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Release: House Education Finance Committee hears bill to increase funding for Unemployment Insurance for hourly school workers

Thursday, March 20, 2025

SAINT PAUL, Minn. – Today the House Education Finance Committee held a public hearing on HF 2210, legislation authored by Rep. Lucy Rehm (DFL-Chanhassen) to increase funding to help cover costs of providing Unemployment Insurance to hourly school workers. 

“Investing in the stability of our hourly school workers through summer unemployment benefits isn't just about their economic well-being,” said Rep. Rehm. “It’s an investment in the consistent, dedicated support system our bus drivers, school nutrition workers, custodians, and critical support staff provide for our kids. These workers deserve access to UI during the summer and this bill will help ensure school districts have the resources to meet this critical need.” 

In 2023, the Legislature passed a law making hourly school workers eligible for unemployment benefits during the summer months. For nearly a century prior to that, those who work at K-12 and higher education institutions were ineligible for unemployment insurance during the period between academic terms (i.e. summer) if they had a reasonable assurance they would be working again when school started in the fall. 

This affected many K-12 employees (e.g. paraprofessionals, classroom assistants), workers at higher education institutions (food service workers, dorm maintenance), and employees for private contractors (bus drivers). In general, a high proportion of these excluded workers are women, people of color, and low-wage workers.

Cat Briggs, a school bus driver with Independent School District 196, the third largest school district in the state, shared how UI access has kept her financially secure. “That little bit of economic security didn’t mean I have to choose between my school children and my grandbabies during the summer,” said Ms. Briggs. “I was able to budget and afford taking care of my grandchildren when I did not have work available to me over the summer.”

Rep. Rehm’s legislation adds a total of $100 million to the School Unemployment Aid account to fully cover the cost to school districts and charter schools of providing Unemployment Insurance to their hourly employees through the end of 2027. HF 2210 also requires updated reporting from the Minnesota Department of Education and the Minnesota Department of Employment and Economic Development on annual changes in the costs associated with UI for school employees. 

The bill is being considered for future inclusion in a comprehensive education budget package.

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