Montana lawmakers approve unemployment benefits for mass layoff claimants effective July 2025

The Montana Legislature has introduced House Bill 131, a significant piece of legislation aimed at enhancing unemployment benefits for specific groups of claimants. Proposed on February 10, 2025, the bill seeks to provide additional support for job-attached, union-attached, and individuals unemployed due to mass layoffs, as defined by federal law.

The core provision of HB 131 establishes a structured benefits system based on the ratio of an individual's total base period earnings to their highest quarter of earnings. This formula allows eligible claimants to receive a total amount of benefits that corresponds to their earnings history, with the potential for up to 24 weeks of benefits depending on their earnings ratio. This approach aims to offer a more equitable safety net for those facing unemployment, particularly in times of economic uncertainty.

The bill has sparked notable discussions among lawmakers, with proponents arguing that it addresses the pressing need for robust unemployment support in a fluctuating job market. Critics, however, have raised concerns about the financial implications of expanding benefits, questioning whether the state can sustain the increased expenditure without straining its budget.

The economic implications of HB 131 could be substantial, particularly for communities experiencing high rates of unemployment due to recent layoffs. By providing a more generous benefits structure, the bill could help stabilize local economies, allowing residents to maintain their purchasing power during periods of joblessness.

As the bill moves through the legislative process, its potential impact on Montana's workforce and economy remains a focal point of debate. If passed, HB 131 is set to take effect on July 15, 2025, and will apply to unemployment insurance claims filed on or after that date. The outcome of this legislation could significantly influence the lives of many Montanans, highlighting the ongoing challenges of job security and economic resilience in the state.