State Rep. Ben Frederick today voted to advance two funding measures aimed at helping local job providers still struggling from the effects of the pandemic shutdown.

Frederick, of Owosso, helped the House approve a $250 million funding plan to ensure local employers don’t pay more in taxes because billions in dollars of fraudulent unemployment claims were paid out by the Whitmer administration during the pandemic. He also helped advance a $184.6 million plan to further help restaurants, movie theaters, fitness centers and many other businesses, as well as occupational license holders such as health care and skilled trades workers.

“The Whitmer administration’s economic shutdown was just the first in a series of problems that have hurt local business during the pandemic,” Frederick said. “Many Michigan businesses are still struggling to stay above water while dealing with inflation, staffing shortages and supply chain issues. These measures protect struggling small businesses from unemployment tax increases and offer much needed relief.”

House Bill 5525 deposits $250 million into the state unemployment trust fund to ensure local employers don’t pay more in taxes to make up for the staggering $8.5 billion the Unemployment Insurance Agency lost to fraud during the pandemic.

The $250 million appropriation, when combined with another $150 million deposit included in the current state budget for the same purpose, makes up for the portion of the fraudulent payments that independent investigators and the Auditor General believe came specifically from the state unemployment trust fund, which is supported by unemployment insurance taxes on employers.

“Small business owners and hardworking Michiganders should not foot the bill for the billions of dollars in fraud paid out by the Whitmer administration,” Frederick said. “With this plan, they will be held harmless.”

The measure was approved with overwhelming bipartisan support, advancing it to the Senate for further consideration.

House Bill 5524 offers $184.6 million for businesses hurt the most by the pandemic, building upon previous afflicted business relief approved by the Legislature, most recently signed into law in December 2021.

This funding includes:

• Relief for restaurants: The plan offers $9 million to waive or prorate liquor license fees for restaurants, hotels, bars and others unable to operate for parts of the pandemic. Another $5 million will refund fees charged to food establishments that were shut down and $10 million will address staffing shortages by helping train and certify servers in establishments serving alcoholic beverages.
• License and fee relief: People shouldn’t be forced to pay full price for state occupational licenses they weren’t allowed to use for much of the pandemic. It includes $8.9 million to offset the cost of state-required licenses for health care workers who were forced out of work during the pandemic, $17.7 million for license fee reimbursement for accountants, architects, engineers, barbers and cosmetologists, real estate, landscapers and others, and $1.5 million for license fee reimbursement related to construction workers, electricians, plumbers and other skilled trades workers.
• Support for tourism and entertainment: The key segment of Michigan’s economy has been hurt by inflation, labor shortages, changing customer behavior and a persistent virus. The plan will benefit tourism in communities across the state by offering $30 million in grants distributed through local convention and visitor bureaus across Michigan, $18 million for movie theater grants equal to $15,000 per screen, and $6.5 million in additional support for the Michigan Stages Survival Grant Program assisting live music and entertainment venues.
• Help for health and fitness centers: An estimated 30 percent of fitness centers permanently closed during the pandemic, and help is needed to prevent more closures. The funding plan offers $53 million for hardship grants capped at $250,000 per business.

House Bill 5524 was approved by the House Appropriations Committee with overwhelming bipartisan support, advancing it to the full House for consideration.

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