Officials with the Tennessee Department of Labor and Workforce Development say a new change in unemployment benefits is expected to boost the state’s unemployment trust fund.
Starting July 1st, the state will end an unemployment allowance for dependent children. The allowance is currently $15 per child, per week. The Labor Department says ending that allowance will save Tennessee $40 million a year and could mean a reduction in unemployment taxes paid by businesses. It could also lead to an increase in the unemployment trust fund, which currently has a balance of nearly $800 million.
The dependent child allowance was started in 2009 in order to comply with a federal stimulus grant. The Tennessee legislature voted earlier this year to end the program.