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Newswest 9 | Midland, Texas | newswest9.com

Texas can borrow up to $6.4 billion to cover unemployment claims

According to the U.S. Department of Labor, the state is approved to borrow up to $1.8 billion for May, $2.6 billion for June and $2 billion for July.

AUSTIN, Texas — The state hopes to quickly reduce how many folks are getting unemployment payouts once businesses open Friday.

Meanwhile, the Texas Workforce Commission requested to borrow $6.4 billion to pay unemployment benefits for the next three months.

The U.S. Department of the Treasury and U.S. Department of Labor approved three loan requests running through summer, called Title XII loans.

According to the Department of Labor, the state is approved to withdraw up to $1.8 billion for May, $2.6 billion for June and $2 billion for July.

“States do not always borrow the full amount they request,” said a department spokesperson in an email to us.

“Based on the level unemployment benefit payments for the past week, we anticipate Title XII advances could be necessary near the end of May. However, it is important to note that required unemployment benefit payments will occur without interruption or delay regardless of when Title XII advances are needed,” said Cisco Gamez, TWC Spokesperson.

The amount they borrow will be based on how much is needed per day. It’s interest-free throughout the rest of this calendar year.

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