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20 States Borrow From Feds to Pay Unemployment Benefits
Stateline: At least 20 states are running out of money to pay unemployment benefits and plan to borrow from the federal government, creating fears that higher business taxes could hit vulnerable employers still reeling from shutdowns.
Unemployment insurance trust funds are funded by business taxes and pay out benefits to laid-off workers. If the funds start to run out of money — as they now are in many states — state and federal law triggers tax increases to replenish the accounts.
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