Minnesota House and Senate reach deal for frontline workers and unemployment fund

Leaders of both bodies worked late into the night to find common ground on both financial issues
Capitol
Minnesota Capitol Building Photo credit (Getty Images / ReDunnLev)

All session, Minnesota lawmakers have struggled to reach common ground on two important issues: the state’s unemployment insurance fund, and the so-called “hero checks” which are intended to help some of the state’s frontline pandemic workers.

The GOP-controlled Minnesota Senate voted Friday to approve refilling the Unemployment Insurance (UI) Trust Fund and providing bonuses to workers who worked the frontline during the COVID pandemic.

The measure passed on a 65-1 vote and now heads to the House where it's expected to receive approval on Friday afternoon. The Minnesota House later passed the resolution 124-5.

Included in the legislation is $2.7 billion to refill the state's unemployment insurance fund, $500 million in bonus payments to reward workers on the frontlines of the COVID-19 pandemic, and $190 million for the Walz administration's response to the pandemic

"Through it all, our frontline workers have been heroes under trying circumstances, said Senator Melissa Lopez-Franzen (D). "They put their own health and safety and that of their families. And sometimes even their own lives, they put their own lives on the line to keep our state running."

This bill fully refills the unemployment trust fund,” said Senate Majority Leader Jeremy Miller (R). “And what is the unemployment trust fund? It is a safety net for workers who get laid off during difficult times. That's paid for by the businesses. We fully refill the unemployment trust fund in this bill. And members, this bill provides more legislative oversight. This bill encourages the administration to work together with the legislature, to work together.”

Minnesota State Senator Karin Housley (R), speaking to WCCO’s Vineeta Sawkar on the Morning News Friday, says it was a late night at the Capitol but these were two issues that needed to get resolved.

“The conference committee between the House and Senate had to meet because we finally got an agreement on our front line workers and our unemployment insurance,” Housley said. “The unemployment insurance trust fund was depleted during COVID when businesses were forced to shut down overnight, but they still wanted to retain their employees so they had to tap into the unemployment trust fund and help pay these employees.”

Housley said there was a $2.7 billion deficit that needed to be refilled and it was costing the state $50,000 a day just in interest.

“So the Senate passed that off a month ago, but the House didn't do it,” Housley explains. “So finally yesterday we got an agreement with the House.”

The $500 million for frontline workers is double $250 million the two legislative bodies agreed on before the budget surplus was announced earlier this year, but only half of the $1 billion that the DFL controlled House passed in their version of the bill.

“The governor deemed 667,000 Minnesotans who still continue to go to work during COVID as a thank you payment to all of those people. But the number got bumped up to $500 million so we had to meet in conference committee. Hopefully we're on the floor today at noon to pass it off the floor so we can get these checks out to people to really thank them for what they did.”

Speaker of the House, Melissa Hortman (D) was frustrated Republicans weren't willing to agree to the $1 billion.

“I can't imagine how Senate Republicans can look at our front line workers and say that they didn't earn a $1,500 bonus,” Hortman said. She added that they did not want to risk workers getting nothing however.

In a statement Governor Walz said he's proud of the work they've put into this and that this is proof a divided legislature can come together and get the job done.

Featured Image Photo Credit: (Getty Images / ReDunnLev)