Standoff Over Replenishing Unemployment Fund Remains as Deadline Approaches

ST. PAUL, Minn. (KWNO)-The Minnesota House and Senate remain in a standoff over replenishing the state’s unemployment insurance trust fund as the March 15 deadline approaches.

If lawmakers don’t pay the fund back by the deadline, the burden will shift to Minnesota businesses in the form of a new tax. The Senate passed a bill allocating $2.7 billion into the fund last month with bipartisan support and Senate Majority Leader Jeremy Miller R-Winona tells KWNO he thinks it’s ridiculous the bill hasn’t made its way out of the House.

“There’s no reason for them not to pass it. I’m confident if they brought it up for a vote they would have bipartisan support in the House on the bill,” Miller said.

Winona DFL Rep. Gene Pelowski has introduced the companion version of the Senate bill in the House but tells KWNO there’s another proposal sponsored by Minneapolis DFL Rep. Mohamud Noor.

“The difference between Rep. Noor’s bill and mine is he only puts a $1 billion in it and my bill puts the entire $2.7 billion in it which would restore the fund completely and then there would be no tax increase on businesses,” Pelowski said. “I’m still hopeful we can get these bills done by March 15.”

Gov. Tim Walz has called for putting $2.7 billion into the fund. Money to replenish the fund would come out of the state’s projected budget surplus of nearly $9.3 billion.