Michigan House of Representatives approves extension of unemployment insurance from 20 to 26 weeks
Lansing – The Michigan House of Representatives voted along party lines on Wednesday to extend eligibility for unemployment benefits from a maximum of 20 to 26 weeks per year.
If passed by the Senate and signed by Democratic Gov. Gretchen Whitmer, the bill would make permanent an expansion of unemployment benefits that was extended to workers during the pandemic when business closures led to mass layoffs. Republican former Gov. Rick Snyder had signed a law in 2011 that shortened eligibility for unemployment benefits from 26 to 20 weeks.
The extension, sponsored by Democratic Rep. Karen Whitsett of Detroit, would take effect in 2025. The bill passed without House hearings, and the cost would be unknown, according to an analysis by the nonpartisan House Budget Office.
Whitsett said the bill was “common sense” and acknowledged that she was also looking at ways to increase the weekly unemployment benefit amount from the current maximum of $362. Whitsett said an ideal new weekly unemployment payment would be $600, but she doubted such an amount would be supported.
“If you look at 20 weeks, that’s really not a long time; 26 weeks is definitely necessary,” Whitsett said. “Most people aren’t out of work nearly that long. The average is 13.5 weeks. But I think it’s worth it to have someone who doesn’t have to go on leave (under the Family and Medical Leave Act).”
Several Republican lawmakers spoke out against the bill, arguing it would discourage people from finding new jobs at a time when the state ranks 39th in the nation in labor force participation. In January, there were 261,000 job openings in the state and 200,000 people looking for work, said Republican Rep. Cam Cavitt of Cheboygan.
“All this bill does is force taxpayers and small businesses to pay unemployment benefits to people who choose to stay home for six months,” Cavitt said.
The National Federation of Independent Business argued in a statement Wednesday that the expansion would burden companies that desperately need more workers and increase the responsibility of an agency already struggling to cope with the flood of applications due to the pandemic.
“As small business owners continue to struggle to find employees and survive in a difficult economic climate, this legislation is a slap in the face,” said Amanda Fisher, NFIB state director.
The state of Michigan’s Unemployment Insurance Trust Fund, which is funded by payroll taxes imposed on employers, had a balance of about $2.67 billion as of Monday.
Whitmer has supported extending unemployment benefits in recent years, temporarily extending the eligibility to 26 weeks by executive order in 2020. Later that year, when the Republican-led legislature temporarily signed the extension into law, Whitmer advocated for legislation that would make the extension permanent.
“The people of Michigan deserve better than a short-term extension that expires at the end of the year,” Whitmer said in 2020. “It’s time to work together on a long-term solution for working families.”
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