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Coping with COVID: Missouri jobless fund to receive $300M from state’s COVID-19 relief fund

By Madison Parry

Around $300 million in COVID-19 relief funds from the Missouri State Treasury will be transferred to the state’s Unemployment Insurance Trust Fund. Gov. Mike Parson gave authorization for the transfer on Monday, saying the additional funds will in part help prevent tax increases for small businesses.

On Monday, Missouri Gov. Mike Parson authorized the transfer of $300 million in federal Coronavirus Relief Funds from the State Treasury into the Missouri’s Unemployment Insurance Trust Fund.

The transfer, according to Parson, will help prevent tax increases on Missouri small businesses and strengthen the state’s UI Trust Fund.

“Despite the unprecedented rise in unemployment caused by COVID-19 this past year, our economy continues to come back strong as businesses reopen and Missourians get back to work,” Parson said. “We have come a long way since the early days of this pandemic, and an increase in taxes is the last thing Missouri employers need as we continue our recovery.”

State unemployment benefits are provided through the UI Trust Fund to eligible workers who have lost their jobs. Money for the Trust Fund is brought in from Missouri employers.

Due to the lasting impact of COVID-19 resulting in heightened job loss over the last year, a news release from the governor’s office states that without the $300 million transfer, Missouri businesses would have likely seen an increase in their unemployment taxes to replenish the Trust Fund.

“Small businesses employ over 45 percent of our workforce here in the state. These funds will provide those employers a better sense of economic security encouraging them to employ or re-employ workers,” Department of Labor and Industrial Relations Director Anna Hui said. “Today’s action helps businesses by enabling them to employ more workers and create sustainable economic prosperity across Missouri.”