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Audit: Michigan unemployment error overpaid $3.9 billion

LANSING, Mich. (AP) — A scathing audit has found that in processing 5.4 million unemployment claims during the COVID-19 pandemic, shortcomings in the Michigan Unemployment Insurance Agency Office caused $3.9 billion in overpayments.

The audit released yesterday (Thursday) says the state will likely not recoup that money. That is because the fault lies solely on the agency and not the claimants. The mistakes led to 648,100 Michigan residents receiving letters this summer saying that they’d have to reapply for eligibility, according to the audit. Of those claimants over 347,000 who had previously been marked as eligible for benefits are now ineligible.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.