State Rep. Christine Sinicki (D-Milwaukee), shown here at a September 2025 press conference, said on the Assembly floor Tuesday that the UI bill would "take away benefits from the people who need them the most." (Photo by Erik Gunn/Wisconsin Examiner)

On a party-line vote, a bill changing Wisconsin’s unemployment insurance laws, which Gov. Tony Evers’ office said he will veto, passed the Assembly  Tuesday.

The bill would allow people collecting federal disability payments to remain eligible for unemployment insurance if they lose a job. But it would cut their jobless pay by half the value of their disability pay.

The bill was sent to the Legislature from the joint labor-management Unemployment Insurance Advisory Council, which negotiates on a proposed “agreed-upon bill” every two years.

Historically the council’s bills have enjoyed broad support and easy passage, but the current measure, AB 652, includes changes that prompted opposition from Democrats. Evers’ spokesperson told the Wisconsin Examiner on Jan. 7 that the governor will veto the bill if it reaches his desk.

The bill is the first jobless pay measure in more than a decade to raise the maximum benefit, increasing it by $25 a week to $395. Critics argue that is inadequate.

The critics also object to reducing jobless pay for people who receive Social Security Disability Income, and to the measure’s proposed new strictures on the unemployment insurance system that Evers has previously vetoed.

A federal judge in July 2025 ordered the Wisconsin Department of Workforce Development to stop enforcing a ban on unemployment compensation for SSDI recipients that was enacted in 2013. The judge ruled a year earlier that the ban violated federal laws protecting people with disabilities.

Before voting on the advisory council’s unemployment insurance bill Tuesday, Assembly Republicans voted 53-44 to block Democrats from passing a substitute amendment removing provisions they opposed and increasing the value of jobless pay. They went on to pass the unamended bill by the same 53-44 margin.

The Democratic amendment would have repealed the state’s ban on unemployment compensation for SSDI recipients, but without the financial penalty. The amendment also included a $127 increase in the maximum benefit through Jan. 2, 2027, followed by annual increases in line with the consumer price index. In addition, it increased the cap on how much income a laid-off person could make in a week while continuing to qualify for jobless pay.

“Wisconsinites deserve adequate unemployment benefits. This amendment is a step towards being able to do just that,” said Rep. Maureen McCarville (D-DeForest).

At a state Senate hearing Jan. 7, Scott Manley, a lobbyist for Wisconsin Manufacturers & Commerce and chair of the advisory council’s management caucus, defended the council bill’s jobless pay penalty for SSDI recipients, arguing that it would treat disability pay like other sources of income people get while they collect unemployment insurance.

“If you have additional income … that income is going to offset your unemployment benefits,” Manley said. “Unemployment is supposed to provide a temporary safety net of additional income for people who lose their job through no fault of their own.”

On the Assembly floor Tuesday, Rep. Chris Sinicki (D-Milwaukee) — who in the past has supported advisory council bills but came out against the council’s legislation in this session — reiterated her opposition. She said a constituent on the autism spectrum qualifies for SSDI and works part-time at a local library, allowing her to live independently.

“Without that part-time job, she could not afford to be independent,” Sinicki said. “I sure as heck do not want to be one to vote to take away benefits from the people who need them the most.”