North Carolina Lawmakers Introduce Bill to Boost Unemployment Benefits
H.B. 48, proposes increasing unemployment insurance (UI) benefits for jobless North Carolinians and giving employers a tax credit on their UI contributions for 2025.
Holly Springs, NC, Feb. 11, 2025 — A new bill making its way through the North Carolina General Assembly could soon increase the maximum weekly unemployment benefit to $450 and offer tax breaks to businesses. But when will it take effect, and who will benefit? Here's what you need to know.
What Is House Bill 48?
House Bill 48 (link), or H.B. 48, proposes increasing unemployment insurance (UI) benefits for jobless North Carolinians and giving employers a tax credit on their UI contributions for 2025.
It also ratifies Governor Josh Stein’s decision to expand benefits for those impacted by the recent Helene Disaster. However, this bill's most significant impact extends beyond disaster relief—affecting all eligible unemployed workers across North Carolina.
How Would This Change Unemployment Benefits?
Currently, North Carolina caps weekly unemployment benefits at $350. If this bill becomes law, the maximum benefit will increase to $450 weekly.
However, this increase will not apply to people already receiving unemployment benefits. It will only apply to new claims filed on or after March 2, 2025.
That means if you’re already on unemployment, your benefit won’t go up—but if you file a new claim after that date, you could qualify for the higher amount.
How Will the State Pay for This Increase?
The bill does not introduce new taxes to cover the higher benefits. Instead, funding will come from North Carolina’s Unemployment Insurance Trust Fund, which is currently well-funded at over $4.3 billion.
Employers usually pay into this fund through unemployment insurance taxes, but H.B. 48 includes a one-time tax credit for businesses. This credit allows employers to offset some of their unemployment tax contributions for wages paid in late 2024.
Some experts believe this could temporarily dip the state’s unemployment reserves. However, North Carolina’s solvency rating is strong, meaning the state is financially prepared to handle the increase in benefits.
What’s Next for the Bill?
H.B. 48 is currently in committee review in the House. If it passes, it will move to the House floor for a vote, then head to the Senate for approval. If both chambers pass it, the bill will go to Governor Josh Stein’s desk for final approval.
Most of the bill will take effect immediately if signed into law, but the higher unemployment benefits won’t kick in until March 2, 2025.