It was announced yesterday that Senate Republican leadership and House Democrat leadership reached an agreement that resolves the differences between paying and refilling the Unemployment Insurance (UI) Trust Fund and providing bonuses to workers who worked the frontline during the COVID pandemic. As a result, the legislation passed in the Senate today with broad bipartisan support and is expected to pass in the House later today.

The legislation uses $2.7 billion to pay off the loan from the federal government and refill the UI fund to its necessary balance primarily using federal funds. As part of the agreement, $500 million will go to frontline workers who helped those most at risk during the pandemic.

“It’s always a good day when political games and rhetoric take a backseat to common sense. I’m glad that Minnesota workers and our small businesses finally have some certainty regarding their future. The Senate passed the UI bill back in February to prevent the raising of taxes and to put folks at ease regarding their expenses. This bill will help our economy, lessen the burden of rising costs and inflation, and show appreciation to frontline workers. Minnesotans can still come together and do what’s best for our state and each other,” said Senator Zach Duckworth (R-Lakeville).

As a result of this bill becoming law, Minnesota state government will begin saving approximately $50,000 a day that was being paid to the federal government in interest.