Finance

Fearful of Losing More Federal Funding, Tennessee Delays Unemployment Cuts

A scheduled cut in payments for Tennesseans collecting unemployment benefits has been delayed indefinitely, after state officials were warned the action could trigger a loss of federal funding for other benefits.
July 2, 2013
 

A scheduled cut in payments for Tennesseans collecting unemployment benefits has been delayed indefinitely, after state officials were warned the action could trigger a loss of federal funding for other benefits.

Jeff Hentschel, a spokesman for the state Department of Labor and Workforce Development, confirmed late Monday that the scheduled eliminations of dependent allowances of up to $50 a week did not go into effect as planned.

“The department is seeking guidance from the U.S. Department of Labor regarding the removal of dependent benefits,” Hentschel said in an email response to questions. “The benefits will stay in place until a decision has been made.”

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