Bill Overview
Title: Continued Waiver of Interest on State Unemployment Loans during the Pandemic Act
Description: This bill extends the waiver on interest on State Unemployment Loans from September 6, 2021, to September 30, 2022.
Sponsors: Sen. Durbin, Richard J. [D-IL]
Target Audience
Population: Individuals in U.S. states with pandemic unemployment loans
Estimated Size: 223000000
- The bill impacts states that have taken unemployment loans from the federal government.
- During the pandemic, many states increased unemployment benefits and may have exhausted their funds, necessitating borrowing from federal sources.
- If these loans accrue interest, the financial burden on these states can increase significantly affecting their budgets and potentially their ability to provide services.
- States partially finance their unemployment funds through taxation, so any excess financial burden can directly impact residents through increased taxes or reduced services.
- Workers in states impacted by this legislation are directly affected by how their state's budget is managed.
Reasoning
- The policy specifically aids states by alleviating their financial burdens, thereby indirectly benefiting residents who rely on state-funded services.
- States that have taken unemployment loans are likely to face budget cuts or increased taxes if interest charges are significant.
- If the burden of loan repayment is reduced, states may maintain service levels without increasing taxes.
- Impact on individuals will vary greatly depending on how the state government allocates its financial resources post-policy.
- By simulating responses, we are looking at a diverse range of people from different states facing these economic situations.
Simulated Interviews
Healthcare Worker (California)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I hope this policy helps the state budget so they can maintain essential services for families like mine.
- With state budgets tight, I'm concerned about potential cuts in social services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Small Business Owner (New York)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- I think this helps the state's economic recovery, which in turn benefits small businesses indirectly through economic stability.
- No interest on these loans should mean lower taxes or at least no increase.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Unemployed (Texas)
Age: 29 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 17/20
Statement of Opinion:
- It's crucial for people like me still looking for stable jobs that the state can keep support systems in place.
- This policy could mean continued funding for programs that help retrain unemployed workers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
State Government Employee (Michigan)
Age: 38 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Alleviating interest makes our job easier in managing financial balance between state obligations and debt.
- Without the interest waiver, we face pressure to make cuts or increase revenue elsewhere.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Retired (Ohio)
Age: 62 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 16/20
Statement of Opinion:
- If waiving the interest helps the state budget, hopefully, they won’t need to hike taxes or cut down senior programs.
- Tax stability is crucial for retirees with fixed incomes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Restaurant Worker (Florida)
Age: 25 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- The policy eases state's financial problems, hopefully, offering more robust job-support initiatives.
- It's been tough finding hours and stability in this sector, anything that helps is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 5 | 2 |
| Year 20 | 5 | 2 |
Software Developer (New Jersey)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I think it stabilizes the local economy, which can indirectly benefit my company and job security as we rely on state-market growth.
- I’m not directly affected, but I understand broader economic impacts on community stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
School Teacher (Illinois)
Age: 53 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 13/20
Statement of Opinion:
- With state budgets tight, any financial relief that keeps school funding steady is crucial.
- Our community has been wary of potential cuts to public services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
College Student (Georgia)
Age: 23 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- I’m worried how state budget issues can increase my tuition, so waiving interest helps ease those fears.
- Education funding should remain predictable and stable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
Construction Worker (Kentucky)
Age: 47 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- It's been hard finding consistent work; keeping state unemployment support robust is crucial.
- Waiving interest might just give the state some leeway to not rush cuts or increases in taxes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Cost Estimates
Year 1: $125000000 (Low: $100000000, High: $150000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- State budgets are significantly impacted during pandemics, making federal waivers crucial for financial management.
- The policy helps states to allocate funds more efficiently without the burden of accruing interest, which might otherwise lead to higher taxes or reduced services.
- The timeframe for the waiver is limited to 2021-2022, so impacts are concentrated over a short period.