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Legislative News and Views - Rep. Nels Pierson (R)

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RELEASE: Unemployment Insurance Legislation Passes

Friday, May 6, 2022

ST. PAUL – Minnesota’s Unemployment Insurance Trust Fund will now be filled thanks to legislation that passed the House last Thursday and was signed by Governor Walz on Friday.

The legislation will provide $2.7 billion to fully repay the fund and eliminate the interest fee charged by the federal government.

“Minnesota has been waiting on this bill for months,” Representative Nels Pierson, R-Rochester, said. “This is one less burden our job creators will have to face now.”

Minnesota’s Unemployment Insurance Trust Fund was depleted throughout the course of the COVID-19 pandemic. The state was then forced to pay the federal government $50,000 a day in interest to continue unemployment payments. With the passage of this legislation, Minnesota job creators are no longer required to pay a 15% tax increase.

In February, Senate Republicans brought a bipartisan bill that would repay the Unemployment Trust Fund and fill it to solvency. House Democrats refused to bring the bill to floor, citing a deadline of April 30.

In addition to the $2.7 billion to repay the fund, the bill allocates $500 million in payments for frontline workers and $190 million for the Minnesota Management & Budget agency to provide for COVID-19 expenses.

Job creators who have questions regarding the unemployment trust fund can find answers here and more information for frontline workers can be found here.