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U.S. DOL Announces Iowa Grant

March 19th, 2008 Posted by Amelia

The U.S. Department of Labor on February 21, 2008 announced a $250,000 Regional Innovation Grant to the state of Iowa to assist the Cedar Valley region in expanding its economic development efforts.

“Local leaders in the Cedar Valley region will use this $250,000 grant to work together on plans for preparing the area’s workforce for 21st century jobs,” said Deputy Assistant Secretary for Employment and Training Douglas F. Small.

The grant comes in the wake of long-term downsizing at John Deere & Co. plants in the area. The funding will be used to develop strategies that incorporate the region’s assets and create economic advantages. State officials hope that these strategies will attract employers and competitive employment opportunities for Iowa workers.

The grant, awarded to Iowa’s Office of Workforce Development, will support efforts to re-examine the Cedar Valley region’s economic development approach and break down political boundaries among local leaders. Activities to be conducted include asset mapping studies, the establishment of new economic and talent development strategies, and strengthening educational efforts in science, technology, engineering and math.

In the mid 1980s, John Deere & Co. employed approximately 16,000 workers in the Cedar Valley region of Iowa. Over time, the company has cut its local workforce to approximately 8,000 jobs.

The Cedar Valley region includes the northeast Iowa counties of Black Hawk, Bremer, Buchanan, Butler, Grundy and Chickasaw.

Regional Innovation Grants are drawn from National Emergency Grant funds to assist state workforce agencies and local workforce investment boards, as well as their key partners, in the design and development of comprehensive and strategic regional plans focused on talent development that is aligned with the demands of the 21st century economy.

When a community suffers from “significant dislocation events”, that state can apply for a National Emergency Grant (NEG). The grant will provide time-limited monies to improve state and local service levels when the “event” creates a need greater than the community can handle.

NEGs are awarded by the U. S. Department of Labor through the discretion of the Labor Secretary. During the past couple of years, Labor Secretary Elaine L. Chao has awarded several emergency grants. A grant of $250,000 was awarded to SI WORKS a new program to help economic development and employee opportunities in twenty counties in southern Illinois.

In 2007, Secretary Chao awarded an NEG to the displaced workers of Lamar, Missouri, when the O’Sullivan Industries Plant closed its doors.

When a plant closes or is forced to lay off several workers requiring resources beyond the state’s capability, the state can apply for an Emergency Grant. As part of the grant application process, the state’s discretionary funds must be included as part of the state’s resources.

The U. S. Department of Labor awards different grants for different situations.

When employees are in danger of losing their healthcare insurance, a Trade-Health Coverage Infrastructure grant may be awarded. This grant assists workers eligible for TRA (Trade Realignment Assistance) or TAA (Trade Adjustment Assistance.

If an area suffers layoffs of more than 50 workers and is affected by federal trade policies, a Trade-WIA Dual Enrollment grants may be awarded.

Communities struck by natural disasters such as hurricanes, floods, wildfires, etc. are eligible for Disaster grants.

Regional Innovation grants serve partnerships between non-profit and government agencies and business, often to train laid-off workers for jobs in a new industry.

Regular NEGs apply to layoffs of over 50 workers. When a layoff of fewer than 50 severely affects a small or rural community, or if layoffs are industry-wide in a region, a Regular NEG may be awarded.

Information on the grant application process and the policies regarding NEGs can be obtained from local and state employment agencies. Communities are urged to being the application process quickly, to ensure funds are available.