Purpose

• Create an additional unemployment benefits program for workers in the iron ore mining industry who were laid off in early 2026, with funds drawn from Minnesota’s unemployment insurance trust fund.

Main Provisions

• Availability period: Additional benefits are available to eligible applicants who were laid off between January 15, 2026 and March 15, 2026 due to lack of work from an iron ore mining employer that laid off at least 50% of its workforce, or from an explosive manufacturing employer that provides goods or services to an iron ore mining employer if the mining operation ceased or was substantially reduced.
• Time window for benefits: Benefits can be received for weeks ending through March 19, 2027.
• Benefit amount and duration: The weekly amount is the same as the regular unemployment benefits the applicant would receive on their regular benefit account, with a maximum of 26 weeks of additional benefits.
• New regular benefit account option: If a new regular benefit account is established (under the usual state rules), the weekly amount from that new account may replace the weekly additional benefit amount if it is equal to or higher. The applicant can switch to the new regular benefit account if it meets certain conditions.
• Interaction with exhausted regular benefits: If an applicant exhausts the maximum regular benefits on the initial layoff account and becomes eligible for a new regular benefit account, they must apply for and establish it. The choice between continuing with the additional benefits or moving to the new regular account depends on which provides a higher weekly amount.
• Eligibility prerequisites: To qualify for the additional benefits, the applicant must have a benefit account with at least 50% of the wage credits from the iron ore mining employer that laid them off and must have exhausted the regular unemployment benefits on that account. They must also meet the general eligibility requirements for regular unemployment benefits.
• Application timing: Eligibility runs through the week ending March 19, 2027, as long as the other requirements are met.
• Charging and funding: Benefits paid under this program may not be used to determine future unemployment tax rates for most employers or charged to government or nonprofit reimbursing accounts. An exception to this charging rule applies to employers described in the iron ore mining/related clause (i.e., those specific mining or related businesses).

Significant Changes to Existing Law

• Creates a targeted “Iron Ore Mining Additional Unemployment Benefits Program” funded by the state’s unemployment insurance trust fund, separate from standard unemployment benefits.
• Modifies how benefits are counted for employers: normally, these benefits are not charged to an employer’s tax rate or reimbursing accounts, but there is an exception for certain iron ore mining and related employers.
• Adds a provision tying eligibility for these extra benefits to the existence of a new regular benefit account and to the comparison between weekly amounts from the regular benefit account versus the additional program.
• Establishes a linkage to federal programs: if an applicant is eligible for the federal Trade Readjustment Allowance (TRA) benefits, they cannot receive these additional unemployment benefits.

Key Mechanisms and Terms

• Benefit account: the state record tracking an individual’s wage credits and benefit eligibility.
• Regular unemployment benefits: standard benefits under Minnesota Statutes for unemployment.
• Weekly benefit amount: the amount paid per week, equal to the regular benefit amount on the applicable account.
• 26 weeks: the maximum number of weeks the additional benefits can be received.
• New regular benefit account: an alternative account under state rules that may change the weekly benefit amount.
• Charging of benefits: whether benefits affect an employer’s future unemployment tax rate or reimbursing accounts.
• TRA (Trade Readjustment Allowance): a federal benefit; if received, the applicant cannot receive these additional MN benefits.

Practical Impact

• Narrowly targeted: Aims to help iron ore mining sector workers who faced layoffs in a specific early-2026 window and whose employers reduced operations or shut down.
• Employer impacts: Most employers should not see these benefits affect their tax rates or reimbursing accounts, with an explicit exception for the iron ore mining and related employers identified in the bill.
• Benefit decision pathway: Workers may stay with the traditional unemployment system or switch to the new regular benefit account if it provides a better weekly benefit, but only after exhausting initial benefits.

Relevant Terms - unemployment insurance trust fund - iron ore mining - explosive manufacturing - lack of work - laid off - benefit account - regular unemployment benefits - weekly benefit amount - 26 weeks - new regular benefit account - Minn. Stat. 268.07 - 268.069 - week ending March 19 2027 - January 15 2026 - March 15 2026 - charging of benefits - unemployment tax rate - reimbursing account - government or nonprofit employers - Trade Readjustment Allowance (TRA)