DETR using federal money after Nevada unemployment trust fund runs dry
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LAS VEGAS, NV (KVVU) — After exhausting the state’s unemployment trust fund, Nevada’s unemployment office has started borrowing money from the federal government to cover regular unemployment benefits for eligible claimants.
The state’s Department of Employment, Training and Rehabilitation (DETR) announced on Thursday that it began borrowing funds earlier this week, to ensure claimants continue to receive payments without interruption during the ongoing COVID-19 pandemic.
Nevada’s unemployment insurance trust fund is funded by its unemployment insurance business tax, which has covered the program for nine months as claims have risen to historic levels.
Nevada now joins 22 other states in borrowing funds under Title XII of the Social Security Act. Pursuant to the Families First Coronavirus Response Act, no interest accrues on Title XII loans through Dec. 31, 2020.
DETR will continue to borrow funds as necessary under Title XII of the Social Security Act, similar to what was done in the last recession, to ensure eligible claimants receive their benefits without interruption.
Additional extended UI benefit programs that are funded by the federal government are not impacted by this.
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