Pennsylvania Made $50M Available in Hazard Pay Grants

In its attempt to avoid the disruption of critical goods and services during the COVID-19 pandemic, Pennsylvania announced the availability of $50 million in grant funding to help employers, located and operating in Pennsylvania, provide hazard pay to front-line employees in certain vital industry sectors.

The COVID-19 Pennsylvania Hazard Pay Grant is a reimbursement-based grant that will be available to employers offering hazard pay during the eligible program period. The hazard pay must be paid to the eligible employee over the 10-week period of August 16 through October 24, 2020 as a $3/hour hazard pay increase to their regular pay rate.

Employers, not individuals, may apply for the grant between July 16, 2020 and July 31, 2020 to receive reimbursement for up to 500 eligible full-time equivalent employees, per location ($600,000 maximum grant per location). No employer may receive more than $3 million of the funding.

Businesses, healthcare non-profits, public transportation agencies, and certified economic development organizations located and operating in Pennsylvania in the following vital industry sectors may apply for funding:

• Healthcare and Social Assistance
• Ambulatory Health Care Services
• Hospitals
• Nursing and Residential Care Facilities
• Transit and Ground Passenger Transportation
• Food Manufacturing
• Food Retail Facilities
• Security Services for eligible industries listed above and commercial industries that were not closed as a result of the Governor’s Business Closure Order
• Janitorial Services to Buildings and Dwellings

The grant program will be administered by the Department of Community and Economic Development (DCED), using the online DCED the Electronic Single Application (ESA). Applications must be received between July 16, 2020 and July 31, 2020.

Grant funds may be used for hazard pay for direct, full-time and part-time employees earning less than $20/hour, excluding fringe benefits and overtime for the 10-week period from August 16, 2020, to October 24, 2020. Applicants may apply for up to $1,200 per eligible full-time equivalent (FTE) employee. Program inquiries may be directed to (717) 787-6245 or ra-dcedcbf@pa.gov.