Laid-off federal workers are overwhelming states with unemployment requests, putting a strain on finances

[BumRushDaShow]

Source: The Independent

Wednesday 12 March 2025 16:44 EDT


Dozens of states are warning that their social services are under financial strain due to the volume and pace of unemployment requests from federal employees who have been fired in the DOGE-led job cuts.

At least 100,000 employees have been terminated across various federal agencies and departments over the last seven weeks. Tens of thousands of probationary employees have also been let go and more reductions are expected in the near future.

Federal workers say they have no time to prepare for unemployment and there is minimal communication with the administration about obtaining benefits. They are left scrambling to obtain unemployment with their states so they can continue paying their bills and keeping food on the table.

As a result, states are being inundated with social service requests for unemployment with little to no warning and dwindling financial resources, 19 state attorney generals said in a court filing last week.

Read more: https://www.the-independent.com/news/world/americas/us-politics/federal-workers-laid-off-unemployement-b2713976.html

[Old Crank]

1. And wait for their spending to dry up.

States to pay for this BS. Reduced tax revenue because fired workers don't spend as much. Reduced tax revenue because stores and other businesses will cut back because customers aren't there. MAGA!

[genxlib]

3. You ain't seen nothing yet

Everything you said is true but it isn't the whole story.

Although the most visible and dumbest, the firing of federal workers doesn't really even save that much money.

The real money is in the form of grants back to the states, The FEDS fill the coffers in States with huge chunks of money from agencies like HRS, FHWA, DOE, FEMA, EPA, HUD, etc.

Wait until they start whacking away at that. Even if they cut it by a third, it could put the state budgets underwater by ten percent.

For instance this article confirms Florida spending at 34% coming from the Feds. And that doesn't count Counties and Municipalities which also get a lot of money from DC.

https://www.nbcmiami.com/news/politics/politifact/politifact-is-1-of-every-3-ron-desantis-spends-from-the-federal-government-yes/2995371/#:~:text=Federal%20funds%20make%20up%20about,24%2C%20which%20starts%20July%201.

[Old Crank]

4. Time for the red welfare states

To start taxing themselves.
Florida is going to need an emergency fund almost as large as the state budget of about $110 billion. Current reserves are under $15 billion. One good hurricane will wipe that off the books.

Mitch's state get $7,000 per capita more than it sends to washington.

[Irish_Dem]

9. Will Trump keep pouring money into red states?

[yardwork]

20. Yes he will, as long as they deliver what he personally wants.

He thinks the country belongs to him and he uses mob boss tactics to get what he wants.

[Irish_Dem]

42. Yes he will only do something if it benefits him directly.

[yardwork]

45. It's one thing that is 100% predictable about Trump.

[Irish_Dem]

47. Other things are totally predictable too.

He will break the law, cheat, lie, steal as much as possible.

He will kill, harm, injure as many people as it takes to get what he wants.

He will double cross people and not blink an eye.

There are many more items on this list.

[James48]

2. This is how they will argue they have standing to file suit.

Last edited Thu Mar 13, 2025, 11:30 AM - Edit history (1)

Earlier attempts by other parties were deemed without standing, because they didn’t claim any harm to themselves. (Unions). This is how they show the judge they are harmed by the defendants actions, and that they should be granted status to sue.

[BumRushDaShow]

5. This is where the state AG suits are coming into play

I haven't done any deep dives into their filings and arguments but I expect this would be part of their justification - the budget ramifications to the states of layoffs and federal grants, allotments, reimbursement cuts.

[progree]

6. Today at 730 AM CDT: (#1#) weekly unemployment claims report (#2#) Wholesale prices (producer price index)

the federal layoffs ought to show up in the weekly unemployment insurance claims by now, I would think.
https://www.dol.gov/ui/data.pdf

Last Thursday's report (in part)

In the week ending March 1, the advance figure for seasonally adjusted initial claims was 221,000, a decrease of 21,000 from the previous week's unrevised level of 242,000. The 4-week moving average was 224,250, an increase of 250 from the previous week's unrevised average of 224,000.

