House Votes To Waive Federal Unemployment Overpayments

The Missouri House of Representatives voted March 4 to waive federal unemployment overpayments that affect 46,000 residents.

House members voted 157-3 and sent the bill to the Senate.

In February, a bipartisan effort emerged to waive the overpayments, which were being spearheaded by Gov. Mike Parson and the Department of Labor.

The Department of Labor defended the decision. The Special Committee on Government Oversight found that of the $150 million in overpayments, only a small portion came from the state’s unemployment trust.

Department of Labor Director Anna Hui said that Parson made clear that he wanted federal overpayments collected.

Members from both parties denounced that decision, saying it would burden residents to come up with thousands of dollars they don’t have.

Six bills were introduced to deal with the issue, but HB 1083, which is sponsored by J. Eggleston (R-Maysville), emerged.

It waives the federal portion of overpayments.

“The amount that the folks will get to keep from the federal portion amounts to $668,000, on average, per House district.  So every one of our districts, on average, $668,000 will stay here in Missouri rather than going back to Washington, D.C., if we pass this,” said bill sponsor J. Eggleston (R-Maysville).

Jered Taylor (R-Republic) said it was the right thing to do for the residents.

“Now they’re being saddled with thousands of dollars of money that they have to repay when they don’t have the money.  They spent it.  We know that they spent it on important things – on food, on housing, on transportation, on clothing – to get through a difficult time when they didn’t have a job, and they still may not have a job and [the state has been] asking them to pay thousands of dollars back,” Taylor said.

Ian Mackey (D-St. Louis), said he wants to see it go further and waive repayment of state unemployment overpayments.

“Someone who got a bill for $5,000 from the state is going to see that we passed this legislation is going to take the letter and the bill they got from the state and tear it up and throw it away … and then a few weeks later they’re going to get a bill from the state for $800, and the same people who couldn’t afford the $5,000 bill are not going to be able to afford the $800  bill and the crisis is going to start all over again for them,” said Mackey.

Mackey said Missouri could use CARES Act money to waive the state’s share, an idea that Scott Cupps (R-Shell Knob) agreed with.

“If this bill were to come back from the Senate with the state portion included and we were able to fund that with CARES Act funding, as opposed to it hurting the integrity of the unemployment fund system within the state, then that is something that I, personally, would be in favor of,” Cupps said.

Eggleston’s bill would take effect Aug. 28. An emergency clause was rejected by the House, which would’ve made the bill take effect immediately.

Eggleston said DOL needs time for training and creation of paperwork.