Update 10:15 a.m. Saturday April 9: CNN is reporting that a temporary budget agreement has been reached, but it is only through Friday April 15. This will be a developing situation throughout the week.

*** my original post ***

Here’s a topic that is really important to a lot of Michigan residents:

Will the expected federal government shutdown affect unemployment benefits?

The question comes up because although jobless benefits are handled by the state governments, many Michigan people are on extended unemployment benefits that are a federal program.

The word I’m seeing is: unemployment benefits should continue as normal, even if the budget crisis rattles other programs.

Links and headlines:

Michigan Job Search blog:

“Currently they anticipate being able to make benefit payments in event of a federal shutdown,” said Melanie Brown, a spokeswoman for the Michigan Department of Energy, Labor & Economic Growth.

CBS Detroit:

… federal unemployment benefits, which average about $300-a-week for roughly 150,000 Michigan residents, will continue whether we have a shutdown or not.

Wall Street Journal’s Real Time Economics.

Because of the severity of the recession, 32 states, including Michigan, have borrowed nearly $48 billion to pay for their regular state benefits. They will continue to be able to borrow even if the federal government shuts down, according to state officials.

That being said, there are other ways that this situation could impact the pocketbooks of specific demographics. I’ll loop the headlines and links under federal government shutdown as I learn the details.

Post updated late Thursday with quotes from the articles I linked to, because this post has been getting so many hits.

By the way, if you are on unemployment, poke around. Monroe on a Budget was launched with Michigan residents like you in mind. The posts you’ll find most of interest are the layoff recovery plan and unemployment archives; the Downsized Budget series and the Do you need assistance? Tips to read first section.

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