More Funding Goes to States
GovTech Market Insights: August 2021
The U.S. Department of Labor (DOL) finally released the $2 billion in funding from the American Rescue Plan that was designated to combat fraud, waste and abuse in unemployment programs. What does this mean for states and localities? The DOL will initially allocate $140 million to states for fraud prevention and cybersecurity, plus $260 million in equity grants funding towards the following areas:
- Direct assistance to the states through “Tiger Teams”: The department will send teams into states facing acute challenges around the process of preventing and detecting fraud, promoting equitable access, eliminating backlogs and ensuring timely payment of benefits. The department has begun deploying these teams into six states on a voluntary basis — Colorado, Washington, Kansas, Wisconsin, Virginia and Nevada. More states will be added throughout the year.
- Effective ID verification tools: According to the DOL, too few states have the resources, expertise and capacity needed to combat the attacks that their UI systems have experienced from organized criminal enterprises. To that end, the department recently made identification verification services available for states to purchase.
- Modernize antiquated IT: Funding will be available to centrally develop technology solutions that states may adopt as part of ongoing modernization and improvement efforts. There will also be a focus on shared IT solutions designed to integrate with multiple state’s systems.
- Promote timeliness, equity and fight fraud: The department plans to make $700 million in grants available to states to promote equity and fight fraud. These grants will be designed to help states improve their UI systems to ensure benefits go to workers who need them.
To stay up to date on the latest developments in gov tech funding and investments, check out the Funding Gov Tech channel on govtech.com. Contact us for channel sponsorship opportunities.
NEWS IN NUMBERS:
$7.1 billion
The amount allocated for school broadband through the Emergency Connectivity Fund. As part of the American Rescue Plan Act, this funding allows schools and libraries to purchase hot spots, routers and other devices needed for virtual learning.
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RESOURCES
State & Local Government Seller’s Tip: Don’t Underestimate the Budget Office
Along with ensuring that funds are spent as intended, did you know that budget offices assess IT projects, measure the potential ROI and ensure alignment to departmental needs? As a public-sector sales professional, it’s vital to arm your clients with a strong business case to champion your IT project. Click here for more seller’s tips.
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With 46 states having released their new budgets in July, how will this impact their spending for the remainder of the year? What gov tech spending can be expected for 2022? Get actionable insights on the deals, opportunities, spending and budget trends shaping the market during this on demand webinar. This mid-year overview provides intelligence to help align your marketing and sales strategies to strongly close out the year. Watch here.
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