TEN 22-24.pdf

ETA Advisory File Text

TRAINING AND EMPLOYMENT NOTICE NO. 22-24 DATE February 27 2025 EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TO STATE WORKFORCE AGENCIES FROM LENITA JACOBS-SIMMONS Deputy Assistant Secretary SUBJECT Interest Rate on Title XII Advances During Calendar Year CY 2025 1.Purpose. To announce the rate of interest that the U.S. Department of the Treasury Treasury will charge on Title XII advances during CY 2025 2.Action Requested. States expecting to request a Title XII advance should take necessary action to establish a mechanism to provide funds for the payment of interest on those advances in accordance with the provisions of Section 1202 b Social Security Act SSA 42 U.S.C. 1322 b and subject to the limitations in Sections 303 c 3 and 1202 b 5 SSA 42 U.S.C. 503 c 3 and 1322 b 5 and Section 3304 a 17 Federal Unemployment Tax Act FUTA 26 U.S.C. 3304 a 17 . 3.Summary and Background. a.Summary Interest on Title XII advances is due and payable each September 30 and may not be paid from the state s unemployment fund or from Federal funds. However there are several provisions for interest relief including Cash flow loans May September delays High-unemployment deferrals and High-unemployment delays. For further information concerning relief from Title XII interest payments see 20 CFR part 606 subparts D and E. b.Background The criteria for establishing the rate of interest to be charged on Title XII advances during any CY are described in Section 1202 b 4 SSA 42 U.S.C. 1322 b 4 which specifies that the annual interest rate is the quarterly yield earned by the Unemployment Trust Fund UTF during the fourth quarter of the previous CY. 4.CY 2025 Interest Rate. Treasury has established the yield earned by the UTF for the quarter ending December 31 2024 to be 3.1227 percent. This becomes the rate of interest that will be charged to repayable Title XII advances outstanding during CY 2025. 5.Inquiries. Questions should be directed to the appropriate Employment and Training Administration Regional Office. 2 6. References. Sections 303 and 1202 SSA Section 3304 FUTA and 20 CFR part 606. 7. Attachment s . N A