Almost $900 million in pandemic unemployment benefits that state officials never distributed are being sought by a group of Ohioans in a state appeals court. Earlier this month, the plaintiffs won a judgment against Governor Mike DeWine for declining supplemental support in 2021.
DeWine is appealing, and the plaintiffs fear that even if they win, they may not receive any compensation.
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The debt ceiling is approaching, and Congress is working on a budget. A 2023 agreement to prevent a government shutdown included reclaiming some, but not all, of the COVID relief money that had not yet been used. As it searches for possible savings, the Department of Government Efficiency is stomping all over government departments. The Department of Labor, which manages the remaining unemployment funds, has already been searched by DOGE teams.
DeWine was one of 13 Republican governors who refused to accept extra unemployment benefits back in 2021. Joe Biden authorized an additional $300 per week in benefits during the first several months of his presidency, but DeWine contended that the additional funds would deter people from going back to work.
According to DeWine at the time, the federal help is deterring people from returning in certain situations.
In May, he declared that the state would opt out, and in September, the state supreme court supported his ruling.
The plaintiffs contended that DeWine’s refusal to accept financing amounted to dereliction of duty, even though the program’s deadline for new applicants passed and those jobless funds would still be available and ready to be disbursed.
A clause in Ohio’s jobless compensation law that instructs authorities to obtain full benefits is the basis for the governor’s obligation question. Turning off the spigot was ruled to be a violation of that obligation by the courts.
The plaintiffs cite an email sent by a Department of Labor official at the time states were rejecting supplementary aid as evidence that the money is still available. The official claimed in that letter that all administrative and benefit expenses would be covered by federal funds if the states had a change of heart.
In light of this, Franklin County Common Pleas Judge Michael Holbrook instructed the governor to do all within his power to secure Ohio’s portion of the unpaid unemployment payments.
The plaintiffs estimate that figure might reach $900 million. They are concerned, however, that DeWine’s appeal exposes the funds to federal retaliation.
The plaintiffs’ filing argued that defendants must take immediate action to secure the unused (unemployment) funds before those funds are recalled and used for other purposes because there is a chance that the (unemployment) benefits defendants are ordered to obtain from the U.S. Department of Labor will not be available for the duration of this appeal.
The workers were represented by Marc Dann, a former Ohio attorney general, who contended that the most equitable course of action would be a court order compelling the governor to collect the money.
When we finally win, the money will be accessible to distribute to Ohioans who deserve and need it, he stated, once it has been deposited with the clerk of courts. The funds will just be returned to the federal government if our win is somehow overturned.
The state has filed to stay the lower court order and appeal, according to a statement from DeWine spokesman Dan Tierney.
Democrats in Ohio used the occasion to attack prominent Republicans in the state, and they weren’t only angry at the governor. In addition to representing the state in court as part of his professional duties, Attorney General Dave Yost is a Republican contender for governor in 2026.
According to Ohio Democratic Party spokeswoman Katie Seewer, Governor DeWine and Attorney General Yost have the chance to return money to the hard-working people of Ohio, but they are actually going to court to do otherwise.
“A few hundred dollars more a week may not seem like much to DeWine and Yost, but that money could help families in Ohio put food on the table and keep the lights on,” she added. Republicans are obviously quite disconnected from the needs of Ohioans.
The plaintiffs are requesting that the court proceed on an expedited timeframe and urge the court to issue an order safeguarding the money. Their plan would require a response from the state by February 27. The court has not yet made a decision on the motion as of Friday.
Follow Xoron Bluesky, a reporter for the Ohio Capital Journal.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.