UI Navigator Program will provide up to $3 million in funding to each state whose application is selected. The program is intended to support access to timely benefits for all workers, and address disparities faced by historically underserved communities, such as racial and ethnic minorities, people with limited English proficiency, formerly incarcerated individuals, and residents of rural areas.

We are committed to working with you to deliver economic relief to Marylanders who are facing financial hardships. The U.S. Department of Labor encourages states to provide notice of their intent to apply by February 28, 2022, and the application deadline is March 31, 2022. We hope that Maryland will apply, and we stand ready to offer our support if you do so.

The UI Navigator Program is one of the many ways that the American Rescue Plan is helping families make it through the COVID-19 pandemic, and given the challenges that so many Marylanders faced accessing their UI benefits, this is a program that should be especially helpful for our state. We will continue to work in Congress to enact further measures to support workers and families as we rebuild from the pandemic with a better economy that works for everyone.

Sincerely,