On July 24, 2025, the U.S. Department of Labor released Unemployment Insurance Program Letter (UIPL) No. 14-25, officially launching the next round of planning for the Fiscal Year (FY) 2026 State Quality Service Plans.
If you work in or alongside unemployment insurance (UI) programs—or support job seekers affected by them—this guidance will shape your priorities and planning for the coming year.
🧭 What Is the State Quality Service Plan (SQSP)?
The State Quality Service Plan (SQSP) is each state’s formal submission to the U.S. Department of Labor outlining how it will administer and improve its Unemployment Insurance (UI) program. This includes performance goals, accountability measures, and plans for system improvements.
For FY 2026, states are required to submit a full two-year SQSP, including:
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Narrative overviews of program strategies
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Budget and staffing plans
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Corrective Action Plans (CAPs) for any performance deficiencies
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A detailed Integrity Action Plan (IAP) to reduce fraud and payment errors
🎯 Five Federal Priorities for FY 2026
The Department of Labor is focusing on five key areas in this new guidance:
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Timely and Accurate Payments
Ensure that eligible claimants receive benefits promptly and without error. -
Preventing Improper Payments and Fraud
Enhance efforts to detect, prevent, and recover overpayments using data tools and cross-matching systems. -
Strengthening Reemployment Services
Expand access to evidence-based Reemployment Services and Eligibility Assessments (RESEA), aligning services with what works. -
Modernizing UI Systems
Strategically use American Rescue Plan Act (ARPA) funds to upgrade technology, improve user experiences, and strengthen operations. -
Data Quality and Reporting Compliance
Ensure timely, complete, and accurate data submission to meet federal reporting standards.
💡 Evidence-Based Requirements for RESEA
States must continue to allocate at least 40% of their RESEA funding to interventions supported by moderate or high causal evidence. This maintains a strong emphasis on strategies that lead to measurable reemployment results.
🔍 What’s Required in the Integrity Action Plan (IAP)
The Integrity Action Plan (IAP) is a required part of the SQSP. It must outline:
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The top risks for fraud or improper payments in the UI system
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The strategies to address those risks
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Use of federal and national data tools (like SIDES, the Integrity Data Hub, and National Directory of New Hires)
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Mid-year reporting of progress and adjustments
📅 Deadlines and Planning Expectations
Each state must submit:
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A full SQSP for FY 2026 and FY 2027
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Quarterly milestones across the two-year plan
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CAPs for any areas of underperformance
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An IAP with targeted actions and measurable outcomes
Timelines and submission details will vary by region, so agencies should stay in close contact with their regional Employment and Training Administration (ETA) office.
🤝 Integration with Broader Workforce Systems
The Department of Labor continues to encourage integration of UI programs within the Workforce Innovation and Opportunity Act (WIOA) framework.
States may include UI in a Combined State Plan, allowing for greater alignment of services, funding, and accountability across unemployment insurance, adult and dislocated worker programs, youth services, and more.
This integration helps ensure a more seamless and supportive experience for individuals navigating unemployment and career transitions.
✅ Suggested Next Steps for State Workforce Agencies
To align effectively with UIPL 14-25, state workforce agencies should:
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Convene cross-agency planning teams
Ensure collaboration between UI, RESEA, WIOA, and data leadership in developing the SQSP. -
Review the full UIPL 14-25 guidance
Available here (PDF). Familiarize your leadership team with all federal expectations. -
Assess your current performance
Identify areas that require a Corrective Action Plan (CAP) or additional federal support to meet benchmarks. -
Build a strong Integrity Action Plan (IAP)
Leverage data-matching tools and national resources to build a plan that’s both proactive and measurable. -
Ensure RESEA funding supports evidence-based practices
Evaluate whether current reemployment strategies meet the required evidence threshold, and update as needed. -
Coordinate with your ETA Regional Office
Clarify submission deadlines, seek technical assistance, and confirm templates for submission. -
Strengthen ties between UI and workforce programs
Consider including UI in your WIOA Combined State Plan to foster service integration and better support job seekers.
📣 Final Thoughts
UIPL 14-25 signals a continued shift toward a modern, accountable, and data-driven unemployment insurance system. It’s a call to action for state agencies to improve benefit delivery, strengthen integrity, and connect more UI claimants to high-quality reemployment opportunities.
For workforce development professionals, this is also a reminder: unemployment insurance is a core part of the public workforce system. And how we align these systems—through planning, service delivery, and data—will shape the future of work and opportunity in every state.