(Indianapolis, Ind.) - Out of work Hoosiers collecting federally extended unemployment benefits will not be affected by the federal sequestration cuts.
The Indiana Department of Workforce Development originally said benefits would be suspended on March 2nd because of the automatic spending cuts, but that decision was reversed Wednesday. That means about 32,000 Hoosiers out of work for more than 26-weeks will still collect unemployment benefits.
"The U.S. Department of Labor confirmed that unemployment benefits will not be impacted by sequestration through the week ending March 9, and additional guidance will be forthcoming. As such, the Indiana Department of Workforce Development will proceed with full payment of extended unemployment compensation until further notice," said Scott B. Sanders, Commissioner of the DWD.
President Obama meets with congressional leaders Friday in an 11th hour effort to avoid the sequestration cuts. By midnight, Obama is required to order federal agencies to cut their budgets, unless he and Republicans can agree on a compromise to avoid what both sides say is a meat-axe approach to deficit reduction.
The cuts are kicking in Friday, but most Americans won't feel the effects right away. More than $1 trillion in cuts will not take place all at once. The first cuts are worth about $85 billion and will affect this year's federal budget.
About half those cuts will hit the military. The Pentagon plans to cut back on maintenance, training and buying new planes and weapons systems.
The rest of the cuts come from domestic spending, but no entitlement or benefit programs would actually be eliminated. Every government agency, from the CDC to the FBI, will have to cut spending to some degree.