Minnesota lawmakers expect to pass a $216 million COVID-19 relief package that includes direct grants for businesses and a 13-week extension of unemployment benefits for those who could hit their cap after the holidays.
The tentative deal announced by House leaders comes as lawmakers gathered Monday for the seventh special session of the year, a required step as Gov. Tim Walz again extends his emergency rule-making powers in response to the pandemic.
A deal was reached last week for business relief, but the divided House and Senate hit a snag in negotiations over an extension of unemployment insurance. Democrats in control of the House say that more than 100,000 Minnesotans could run out of benefits by Dec. 26.
Congress has not yet struck a deal on its own stimulus package that could extend federal unemployment insurance.
"We do not want to wait for Congress to decide what it's going to do, we want Minnesotans who are unemployed to know, especially at this time of year, that it's going to continue," said House Majority Leader Ryan Winkler, DFL-Golden Valley, who said an agreement came together over the weekend.
Negotiations have been ongoing since Walz ordered a four-week pause on businesses such as bars, restaurants, entertainment venues and fitness centers to slow the spread of COVID-19.
The governor is expected to announce this week whether that pause will continue beyond Friday, when it was set to expire.
Even as lawmakers come together on COVID-19 relief, Republicans said they're frustrated by a lack of clarity on whether Walz's closure of bars and restaurants will continue.
"The manner in how he shuts us down and reopens us has to be done in a methodical and well-thought-out manner," said Rep. Dave Baker, R-Willmar, who worked on the final bill.
Pressure intensified for a relief package after Minnesota's December economic forecast, which showed that a projected $2.4 billion budget deficit had turned into a $641 million surplus for this budgeting year.
The deal includes $90 million in grants for restaurants, bars and bowling alleys that have seen at least a 30% reduction in sales from last year, as well as $14 million for movie theaters and convention centers that have been forced to close.
The largest amount, $112 million, will go directly to counties to distribute to hard-hit businesses in their communities.
Lawmakers have not yet struck a deal on a $500 payment to low-income families and housing relief proposed by Democrats.
Briana Bierschbach • 651-925-5042
Twitter: @bbierschbach
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Minnesota lawmakers strike deal on $216 million COVID-19 relief package - Minneapolis Star Tribune
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