The federal government added $600 a week to people’s Unemployment Compensation (UC) checks for the first several months of the pandemic to help bolster the economy. However, the sharp spike in unemployment rates hit the states hard as they had to disperse funds for the regular portion of UC. Now twenty states have started to borrow money from the federal government to cover costs.
Here’s the status of Pennsylvania, according to a Pew Stateline report: “Pennsylvania had just this year finished paying off $2.8 billion in bond funds borrowed for unemployment benefits in the Great Recession. Last week the state announced plans to borrow $2.8 billion in three months to get through October.”