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House trims unemployment-insurance cushion, raises benefit share in bipartisan compromise
Summary
The House unanimously approved a compromise that trims the UI trust target from 21 months to an adjustable target near 18 months while restoring benefit replacement to 65% of wages; sponsors said the change saves business and preserves solvency triggers (69–0).
First Substitute House Bill 345, presented by Representative Jeremy Swallow, adjusts the state unemployment insurance trust target and benefits. The bill lowers the long-term trust cushion from 21 months to a formula-driven target in the 17–19 month range and restores the weekly benefit replacement rate to 65% of wages (up from 60%). Sponsors described the agreement as a business‑labor compromise that will yield multi‑year premium relief to employers while preserving triggers designed to protect solvency.
Representative Swallow said the change reflects national practice (many states target 12–15 months) and emphasized the restoration of the 65% benefit level as part of the deal. The House passed the measure unanimously, 69–0. The bill moves to the Senate for additional consideration and any technical adjustments.
Implication: The reform reduces employer contributions in the short term but keeps automatic solvency checks and benefits at a higher replacement rate than recent practice.
Next steps: Senate committee and possible technical amendments; administrative guidance will follow if enacted.
