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Accession Number
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PB2013-100094
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Title
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Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States, September 20, 2012.
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Publication Date
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Sep 2012
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Media Count
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17p
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Personal Author
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J. M. Whittaker
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Abstract
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During some recessions, current taxes and reserve balances were insufficient to cover state expenditures for unemployment compensation (UC) benefits. UC benefits are an entitlement, and states are legally required to pay benefits even if the state account is insolvent. Some states may borrow funds from the Federal Unemployment Account (FUA) within the Unemployment Trust Fund (UTF) to meet UC benefit obligations. The 2009 stimulus package (the American Recovery and Reinvestment Act of 2009, P.L. 111-5 S2004) temporarily waives interest payments and the accrual of interest on these loans to states from the FUA. This report summarizes how insolvent states may borrow funds from the federal account within the UTF to meet their UC benefit obligations.
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Keywords
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Accounts
Congressional reports
Federal assistance programs
Federal loans
Federal Unemployment Account(FUA)
Insolvency
Insufficient balances
States(United States)
Tables(Data)
Trust fund balances
Unemployment compensation
Unemployment taxes
Unemployment Trust Fund(UTF)
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Source Agency
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Congressional Research Service
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NTIS Subject Category
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70F - Public Administration & Government
70B - Management Practice
96F - Banking & Finance
43A - Finance
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Corporate Author
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Congressional Research Service, Washington, DC.
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Document Type
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Technical report
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Title Note
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Rept. to Congress.
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NTIS Issue Number
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1303
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Contract Number
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N/A
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