LANSING, Mich. (Michigan News Source) — Michigan sent out unemployment checks in the chaos of early COVID. Now, five years later, the state wants back billions in overpayments—and legislators are pushing a bill to block the effort.

A Senate committee voted unanimously on Nov. 12 to advance legislation that would stop the Unemployment Insurance Agency from pursuing repayment of pandemic-era benefits from roughly 350,000 residents. Repayment letters only recently started going out after a court settlement lifted a long freeze on collections.

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Sen. Darrin Camilleri (D-Trenton) who sponsored the bill, said the government rushed benefit payments out the door when Michigan’s jobless rate hit record highs. If that led to mistakes, he said, “our government should accept responsibility.”

His proposal would categorize benefits paid between February 2020 and September 2021 as administrative errors, wiping out repayment demands unless the agency proves fraud. The disputed benefits total roughly $2.7 billion.

Naturally, not everyone is backing the effort. The Unemployment Insurance Agency—part of Gov. Gretchen Whitmer’s administration—has come out against the bill, arguing the state has a legal duty to recover improper payouts.

Camilleri, however, hopes the full Senate will vote before Thanksgiving.

“Grocery prices are up, utility bills keep climbing and the holiday season is just around the corner,” Camilleri said. “To add more financial stress to our neighbors is not what our state should be doing.”