Could COVID Bankrupt State Unemployment?

Could COVID Bankrupt State Unemployment?

( – From the middle of March through April 11, 22 million Americans filed for unemployment benefits. Due to the unprecedented volume of claims, nearly half of US states have seen a double-digit percentage drop in their trust-fund balances since the end of February. It’s a problem because states also use that money to pay regular unemployment benefits. Skyrocketing claim numbers are threatening to bankrupt them.

Unemployment claims continue to grow due to layoffs and furloughs. In addition, states have just begun launching web portals for the self-employed who are not traditionally qualified for these benefits. Many states are concerned they could run out of money and need loans from the federal government.

The good news is that states won’t need to wait on Congress. They can simply submit a letter to the federal government asking for funds to be deposited into their state account. The loans are interest-free from the US Treasury.

While no state has run out of money yet, officials across the country are planning for that possibility.

~Here’s to Your Prosperity!

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