Due to the threat of federal spending cuts, state officials confirmed Wednesday that they would suspend certain federal unemployment benefits.
According to the Department of Workforce Development, the cuts affect payments of federally extended unemployment insurance benefits. The department referred to the change as “temporary.” It goes into effect on Saturday, March 2.
Federally Extended Unemployment goes to people after they’ve received 26 weeks of unemployment benefits. The state covers the first 26 weeks of unemployment. The state said vouchers between Feb. 24 and Feb. 28 will be the last ones people will receive for federal benefits. After that, there will no additional vouchers “until further notice.” The change affects about 32,000 Hoosiers.
Extended unemployment was supposed to last through the end of this year. However, sequestration will force an early end to the benefits because the program is part of deep federal cuts.
The department said it’s awaiting further instructions from the federal government on what to do next.
For more information, the Department of Workforce Development has an FAQ on its website.