More than 300,000 Americans could be at risk of losing out on their owed unemployment benefits in Ohio.
Ohio Governor Mike DeWine has declined to request pandemic-era funds from the federal government, and the funds may be lost if Congress reappropriates them this year.
Why It Matters
Workers across the country, including Ohio, are eligible for unemployment benefits if they lose their jobs due to no fault of their own.
During the pandemic, the federal government allocated $1 billion in unemployment assistance for Ohioans, but the funds have yet to be used and may be appropriated for other purposes if the case is not resolved.
What To Know
Franklin County Judge Michael Holbrook ruled that DeWine violated the law when he refused to accept $900 million in federal unemployment benefits.
The funds were intended to help pay out $300 weekly to Ohioans receiving unemployment benefits, and more than 300,000 workers were affected.
However, DeWine filed an appeal against the judge’s decision, and Holbrook temporarily stayed it.
“While this court believes that the entry of a partial stay is in the best interest of all the parties, it is compelled to act within the bounds of the law,” Holbrook wrote in the case’s ruling.
Former Ohio Attorney General Marc Dann has filed a motion for an injunction with the 10th Circuit Court of Appeals in an attempt to bypass the stay and get the funds to eligible Ohio residents.
Once the motion is briefed in March, the Court of Appeals could rule on the case.
However, if Congress reappropriates the money, workers who were owed the unemployment benefits could never see it sent out.
Newsweek reached out to DeWine’s office for comment via email. DeWine’s press secretary declined to comment as the case is being actively litigated.
What People Are Saying
Ohio Gov. DeWine’s press secretary previously told local station 13 News Now: “The time period referenced was after the pandemic emergency had ended… In recent years, including those in question, Ohio has had more open jobs than workers to fill them.” Providing emergency supplemental benefits long after the conditions that required them had passed was sending the wrong message when Ohio was open for business.”
Former Ohio Attorney General Marc Dann said earlier this month: “Judge Holbrook validated our contention that Governor DeWine and the ODJFS were required by Ohio law to accept and distribute the FUPC payments to Ohioans devastated by COVID-19.” The Governor’s decision to deny federal assistance to families in crisis was arbitrary, unconscionable, and illegal. We sincerely hope that he will now fulfill his obligation to obey the law without delay.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: That the funding mentioned was supposed to be distributed during the pandemic, but it was never distributed to those who qualified due to a supposed policy change. As a result, nearly 300,000 Ohio residents are eager to receive money that should have been given to them four years ago.
But the governor’s continued decisions are preventing this from happening. While it is unclear why, it is fair to say that in situations like this where fund distribution is hampered, it is more often than not due to various plans in place for the use of those funds.”
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: The decision could have significant political consequences. Many states still have excess pandemic aid, and some are even experiencing budget surpluses. However, losing these funds could spark a public and political backlash.
What Happens Next
While the Court of Appeals is set to rule on the case, Congress may reappropriate the funds before the decision is made. If that happens, workers who are owed unemployment benefits will be permanently disadvantaged.
“For those in Ohio that qualify, though, not receiving these payments could be a further blow to their bottom line, especially when you consider the inflationary pressures many are facing,” Beene told the crowd.
