Federal Extended Unemployment Benefits To Be Cut Because Of Sequestration

Tuesday, March 5, 2013

Thousands of jobless workers in Georgia receiving federal Extended Unemployment Compensation (EUC) will soon see a reduction in their weekly benefits because of sequestration. EUC is a federally-funded benefit for long-term unemployed workers who have exhausted regular state unemployment insurance (UI) benefits.

The Georgia Department of Labor (GDOL) has been told by the U.S. Department of Labor to reduce EUC benefits by 10.7 percent, effective the week beginning March 31. There are presently 61,360 recipients of EUC in Georgia.

The current maximum weekly benefit is $330, while the average benefit is $260. Regular state-funded unemployment insurance benefits will not be affected. 

The federal government will also reduce the state labor department’s administrative funding grant by approximately $3 million. The grant is used to pay costs of administering the unemployment insurance program.

The cuts will negatively impact the department’s operations, but it is too soon to know the extent.

The GDOL will notify jobless workers who will be affected. Also, complete information will be available at www.dol.state.ga.us.

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