Ohio repays Treasury $1.5B for federal unemployment loan

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COLUMBUS, Ohio (AP) — Ohio has repaid the U.S. Treasury nearly $1.5 billion the state borrowed for unemployment benefits to residents during the pandemic.

Republican Gov. Mike DeWine says the reimbursement to the Treasury, using funds dispersed through the federal COVID-19 rescue package, will prevent employers from facing future tax increases in order to pay off the loan.

The repayment comes just days before the Sept. 6 deadline when the federal government would have begun charging 2.27% interest on the debt.

Ohio made about a total of $2.1 billion in unemployment insurance overpayments during the pandemic.

The state says included in that figure were overpayments that resulted from fraud or errors.

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