Workforce Wonkery · Analysis

Issued

WSIN25-01 — Rapid Response and Layoff Aversion Funds — PY 25-26

Source + trust record

Source checked as of September 18, 2026. Primary authority: EDD WSIN25-01, WSD16-04, and the later PY 2026-27 allocation notice.

Check result: The PY 2025-26 Rapid Response and Layoff Aversion allocation remains active through June 30, 2027. It overlaps the newer PY 2026-27 allocation, so Local Areas must continue to distinguish grant year, grant code, allowable use, commitments, and closeout timing. Formula Rapid Response and Layoff Aversion remain separate funding streams. This AI-assisted brief does not receive human legal or compliance review. Official sources control.

The prior two-year Rapid Response allocation remains active through June 2027 and now overlaps the PY 2026-27 grant

WSIN25-01 established the PY 2025-26 Rapid Response and Layoff Aversion allocation for the two-year period from July 1, 2025 through June 30, 2027. Those funds are still active while the newer PY 2026-27 allocation is also available, so Local Areas must manage overlapping grant years, correct grant codes, and distinct allowable uses.

At a glance

Grant period
July 1, 2025-June 30, 2027

Formula RR codes
540 / 541

Layoff Aversion codes
292 / 293

IWT participant code
2285

Executive takeaway

This prior-year allocation is not merely historical. It remains an active funding source through June 30, 2027. Because the newer PY 2026-27 allocation runs through June 30, 2028, Local Areas now have two Rapid Response grant years operating at the same time.

That overlap creates flexibility, but also makes grant-year budgeting, expenditure coding, commitments, and closeout discipline more important.

What each funding stream can support

FundingCodeUse
Formula Rapid Response540 / 541Required and allowable Rapid Response activities tied to layoffs, business closures, and qualifying natural disasters.
Rapid Response-funded IWT enrollment2285Participant reporting when formula Rapid Response dollars support eligible Incumbent Worker Training.
Layoff Aversion292 / 293Activities exclusively intended to prevent or reduce layoffs, including eligible Incumbent Worker Training.
Additional Assistance241Participant enrollment for Dislocated Worker Additional Assistance services.

Why the overlap matters now

AllocationEnd dateCurrent management issue
PY 2025-26June 30, 2027Still active and may have existing commitments or balances.
PY 2026-27June 30, 2028Newer allocation available while the prior grant remains open.

What WDB fiscal and program staff should do

  1. Reconcile the remaining PY 2025-26 balance, commitments, and planned employer responses.
  2. Decide intentionally which grant year will support each new activity.
  3. Keep formula Rapid Response and Layoff Aversion expenditures separate.
  4. Confirm IWT participant coding and employer documentation.
  5. Plan PY 2025-26 closeout early enough to avoid stranded balances or rushed spending in spring 2027.
  6. Use the newer WSIN26-02 brief for the current two-year funding structure and operating guidance.

Source basis

Primary source: EDD WSIN25-01 — Rapid Response and Layoff Aversion Funds, PY 25-26

Implementation note: The prior-year grant remains active through June 30, 2027. Local fiscal records and the master subgrant control the actual balance and spending authority available to each Local Area.

Local Allocation Finder

Find your PY 2025-26 Rapid Response allocation

EDD’s official workbook lists Formula Rapid Response and Layoff Aversion funding for every California Local Workforce Development Area. This PY 2025-26 allocation remains relevant because its two-year grant period continues through June 30, 2027 and overlaps the newer PY 2026-27 allocation.

What to look for

Funding bucketGrant codeHow to use the figure
Formula Rapid Response540 / 541Identify the Local Area amount available for allowable Rapid Response activity.
Layoff Aversion292 / 293Identify the separate local amount restricted to layoff-aversion purposes.
Combined local amountUse for high-level planning only; keep the two funding streams separate for allowability and coding.
  1. Open the PY 2025-26 EDD workbook and find your Local Area.
  2. Compare the two funding buckets separately.
  3. Check remaining obligations and balances because these funds remain active through June 30, 2027.
  4. Open the PY 2026-27 workbook to see the newer allocation that overlaps this grant year.

Why keep this older finder? The allocation is not obsolete simply because a newer program-year notice exists. The two-year period means PY 2025-26 and PY 2026-27 Rapid Response funds can both be active at the same time.

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