NC House Republicans, Democrats support raising unemployment benefits. What they want to do
Both Democrats and Republicans in the North Carolina state House support raising the benefits paid out to unemployed workers by $100 a week.
The state now pays a maximum of $350 in unemployment benefits, if that is at least half of someone’s weekly pay before losing their job through no fault of their own. A bill moving through committees in the House, which has a Republican majority, would raise that rate to $450 a week.
The final amount in House Bill 48 was a rare win for Democrats, who are in a near-superminority in the General Assembly. Democratic Rep. Deb Butler of New Hanover County offered an amendment to the bill to change the original proposed increase of $400 to $450.
The state’s unemployment insurance fund has a balance of $5 billion, a much different amount than the $1 billion it had after the 2009 recession, when North Carolina and other states had to be bailed out with federal loans.
The fund now, which legislative researchers described as being held by the U.S. Treasury, is growing and could sustain a recession, according to the legislature’s Fiscal Research Division.
House Finance Committee Senior Chair Julie Howard, a Mocksville Republican, proposed raising the unemployment cap amount to $400 a week.
“In 2013 we were in a world of hurt,” Howard said, but after paying off the state’s debt to the federal government, they’ve “created a very healthy fund,” that should still sustain itself with $400 a week payments.
The bill would also give employers a tax credit equal to the unemployment insurance payments they made in the last quarter of 2024, and reduce 2025 payments. Howard said this way the change helps both the employers and former employees.
Howard said she tried to “pre-conference” the bill with the Senate, which means working with the other chamber on an agreement before running the bill through committee. That was unsuccessful, she said.
“Only God knows what the Senate’s going to do,” Howard said.
Butler then suggested the House ask for $450 a week in unemployment payments, to negotiate with the Senate. Howard said that she had actually proposed a rate higher than $400 when the bill was being drafted.
“The fund is sustainable at $450. I’m not going to fight against the amendment,” Howard said, signaling that other Republicans shouldn’t either. The amendment passed 19-0 in a roll call vote, with all Democrats and Republicans in favor.
Republican Rep. John Blust of Guilford County wanted to know the effect of the increase to $450. The Fiscal Research Division confirmed the fund’s balance will remain “on a growth trajectory.”
The bill now goes to the House Rules Committee, which is the final step before a floor vote. If it passes the House, the bill then goes to the Senate.
North Carolina’s unemployment rate as of December, the latest data from the U.S. Bureau of Labor Statistics shows, is 3.7%.
‘Hamstring the governor’
Democrats were unsuccessful, however, in convincing Republicans on the committee to amend the bill to get rid of a provision that Butler said would “hamstring the governor.”
The bill prevents Democratic Gov. Josh Stein and future governors from expanding unemployment insurance benefits unless the order is approved by the General Assembly or Congress.
The bill also ratifies former Democratic Gov. Roy Cooper’s executive order from October 2024, when Cooper expanded unemployment benefits in the aftermath of Hurricane Helene devastating Western North Carolina. Cooper’s order received unanimous agreement from the rest of the Council of State, who are statewide elected officials from both parties. The federal government expanded unemployment benefits for Helene victims in the fall as well.
Howard said she questioned whether Cooper had the authority to expand unemployment then, but “if there was a sin committed we’re forgiving the sin without saying it was a sin,” adding that “it was something that needed to be done, and he did it.”
Butler said the provision in the bill about the governor’s authority “seems like chest-thumping a little bit.” Her amendment failed during a voice vote.
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