Fidelity Bonding Demonstration Grants

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The Department of Labor (DOL or Department) is committed to helping those involved in the criminal justice system, including ex-offenders recovering from opioid and other drug addictions, obtain employment in family-sustaining jobs; better informing employers about the knowledge, skills, and abilities of this population; and advancing strategies to address the barriers to reemployment.  Through the Federal Bonding Program (FBP), the Department provides fidelity bonds to employers to help reduce the risks of hiring individuals whose criminal backgrounds pose barriers to securing employment. FBP is authorized under Section 169 of the Workforce Innovation and Opportunity Act (WIOA).  Over the years, FBP has remained a small program, currently serving an estimated 934 ex-offenders a year.  The Department wishes to increase the use of fidelity bonds by providing funds to states to purchase fidelity bonds over a four-year period through this new funding opportunity.  State Workforce Agencies will apply for the grant on behalf of their respective states.  States will operate this new grant in the same manner they operate their current FBP.  States that do not currently operate a FBP must designate a staff person to serve as the state bonding coordinator for this grant.  States will use their own procurement policies and procedures to select an insurance provider to purchase bonds or may continue to purchase fidelity bonds through the Department of Labor’s FBP contractor, as long as they comply with state contracting procedures.  State bonding coordinators may certify bonds or delegate the authority to certify bonds to other staff.

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