$450M to be paid toward unemployment insurance loan in Ill.
ILLINOIS (KFVS) - Governor JB Pritzker and the Illinois Department of Employment Security announced $450 million will be paid toward the remaining $1.8 billion borrowed under Title XII of the Social Security Act.
According to a release from Pritzker’s office, because of low unemployment insurance claims, the unemployment insurance trust fund can make the payment without impairing the department’s ability to pay benefits.
They said this is the second “significant contribution” to the outstanding loan balance.
In March 2022, the governor signed legislation to make a $2.7 billion contribution from American Rescue Plan recovery dollars to help the state’s unemployment trust fund. This payment cut the original $4.5 billion loan balance down to $1.8 billion.
“This contribution is direct evidence of labor market strength in Illinois,” Governor Pritzker said in the release. “With unemployment claims levels continuing to reach historic lows, the State’s Unemployment Trust Fund is able to contribute to the loan repayment and save Illinois taxpayers in interest costs.”
According to the governor’s office, Illinois has remained below the previously recorded low of just more than 70,000 continued claims for 20 consecutive weeks, which has not been seen since the beginning of the series in January 1987.
Federal funds borrowed under Title XII helped supplement the state’s unemployment insurance trust fund and provided economic relief to unemployed workers throughout the duration of the COVID-19 pandemic.
The governor’s office said a plan to pay off the remaining balance on the loan will need to be developed through the agreed bill process.
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