Cut in unemployment benefits put on hold

NASHVILLE, Tenn. (AP) -- The main sponsor of legislation to make a cut in payments for Tennesseans drawing unemployment benefits says his office is talking with state officials to get details about why there's a delay in implementing the reduction.

The elimination of dependent allowances of up to $50 a week was supposed to take effect July 1 with the enactment of the law.

But Jeff Hentschel, a spokesman for the state Department of Labor and Workforce Development, told The Tennessean on Monday that the cuts did not take effect because federal officials warned the action could cause a loss of federal funding for other benefits.

Hentschel did not immediately return a call to The Associated Press on Tuesday.

The sponsor, Republican Sen. Jack Johnson, says he thought the legislation had federal clearance.



 
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