The Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States

The Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States

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.

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INFLATION POLICY AND UNEMPLOYMENT THEORY COST-BENEFIT APPROACH TO By Phelps

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