DFL and GOP settle on UI, frontline worker bonuses

The DFL and GOP in the Minnesota Legislature have reached a tentative agreement to end a dispute over replenishing the state’s unemployment insurance trust fund while providing bonus checks to COVID-19 frontline workers.

The two sides agreed for months that the unemployment insurance fund, which felt short of $1.3 billion during the pandemic, needed to be replenished, first by the GOP-led Senate and eventually the DFL-led House by $2.7 billion. Dollar funding approved. April 30 first quarter tax deadline.

But disagreement persisted over how much so-called “Hero Pay” should be dedicated to Minnesota’s pandemic frontline workers.

Senate Republicans wanted to handle the two issues separately and passed a standalone $2.7 billion unemployment insurance bill in February. The DFLers, however, combined Hero Pay with unemployment insurance in a House bill passed earlier this week, meaning talks had to continue.

The GOP wanted to spend $250 million to provide $1,200 checks to about 200,000 workers, including nurses, long-term care workers, hospice workers, first responders and corrections officers.

However, the DFL wanted to spend $1 billion to provide payments of up to $1,500 for the larger pool of 667,000 frontline workers, which would include everyone outlined in the Senate GOP’s plan, as well as meatpacking plant workers, grocery workers, janitor staff and Daycare workers will be involved. ,

The tentative agreement, due Thursday, if approved in both the House and Senate, includes $2.7 billion for UI funds and will see $500 million spent on Hero Pay, along with a $750 check for 667,000 workers in the House DFL plan.

The agreement between the GOP and DFL was revealed during a MinnPost public discussion, and will also see another $190 million in federal COVID-19 funding appropriated for use by Gov.

Businesses that have received payroll tax bills reflecting increased UI rates prior to the deal will get a refund on the difference if they have already paid. However, many have held off on making payments believing that a deal will be done by the deadline.

Not included in the agreement is a House DFL plan that would allow hourly school workers to claim unemployment insurance during school breaks. This DFL intends to pursue it separately.

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