UI Trust Fund debt will be paid off

An agreement between the business and labor communities was reached last week to address the outstanding loan balance to the Illinois Unemployment Insurance Trust Fund. The state took out the loan during the pandemic to help pay the unprecedented number of unemployment claims.

During the final day of the fall veto session, lawmakers voted on an agreement to pay off the remaining $1.363 billion debt using unexpected, one-time revenue the state is expected to receive this fiscal year.

State Senator Sue Rezin noted that while she advocated this past spring to use federal COVID-19 dollars to fully pay off the loan, which would have prevented any tax increase on businesses, she is glad action was taken last week with new, one-time revenue to lessen the burden on businesses. This action will result in saving employers $913 million over 10 years.

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