Home>Legislature>Freiman wants federal funds to pay for unemployment insurance tax hike

Assemblyman Roy Freiman. (Photo: Kevin Sanders for New Jersey Globe)

Freiman wants federal funds to pay for unemployment insurance tax hike

By David Wildstein, August 20 2021 4:18 pm

Assemblyman Roy Freiman (D-Hillsborough) wants American Rescue Plan money to fund the upcoming unemployment insurance tax increase to help businesses avoid added costs.

“This isn’t about party affiliation or winning political points,” Freiman said.  “This is about governing and the need for action by elected officials vested with the authority and responsibility to appropriate ARP funds.”

Freiman is the first assemblyman to advocate for the use of federal Covid relief funds to offset a $250 million payroll tax hike.  State Sens. Anthony M. Bucco (R-Boonton), Steve Oroho (R-Franklin) and Troy Singleton (D-Delran) have already called on Gov. Phil Murphy to use ARP dollars.

“Increasing the unemployment insurance contributions of businesses during a pandemic while they are still recovering is wholly unnecessary when federal funds are available,” said Freiman, a two-term Democrat from Somerset County.  “As done in other states, both Democratic and Republican, our state needs to take action now and use the authority it has to stabilize the Unemployment Insurance Trust Fund by appropriating federal funds.”

The new tax would be effective on October 1.

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