LANSING – As of Wednesday, the state of Michigan began implementing new unemployment benefit rules, under legislation passed last year by the former Democratic majority in the State House and senate and signed into law by Governor Whitmer.

The new benefits include a $84 increase to the maximum weekly unemployment payment, raising it by 23 percent, from $362 to $446. Additionally, the maximum number of weeks an individual may receive unemployment benefits has increased from 20 to 26 weeks per year. This marks the first increase in Michigan’s unemployment benefits since 2002.

Susan Corbin, director of the Michigan Department of Labor and Economic Opportunity, called the increase “a step in the right direction” to support workers who unexpectedly lose their jobs and need financial assistance while searching for new employment.

Under the law passed last year, the weekly maximum is scheduled to rise again in 2026 to $530, and then to $614 in 2027. Beginning in 2028, Michigan’s Department of Treasury will adjust the benefit amount annually based on inflation, as measured by the national Consumer Price Index (CPI).

Additional family support benefits

The law also gradually increases the weekly allowance for each eligible dependent. Previously set at $6 per dependent, the amount has already increased to $12.66 per dependent in 2025, and will continue to rise to $19.33 in 2026 and $26 in 2027. The maximum number of dependents per claimant is capped at five individuals.

Implementation and retroactive review

The new benefits apply immediately to all unemployment claims filed on or after April 2. However, the Michigan Unemployment Insurance Agency will also review active claims filed earlier in the year on a case-by-case basis to determine if claimants are eligible for retroactive increases, as the law technically states that the new benefits apply starting January 1.

Although the law was signed in 2024, it did not take effect until April 2 because it failed to receive the super majority vote required for immediate enactment in the State Senate, due to unanimous opposition from Republican lawmakers.

Funding and potential budget impact

The increased unemployment payments will be funded by the state’s Unemployment Insurance Trust Fund, which currently holds approximately $2.7 billion, down from $4.7 billion in late 2019. The fund was heavily depleted during the COVID-19 pandemic, dropping to just $513,000 in March 2021.

In 2024, total unemployment benefits paid in Michigan amounted to about $763 million. However, Republican lawmakers warn that the annual cost could rise by several hundred million dollars due to expanded benefits and a potential increase in the number of unemployed workers.

As of February, there are an estimated 274,000 unemployed people in Michigan. However, only about 90,000 individuals are currently receiving unemployment benefits.