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WEDNESDAY, JUNE 4, 2025

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Federal Termination of Key Unemployment Grants Impacts Oregon Employment Department and Southern Oregon Communities By: John Oliver The Oregon Employment Department (OED) is facing a sudden reduction in federal funding following the U.S. Department of Labor’s (USDOL) decision to terminate four major unemployment insurance (UI) grants ahead of schedule. On May 22, OED was formally notified that the grants, totaling over $12 million in federal support, no longer align with the Department of Labor’s stated priorities. The move has already resulted in the elimination of several positions and could have ripple effects for communities across the state, including those in Southern Oregon. Among the grants rescinded is the Unemployment Insurance Navigator Grant, a $3 million initiative awarded in 2022. This program funded collaborations with three community-based organizations that helped historically underserved populations access unemployment benefits. With the grant originally scheduled to run through midJune, its early termination effectively ends outreach work that was ongoing in several rural and urban pockets of Oregon, including potentially underserved areas in Jackson and Josephine counties. The second discontinued grant, Equitable Access to Unemployment Insurance (EAUI), provided $4.5 million to improve the accessibility of UI benefits through upgraded digital tools, new multilingual resources, and targeted outreach efforts. Like the Navigator Grant, it was designed to address long-standing equity gaps in unemployment benefit delivery, particularly among non-English-speaking and low-income communities. With a formal end date of June 30, the early cut is unlikely to drastically interrupt customer-facing services, as the employees involved were on temporary rota-

tions. However, the cessation halts further development of equity-focused improvements that were still in progress. The UI Integrity Grant, a $1.7 million fund awarded in 2023, was directly tied to OED’s ability to recover overpayments. It financed eight temporary roles within the department’s Contributions and Recovery Division. With the grant now voided, seven of those positions have already been cut. This loss of staffing is expected to slow down the department’s ability to recoup funds from individuals who received benefits they were later deemed ineligible for. In Southern Oregon, where economic instability and seasonal employment patterns can lead to complex benefit situations, reduced enforcement capacity may result in delays and missed recoveries. Also rescinded is the UI Tiger Team Grant. Initially providing $3 million for various modernization projects, most of the associated work was completed prior to the termination notice. How-

ever, about $370,000 had been allocated in 2023 for a yet-to-begin project involving outside consultants. The project’s goal was to simplify the department’s most frequently issued letters to improve clarity for benefit recipients. The termination effectively cancels that initiative before its launch. The Oregon Employment Department, in conjunction with Governor Tina Kotek’s office and legal counsel, is now evaluating the broader impact of the sudden loss of federal funding. While some projects were near completion and staff involvement was structured to mitigate direct layoffs, the cumulative effect on the department’s long-term strategies for outreach, modernization, and equitable access remains a concern. Southern Oregon communities, particularly those in rural regions and among marginalized populations, may be disproportionately affected by the cancellation of these programs. The Navigator and EAUI grants were designed to fill systemic gaps in access and communication—critical areas

for residents who may not be digitally connected or familiar with state-run benefit systems. Local nonprofit partners that previously collaborated with the state under these grants may also experience disruptions in funding and operations as a result. The rescinded funding also underscores the continued financial volatility of state-federal partnerships in unemployment administration. Oregon’s unemployment system faced extensive scrutiny during the COVID-19 pandemic for delayed payments and system overload. These grants were part of broader efforts to modernize and restore public trust in the system. With the federal government now pulling back, the burden of sustaining improvements falls back to the state. While OED leadership has expressed confidence in the work already completed under the grants, there is a growing sense of frustration about the diminishing resources available to support ongoing customer service improvements and enforcement capabilities. Communities in Southern Oregon—already navigating economic recovery, high housing costs, and rising inflation—may feel the effects more acutely if outreach and recovery efforts slow or stall. The Oregon Employment Department has not yet released detailed next steps regarding how it plans to adjust its workload or funding structure following the termination of these grants. However, discussions with legal advisors and the Governor’s office are ongoing. What remains clear is that the sudden shift in federal priorities has left Oregon—and particularly its vulnerable populations—without critical resources that were meant to ensure equitable and efficient access to unemployment benefits.

Public Forum on Homeless Solutions and Grant Program

Grants Pass Prepares to Host

By E. Ward The City of Grants Pass is preparing to host a public forum to address one of the most pressing challenges facing the community—homelessness. Scheduled for Monday, June 9, 2025, the forum will focus on the city’s Homeless Solutions Competitive Grant Program, a new initiative designed to provide structured funding for practical and sustainable responses to the city’s ongoing need to allow overnight resting on public property. The event will begin at 6:00 p.m. in the City Council Chambers located at 101 NW A Street in downtown Grants Pass. The purpose of the forum is twofold: first, to inform the public about the grant program and its intended impact, and second, to gather community feedback and answer questions from residents about how the city plans to approach homelessness solutions in the

pose viable, actionable solutions that help reduce unsheltered homelessness. Grants will be awarded based on a competitive review process, emphasizing collaboration, long-term impact, and alignment with the city's strategic goals. The city’s hope is that this program can incentivize innovative projects that offer immediate relief while also addressing root causes such as mental health, substance abuse, affordable housing, and economic instability. The forum will include a question-and-answer session following the presentation. To ensure a fair and productive coming months. The evening will open with a presentation by city staff, who will provide a historical overview of the city’s homelessness response efforts, the legal constraints that have led to the city’s current policies, and the motivation behind the development of the new grant program. This presentation aims to clarify why the city has allowed

overnight resting in certain public areas and how the new grant initiative may support alternatives that better serve both the unhoused population and the broader community. The Homeless Solutions Competitive Grant Program is expected to provide funding opportunities to local organizations, nonprofits, and service providers who pro-

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see GRANTS, page 3