Manley-Backed Plan to Eliminate Pandemic Unemployment Debt Signed Into Law

ROMEOVILLE, Ill. — A bipartisan plan supported by state Rep. Natalie Manley, D-Joliet, that  will pay off Illinois’ remaining unemployment insurance loan debt, invest in the state’s rainy day fund, and protect worker benefits was signed into law Thursday.

“As we emerge from the COVID-19 pandemic, lawmakers from both sides of the aisle came together to develop policy solutions to ensure the financial stability of our state, save businesses money, and support working families,” Manley said. “This proposal is the result of weeks of negotiations between lawmakers on both sides of the aisle, as well as the governor’s office and labor and business leaders. It is proof of what we can accomplish when we put aside partisan differences and come together to find an agreement that benefits the whole state.”

To shore up the long term health of the Unemployment Trust Fund, Manley supported Senate Bill 1698. The measure increases the Target Unemployment Insurance Trust Fund balance, increases the Taxable Wage Base, and outlines the details of a $450 million interest free loan to the state’s Unemployment Trust Fund. Money paid back from the loan will be directed toward the state’s rainy-day fund. The bill also moves statutory hurdles that would have automatically raised taxes on employers and cut benefits for claimants.

Payment of the remaining unemployment insurance loan debt and the $450 million loan are expected to be appropriated through a separate action in January 2023.

“This proposal is a tremendous step forward in Illinois’ journey toward greater financial responsibility,” Manley said. “I am grateful for the diligent work of our negotiators and I will continue to support legislation that protects working families in our community and across Illinois.”

Senate Bill 1698 passed the Illinois General Assembly with bipartisan support. For more information on Manley’s legislative agenda, please visit www.ilga.gov.