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.

“Senate Republicans are committed to helping Minnesota workers and our small businesses,” Sen. Paul Gazelka (R-East Gull Lake) said. “We promised at the start of the pandemic that we would help with them and get Minnesota back on track, and today we’re following through. While we had hoped Governor Walz and House Democrats would have joined us earlier in the session to solve this, I am glad we could eventually get them to come to our side.”

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.

“We were also finally able to reach a compromise on frontline workers’ bonuses,” Sen. Gazelka continued. “The deal ensures that those most at risk during the pandemic receive real and meaningful relief for keeping us safe. More than a year out, we are grateful for the countless Minnesotans that made sacrifices and took on risks at work, especially our healthcare workers and first responders who had the greatest exposure to COVID-positive patients.”

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.