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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4369
<br /> underbanked households—those that activities, and other community did not fully utilize their skillset or did
<br /> have a bank account but rely on engagement activities. not provide the hours,wages, or job
<br /> alternative financial services, such as Assistance to Unemployed and quality desired. Treasury has also
<br /> money orders,payday loans,and check Underemployed Workers received recipient questions on whether
<br /> cashing services—account for 16 job fairs or grants to businesses to hire
<br /> percent of all households in the United The interim final rule included underserved workers are eligible uses
<br /> States.174 As a result of the COVID-19 assistance to unemployed workers as an under this category. Another commenter
<br /> pandemic,new social distancing enumerated eligible use,including recommended flexibility in eligible
<br /> protocols have,in some instances,made "services like job training to accelerate workforce development programs,
<br /> it more difficult to perform financial rehiring of unemployed workers." arguing that rural areas may face
<br /> transactions with paper instruments, Treasury provided further guidance, particular challenges.
<br /> like banknotes, coinage,paper checks, based on recipient questions after the Treasury Response:Treasury is
<br /> or money orders. Households interim final rule,that eligible uses maintaining this eligible use in the final
<br /> constrained to these payment methods under this section also include other rule,including the enumerated eligible
<br /> may face challenges receiving efforts to accelerate rehiring and thus services in the interim final rule and
<br /> government assistance.Additionally, reduce unemployment, such as subsequent guidance. Treasury is also
<br /> businesses have transitioned to cashless childcare assistance,assistance with confirming that job fairs or grants to
<br /> payments systems to promote transportation to and from a jobsite or businesses to hire underserved workers
<br /> contactless payments.175 As a result, interview, and incentives for newly are eligible uses under this section.
<br /> unbanked individuals may face employed workers[,]"as well as Treasury is also enumerating that job
<br /> additional challenges conducting assistance to unemployed workers and workforce training centers are
<br /> financial transactions. seeking to start small businesses. eligible capital expenditures,so long as
<br /> Treasury Response:Recognizing these Finally,further guidance also provided they adhere to the standards and
<br /> challenges,Treasury is clarifying that that"public jobs programs, subsidized presumptions detailed in the section
<br /> recipients may use SLFRF funds to employment,combined education and Capital Expenditures in General
<br /> provide financial services that facilitate on-the-job training programs, or job Provisions: Other.
<br /> the delivery of federal, state, or local training to accelerate rehiring or address The final rule maintains the definition
<br /> benefits (e.g.,Child Tax Credit,Earned negative economic or public health of eligible beneficiaries,which is
<br /> Income Tax Credit,tax refunds, or impacts experienced due to a worker's aligned with the Bureau of Labor
<br /> emergency housing or food assistance occupation or level of training" are all Statistics' definitions of unemployed
<br /> funds). The following includes a non- enumerated eligible uses as assistance to workers and other labor
<br /> exhaustive list of uses to provide unemployed or underemployed underutilization,using a common,
<br /> financial services to unbanked and workers. widely known definition that
<br /> underbanked households: The interim final rule defined eligible incorporates a broad group of
<br /> • Provide low or no cost financial beneficiaries of assistance as individuals both unemployed or whose
<br /> services,including in conjunction with "individuals who want and are skills are otherwise underutilized in the
<br /> administration of benefits, such as pre- available for work,including those who labor market.
<br /> paid debit cards, e.g.,via Economic have looked for work sometime in the In addition,recognizing that the
<br /> Impact Payment or General Purpose past 12 months or who are employed pandemic has generated broad
<br /> Reloadable pre-paid cards or for the part time but who want and are workforce disruption,in the final rule,
<br /> development of public banking available for full-time work."This Treasury is making clear that recipients
<br /> infrastructure that can support benefit definition is based on definitions used may provide job training or other
<br /> delivery. by the Bureau of Labor Statistics to enumerated types of assistance to
<br /> • Provide transitional services to define individuals currently individuals that are currently employed
<br /> facilitate long-term access to banking unemployed,as well as persons but are seeking to move to a job that
<br /> and financial services. marginally attached to the labor force provides better opportunities for
<br /> • Provide financial literacy programs and working part-time for economic economic advancement, such as higher
<br /> and conduct community outreach and reasons.176 The latter two classifications wages or more opportunities for career
<br /> deploy engagement resources to are types of labor underutilization,or advancement.
<br /> increase awareness about low-cost,no- "underemployed"workers.177 Finally,
<br /> overdraft fee accounts,pilot new the interim final rule specified that Recipient Unemployment Insurance
<br /> strategies and approaches that help assistance to unemployed workers Trust Funds and Related Expenses
<br /> overcome barriers to banking access and included both workers who lost their Under the interim final rule,a
<br /> support the gathering and sharing of job during the pandemic and resulting recipient may use funds to make
<br /> information in ways that improve recession and workers unemployed deposits into its account of the
<br /> equity,such as community meetings, when the pandemic began who saw Unemployment Trust Fund established
<br /> partnerships with community-based further deterioration of their economic under section 904 of the Social Security
<br /> organizations, online surveys,focus prospects due to the pandemic. Act(42 U.S.C. 1104)up to the level
<br /> groups,human-centered design Public Comment:Commenters needed to restore the pre-pandemic
<br /> generally supported the inclusion of this balance of such account as of January
<br /> 174 Board of the Governors of the Federal Reserve enumerated eligible use. One 27, 2020 or to pay back advances
<br /> System,Report on the Economic Well-Being of U.S. commenter recommended including received under Title XII of the Social
<br /> Households in 2018—May 2019,https://www.federal assistance for underemployed workers
<br /> reserve.gov/publications/2019-economic-well-being- Security Act(42 U.S.C. 1321)for the
<br /> of us-households-in-2018-banking-and-credit.htm. who took jobs due to the pandemic that payment of benefits between January 27,
<br /> 175 Zaheer Allam,The Forceful Reevaluation of 2020 and May 17, 2021. These costs
<br /> Cash-Based Transactions by COVID-19 and Its 176 Bureau of Labor Statistics,Labor Force support the solvency of the
<br /> Opportunities to Transition to Cashless Systems in Statistics from the Current Population Survey: unemployment insurance system and,
<br /> Digital Urban Networks.Surveying the Covid-19 Concepts and Definitions,https://www.bls.gov/cps/
<br /> Pandemic and its Implications(2020):107-117. definitions.htm(last visited November 9,2021). ultimately,unemployment insurance
<br /> doi:10.1016/B978-0-12-824313-8.00008-5. 177Id. benefits provided to unemployed
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