Nevada’s unemployment trust fund will run dry in less than five weeks, but recipients will still receive benefits with the help of a loan from the federal government.
The balance in the state’s trust fund is $552 million, enough to cover 4.4 weeks of benefits, according to Department of Employment, Training and Rehabilitation administrator Kim Gaa. The state paid $95.4 million in benefits for the week ending July 18.
The trust fund’s balance was $1.9 billion at the beginning of the year.
“There will be no impact on benefit payments if the trust fund exhausts,” Gaa assured recipients.
Title 12 of the Social Security Act allows states to take loans to pay unemployment benefits.
It took Nevada seven years to repay $773 million borrowed from the federal government to cover benefit payments during the Great Recession, when the state’s unemployment rate reached 14 percent. States borrowed a total of $40.2 billion from the feds during the recession.