The Commonwealth's lack of a permanent unemployment insurance system has created an unusual hurdle in delivering Disaster Unemployment Assistance to workers affected by Super Typhoon Sinlaku, forcing local and federal officials to build the program infrastructure from scratch before benefits can be distributed.
Unlike U.S. states and territories that already operate unemployment insurance programs, the CNMI does not provide unemployment benefits, meaning the CNMI Department of Labor lacks the equipment, software, and administrative framework needed to process disaster unemployment claims.
According to a Federal Emergency Management Agency fact sheet released recently, the CNMI Department of Labor will instead install a configurable software platform specifically designed to administer the DUA program.
The system will be customized to meet the CNMI's needs while complying with federal DUA regulations. Rather than allowing applicants to file independently online, claims will be handled through a staff-assisted intake process, with trained CNMI Department of Labor employees interviewing applicants and entering their information directly into the system.
DUA provides temporary financial assistance to individuals whose jobs or self-employment were lost or interrupted as a direct result of a federally declared disaster and who are not eligible for regular unemployment insurance. The program is funded by FEMA, administered by the U.S. Department of Labor, and delivered locally through the territorial workforce agency. Benefits may be available for up to 26 weeks.
The CNMI formally requested approximately $10.1 million in Disaster Unemployment Assistance last June 8. Two days later, the U.S. Department of Labor endorsed the request and forwarded it to FEMA for review. FEMA said it is expediting its programmatic review before notifying U.S. Congress, a required step because grants exceeding $1 million require congressional notification under the Stafford Act.
Once congressional notification is completed, FEMA will obligate the funds to the U.S. Department of Labor, which will then disburse them to the CNMI Department of Labor to begin implementing the program.
Under the current disaster declaration, DUA benefits cannot cover unemployment occurring before the April 23, 2026 major disaster declaration for Super Typhoon Sinlaku or after the end of the Individuals and Households Program assistance period, which runs through Oct. 24, 2027.
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