Reversal: Ind. jobless benefits go on past Friday

INDIANAPOLIS (AP) — Unemployed Indiana residents will keep receiving federally extended unemployment benefits under a reversal by the Indiana Department of Workforce Development.

Agency Commissioner Scott Sanders posted a message on the agency's home page Wednesday night saying the agency "will proceed with full payment of extended unemployment compensation until further notice."

The change affects 32,000 Indiana residents.

Sanders says the change comes after the U.S. Labor Department confirmed Wednesday that the extended benefits won't be affected by the automatic federal budget cuts taking effect Friday.

Agency spokesman Joe Frank said earlier Wednesday that the benefits for those unemployed more than 26 weeks would remain suspended until the state received guidance from the Labor Department.

Unless Congress acts by Friday, $85 billion in cuts are set to take effect.