Federal Law Requires Reduction To Federal Unemployment Benefits

Wednesday, October 2, 2013

The Budget Control Act of 2011, also known as “sequestration,” requires budget reductions to many federal programs, including the Emergency Unemployment Compensation (EUC) program. To meet the federal requirement for sequestration for fiscal year 2014, Tennessee must reduce all federal EUC benefits paid on or after Saturday, by 4.4 percent.

EUC claims that are mid-tier as of Saturday, will continue at the same weekly amount until the current EUC tier ends. All new EUC claims and EUC claims that transition to a new tier as of the week ending Saturday, or later, will be reduced by 4.4 percent.

Approximately 20,000 Tennessee claimants currently receiving EUC or transitioning into EUC from Tennessee Unemployment Compensation program will be affected. Benefits received under the state’s unemployment compensation program, generally the first 26 weeks (maximum) of available benefits, will not be reduced.

Claimants are being notified of the reduction during their weekly internet or telephone certification.


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