Proposal to extend UI to certain federal and recently resigned workers fails in committee roll call

House File 3,078, as amended, would have added two extensions to Minnesota unemployment insurance: a 13-week extension for federal workers who have lost their jobs after federal reductions, and eligibility for a 13-week UI extension for workers who took a deferred resignation between Jan. 27 and Feb. 13, 2025.

Representative Johnson presented the bill and the A1 amendment, saying the measure was a response to sudden federal workforce changes and to employees who felt forced to leave after receiving notices of altered working conditions. Jacob Romans, president of AFGE Local 3669 (Minneapolis VA), testified that federal employees — including VA staff — are being affected and urged support. Romans said many VA employees are veterans themselves and that the number of potentially impacted federal employees in Minnesota is relatively small.

During member discussion, several lawmakers raised fiscal and administrative concerns, especially that federal employees do not pay into the Minnesota UI trust fund and that extending benefits for federal workers would therefore be a state-side cost without corresponding employer contributions. Chair Baker and others said the proposal would impose a cost on Minnesota taxpayers because the federal government does not remit UI premiums to the state system.

Representative Johnson argued the extension applied only to workers affected through no fault of their own and not to those separated for cause. Representative Greenman and other members supported referral to Ways and Means to examine funding and other implications. After a roll call, the motion to re-refer House File 3,078 as amended to Ways and Means failed on a 7–7 vote.

Ending: Representative Johnson indicated he would continue to pursue the issue, but the committee did not advance House File 3,078.