House votes to add $100 million to fund unemployment insurance for hourly school workers

In the next few weeks, summer unemployment insurance for hourly and temporary school workers will kick in.

A newly crafted plan to invest $100 million for the program in fiscal year 2026 received strong House support Friday evening.

Rep. Emma Greenman

Sponsored by Rep. Emma Greenman (DFL-Mpls), HF1143 is a compromise between party leadership that would cancel $77.23 million set aside two years ago for the Northern Lights Express rail project — proposed passenger rail service between Minneapolis and Duluth — and shift about $22.6 million from special education aid to provide $100 million in fiscal year 2026 that would fund the unemployment aid for hourly school workers.

Passed 131-0, the bill now goes to the Senate.

[MORE: House bill proposes diverting funds from rail project to fund school worker unemployment aid]

The program is still scheduled to sunset in the 2028-29 school year without more state funding, upsetting some DFLers.

They argue that hourly and temporary school workers are vital to kids’ education, and they deserve the same unemployment insurance many other workers in the state receive. Republicans want to axe the program entirely or have school districts provide unemployment for those workers.

School districts haven’t had to pay for unemployment benefits because the 2023 law creating the benefit included $135 million that can be used until June 30, 2027, or the funds are exhausted. An estimated $103 million has already been spent.

Rep, Ron Kresha (R-Little Falls) supports the bill but warned the money will eventually run out and other creative solutions will be needed to fund unemployment insurance for school workers. “Are we going to keep looking under rocks? That is unsustainable.”

Greenman has a different idea. “I look forward to that conversation about how we can actually redistribute [money] from those biggest corporations to the lowest-wage workers in our schools who make on average $17 an hour.”