skip to Main Content
MSJ NEWS see latest news

Connecticut Businesses Call for Federal Funds to Cover Unemployment Debt

  • CBIA leading coalition calling for Connecticut to pay down unemployment debt with federal relief funds
  • Businesses argue that requiring businesses to cover this debt will stall post-pandemic growth
  • Connecticut is set to receive $2.6 billion under the American Rescue Plan

Summary by Dirk Langeveld

Connecticut businesses are looking to federal funds the state will receive under the American Rescue Plan to offset unemployment debt, a step which would relieve companies from covering this debt.

The state’s Department of Labor has borrowed approximately $700 million from the federal unemployment trust to cover benefits during the surge in joblessness brought on by the COVID-19 pandemic. The Connecticut Business & Industry Association, which is leading a coalition calling for federal funds to cover this debt, said it anticipates Connecticut may borrow more than $1 billion before vaccines are widespread enough to stabilize the state’s economy.

CBIA argues that Connecticut previously required businesses to cover unemployment debt after the Great Recession, and that this made the state less competitive and stalled growth. Some business leaders have said that higher unemployment taxes will limit their ability to hire workers, make capital improvements, or otherwise take steps that can favor the state’s economy. CBIA says that 24 other states have dedicated some of their share of American Rescue Plan funds to covering unemployment debt.

Connecticut’s state government is slated to receive $2.6 billion under the legislation. The state could also potentially use alternatives such as tapping its rainy day fund or using an anticipated budget surplus to cover the unemployment debt.

Spread the Word

More To Explore

Expert Summaries

Know Your Competitors

By Denis Jakuc 

There are tons of benefits to knowing who your competitors are—what they’re offering, their strengths and weaknesses. That knowledge can help you make your products and services stand out,

Latest News

Join with Free InnovatorsLINK Account

Start accessing all the free member benefits and valuable content on the InnovatorsLINK platform. Create a BizLINK listing to boost brand exposure, receive the weekly Main Street Journal newsletter, engage in forums, get full access to free content, and more.