The solvency of state Unemployment Insurance (UI) Trust Funds would be jeopardized by provisions of bills before Congress to reauthorize the Violence Against Women Act (VAWA).
Though the condition of the trust funds has improved since the Great Recession, many states’ funds continue to experience severe financial pressures. The UI funds of 23 states are below the recommended minimum solvency standard, according to the U.S. Department of Labor’s “State Unemployment Insurance Trust Fund Solvency Report 2019.”
Insolvency means these states could not cover all UI benefit claims during a future recession, or even an economic slow-down. (California’s fund is in the worst financial shape.) UI funds in another eight states and the District of Columbia are teetering on the brink of insolvency.
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