Las Vegas, NV (KXNT) - The Nevada Department of Employment, Training and Rehabilitation (DETR) has started borrowing money from the federal government to help ensure Nevada residents who are eligible for regular unemployment benefits continue to receive payments without interruption during the ongoing COVID-19 pandemic.
Nevada’s unemployment insurance trust fund is funded by its unemployment insurance business tax. Nevada’s trust fund lasted nine months of extraordinary activity due to actions taken by the agency to build reserves prior to the onset of the COVID pandemic.
Due to the ongoing pandemic resulting in historic unemployment claims, the State exhausted its trust fund and began borrowing funds earlier this week.
Borrowing funds from the federal government in this manner is typical in times of economic recessions. Nevada now joins 22 other states in borrowing funds under Title XII of the Social Security Act.
DETR will continue to borrow funds as necessary under Title XII of the Social Security Act, similar to what was done in the last recession, to ensure eligible claimants receive their benefits without interruption.