Cooper vetoes bill that would have ended federal unemployment benefits early
(The Center Square) – North Carolina Gov. Roy Cooper has rebuffed legislative efforts to end the state’s involvement in the federal unemployment benefits program before the program expires in September.
Cooper vetoed Senate Bill 116 on Friday, citing already “stingy” state unemployment benefits and the notion North Carolina’s economy could use the federal money.
“Unemployment is declining with more people getting vaccinated and into the workforce as North Carolina has strengthened work search requirements for those receiving benefits,” Cooper said in a statement. “The federal help that this bill cuts off will only last a few more weeks and it supplements North Carolina’s state benefits, which are among the stingiest in the country.
“Prematurely stopping these benefits hurts our state by sending back money that could be injected into our economy with people using it for things like food and rent,” Cooper said. “I support strong efforts to make more quality childcare available and to provide businesses with funds for hiring bonuses and the bill falls short on both of these.”
The General Assembly approved SB 116 last week. It would have ended federal unemployment benefits sparked by the COVID-19 pandemic. Twenty-six other states that have opted out or intend to opt out of the federal assistance.
The bill also would have allocated $250 million in American Rescue Plan Act money to subsidize child care for qualifying children.
“Unfortunately the governor is short-sighted in his veto,” Rep. Jason Saine, R-Lincoln, said in a statement. “We really need to get this economy back to full strength, and providing childcare for those who need it to get back to work is a priority of the House.”
Cooper’s veto came after Republican and business leaders called on him to sign the bill to help North Carolina businesses struggling to find employees.
“The polling is clear that on both sides of the aisle, people want to end the extra federal unemployment benefits and get our state back to work,” House Majority Leader John Bell IV, R-Johnston said. “Every day, I hear from local businesses who cannot find employees to fill open jobs. Just yesterday, one announced they are closing their doors for good due to labor shortages. I encourage the governor to sign this bipartisan legislation without delay.”
North Carolina’s unemployment rate decreased 8.7 percentage points in May (4.8%) compared with May 2020. The number of unemployed North Carolinians decreased by 11,691 month-over-month to 239,523 and decreased by 407,991 year-over-year. North Carolina’s unemployment rate was 3.9% in March 2020 at the onset of the pandemic.
Democrats in the House said the state would stand to lose $500 million in federal aid if it chose to end the program early.
Gary Salamido, president and CEO of business advocacy organization NC Chamber, said ending federal benefits would restore the workforce.
“At this decisive moment for our state, every day matters for the job creators struggling to find talent and for the parents and families looking for a feasible path back to work,” Salamido said. “Senate Bill 116 provides the critical solutions we need to reinvigorate our workforce, reduce COVID-related childcare constraints on families to empower their return to a job, and end our dependence on federal programs created for a moment when jobs were not readily available across our state.”
• The Center Square staff reporter Nyamekye Daniel contributed to this report.
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