Governor Kemp announced Wednesday that he will commit up to 1.5 billion in federal relief funds to back unemployment benefits. According to Governor Kemp’s office, this funding will prevent layoffs, save tax dollars, and avoid raising state and federal unemployment taxes.
The funds will come from the CARES Act, which will repay borrowing for the Georgia Unemployment Insurance Trust Fund, relieving the financial pressure and preventing tax increases. The Georgia Department of Labor estimates that the Unemployment Insurance Trust Fund will have borrowed a total of $1.5 billion as a result of the pandemic’s impact on Georgia’s work force.
The Georgia Chamber of Commerce commends the move. “The Georgia Chamber commends Governor Kemp for appropriating $1.5B to replenish the state’s unemployment insurance (UI) trust fund which has been significantly depleted as a result of the pandemic’s impact on Georgia’s economy. The distribution of these benefits to Georgians experiencing COVID-recession job loss provide real peace of mind to our families as well as help sustain vital economic activity. “
The National Federation of Independent Business (NFIB) agreed. “2020 has been a challenging year for Georgia’s small business owners and employees. Today’s announcement means people who lost their jobs through no fault of their own because of the pandemic will have the support they need until they can return to work,” says Nathan Humphrey, state director of NFIB Georgia.
According to Governor Kemp, an average employer will save $350 per worker annually, allowing them to focus on growing their business and hiring more hardworking Georgians.
