States Turn Down Federal Money For Jobless Benefits

Despite record levels of long-term unemployment, some states are choosing to walk away from a total of almost $1 billion in federal jobless benefits, according to a new report (pdf).

The 2009 American Reinvestment and Recovery Act, better known as the stimulus law, extends unemployment benefits to the fast-growing number of Americans who have been without work for six months or more. In addition to helping the jobless, the federal funds offer a much-needed economic stimulus for states.

To qualify for the program, known as Extended Benefits, states must meet certain unemployment thresholds.
Most must also pass new legislation empowering them to access the money—and 26 states have done so to date. But according to the National Employment Law Project (NELP) nine eligible states—Arkansas, Iowa, Louisiana, Maryland, Mississippi, Montana, Oklahoma, Utah and Wyoming—have so far left a total of around $876 million in federal jobless benefits on the table, even though the costs of claiming the benefits under the program are reportedly minimal.


It's not as if the states couldn't use the extra cash right now. Thanks to budget shortfalls of varying degrees of severity, all have cut spending in other areas. But for now, they're saying thanks but no thanks to an average of almost $100 million per state in federal money.

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