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 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 347,437 who had previously been marked as eligible for benefits are now ineligible.