The coronavirus pandemic has caused many Hoosiers to lose work and require the assistance of Indiana unemployment insurance compensation. Due to the rising numbers of applicants, the funds are rapidly being consumed. According to Josh Richardson, chief of staff for the Indiana Department of Workforce Development, at the rate the state’s residents are collecting, the fund may only have as little as weeks left to continue and provide financial support. Currently, the fund is projected to be depleted in September.
Prior to the pandemic hitting the nation, the state of Indiana had approximately $886.8 million ready to help those who lost their jobs. That number was assessed by the U.S. Department of Treasury just a little less than six months ago in March. In the beginning of August, the fund has dwindled down to $171.8 million. In a 10-week timeframe when the pandemic first began, there were just under 950,000 new filings for unemployment benefits. As many as 200,000 individuals who submitted a claim in the beginning of the pandemic have persisted in filing for those benefits.
When the funds are dried up, DWD says that Indiana will need to ask the federal government to step in and help. Out of the $4.377 billion in unemployment payments that were made when the pandemic began, $982 million was sourced from the state while close to $3.4 billion was sourced from the feds. There have been so many job losses that Indiana’s unemployment funds have been struggling to keep the pace. The state was simply not able to add enough money compared to how much money they were strained to payout.
If Indiana has to borrow from the federal government, they will have to repay what they take. The good news is that there will likely be the opportunity to pay the money back without added interest charged if the state can do it in a reasonable amount of time.
Is Indiana Alone in Needing Federal Support for Unemployment Compensation?
Across the country, every state has sustained some amount of negative impact from the residual effects of the shutdowns. Indiana is not unique in its likely need to obtain a loan from the federal government to help make up for the depletion of funds in the state. There are currently 13 states that have also requested federal Title XIII assistance, including:
- New York
- Virgin Islands
- West Virginia
Do You Need to Speak With an Indiana Family Law Attorney?
Christopher L. Arrington, P.C. is an Indiana family law attorney that can help with a variety of legal issues including divorce, child custody, personal injury, and criminal defense. As a professional and caring attorney, I proudly serve the residents of Danville, Plainfield, Avon, Brownsburg, and the surrounding communities with the highest quality legal services in the most cost-effective way.
Christopher L. Arrington, P.C. will review your situation and explain to you what your legal rights are as well as present you with options to help you come to see a favorable outcome. Call Danville family law firm today at (317) 745-4494 to schedule your free, no-obligation consultation.