VIRGINIA BEACH, Va. — A trust fund that pays Virginia unemployment benefits is running low according to officials with the Virginia Employment Commission.
Officials announced Tuesday the account will run out of money by next week, but state leaders already have a solution to make sure people keep getting paid.
“I’m not surprised at all that the funds have run out because I think that there are so many people unemployed,” Lisa Davis explained.
Davis is one of thousands of people in Virginia unemployed. She said she can’t go back to work because a medical condition prevents her from constantly wearing a mask.
She explained, “I have been unemployed since March. Our salon closed March 26th.”
At the beginning of 2020, the state had nearly $1.5 billion in its trust fund, then the coronavirus pandemic happened. Joyce Fogg with the VEC said officials expected that money to eventually run low because so many people filed for unemployment benefits.
Fogg said, “We projected earlier on during this, that we would probably run out in September, so we’ve lasted through the first week, the first full week of October. Our projections were pretty right.”
But Fogg says people receiving unemployment shouldn’t worry. She said the state is receiving a loan through the Department of Labor within the federal government.
She explained, “It will be drawn down tomorrow to our accounts and there will be no interruptions in the payment of their benefits.”
But remember, people must continue filing weekly to continue receiving money.