Thousands of Ohio residents are closely following a prolonged legal dispute over pandemic unemployment benefits. A recent ruling from a Franklin County judge has ordered the state to distribute nearly $1 billion in federal assistance that Governor Mike DeWine withdrew in 2021. While the state has appealed the decision, approximately 300,000 Ohioans are hoping to receive their portion of the funds.
Governor DeWine announced in May 2021 that Ohio would end its participation in the Federal Pandemic Unemployment Compensation (FPUC) program, which provided supplemental financial aid to workers affected by COVID-19. At the time, unemployed workers were receiving an additional $300 per week in federal assistance.
“The assistance was always, always intended to be temporary,” DeWine stated during a press conference. The decision to withdraw from the program was framed as a way to stimulate economic recovery, with some arguing that extended benefits discouraged people from returning to work. Then-Lieutenant Governor John Husted echoed this sentiment, saying, “I don’t cast any blame on the individual because the government made a policy that said we’ll pay you more not to work than to go back to work.”
Ohio was among the first states to impose business closures and social distancing measures to curb the spread of the virus. For many workers, the economic consequences were immediate.
A Lifeline Cut Short
Ian Hoy, a musician from Shaker Heights, saw his livelihood vanish almost overnight. “Anything with large amounts of people – we were done with that. So I lost out on thousands of dollars,” Hoy recalled. By 2020, he had shifted to remote music lessons to bring in income while helping his preschooler navigate virtual learning. But without live performances, unemployment benefits became a crucial support for his family.
“I was receiving just a small amount, but that helped because I didn’t have all the income sources I used to have,” he said.
For many, the end of FPUC benefits came before they were able to fully re-enter the workforce. Some struggled with limited childcare options, while others feared exposing vulnerable family members to the virus. These concerns led to a class action lawsuit in July 2021.
Legal Fight Over Benefits
Marc Dann, former Ohio attorney general and legal counsel for the plaintiffs, argued that those affected were not avoiding work but facing significant obstacles.
“Whether it was a vocational issue or a daycare issue or an elder care issue, it wasn’t at all that they didn’t want to go back to work,” Dann said. The lawsuit contends that DeWine overstepped his authority in rejecting the federal aid, leaving 300,000 people short by roughly $3,000 each for 10 weeks of unpaid benefits.
On February 12, a Franklin County judge sided with the plaintiffs, ordering the state to claim and distribute $900 million in federal funds. However, Ohio has since appealed the ruling and requested an injunction from the 10th District Court of Appeals.
In a previous decision in August 2021, the same court determined that the governor had a legal duty to obtain and distribute the FPUC funds to eligible recipients. Now, Dann and the plaintiffs are urging the court to uphold that ruling. He has also called on the state to secure the funds from the U.S. Department of Labor and deposit them with the Franklin County Clerk of Courts before Congress reallocates the unspent money.
“That money will be re-appropriated by Congress to other purposes – probably a tax cut for rich people, on the backs of the working-class people that we represent,” Dann argued. He believes distributing the funds would provide much-needed relief to families still recovering financially from the pandemic.
“A lot of restaurants either went out of business – and we’ve seen that in Cleveland, a lot of restaurants closing,” he said. “A lot of those owners could use that $3,000 to get their business back on track. So what I think is very clear is that people’s economic challenges from the pandemic have not gone away.”
While Hoy has since returned to work, he agrees that the additional funds would provide crucial assistance to many Ohioans.
“I represent small business owners, I represent nonprofits, I represent union workers. And I want the governor to know that we work hard,” he said.
A hearing on the state’s request for an injunction is scheduled for Monday afternoon in Franklin County.