Maryland increases unemployment benefits to support struggling workers and communities

Maryland lawmakers are taking significant steps to address the pressing issue of unemployment benefits, which have remained stagnant for over a decade. During the Economic Matters Committee session on February 26, 2025, discussions highlighted the urgent need to increase the state's unemployment insurance (UI) benefits, currently capped at $430 per week since 2010. This amount, equivalent to just $10.75 an hour for full-time work, is deemed insufficient for individuals and families struggling to make ends meet.

The proposed legislation aims to raise the maximum UI benefit to 50% of the average weekly wage, which would amount to approximately $746 per week. This adjustment is intended to provide better support for those who have lost their jobs, allowing them to cover essential expenses such as housing, food, and medical bills while they search for new employment. Lawmakers emphasized that adequate unemployment benefits are crucial not only for individuals but also for the overall economic health of communities, as they help maintain consumer spending during economic downturns.

In addition to increasing benefits, the committee discussed the need to reform the unemployment insurance trust fund. Currently, the taxable wage base for unemployment insurance has remained at $8,500 since 1992. Lawmakers argued that updating this figure to reflect current economic conditions is necessary to ensure the sustainability of the trust fund and to provide adequate support for unemployed workers.

The proposed changes are seen as a vital step toward improving the lives of Maryland residents facing job loss and economic uncertainty. As the state moves forward with these discussions, the implications for both individuals and the broader economy will be closely monitored.