NFIB and the Joint Employers Coalition negotiated a resolution to the massive Unemployment Insurance Trust Fund debt, lingering from the 2020 Coronavirus Pandemic. NFIB and business allies had previously secured $2.7 Billion in ARPA Funds towards the massive $4.5 Billion debt. This new agreement, reached between business and labor, secures an additional $1.3 Billion to cover the remaining balance of the federal debt. In addition, business groups secured a $450 Million loan from State General Revenue Funds to inject the system towards a $1.75 Billion target Trust Fund Balance. This $450 million will be paid back by employers over 10-years, minimizing the impact of additional tax increases that would have resulted if (and when) the State experiences any economic downturn and requires additional future federal loans.
This agreement is believed to save employers hundreds of millions of dollars over the next 5-years, as additional federal tax increases would have been substantially higher than the annual payment on the $450 million State loan. The agreement injects stability into the system by increasing the target Trust Fund balance, intending to prevent the Fund from going into future debt should the State experience a future recession.
“NFIB supports the agreement reached to fully pay off the federal debt, stabilize the Unemployment Insurance system, and provide employers with certainty; ultimately saving employers over $900 million over the next five years”, said NFIB State Director Chris Davis. “While employers were facing inevitable increased taxes, this agreement mitigates that burden and makes a difficult situation better for Illinois small businesses”
NFIB was a crucial member of the Joint Employers Coalition that negotiated the agreement, with Illinois Retail Merchants Association, Illinois Manufacturers Association, and Illinois State Chamber of Commerce.
