The state of Indiana announced plans Wednesday to suspend federal extended unemployment insurance benefits beginning Saturday, March 2, but now they're backtracking.

The Indiana Department of Workforce Development (DWD) had said the planned suspension was due to federal government cuts that would occur with the sequestration.

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The state covers 26 weeks of benefits for unemployed workers. Federal extended unemployment benefits kick in for weeks 27-63.

However, the US Department of Labor says they've asked Indiana to hold off on the temporary suspension of benefits.

US Department of Labor officials say they are asking Indiana to wait for more information and to remain at status quo. State DWD Spokesperson Joe Frank says they have a conference call scheduled with the Department of Labor on Friday, and hope to hear about the next step in the process.

The decision will determine the fate of 32,000 Hoosiers' unemployment benefits.