RALEIGH — In the wake of Hurricane Helene’s devastating impact on western North Carolina, Gov. Roy Cooper has issued an executive order increasing unemployment benefits for citizens struggling in the aftermath of the storm.
“As I’ve traveled for days around western North Carolina I’ve heard concern from many small business owners about their employees who are unemployed because their businesses are temporarily closed,” Cooper said in a press release. “This Executive Order will increase unemployment benefits and help ease the financial burden for impacted North Carolinians as they work to recover from the storm.”
Per Cooper’s press release and order, unemployment data as of Oct. 13 shows that workers from affected counties accounted for 79% of new claims – 19,735 in total – since the disaster struck.
On Oct. 16, Cooper issued Executive Order No. 322, which authorizes the North Carolina Department of Commerce’s Division of Employment Security (DES) to increase the maximum weekly unemployment benefit from $350 to $600.
In addition to the state benefits, which remain capped at 12 weeks, workers who lived or worked in the impacted North Carolina counties may qualify for up to 26 weeks of federal Disaster Unemployment Assistance (DUA) benefits. These federal benefits will be available through March 29, 2025, providing an extended safety net for those facing long-term unemployment due to the hurricane.
The enhanced benefits will be funded through the state’s Unemployment Insurance Trust Fund (UITF), which currently has a balance of more than $4.8 billion – the second-largest such fund in the United States.
The order also grants authority to the secretary of Commerce to waive any constraints that might increase employers’ unemployment insurance tax rates due to disaster-related claims or increased benefit amounts.
While federal law requires the elevated state payment to apply statewide, the increased benefits are expected to primarily assist workers from counties impacted by Helene.
DES estimates that for every 10,000 North Carolinians who receive the elevated state benefits, the additional cost to the Unemployment Insurance Trust Fund would be $2.5 million per week.
For example, if 50,000 North Carolinians from impacted counties received the full additional state benefit for all 12 weeks, the total cost to the UITF would be an estimated $150 million. The same 50,000 workers would then be eligible for an additional 14 weeks of federal benefits, totaling another $175 million paid by the federal government.
The actual fiscal impact may be smaller as many currently unemployed workers may return to work before receiving the full benefits.
DES estimates that it may take between two and three weeks for impacted individuals to see the change reflected in their weekly benefit checks. However, the benefits for eligible claimants will be retroactive to Sept. 29, 2024, with adjustment payments issued for benefit weeks dating back to that date.
Cooper’s order will remain in effect until rescinded or superseded by another applicable executive order, or until the State of Emergency declaration is lifted.
The North Carolina Council of State unanimously concurred with this executive order, demonstrating broad support for the measure across the state’s leadership.
North Carolina State Treasurer Dale Folwell issued a statement following Cooper’s order.
“I concur with the Governor’s emergency executive order extending additional benefits to areas hit the hardest by Hurricane Helene,” Folwell said. “While natural disasters are nothing new in North Carolina, they always present new opportunities to learn important lessons.
“I recommend that the Governor, working with local, state and federal officials and agencies, resolve to more clearly define and identify areas that are most impacted by this and future disasters. That would assure that increased benefits and employer tax relief are provided to those in the greatest need. Hopefully, the U.S. Congress and the North Carolina General Assembly will take this opportunity to draft laws that will allow precision focus and immediate action to struggling disaster relief areas instead of extending response on a statewide basis.”
