The Senate has moved legislation included in Governor Walz’s supplemental budget proposal that would pay back the federal government for the money the unemployment insurance trust fund borrowed, and further replenish the fund. In total, the bill provides $2.73 billion to refill the fund and payback the federal government. As a result of the Trust Fund being replenished, tax rates in the proposal are zeroed out or reset at lower rates.
The fund borrowed money from the federal government to pay unemployment insurance claims. When the country faces widespread economic challenges, it is not uncommon for states to borrow funds from the federal government to pay claims and repay the money over time as the economy rebounds.
In addition to addressing the balance in the Trust Fund, Senate DFLers are fighting to get key issues – like HERO pay for frontline workers, drought relief for farmers, and expanding access to unemployment benefits to include workers employed as education paraprofessionals – done as soon as possible. (SF 2677)
