State Ends $40M In Child Allowances For Unemployed - NewsChannel5.com | Nashville News, Weather & Sports

State Ends $40M In Child Allowances For Unemployed

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NASHVILLE, Tenn. (AP) - The state notified Tennesseans drawing unemployment benefits that they will soon lose a weekly $15-per-child allowance as part of a new law signed by Republican Gov. Bill Haslam.

The Department of Labor and Workforce Development said in a release Friday the change will help bolster the state unemployment trust fund, which could lead to a reduction in unemployment taxes paid by businesses.

According to the department's projections, ending the allowance for dependent children will save the state $40 million per year.

Lawmakers had to enact a law providing the dependent allowance in order to qualify for a nearly $142 million federal stimulus grant in 2009. Since the grant money had been spent, the Republican-controlled Legislature this year passed a bill to end the program.

(Copyright 2013 by The Associated Press. All Rights Reserved.)

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