Beginning June 27, unemployed workers in the state will no longer receive $300 in extra weekly benefits, forgoing payments that were approved through Sept. 6.

Instead, the state will launch a new program to provide bonuses to unemployed workers who return to work.

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"Montana is open for business again, but I hear from too many employers throughout our state who can't find workers. Nearly every sector in our economy faces a labor shortage," Gianforte said in a statement, adding that the federal unemployment benefits are "doing more harm than good."

Under the new incentive program, workers currently receiving unemployment benefits can qualify for a one-time $1,200 bonus after they have completed four weeks in a new job. The governor approved $15 million in funding for the incentives from federal coronavirus relief dollars allocated to the state.