CARSON CITY, Nev. (KLAS) — Earlier this week, Nevada started borrowing money from the federal government to ensure unemployment claimants receive their benefits uninterrupted, the Department of Employment, Training and Rehabilitation (DETR) says. This applies to regular unemployment benefits.
DETR notes this practice is common during economic recessions, and another 22 states are doing the same under Title XII of the Social Security Act.
The agency explained Nevada’s unemployment insurance trust fund ran through nine months of “extraordinary activity,” attributing the longevity to actions it took to build reserves before the pandemic struck. Funds were exhausted, resulting in the need to borrow.
Extended UI benefit programs funded by the federal government are not included in this, according to a news release.
DETR says it will continue to borrow funds as needed, and that it will work with the state’s Employment Security Council to rebuild the trust fund when appropriate.
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