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Unemployed workers receive training under Georgia Works, which served as a model for new federal efforts. (U.S. Department of Energy)

An unprecedented bid to let states experiment with the unemployment insurance system has gotten off to a bumpy start.

As part of a deal reached in Washington earlier this year, Congress approved a plan to let up to 10 states develop demonstration projects in which businesses could hire unemployed workers and essentially pay their salaries with money from the unemployment insurance fund (UI).

Typically states can’t use UI funds to pay for wages, but only unemployment benefits. The 10 states picked for the program would be allowed to use UI funds to subsidize employer-provided training or to pay employers that hire UI beneficiaries.

To read the full, original article click on this link: Stateline - States Complain Bureaucracy Threatens Unemployment Insurance Demonstration Projects