--- title: U.S. Virgin Islands Pays Off Outstanding UI Loans description: U.S. Virgin Islands pays off outstanding UI loans, may not face FUTA credit reduction for 2026. image: https://www.payroll.org/images/default-source/default-album/istock-2011465275.jpg?sfvrsn=43725847_0 --- [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/American-Payroll-Associations-Chapter-Relations-877434285724525/) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](http://www.linkedin.com/groups?about=&gid=1051077&trk=anet_ug_grppro) [![soc-tw](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_tw.svg "soc-tw")](https://twitter.com/APAChapters?lang=en) - [Home](https://blogs.payroll.org/chapter-leaders) - [About](https://blogs.payroll.org/about) - [Connect](https://blogs.payroll.org/connect) - [Resources](https://blogs.payroll.org/resources) ![23-PayNewsNow-Horiz-Logo](https://blogs.payroll.org/hs-fs/hubfs/23-PayNewsNow-Horiz-Logo.png?width=1300&name=23-PayNewsNow-Horiz-Logo.png "23-PayNewsNow-Horiz-Logo") [![26 PayrollOrg®RGB-NoTag long](https://blogs.payroll.org/hs-fs/hubfs/26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg?width=1300&name=26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg "26 PayrollOrg®RGB-NoTag long")](https://payroll.org/) Custom URL No Widget: By [Lia Coniglio, Esq.](https://blogs.payroll.org/pay-news-now/author/lia-coniglio-esq) on Jun 26, 2026 9:05:17 AM # U.S. Virgin Islands Pays Off Outstanding UI Loans The U.S. Virgin Islands Department of Labor (VI DOL) announced that the territory officially paid off its outstanding federal unemployment account (FUA) loans \[VI DOL, [**News Release**](https://www.vidol.gov/2026/05/08/virgin-islands-achieves-historic-milestone-in-elimination-of-federal-unemployment-debt/), 5-8-26\]. This means it will not face a Federal Unemployment Tax Act (FUTA) credit reduction for 2026 as long as it does not resume borrowing and has no outstanding balance on November 10, 2026. The Virgin Islands had a credit reduction in each of the past 15 years (2011-2025). ### **Potential FUTA Credit Reductions for 2026** Earlier this year, the U.S. Department of Labor (U.S. DOL) released its list of [**potential FUTA credit reduction states and territories for 2026**](https://payroll.org/news-resources/news/news-detail/2026/04/07/california-and-virgin-islands-may-face-credit-reduction-for-2026): California and the Virgin Islands. The Virgin Islands began borrowing in August 2009 and was subject to a credit reduction of 4.5% for 2025. It is potentially subject to a FUTA credit reduction of 4.8% for 2026 (but will not be if the conditions above are met). --- Interested in more state and local payroll coverage? PayrollOrg’s [***PayState Update***](https://ebiz.payroll.org/ebusiness/ProductCatalog/Product.aspx?ID=19) eNewsletter is perfect for you. --- *Lia Coniglio, Esq., is Managing Editor of* PayState Update *and Senior Manager of State Payroll Information Resources for PayrollOrg.* ### Search ![payroll-logo-white](https://blogs.payroll.org/hs-fs/hubfs/payroll-logo-white.png?width=200&name=payroll-logo-white.png "payroll-logo-white") [Privacy Policy](http://www.americanpayroll.org/privacy/)     |     Acceptable Use ©[PayrollOrg](http://payroll.org) [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/PayrollOrg) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](https://www.linkedin.com/company/payroll-org/mycompany/) [![Twitter-X-White-Logo-PNG](https://blogs.payroll.org/hs-fs/hubfs/Twitter-X-White-Logo-PNG.png?width=20&height=19&name=Twitter-X-White-Logo-PNG.png)](https://twitter.com/PayNews)