The Nevada Department of Employment, Training and Rehabilitation (DETR) announced on Thursday it started borrowing money from the federal government to ensure residents eligible for regular unemployment benefits continue to receive payments without interruption during the COVID-19 pandemic.

Nevada's unemployment insurance trust fund is funded by its unemployment insurance business tax. The trust fund lasted nine months of activity due to actions taken by the agency to build reserves prior to the onset of the COVID pandemic.

Due to the ongoing pandemic, 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 joins 22 other states in borrowing funds under Title XII of the Social Security Act. Pursuant to the Families First Coronavirus Response Act, no interest accrues on Title XII loans through December 31.

DETR will continue to borrow funds similar to what was done in the last recession, to ensure eligible claimants receive their benefits without interruption.

Additional extended UI benefit programs that are funded by the federal government are not impacted by this.

For more information, visit this link here: https://www.treasurydirect.gov/govt/reports/tfmp/tfmp_advactivitiessched.htm