Jobless workers demonstrate in support of continued federal unemployment benefits in the pandemic economy. (Joe Raedle/Getty Images).
A group of Ohioans is urging a state appeals court to secure nearly $900 million in pandemic unemployment assistance state officials never handed out. The plaintiffs won a judgement against Gov. Mike DeWine earlier this month over his decision to turn down supplementary support in 2021.
DeWine is appealing, and the plaintiffs worry even if they eventually win, they might be left empty handed.
Congress is working on a budget, and the debt ceiling is looming. Clawing back some but not all unspent COVID relief funds was part of a 2023 deal to avert a government shutdown. Meanwhile, the Department of Government Efficiency is running roughshod over federal agencies as it looks potential savings. DOGE teams have already begun combing through the Department of Labor, which oversees the remaining unemployment funding.
How we got here
Back in 2021, DeWine joined 13 other Republican governors in turning down supplemental unemployment assistance. In the initial months of his presidency, Joe Biden approved $300-a-week in additional benefits, but DeWine argued that extra money would discourage people from returning to work.
“The federal assistance is in some cases certainly discouraging people from going back,” DeWine said at the time.
He announced the state would opt out in May, and the state supreme court upheld his decision that September.
Although the deadline for new applicants to the program came and went, the plaintiffs argued DeWine’s decision not to accept funding amounted to dereliction of duty, and those unemployment dollars might still be out there, ready to be disbursed.
The question of the governor’s duty hinges on a provision in Ohio’s unemployment compensation statute directing officials to “secure (…) all advantages available.” The courts determined that turning off the spigot violated that duty.
As for whether the cash is still out there, the plaintiffs point to an email from a Department of Labor official around the time that states were turning down supplemental assistance. In that letter, the official asserted that if the state’s changed their minds “all administrative and benefit costs will be federally funded.”
With that in mind, Franklin County Common Pleas Judge Michael Holbrook directed the governor to “take all action necessary to obtain Ohio’s share” of outstanding unemployment benefits.
Ticking clock
According to the plaintiffs’ tally, that could be as much as $900 million. But they’re worried DeWine’s appeal leaves the money vulnerable to clawback by the federal government.
“Because there is a likelihood 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 plaintiffs’ filing argued, “defendants need to act now to secure the unused (unemployment) funds before those funds are recalled and used for other purposes.”
Marc Dann, a former Ohio attorney general representing the workers, argued that a court order directing the governor to collect the funds is “the most equitable path forward.”
“Once the funds are deposited with the clerk of courts, they will be available for distribution to Ohioans who need and deserve them when we ultimately prevail,” he said. “If, for some reason, our victory is overturned, the money will simply be sent back to the federal government.”
In a statement, DeWine spokesman Dan Tierney said only that “the state has moved to stay the lower court ruling and appeal.”
Ohio Democrats took the opportunity to criticize top Republicans in the state, and they didn’t limit their ire to the governor. As part of his official duty, Attorney General Dave Yost represents the state in court, but he’s also one of the Republican candidates running for governor in 2026.
“Governor DeWine and AG Yost have an opportunity to put money back in the pockets of hardworking Ohioans, and they’re literally going to court to avoid doing it,” Ohio Democratic Party spokeswoman Katie Seewer said.
“For DeWine and Yost, an extra couple hundred dollars a week might not mean a lot, but that money could help families in Ohio put food on the table and keep the lights on,” she continued. “It’s clear that Republicans are deeply out of touch with what Ohioans need.”
In addition to urging the court to issue an order securing the money, the plaintiffs are asking the court to move forward on an expedited timeline. Under their proposal, the state would need to reply by February 27. As of Friday, the court has yet to decide on that motion.
Follow Ohio Capital Journal Reporter Nick Evans on X or on Bluesky.
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