The Washington Post

Sequester means 11 percent cut in unemployment benefits

(Steve Helber/AP) (Steve Helber/AP)

The fiscal battle in Washington that led to $85 billion in spending cuts across the federal government has not spared unemployment benefits for almost two million out-of-work Americans, who are being hit by an 11 percent reduction in payments this fiscal year.

The sequester’s effect on unemployment insurance is highlighted in a report from The Pew Charitable Trusts, which is turning its focus to sequestration and the federal-state relationship as all levels of government face financial challenges.

The report, released Friday by Pew’s Fiscal Federalism Initiative, shows the widespread effect of cuts to unemployment benefits, which are administered by the states. As of early March, 1.8 million workers—or 15 percent of the total number of unemployed Americans—received insurance benefits that are completely federally funded.

The potential impact in each varies because the percentage of the workforce receiving  benefits ranges from a high of about 3.1 percent in Alaska to less than 0.1 percent in South Dakota, the report said.

The sequester also cuts by 5 percent the federal grants to the states and the District of Columbia to administer the unemployment insurance program.That’s an estimated $158 million in fiscal year 2013. The estimated cuts range here too, from about $23.6 million in California to around $300,000 in South Dakota.







Lisa Rein covers the federal workforce and issues that concern the management of government.



Success! Check your inbox for details. You might also like:

Please enter a valid email address

See all newsletters

Show Comments
Most Read



Success! Check your inbox for details.

See all newsletters

Your Three. Videos curated for you.
Play Videos
Making family dinnertime happen
Deaf banjo player teaches thousands
New limbs for Pakistani soldiers
Play Videos
A veteran finds healing on a dog sled
Learn to make this twice-baked cookie
How to prevent 'e-barrassment'
Play Videos
Syrian refugee: 'I’m committed to the power of music'
The art of tortilla-making
Michael Bolton's cinematic serenade to Detroit
Play Videos
Circus nuns: These sisters are no act
5 ways to raise girls to be leaders
Cool off with sno-balls, a New Orleans treat
Next Story
Joe Davidson · April 8, 2013

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.