Federal Government Reopening & Unemployment Benefit Repayment

The temporary federal government shutdown officially ended on Wednesday, November 12, 2025, and furloughed federal employees may begin to return to work.

Federal workers will receive backpay for the time they were furloughed. Because this backpay covers the same weeks for which Unemployment Insurance (UI) benefits were issued, Virginia law requires those benefits to be repaid once backpay is received.

From the beginning of the shutdown, VEC communicated that any UI benefits paid during this period would later be considered an overpayment if federal backpay was issued.

What this means for Virginia federal workers

If you received unemployment benefits during the shutdown and have now received backpay from your federal employer, those unemployment insurance payments are considered an overpayment and must be repaid to VEC.

How will you be notified?

VEC will send an overpayment determination to all affected workers in the mail and in your Customer Self Service portal. This notice will include:

• Total amount you received
• Instructions for repayment
• Overpayment Waiver (Please note: Overpayment waiver information is sent as required by law. A waiver can only be considered after a case review confirms the individual was not at fault and that repayment would be unfair or create a hardship.)

Repayment:

When an overpayment determination is issued, you will automatically be sent an installment agreement in a separate envelope.

• If you want to repay in installments, you should sign and return the agreement.
• You have the option to repay the full balance at once if you prefer.
• Regardless of whether you sign the installment agreement, you will still receive a monthly bill. This bill will state the minimum payment due by the 25th of each month, not full repayment in a single payment.

Need help?

If you have questions about your overpayment or repayment agreement, contact the Benefit Payment Control Unit at (804) 786-8593.