LAS VEGAS -- Fearing the state’s unemployment fund will run dry in the coming weeks, Nevada officials have applied for up to $264 million in federal loans to cover jobless benefits through the end of the year.

In a letter to the U.S. Department of Labor, the state requested up to $48 million in October, $120 million in November and $96 million in December.

Officials add Nevada could need more than $1 billion to get through 2010 if the economy doesn't make a dramatic turnaround.

Last week, Gov. Jim Gibbons stood firm in his stance against raising taxes on employers to keep the jobless fund solvent.

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Gibbons said the state is spending $40 million a week in unemployment claims. He also blamed tax increases imposed by the Legislature for adding to Nevada's record 12.5 percent unemployment rate during July.

Jobless numbers for August are due to be released Friday.

Twenty other states plus the U.S. Virgin Islands are currently receiving federal loans to cover unemployment insurance claims during the recession.