Massachusetts will repay $2.1 billion to the federal government over the next decade after the previous administration mistakenly used pandemic relief funds to cover unemployment benefits. Governor Maura Healey announced the settlement, which reduces the state's original liability of $3 billion, and pledged to work with business and labor leaders to reform the unemployment insurance system.
Healey announced in the summer of 2023 that her team discovered the Baker administration improperly used about $2.5 billion in federal pandemic relief funds to cover jobless benefits that should have been paid by the stateMassachusetts must pay the federal government $2.1 billion over the next decade after the Baker administration mistakenly used federal pandemic funds to cover unemployment benefits , officials said Monday.
The parties reached a deal at the end of last week, before Republican President Donald Trump took office. Payments will begin Dec. 1, 2025 and continue each year for the next decade, the Healey administration said. Healey pledged to pursue changes to lighten the burden on employers, who already face higher costs to cover a surge of claims during the COVID-19 pandemic.
"The Massachusetts UI system is arguably the most abused, costly and anti-employer system in the country," said Retailers Association of Massachusetts President Jon Hurst."Negotiating the $2.5B liability down to $2.1B is important, but this high cost cannot be simply added to the very high cost of doing business in the Commonwealth. The bad news is that this liability is very costly.
Unemployment Benefits Pandemic Relief Federal Funds Massachusetts Government Reforms
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