Update: Today's report

In the week ending March 8, the advance figure for seasonally adjusted initial claims was 220,000, a decrease of 2,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 221,000 to 222,000. The 4-week moving average was 226,000, an increase of 1,500 from the previous week's revised average. The previous week's average was revised up by 250 from 224,250 to 224,500.

The advance seasonally adjusted insured unemployment rate ((often called "continuing claims" - Progree)) was 1.2 percent for the week ending March 1, unchanged from the previous week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending March 1 was 1,870,000, a decrease of 27,000 from the previous week's unrevised level of 1,897,000. The 4 week moving average was 1,872,250, an increase of 6,250 from the previous week's unrevised average of 1,866,000.

Consumer Sentiment survey releases Friday

[BumRushDaShow]

7. Thanks for the schedule!

Had gotten used to the Wed/Thurs CPI/PPI and then things went awry the past couple months.

[Irish_Dem]

8. The GOP wants everything to be run by the states.

This is what they wanted.

Oh, but don't expect federal money to bail out the states?

[BumRushDaShow]

11. "The GOP wants everything to be run by the states."

Except for -

Reproductive Rights

Gay marriage

Diversity initiatives and upholding of the word and spirit of the Civil Rights Act and Equal Protection

[Irish_Dem]

12. The goal is to balkanize the US?

Create nation states who think they are each in charge of the other.

[BumRushDaShow]

13. We seem to already be "balkanized"

thanks to all the voting rights restrictions and subsequent redistricting with gerrymandering.

[Irish_Dem]

14. Yes this is the first step.

Create states where GOP politicians come to power by cheating and rigging the elections.
Then collapse the federal government.
The states become nation states.
Their own sovereign nation.

This has been the PutinGOP goal.

Putin swore he would break up the US into nation states at war with itself.

[BumRushDaShow]

15. But until they "deal with" the "interstate commerce" dilemma

it won't work.

[Irish_Dem]

16. This is the point.

The goal is to break apart the US.
An ongoing civil war.

Fighting over all these kind of issues.

The US will be bogged down in civil war of sorts.
Fighting each other.

Too distracted and weakened to be a superpower.

We see this playing out right now.

[BumRushDaShow]

17. Well that would only happen

if the SCOTUS completely abdicates their duty to essentially bar state-vs-state "battles". Not sure what their "asking price" would be to self-dissolve, because that would basically be what would need to happen (we know that 2 of them have already been "well-paid" ).

[Irish_Dem]

18. The battle is the point.

And we know the SC is bought and paid for.

The balkanization is already playing out in real time.
It is the fighting that Putin wants.

[BumRushDaShow]

19. But what Putin forgets

is that there is this weird obsession with "patriotism" that cyclically and spontaneously breaks out here and that can ultimately thwart his best made plans.

I.e., the sudden acknowledgement and embrace of "E Pluribus Unum".



(where there is "safety in numbers" )

[yardwork]

22. I'm not sure that's actually the goal.

The history of "states rights" as a rallying call is all about the right to own slaves.

It's a reliable wedge issue that triggers a lot of emotion in a lot of voters' psyches. The Republicans use it as a way to get out their vote.

But I'm not sure it's the actual goal. Trump wants an all-powerful federal government that he controls. Dictators don't want independent states. And I don't see a single Republican senator or representative who seems to want to be independent of Trump right now.

I think it's a fake issue.

[BumRushDaShow]

25. 45 wants to dictate which "states" have "rights"

when it comes to specific "wedge issues" that he can't get enacted federally.

[yardwork]

29. That's certainly true.

He's been very clear about that. I think that's one reason that so many in Congress act fearful toward him.

[Irish_Dem]

10. Will states have enough money to pay state pensions?

[yardwork]

23. That would be the last straw.

There's also a push to invest state pensions in crypto. Our insane state legislature (R, naturally) put that on the table recently.

