Having paid out billions of dollars in benefits since the coronavirus pandemic struck in mid-March, Connecticut’s unemployment trust fund is headed for insolvency later this month or in early September, according state Labor Department officials. That means Connecticut will need an emergency federal loan to maintain benefits for hundreds of thousands of unemployed here — a move that could translate into higher taxes on local businesses. States routinely exhaust their unemployment trusts during recessions and other severe economic downturns. States then borrow from the federal unemployment reserves to replenish their benefits programs.
CT will need emergency loan soon to bolster unemployment trust