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Currently, Missourians can avoid paying the federal benefits back, but not the state, if they are granted a waiver.
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The waivers could lead to the forgiveness of more than $100 million in federal money that the state has tried to recoup from 47,000 Missourians.
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The legislature failed to pass a bill that aimed to forgive nearly $150 million in mostly federal benefits given to thousands of Missourians mistakenly during the height of the pandemic.
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The state’s budget also provides funding for the public defender system and mistakenly paid unemployment benefits
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House members said the department agreed to stop sending letters threatening to garnish the money, but more than 30 people recently received letters saying the department filed a lien on their property.
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The Missouri House of Representatives approved a bill Thursday that aims to waive repayment of about 80% of the unemployment money the state said it overpaid people last year.
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The state is demanding that more than 46,000 people pay back money the state said it mistakenly overpaid them last year. Some lawmakers worry that fighting appeals will be costly to Missouri and are trying to block collection of the money.
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Six Missouri state representatives are working to pass legislation to forgive some or all of the unemployment overpayments that the Missouri Department of Labor is asking 46,000 residents to pay back.