Session Update: Tentative Agreement Reached on UI Trust Fund/Hero Pay

Senate Majority Leader Jeremy Miller announced to reporters Thursday, April 28, that a likely resolution to the legislative logjam over replenishing the Unemployment Insurance Trust Fund and providing hero pay to frontline workers has been reached.

The tentative agreement comes after months of negotiations over the size and scope of the fund to reward frontline workers. According to Miller, $500 million will be made available to provide bonuses of $750 to the approximately 667,000 who continued working during the early days of the COVID-19 pandemic, and the House of Representative will determine eligibility.

The deal includes $2.7 billion to pay off the federal debt in the UI Trust Fund and replenish the fund to near-pre-pandemic levels, a priority for both Governor Tim Walz and Senate Republicans, who passed a bill in mid-February to restore the fund. Without the measure, Minnesota businesses would see a significant increase in taxes.

Miller said that ongoing conversations with House Speaker Melissa Hortman led to a better understanding of the priorities of all parties involved. “We came to a resolution that is really quite good for the people of Minnesota,” he said.

According to Miller, a conference committee will meet later today, and a vote on the final agreement may come before the full Senate later today.