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.

“Inaction on our UI debt was always unacceptable,” Sen. Bill Ingebrigtsen (R-Alexandria) said. “We always needed to solve it, and Senate Republicans moved quickly at the start of session. Unfortunately, our colleagues in the other chamber did not budge until now. This legislation is responsible and fixes the problem preventing our small businesses from shouldering a massive tax increase that would otherwise crush job creation and wreak havoc across our economy.” 

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.

“This bill also shows that we are standing behind our frontline workers, nurses, hospice providers, long-term care workers, law enforcement, and correction officers who protected us during the pandemic,” Senator Bill Ingebrigtsen continued.  “These folks didn’t have the option to stay home during the pandemic. Their work required that they show up every day and provide support and protection. This legislation ensures that Minnesota honors their demanding work and sacrifices.”

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.