Judge rules Ohio must distribute $900M in pandemic-era benefits it previously passed on
The U.S. Department of Labor's Federal Pandemic Unemployment Compensation program offered an additional $300 per week to unemployed Ohioans between Dec. 27, 2020, and Sept. 6, 2021, during the height of the COVID-19 pandemic.
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They were available to anyone who was already receiving traditional unemployment benefits, according to the Ohio Department of Job and Family Services.
But Gov. Mike DeWine stopped the temporary payments for Ohioans on June 26, 2021, claiming they were 'discouraging' residents from returning to work. Several other states also opted out of the program that month.
Attorney Marc Dann, on behalf of Ohioans who were denied the payments, sued DeWine and ODJFS Director Matt Damschroder in July 2021 for the 'unwarranted decision' to prematurely cancel the benefits, despite them being federally funded, according to a Wednesday news release.
The Franklin County Common Pleas Court in 2021 ruled against the plaintiffs, but the Tenth District Court of Appeals disagreed, ruling that DeWine had a 'clear legal duty' to keep the state in the program and secure the benefits for Ohioans, according to the Wednesday ruling. By the time the case reached the Ohio Supreme Court, the benefits had expired, and justices considered the case moot.
The Franklin County court in 2024 allowed the plaintiffs to bring new, amended complaints. They also included a declaration from a DOL administrator, who made it clear that states that backed out of the supplemental unemployment program could rescind their terminations and go on to collect the benefits for their residents.
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The judge ruled state officials violated state statute in prematurely terminating the benefits for Ohioans and ordered them to 'take all action necessary' to obtain and distribute the benefits to eligible Ohioans.
'The payments will both enable people still reeling from the effects of the pandemic to rebuild their lives and significantly boost the state's economy,' Dann is quoted in a Wednesday news release. 'We've never understood why the Governor would leave nearly a billion dollars sitting in an account in Washington, D.C. rather than allowing that money to flow into Ohio's […] cities, townships and villages where it will fuel sales for local businesses and generate tax revenue. Aside from being cruel, refusing funds made no sense from an economic standpoint.
'We've been assured the money is there, it's far past time for the state to ask for it on behalf of citizens who desperately need it.'
Dann noted the county court's ruling could be appealed, but that the appellate court has already ruled against the state, and that a refusal would tee up another court battle.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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