ALBUQUERQUE, N.M. (KRQE) – The governor said she will use federal stimulus money to replenish the fund that pays out unemployment benefits. The Unemployment Insurance Trust Fund has more than $460 million before the pandemic.
The Trust Fund was depleted by September of last year forcing the state to borrow money from the federal government. Over the course of the pandemic, the state paid about $3.7 billion to New Mexicans. Now, the department will be receiving more than $600 million from the American Rescue Plan; Part of that will go toward paying back a federal loan.
“Restoring the Trust Fund is essential to minimizing the impact that the pandemic will have on New Mexico businesses,” said Ricky Serna in a news release from the department, acting Secretary for the Department of Workforce Solutions. “When combined with other provisions already approved by the NM Legislature, this measure will further advance an economic recovery for the State.”
The rest will go toward replenishing the state’s Trust Fund which the state estimates will once again have about $460 million. The department says restoration of the Trust Fund is scheduled to be completed by June 30 to meet the deadline in calculating employer tax rates for the coming year.
For more information on how Unemployment Insurance tax rates are calculated, visit dws.state.nm.us/Unemployment/Unemployment-for-a-Business/Unemployment-Insurance-Tax-Information/How-UI-Tax-Rates-Are-Calculated.