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Recovery Package in Action

The American Recovery and Reinvestment Act (ARRA) authorized several extensions and supplements to unemployment insurance payments. One provision requires the federal government to supplement weekly insurance payments by $25. In April, North Carolina will begin paying those supplements retroactive to the week of February 28th.

While seemingly modest, the supplemental payments will benefit individuals struggling with a job loss and the state’s overall economy. Estimates prepared by the N.C. Budget & Tax Center find that, had it existed in February, the supplemental program would have provided an additional $26.7 million to unemployed Tar Heels. Because most unemployment insurance payments are spent quickly and locally, the supplements, in turn, would have generated some $43.8 million in economic activity across the state.

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