Virginia unemployment fund projected to run out soon

Virginia News

RICHMOND, Va. (WRIC) — The Virginia Employment Commission said Thursday that the state will have to get assistance from the federal government in order to keep paying unemployment benefits as its funding, which at the start of the year was nearly $1.5 billion, is projected to run out within the next two months.

The coronavirus pandemic has led to a record number of claims for benefits in Virginia, with more than 1 million claims filed in the last four months. That figure is more than the initial claims filed from the middle of 2014 through 2019, the commission disclosed.

“The unprecedented demand for unemployment benefits has drained the state’s Unemployment Insurance Fund, which started the year with a balance near $1.5 billion, and has put it on track to close 2020 with a record $750 million deficit,” a release from the VEC said Thursday. “In order to continue paying unemployment benefits, Virginia will need to borrow funds from the federal government.”

RELATED: Additional $600 in unemployment benefits expires this week; Congress still split on extension

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