Ohio repays $1.5B federal loan for insolvent unemployment system
The loan kept unemployment checks flowing to beneficiaries in the Buckeye State during the pandemic.
CINCINNATI (WXIX) - The State of Ohio this week will pay back in full a federal loan of $1.5 billion which the state initially borrowed to keep its unemployment system afloat during the pandemic.
Ohio ran out of money for unemployment in June 2020. The loan kept unemployment checks flowing to beneficiaries in the Buckeye State.
The system has not been solvent since the 1970′s.
Any time the state borrows money from the federal government for its unemployment service, it must pay interest on the loan.
Now the state faces the task of deciding how to keep the trust that funds the unemployment system adequately funded.
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