State Seeks Federal Unemployment Loan

(photo courtesy of Brandon Smith/WFYI)

The Indiana Department of Workforce Development is looking for federal assistance to help with unemployment claims. Our partners at WFYI report the DWD has requested to borrow $300 million to help pay unemployment insurance claims.

The state says Hoosiers receiving unemployment benefits will continue to be paid as usual, however it is possible that businesses may have to pay more in payroll taxes in the future. 

According to WFYI, the state had about $900 million saved from payroll taxes before the pandemic; that number has since fallen below $100 million. 

The U.S. Department of Labor says the state has yet to withdraw any federal funds, despite stating a need for an advance.