ST PAUL, Minn. — Gov. Tim Walz and Commissioner of Employment and Economic Development Steve Grove have announced the state has applied for a new federal benefit program to help Minnesotans who are out of work due to the COVID-19 pandemic.
If the state's application is approved by the federal government, the new $300 weekly benefit will be provided through the Lost Wage Assistance (LWA) program with FEMA.
Grove said the benefits would work a little differently than the state's usual unemployment insurance (UI) program. The additional payment would only be available to Minnesotans who are unemployed due to COVID-19, and only for applicants whose existing unemployment insurance payments are over $100 each week.
In a Twitter thread on Friday afternoon, Grove said that states like Minnesota pay matching funds to be eligible for the program, which will come through the state's current UI program.
Grove said if FEMA approves the state's application quickly and the U.S. Treasury Department begins transferring funds, the state could begin issuing the first payments to applicants by the end of next week, or the week of September 6.
Gov. Walz noted there was bipartisan support for the state's application to the program, and thanked legislative leaders from both parties during Friday's news conference.
Commissioner Grove said the state has issued $7 billion in unemployment insurance payments to Minnesotans during the pandemic so far. He noted the federal LWA program does have a finite limit of $44 billion in disaster relief funds that would be used nationwide.
"This extra $300 a week will matter for Minnesotans and their families," Lt. Gov. Peggy Flanagan said in an afternoon news conference. "But to be clear, an extra $300 is not a reflection of the entirety of the burden of this pandemic on Minnesotans." Flanagan called on federal officials to provide additional ongoing relief.
A previous federal program ended in July, which provided up to $600 in additional unemployment benefits, but the program was not extended by Congress.
President Trump announced the Lost Wage Assistance program by executive order in early August.