Today, Senate Republicans passed legislation to stop devastating tax increases on small businesses and provide meaningful bonuses to frontline workers. The legislationresolves the differences between the Senate and House on repaying and refilling the Unemployment Insurance (UI) Trust Fund and providing bonuses to workers who worked the frontline during the COVID pandemic.

“We made a promise to our small businesses when the pandemic began that if they worked with us and helped struggling workers, we would help solve the UI problem,” Sen. Mark Koran (R-North Branch) said. “Yet, with the pandemic well behind us, House Democrats were ok with saddling them with untenable taxes. It was not right and set us on a path where businesses would have had to close doors and cut jobs. Senate Republicans acted quickly, and now Governor Walz and House Democrats have seen the light and are working with us to solve this.”

The agreement means $2.7 billion will be used to pay off the loan from the federal government and refill the UI fund to its necessary balance using primarily federal funds. As part of the agreement, $500 million from the surplus will go to frontline workers most at risk during the COVID pandemic. As the Senate proposed two weeks ago, the House DFL will choose which workers will get bonuses.

“Additionally, this legislation follows through on our commitment to support Minnesota’s frontline workers,” Sen. Koran continued. “Our health care providers, first responders, and long-term care workers have been fighting for us since the COVID-19 pandemic began. They were working when it was its worst, and they put themselves at risk while others could work from home. Today’s compromise ensures that we honor those individuals who showed up every day with meaningful bonuses for their efforts to help and protect all Minnesotans.” 

The agreement spends the remaining federal ARPA funds available to Minnesota for COVID, which otherwise would have been available to Gov. Walz on June 1 if left unspent.