Opportunity Information: Apply for ETA TEGL 10 20

The Fidelity Bonding Demonstration Grants opportunity is a discretionary grant program from the U.S. Department of Labor (DOL), Employment and Training Administration (ETA), designed to expand the use of fidelity bonding as a practical tool to help people with criminal records secure employment. The focus is on reducing a common barrier faced by justice-involved individuals, including people returning from incarceration and those in recovery from opioid or other substance use disorders: employer concern about risk when hiring someone with a criminal background. By offering fidelity bonds to employers, the program aims to make it easier for businesses to take a chance on qualified applicants and, in turn, support access to stable, family-sustaining jobs.

At the center of the program is the Federal Bonding Program (FBP), which provides fidelity bonds that function like insurance protection for employers. These bonds are meant to mitigate perceived or real risks associated with hiring individuals whose criminal histories can make them harder to employ. The FBP is authorized under Section 169 of the Workforce Innovation and Opportunity Act (WIOA), giving ETA the statutory basis to operate and expand bonding as a reemployment strategy. While the FBP historically operated as a relatively small program, ETA has been working to scale its reach. A key step in that effort occurred in June 2019, when DOL awarded a total of $2,234,122 in Fidelity Bonding Demonstration Grants to 23 states and one outlying area to increase bonding usage and help more people with records enter the workforce.

This specific grant round was intended to push expansion further by directing funds to states and outlying areas that did not receive the prior year grants. The grants are implemented at the state level through State Workforce Agencies, which apply on behalf of their states. States are expected to run the project through their existing Federal Bonding Program infrastructure. If a state does not currently operate an FBP, it must still participate by naming a staff person to serve as the state bonding coordinator, establishing clear responsibility for managing the bonding function under the grant. The bonding coordinator role is central to operations and includes the ability to certify bonds directly or delegate bond certification authority to other qualified staff, which helps the program scale through local offices and partners.

The grants also give states flexibility in how they secure the actual bonding coverage. States may use their own procurement policies and procedures to select an insurance provider and purchase bonds, or they may continue to obtain fidelity bonds through the DOL FBP contractor, as long as they follow applicable state contracting requirements. This structure is meant to lower administrative friction and let states choose the approach that best fits their procurement rules, vendor relationships, and operational capacity, while keeping the goal consistent: get more bonds issued, more employers reassured, and more job placements for people whose records create hiring hurdles.

Key administrative details from the opportunity listing include that it is categorized as a discretionary grant with an employment, labor, and training focus, tied to CFDA (now Assistance Listing) number 17.270. The funding opportunity number is ETA TEGL 10 20. The expected number of awards was 33, with an award ceiling of $100,000 per award. The announcement was created on December 22, 2020, and the application deadline was February 2, 2021, with a final submission time of 11:59 PM Eastern Time. Eligibility is not open to the general public; it is directed to state-level entities, with State Workforce Agencies serving as the applicants on behalf of their states or outlying areas, consistent with the program design of operating bonding through statewide workforce systems.

Overall, the grant is best understood as an employer-facing risk-reduction strategy that supports worker reentry. Instead of asking employers simply to change their hiring preferences, the program offers a concrete financial assurance tool, paired with state coordination and operational support, to translate second-chance hiring goals into actual hires. By expanding bonding capacity in states that had not previously received demonstration funds, DOL aimed to broaden the footprint of fidelity bonding and make it a more routine part of workforce and reentry services nationwide.

  • The Department of Labor, Employment and Training Administration in the employment, labor and training sector is offering a public funding opportunity titled "Fidelity Bonding Demonstration Grants" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 17.270.
  • This funding opportunity was created on Dec 22, 2020.
  • Applicants must submit their applications by Feb 02, 2021 The closing date for receipt of applications under this announcement is February 2, 2021. The final date for accepting applications is 1159PM ET on Feb 02, 2021.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $100,000.00 in funding.
  • The number of recipients for this funding is limited to 33 candidate(s).
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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