Ohio To Pay Off $1.8 Billion Debt Using Federal Funds

Cleveland OH

08 April, 2021

2:13 PM

Description

COLUMBUS, OH — Ohio owes a debt of $1.8 billion to the federal government, Gov. Mike DeWine announced Thursday. The debt was accrued via an unemployment insurance loan from the federal government, received during the COVID-19 pandemic. To pay down the debt, DeWine has decided to use funds directed to Ohio from the American Rescue Plan. "Paying this off now will free Ohio employers from this burden, so they can focus on getting employees back to work," DeWine said. "This will help small businesses across the state and will help employment and employees." Don't miss the latest updates from health and government officials in Ohio on the coronavirus. Sign up for Patch newsletters and news alerts. The governor spent preceding weeks meeting with members of the Ohio General Assembly to discuss what to do with the unemployment insurance debt. Leaders of both the Ohio House and Ohio Senate agreed with DeWine on using federal relief funds to pay down the debt, the governor indicated Thursday. Counties and individual cities will also receive funding through the American Rescue Plan, though municipal leaders are awaiting guidance from the U.S. Treasury on how they can use the funds. DeWine touted Ohio's success in the first quarter of 2021, noting the state's unemployment rate was lower than the national average, and Ohio's GDP is growing faster than the national average. "And using federal dollars strategically to shore up our unemployment system – along with long-term actions to stabilize that system – will continue our strong year of recovery," DeWine said.