Texas Unemployment Fund About to Run Out of Money
The Texas Workforce Commission is running out of money.
According to CBS DFW, Texas is about to run out of money for people collecting unemployment benefits. This will force Texas to borrow more than 6 billion dollars from the federal government to cover those who are using unemployment benefits.
It's estimated that more than 1.9 million people have filled for unemployment over the last two months, pushing the unemployment rate to 12.8%, up from 4.7% in March.
According to the director of state tax policy for the Tax Foundation, Jared Walczak, “The good news is everyone will be receiving their unemployment benefits. The bad news for everyone in Texas is this has to be paid off.”
So how much has Texas asked for? $1.8 billion in May, $2.6 billion in June, and $2 billion in July.
The good news is that you will still get your unemployment benefits after next week as The Treasury Department has approved Texas for federal loans in anticipation of the money running out.
Let's hope that as Texas phases in more re-openings, people can get back to work.