State pays off federal unemployment debt

Missouri paid $135.5 million May 25 to the U.S. Department of Labor on the fund that pays benefits to unemployed workers. The federal debt was incurred in 2003 and 2004, when the state was operating with a $1.1 billion deficit.

“Repayment of this loan removes the threat of higher federal taxes on Missouri businesses and allows them to focus their resources on future growth,” Blunt said in a news release.

The debt was paid four months before the end of the federal fiscal year, preventing interest charges of about $2.2 million.