A settlement has been reached between the Healey administration and the Department of Labor to address a $2.5 billion liability the state’s Unemployment Insurance Trust Fund owed to the federal government due to the misuse of federal relief funds for covering certain unemployment claims. The federal labor officials accepted the proposal to reduce the principal owed by Massachusetts from $2.5 billion to $2 billion and to lower the back interest owed from $487 million to $73 million. The penalties amounting to $120 million were also waived. To repay the government, equal payments spread over 10 years will come from the trust fund, but these payments will not lead to changes to employers’ bills in the immediate future as the rates employers pay to support the fund are projected to increase over the next two years. Lauren Jones, Governor Maura Healey’s labor secretary, and Matthew Gorzkowicz, Healey’s administration and finance secretary, are to conduct a comprehensive review of the status of the UI program to suggest potential reforms. Healey expressed disappointment at the previous administration’s mishandling of funds but also optimism about the potential for reforms to the Unemployment Insurance system.

If you are in the state of Massachusetts and have questions or concerns related to your unemployment benefits or need to get a hold of the Unemployment Insurance authority, there are channels through which you can reach out. For useful information such as contact details, timings, tips and tricks on how to effectively communicate with the EDD (Employment Development Department) you can visit eddcaller.com. It is a helpful resource and guide on how to contact EDD’s customer service department, get through to a live person, understand edd payment status and more.