(Indianapolis, IN) - The legal tug-of-war over expanded unemployment benefits has swung back to the side of Governor Eric Holcomb.

Effective in June, Holcomb opted Indiana out of CARES Act funding that boosted unemployment payments. However, an Indianapolis judge ruled that the payments must continue. The Indiana Court of Appeals ruled that the state can withdraw from the federal pandemic unemployment program on Tuesday.

Holcomb claims the enlarged payments are hurting the state’s economic recovery and contributing to a worker shortage.

The victory is largely symbolic. The Department of Workforce Development is required to give claimants 30-day notice before ending the program. The payments are set to expire on September 4th unless the federal government decides to extend them, which has yet to happen.