Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Michigan cuts jobless benefits by 6 weeks

rick_snyder.top.jpgMichigan Gov. Rick Snyder has signed legislation that cuts extended jobless benefits by 6 weeks. By CNNMoney staff

NEW YORK (CNNMoney) -- Michigan has reduced unemployment benefits, with Gov. Rick Snyder signing into law a bill cutting the payouts by six weeks.

Snyder signed the bill late Monday, cutting extended benefits to workers to 20 weeks from 26 weeks.

A growing number of states are looking to cut back on jobless benefits to minimize the increase in unemployment taxes businesses pay . State officials are concerned that these tax hikes could deter companies from hiring.

The tab businesses will pay is likely to grow. The surge in unemployment over the past three years has forced many states to wipe out their own funds for benefits and borrow from a federal pool. Some 32 states owe $45.7 billion to the federal fund.

Snyder, in a statement announcing the signing, said the law was necessary to maintain benefits for about 35,000 Michigan workers. He said that, as of April 1, Michigan would have no longer qualified under federal programs allowing states with high unemployment to pay extended benefits.

"These benefits are a lifeline for many Michigan families who are struggling in this challenging economy," Snyder said. "Cutting them off so abruptly would have jeopardized the well-being of those who are trying hard to find work.

--CNNMoney senior writer Tami Luhby contributed to this report. To top of page

Index Last Change % Change
Dow 17,798.49 -14.90 -0.08%
Nasdaq 5,127.53 11.38 0.22%
S&P 500 2,090.11 1.24 0.06%
Treasuries 2.22 -0.01 -0.31%
Data as of 12:42pm ET
Company Price Change % Change
General Electric Co 30.36 0.00 0.00%
Bank of America Corp... 17.48 0.04 0.23%
HP Inc 12.61 -0.03 -0.24%
Pfizer Inc 32.79 -0.08 -0.24%
Walt Disney Co 115.13 -3.54 -2.98%
Data as of Nov 27


Nearly six in ten black Americans surveyed by CNN/Kaiser Family Foundation say that they or a close friend or family member have been incarcerated -- and a majority of them come from low-income households. That leaves the many families of inmates in a precarious financial situation. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Hive, a startup funded by the UN, is tasked with getting more Americans engaged with the refugee crisis. More

Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More