States are hurting, and borrowing from the Federal Government that's hurting too. This is socialism at it best.
The Federal Unemployment Account (FUA) provides for a loan fund for state unemployment programs to ensure a continued flow of benefits during times of economic downturn. According to the U.S. Department of Labor, Employment and Training Administration, 32 states and the U.S. Virgin Islands are currently borrowing to cover unemployment benefits. Five states, Maryland, New Hampshire, South Dakota, Tennessee and Texas, repaid their loans in full by the end of 2010; however, New Hampshire and Texas have again begun borrowing from the trust fund in 2011.
As of April 18, 2011, the most recent total balance of outstanding state loans from the FUA is $48.4 billion.