* Jerry Nowicki at Capitol News Illinois…
Gov. JB Pritzker isn’t considering using federal American Rescue Plan Act funding to pay down a multi-billion-dollar Unemployment Insurance Trust Fund deficit […]
The reason Pritzker won’t consider using federal ARPA funds on the $4.2 billion Trust Fund deficit, he said, is because he did not believe it a permissible use of the funding, and he is hopeful that the federal government will provide aid or rule changes to accommodate the 17 states that have outstanding federal borrowing balances in their trust funds amounting to $54 billion cumulatively. […]
Interim U.S. Treasury rules for ARPA funding and the plans of dozens of other states, however, contradict the governor’s statement on the use of ARPA funds to repay the Unemployment Trust Fund deficit. The Associated Press reported on May 27 that “at least 29 states already have transferred or proposed to use a total of more than $12 billion of federal coronavirus aid for their unemployment trust funds.”
Per the interim final rule, published May 17 in the Federal Register, “recipients may make deposits into the state account of the Unemployment Trust Fund … up to the level needed to restore the pre-pandemic balances of such account as of January 27, 2020, or to pay back advances received under Title XII of the Social Security Act.”
The General Assembly will have to be involved if the state uses the remaining ARPA money to patch the trust fund, but Democrats want to wait to see if the federal government takes any action before proceeding. Pritzker should’ve known this. It’s been in all the papers.