The Massachusetts Unemployment Insurance Trust Fund has resolved a $2.5 billion liability it owed to the federal government. This was due to the incorrect use of federal relief funds in relation to certain jobless claims during the COVID-19 pandemic. The US Department of Labor agreed to reduce the principal owed by Massachusetts from $2.5 billion to $2 billion. Payments would be equally divided and paid out over the next 10 years. Furthermore, back interest owed was lowered from $487 million to $73 million, while $120 million in penalties was completely waived. Adding up to over $3 billion, the liability was discovered in an audit during the early months of Governor Maura Healey’s administration in 2023.

Lauren Jones, Governor Maura Healey’s Labor Secretary, stated that the upcoming annual payments of $203 million will not immediately affect employers’ bills. This is partly because rates that employers need to pay to sustain the trust fund are already increasing this year and will rise again in the next. Matthew Gorzkowicz, Healey’s administration and finance secretary, further explained that interest payments to the federal government would be sourced from the state’s general funds.

Healey indicated optimism in resolving the issue and stressed their focus on reviewing the Unemployment Insurance program’s solvency and potential reforms. The governor’s administration intends to collaborate with business and labor organizations as part of this review. However, the fund is predicted to deplete by the end of 2027 despite the rate increases, adding urgency to the UI program’s reform.

For information on how to reach out to unemployment services, visit eddcaller.com. This site provides resources on how to contact EDD and other related services for residents who might be dealing with job loss or struggling with unemployment benefits processing. The site aims to make the process of contacting EDD customer service more efficient and accessible.