CHICAGO (WLS) -- Gov. JB Pritzker announced Tuesday the state would be making a significant payment toward the remaining balance of the Unemployment Insurance Loan.
Pritzker said in a press conference Tuesday morning the $450 million payment would reduce the remaining balance of the $1.8 billion borrowed under Title XII of the Social Security Act by 25%.
Due to continued historic low unemployment insurance claims, the unemployment insurance trust fund has capacity to make this payment without impairing the department's ability to pay benefits, the governor said in a news release.
This is the second significant contribution to the outstanding loan balance.
In March of 2022, Pritzker signed legislation which provided a $2.7 billion contribution from American Rescue Plan recovery dollars to assist the state's unemployment trust fund.
This payment cut the original $4.5 billion loan balance down to $1.8 billion.
"This contribution is direct evidence of labor market strength in Illinois," Pritzker said.
Federal funds borrowed under Title XII were used to supplement the state's unemployment insurance trust fund and provide economic relief to unemployed workers throughout the duration of the COVID-19 pandemic.