[Irish_Dem]

41. The goal is to end all federal and state pensions.

Force people to invest in crypto as the sole retirement accounts.

[travelingthrulife]

21. Wow. Who could have predicted this?

[yardwork]

24. It must be Biden's fault. /sarcasm

[defacto7]

26. I think it's interesting to note the states that joined this filing. 19 states plus D.C.

It helps to know where the most affected areas are. I don't know if conclusions can be made but just knowing the scope is telling.

MARYLAND
MINNESOTA
DISTRICT OF COLUMBIA
ARIZONA
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
HAWAII
ILLINOIS
MASSACHUSETTS
MICHIGAN
NEVADA
NEW JERSEY
NEW MEXICO
NEW YORK
OREGON
RHODE ISLAND
VERMONT
WISCONSIN

[BumRushDaShow]

30. Virginia has had a HUGE negative impact

but both their governor and AG are GOP, so that is why they are missing from the list.

We have a variant of that issue here in PA with a good-sized impact, but where our governor is a (D) (Josh Shapiro) and our (elected) AG is GOP. So in at least one instance, our governor filed suit related to one of the funding halts, "on behalf of the state" (he had previously been AG so knew the process), because the AG wasn't going to lift a finger.

[defacto7]

36. So, we could add PA, VA and NC to the list of strongly affected states

though they didn't join this filing possibly for political reason ... or not.

[yardwork]

38. No, NC has a Democratic governor and attorney general.

I don't know why NC didn't join this case. It might be because they're busy fighting the NIH cuts- there are massive lawsuits going on against those.

[defacto7]

40. Okay, I'll edit just so there's no confusion.

[yardwork]

44. Well, it is confusing.

See the post below. In NC we have a Republican controlled legislature that has been grabbing power from the Democratic governor.

[BumRushDaShow]

39. Most of these suits have been done by the state AGs vs the governors

So IIRC, there are at least 22 (21 states + D.C.) that have a (D) AG that have actively filed suits and that is why you'll generally see a "22" number joining in suits. Not sure about this "19" situation as they might have not had time or had enough authority from their states to do it. And the case of D.C. is that they are weird and pretty much controlled by Congress.

I just found this about NC - NC Senate votes to ban lawsuits against Trump, DEI in schools

So despite managing to break their full legislative "super majority", the craven machinations in the NC legislature has been attempting to thwart their state's participation in any of these suits.

Our (PA) governor *used to be* the state AG so he gave it a shot suing the way he did. I don't know how many other (D) governors are willing or legally (state-wise) able to do that.

[yardwork]

43. Yes, we have a bad state legislature in NC.

[yardwork]

31. I think each of these states has a Democratic governor.

However, there are some notable omissions. North Carolina has a Democratic governor and attorney general, and federal layoffs are hitting the state, but they didn't join.

NC has joined a number of states fighting the NIH cuts. They will be devastating for our research universities.

[defacto7]

37. Thanks. Added it above.

[twodogsbarking]

27. The line is huge. It is the biggest line anyone has ever seen. People keep saying how long the line is.

Nobody has ever seen such a line. Even line experts are saying so.

[MichMan]

28. What have they been doing with all the money?

Nearly every state charges employers a tax to fund unemployment benefits. With unemployment being at historic lows for the last three years, the states have been collecting funds, but haven't had to pay much out in claims.

Their unemployment coffers should be pretty full.

[yardwork]

33. I don't know that that's true.

The "coffers" must have gotten pretty depleted because of COVID layoffs.

[BumRushDaShow]

35. Remember that not EVERYONE was getting the same salary

so their UE wouldn't all be identical checks regardless of salary. There are also mins/caps and a % sliding scale that a business pays into the system, so not every business is contributing identically. The payouts are also fixed for a max of 26 weeks.

[NotHardly]

34. Blue or Red state 19 governors... is he hurting the "right" people yet?

[sakabatou]

46. I have to guesses

1. Dump and his cronies had underestimated how much this would fuck up the system.
2. They knew it would fuck up the system, and did it anyway.