Minnesota program will help some residents losing federal unemployment benefits

The Minnesota Capitol is blanketed with a fresh coating of snow
The Minnesota Capitol is blanketed with a fresh coating of snow on Feb. 9, 2020 in St. Paul.
Andrew Krueger | MPR News file

Update (7:25 p.m.): President Donald Trump has signed the $900 billion pandemic relief package that will deliver long-sought cash to businesses and individuals, including extended federal unemployment benefits.

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Some Minnesotans who are out of work will continue to receive extended unemployment benefits, even after President Donald Trump's refusal to sign a COVID relief bill that extends federal benefits for people who lost their jobs during the pandemic.

That's thanks to a COVID relief package passed by the Minnesota Legislature and signed by Gov. Tim Walz earlier this month.

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Federal unemployment benefits for millions of Americans lapsed over the weekend as Trump refused to sign the COVID relief and spending bill that had been considered a done deal before his sudden objections. He has demanded larger COVID relief checks and complained about “pork” spending.

It's estimated the lapse in federal unemployment aid could have affected more than 100,000 Minnesotans. But the state COVID relief legislation — anticipating potential federal inaction — extended state unemployment benefits for up to another 13 weeks.

"We passed this hoping we'd never have to use it, to be honest with you, hoping that the federal government would come through and that Washington would put a benefit into effect that Minnesotans could take advantage of," Minnesota Department of Employment and Economic Development Commissioner Steve Grove told MPR News on Sunday. "But since they haven't, we are beginning to administer this program and just really want to take care of Minnesotans who need help."

Self-employed people and independent contractors who received benefits through a federal program known as Pandemic Unemployment Assistance are not eligible for the extended state aid.

"It doesn't cover every single person that was on those federal programs,” Grove said of the extended state aid. “But it does cover a lot of individuals who just went off of unemployment insurance here. So we're thankful that we were able to reach a compromise in Minnesota, but Washington's inability to do so continues to put a lot of Americans at risk."

More information on the extended state unemployment benefits and eligibility can be found here.

The Associated Press contributed to this report.