- Michigan House votes along party lines to extend unemployment aid eligibility to 26 weeks
- The legislation aims to reverse a 2011 law signed by then-Gov. Rick Snyder who limited benefits to 20 weeks
- Democrats argue the change is “necessary,” but Republicans and business groups criticized the move as an overreach.
LANSING – Eligibility for unemployment benefits in Michigan would be expanded from 20 to 26 weeks under legislation that passed the state House on Wednesday over objections from Republicans and business groups.
The Democratic-majority House voted 56-54 approve legislationthat would permanently reverse a 2011 law signed by then-Republican Gov. Rick Snyder that reduced eligibility for unemployment insurance to 20 weeks.
The legislation, which now heads to the Senate for further consideration, would align Michigan with the majority of states that offer at least 26 weeks of unemployment benefits. Only 13, including Michigan, currently offer fewer weeks.
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During the height of the COVID-19 pandemic, Democratic Gov. Gretchen Whitmer approved a temporary expansion of benefits for workers subject to mass layoffs, but the state’s Unemployment Insurance Agency subsequently came under fire after failing to stem a flood of fraudulent claims.
Supporters argue that restoring up to 26 weeks of benefits to unemployed Michiganders would not affect most people filing claims, but is “necessary” for those who need it.
“We’re just bringing it back and bringing something that had to be there in the first place,” said sponsoring Rep. Karen Whitsett, D-Detroit.
Whitsett’s House-passed legislation does not increase the current maximum weekly unemployment payment of $362, but she said she is also interested in increasing that amount in the future: “My dream number is $600 (per week).”
If the legislation passes the Senate and Whitmer signs it into law, it would not take effect until January 2025. It is unclear how much the legislation would cost, according to a Analysis of the Chamber’s Fiscal Agency.
Legislative Republicans and business groups criticized the bill as an overreach that would negatively impact employers who pay into the state’s Unemployment Insurance Trust Fund.
Rep. Ken Borton, R-Gaylord, argued that it shouldn’t take Michigan residents six months to find a job.
“There are jobs out there, so I’m not sure why this change is necessary in any way,” Borton said in a statement. “You could drive down the main street of any town in Michigan and see at least a handful of help wanted signs.”
Amanda Fisher, state director of the National Federation of Independent Business in Michigan, called the legislation a “slap in the face” to small business owners facing worker shortages and a difficult economic climate.
“Instead of passing laws that could raise taxes on small businesses, legislative majorities should focus on oversight of the UIA,” Fisher said.
Other leading business groups lawmakers wrote this week urging them to reject the bill, including the Michigan Chamber of Commerce, the Grand Rapids Chamber of Commerce and the Detroit Regional Chamber.
Republicans have called for additional oversight of the Michigan Unemployment Insurance Agency following mistakes made during the pandemic. A third-party audit estimated that from March 2020 to September 2021, cumulative UIA errors cost the state approximately $8.5 billion.
UIA Director Julia Dale, who took over the agency in 2021, said this spring that the agency has made significant improvements. The UIA has moved away from “quick fixes” and is instead “driving toward lasting change” through technological and staffing improvements, Dale told lawmakers in April.
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