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Sequestration Lowers Federally-Funded Unemployment Insurance Benefits

Existing EUC and Regular State Unemployment Benefits Not Affected

(Albuquerque) – The Budget Control Act (Public Law 112-25) signed by President Obama has directed federal budget cuts, known as “sequestration,” to many federal programs, including Unemployment Insurance. The federally mandated budget cuts will affect the Emergency Unemployment Compensation program (known as EUC benefits, federal extensions, or federal “Tiers”). Individuals applying for Tier 1 or Tier 2 EUC Unemployment Insurance benefits beginning June 2, 2013 will receive a reduced weekly benefit amount. The weekly benefit amount will be reduced  by  25 percent, which the department estimates may initially impact approximately 2,100 individuals who file the first few weeks of June.

 

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