Governor Northam launches Return to Earn Grant Program to help Virginians transition back to work

On June 11, 20212, Governor Ralph Northam announced a new $3 million investment to pilot the Return to Earn Grant Program, which will match payments from eligible small businesses to provide new hires with up to $1,000 to support their transition back into the workforce. While many companies are offering hiring bonuses, the Return to Earn Grant Program will serve businesses with less than 100 employees that may not have the resources to provide this financial support. The initial launch of this program will be funded through Virginia’s federal Workforce Innovation and Opportunity Act (WIOA) set aside, and additional recovery funds may be allocated based on demand.

“Many Virginians who lost their jobs as a result of the COVID-19 pandemic still face a variety of barriers to returning to work like access to affordable child care, transportation, and a living wage,” said Governor Northam. “These bonuses will serve as an incentive for unemployed workers to get back into the workforce, while also helping employers fill vacant jobs. The Virginia Return to Earn Grant Program is about empowering the true catalysts of our economic comeback—Virginia’s workers and small businesses.”

This initiative will match up to $500 that a qualifying small business pays directly to a new employee hired after May 31, 2021, either as a lump sum or in installments to offset the ongoing costs of child care, transportation, or other barriers to re-employment. Funds will only be reimbursed to businesses for new hires in positions that pay at least $15 per hour and that qualify as W-2 employment, either full- or part-time. To help address workforce shortages in child care, qualifying child care businesses may qualify for up to $500 per new hire without the match requirement.

“For Virginia to fully recover from the impacts of the pandemic on our economy, we need targeted solutions,” said Chief Workforce Development Advisor Dr. Megan Healy. “One in three Virginia workers has applied for unemployment benefits over the course of the pandemic. The new Return to Earn Grant Program will accomplish a dual purpose of helping unemployed Virginian’s transition back into living-wage jobs, particularly in the child care industry, and supporting small businesses with their hiring needs.”

The launch of the Return to Earn Grant Program coincides with the reinstatement of the weekly work search requirement in Virginia, which started the week of May 31, 2021. Virginians receiving unemployment benefits must make contact with employers each week and accept reasonable offers of employment.

On June 1, the Commonwealth also reopened its Virginia Career Works Centers for in-person services to ensure that Virginians making the transition back to the workforce have access to the resources they need to find high-quality jobs. Job seekers can continue to access resources virtually through the Virginia Career Works Referral Portal.

For additional information on requirements and to apply for Return to Earn grant funding, small businesses should contact their local Virginia Career Works Center. 

Answers to frequently asked questions.

1. What is the Virginia Return to Earn Grant Program?

Unemployed Virginians are facing a variety of childcare, transportation, and other barriers to returning to the workforce while some small businesses are struggling to find workers. To support Virginians in their transition back to employment, Governor Ralph Northam will invest $3 million in federal WIOA set aside funds to pilot the VA Return to Earn Grant Program. The pilot initiative will match up to $500 that a qualifying small business pays directly to a new employee hired on or after May 31st, 2021 to support their transition back to employment. Funds will only be reimbursed for new hires in positions that pay at least $15 per hour and qualify as W-2 employment, either full- or part-time. Qualifying small childcare businesses, who may be facing particularly challenging workforce shortages, may qualify for up to $500 per new hire without the requirement to match.

2. Which small businesses are eligible for funds through the VA Return to Earn Grant Program?

A business must have 100 or fewer employees and be incorporated in Virginia. The employee count is the sum of the business’s employees across all Virginia locations. Qualifying childcare businesses, who may be facing particularly challenging workforce shortages, are eligible for 100% reimbursement for up to $500 per new hire. This means that no match is required from the childcare business to receive funding for new hires through the grant program.

3. What qualifies as a “childcare business”?

A childcare business may be a sole proprietorship, partnership or corporation, with services delivered in home- and/or center-based settings. These businesses may be licensed or legally exempted from licensing by the state.

4. Which job positions are eligible for funds through the VA Return to Earn Grant Program?

Funds will only be reimbursed for new hires in positions that pay at least $15 per hour and qualify as W-2 employment, either full- or part-time.

5. Is there a limit to the number of new hires eligible for reimbursement through the VA Return to Earn Grant Program?

Yes, qualifying small businesses are eligible for a match of up to $500 per new hire for up to 25 new employees. These must have been hired on or after May 31st, 2021.

6. How can VA Return to Earn funds be used?

Funds are only reimbursable through the VA Return to Earn Grant Program if they are provided by a qualifying small business directly to a qualifying new hire, either as a lump sum or in installments to offset the ongoing costs of childcare, transportation, or other barriers to re-employment.

7. How should a qualifying small business apply for reimbursement of funds through the VA Return to Earn Grant Program?

For additional information on requirements and to apply for grant funding, small businesses should contact their local Virginia Career Works Center. Funds will only be reimbursed once they have been fully paid to the new hire.

8. This program matches up to $500 provided to a new hire to support their re-employment, for a total of $1000. If I am a qualifying small business, can I give the new hire a stipend that is more than $1000?

Yes, it is at the discretion of the employer as to how much is provided to the new employee. The VA Return to Earn Program will reimburse for 50% of the funds provided but only up to $500 per new hire. Childcare businesses will receive 100% reimbursement for up to $500 per new hire.

9. How is the initial $3 million in funding for the VA Return to Earn Grant Program being allocated across the Commonwealth? What happens if the money runs out?

Grant funds will be allocated across Virginia’s workforce development areas proportional to the number of current continuing unemployment insurance claims in each region. The initial $3 million allocated from WIOA Governor’s set-aside funds will serve to pilot the approach, and additional funding may be allocated depending on demand for the program.

10. What other strategies is the Commonwealth employing to support people with their return to work and ensure that employers have the workforce they need to fuel Virginia’s economic recovery?

The launch of the new Return to Earn Grant Program coincides with the reinstatement of the Virginia work search requirement beginning the week of May 31, 2021. Virginians receiving unemployment benefits must make contact with employers each week and accept reasonable offers of employment. On June 1, the Commonwealth reopened its Virginia Career Works Centers for in-person services to ensure that Virginians making the transition back to the workforce have access to the resources they need to find a high-quality job. Jobseekers can continue to access resources virtually through the Virginia Career Works Referral Portal.