Are grant dollars pre-funded or reimbursed? Is it first come, first serve with a hard cut-off based on estimated expenditures?
Once a grant is approved, a state, territory and the District of Columbia will receive an initial obligation of three weeks of funding. Once a state, territory and the District of Columbia is prepared to implement the program, the state/territory will draw down the grant funds as frequently as weekly from the Treasury in accordance with payment procedures for their UI program and consistent with the requirements of the Cash Management Act. States, territories and the District of Columbia may make retroactive payments to eligible claimants for the weeks ending August 1 to August 22, 2020. After the initial three-week obligation, additional weekly disbursements will be made on a weekly basis in order to ensure that funding remains available. This is similar to the mechanism states/territories used to draw down Federal Pandemic Unemployment Compensation program funds.
However, states, territories and the District of Columbia should apply for grants as quickly as possible given the potential for program termination based on the parameters established.