Sequestration Lowers Federal Unemployment Benefits

STATE UNEMPLOYMENT BENEFITS ARE NOT AFFECTED

NASHVILLE – The Budget Control Act of 2011, generally known as “sequestration,” requires budget cuts to many federal programs including the Emergency Unemployment Compensation (EUC) program.  All payments of EUC on or after March 31, 2013, will be reduced by 10.7 percent through September 2013. 

The weekly benefits of approximately 30,000 Tennessee claimants currently receiving EUC or transitioning into EUC from Tennessee Unemployment Compensation program will be affected. The state’s unemployment compensation system, generally the first 26 weeks (maximum) of available unemployment benefits, will not be reduced.

Claimants will be notified during their weekly Internet or telephone certification on or after March 22, 2013. All affected claimants must continue their regular weekly certification as well as satisfy their weekly work search requirement.

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