2025 Unemployment Insurance Trust Fund Financial Summary
Summary
The Wisconsin Department of Workforce Development (DWD) released the 2025 Financial Summary of the Unemployment Insurance (UI) Trust Fund. The report indicates a fund balance exceeding $2.1 billion and highlights that employers saved an estimated $50.5 million in UI taxes in 2025 due to decreased tax rates.
What changed
The Wisconsin Department of Workforce Development (DWD) has published its 2025 Financial Summary of the Unemployment Insurance (UI) Trust Fund. Key findings include a UI Trust Fund balance of over $2.1 billion as of December 31, 2025, and an estimated $50.5 million in UI tax savings for Wisconsin employers in 2025. The report also notes that Schedule D, the lowest tax rate schedule, was in effect, with over 95% of employers experiencing UI tax rates below 4% and more than half below 2% on the first $14,000 of employee wages.
This notice serves as an informational update for employers regarding the financial health of the UI Trust Fund and the tax rates applied. While no immediate compliance actions are required based on this summary, employers should note the continued solvency of the fund and the potential for future reports, such as the Financial Outlook Report in May, which may contain further details or projections. The DWD Secretary emphasized the importance of maintaining a strong UI system for economic security.
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Tony Evers, Governor
Amy Pechacek, Secretary
Department of Workforce Development
Secretary's Office
201 E. Washington Avenue
P.O. Box 7946
Madison, WI 53707-7946
Telephone: (608) 266-3131
Fax: (608) 266-1784
Email: sec@dwd.wisconsin.gov
FOR IMMEDIATE RELEASE
Feb. 11, 2026
CONTACT: DWD Communications
CommunicationsOffice@dwd.wisconsin.gov
2025 Financial Summary of the Unemployment Insurance Trust Fund
Wisconsin employers saved an estimated $50.5 million in UI taxes in 2025
MADISON – The Department of Workforce Development (DWD) today announced its 2025 Financial Summary of Wisconsin’s Unemployment Insurance (UI) Trust Fund which showed decreased tax rates for employers and an increased overall balance.
The UI Trust Fund is the account that holds Wisconsin employers’ state UI taxes which finance regular state UI benefit payments. The UI Trust Fund functions as a reserve in case of increased state UI benefit payments during economic downturns. The higher the UI Trust Fund balance, the less likely the state will need to borrow from the federal government during recessionary periods.
Highlights of the summary include:
- UI Trust Fund balance as of December 31, 2025 was over $2.1 billion
- $151 billion in wages insured for Wisconsin employees
- Schedule D (lowest tax rate schedule) in effect
- Employers’ UI tax rate is assessed only on the first $14,000 of each employee's wages and
- More than 95% of employers had a UI tax rate below 4% More than half of all employers had a UI tax rate below 2%
- Employers saved an estimated $50.5 million in payable taxes in 2025
- Tax rates decreased or remained unchanged for 57.9% of employers in 2025 "Ensuring that the Unemployment Insurance Trust Fund remains strong, solvent, and effective for both employers and employees is essential for the continued economic security of our state," said Secretary Amy Pechacek. "With low unemployment rates and an increasing UI Trust Fund balance, we should continue exploring opportunities to bolster our UI system so it can provide reliable support to workers in the years to come."
More information on the UI Trust Fund will be published in the Financial Outlook Report in May.
ABOUT DWD
Wisconsin's Department of Workforce Development efficiently delivers effective and inclusive services to meet Wisconsin's diverse workforce needs now and for the future. The department advocates for and invests in the protection and economic advancement of all Wisconsin workers, employers, and job seekers through six divisions – Employment and Training, Vocational Rehabilitation, Unemployment Insurance, Equal Rights, Worker's Compensation, and Administrative Services. To keep up with DWD announcements and information, sign up for news releases and follow us on LinkedIn, Facebook, Instagram, X, and YouTube.
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Madison, WI 53707
(608) 266-3131
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