Vice President for State Fiscal Policy
The systems for financing unemployment insurance (UI) in many states are broken, and without major reforms, will remain broken for many years, requiring years of high federal taxes on employers and threatening UI’s role as a key economic stabilizer during recessions.
The President reportedly will include in his budget a proposal to address this urgent crisis in UI trust funds. It reportedly contains two major features:
Along with the National Employment Law Project, we released our own plan today for restoring the health of the nation’s UI system. It rests on the same core principles as the President’s reported plan. Without increasing the federal deficit, the plan would:
If federal policymakers use our plan to address this crisis, employers could save as much as $50 billion in taxes and states would maintain the critical benefits they provide to people who lose their jobs.