Rhode Island borrows $90 million from US for jobless claims
Thursday, October 1, 2009
Rhode Island's Department of Labor and Training stated on Wednesday that it requested the line of credit because the account utilized to provide funding to unemployed individuals in the state had decreased to only $2 million; enough to last only a few days.
|Unemployment insurance customers will not experience any delays in receiving their weekly payments.|
—Department of Labor and Training, Rhode Island
In a statement released by the Department, the agency said: "Unemployment insurance customers will not experience any delays in receiving their weekly payments."
Unemployment in Rhode Island was 12.8 percent in August 2009 – the third-highest rate in the United States. During the first eight months of 2009, Rhode Island's state unemployment insurance trust fund has provided over $300 million in unemployment benefit funding.
In addition to Rhode Island, 20 other states have outstanding balances on money they borrowed from the Federal Unemployment Account of the United States Department of Labor. Rhode Island has an outstanding balance of approximately $90.68 million due to the account. The loans are interest-free until December 2010.
- "Commerce Digest" — , October 1, 2009
- Associated Press. "Fed to lend RI $90M, pay jobless claims" — , September 30, 2009