Governor Abbott, Lt. Governor Patrick, Speaker Phelan, Senate Finance, House Appropriations Committee Chairs To Stabilize Unemployment Insurance Rates For Businesses

TEXAS, December 18 - December 18, 2024 | Austin, Texas | Press Release

Governor Greg Abbott, Lieutenant Governor Dan Patrick, Speaker Dade Phelan, Senate Finance Committee Chair Joan Huffman, and House Appropriations Chair Dr. Greg Bonnen today pledged to allocate funding to stabilize minimum unemployment insurance rates for businesses across the state during the 2025 legislative session. Due to higher wages and an evolving job market in Texas, the Unemployment Insurance Trust Fund managed by the Texas Workforce Commission (TWC) is projected to need additional funding next year.
 
“Texas leads the nation in building a business-friendly environment that entrepreneurs can’t find anywhere else,” said Governor Abbott. “With skyrocketing inflation and rising costs caused by Bidenomics, businesses across the state are burdened with tighter margins than ever before. By allocating this crucial funding, Texas will ensure minimum unemployment insurance rates do not increase for Texas businesses. These savings will allow businesses to reinvest in their companies, their employees, and our booming economy. I thank the Texas Workforce Commission for their hard work to support Texas businesses and employees. Working together, we will ensure that businesses across our great state have the resources and tools they need to keep Texas the economic engine of America.”
 
“Texas is the economic juggernaut of America because we have a stable regulatory environment that allows businesses to thrive,” said Lieutenant Governor Patrick. “The Texas Senate agrees to appropriate funds necessary to avoid an increase in the unemployment insurance tax so employers across the state can continue the Texas miracle.” 
 
“Texas is known around the globe as a premier business destination, and it is important we ensure businesses in our state have the tools and protections to keep thriving,” said Speaker Phelan. “The State of Texas has enacted impactful policies over the years to support our exceptional business environment, and next session we will continue to further enhance economic opportunities by avoiding unnecessary burdens on employers. I want to thank Governor Abbott and the legislature for working to protect Texas businesses large and small and for helping strengthen our state’s flourishing economy.”
 
 "Supporting Texas businesses and their employees through economic hardships is crucial for our state’s economic stability," said Senate Finance Committee Chair Huffman. “By allocating the needed funding to manage unemployment insurance rates, we will strengthen the resilience and prosperity of our state's workforce and business community." 
 
"Businesses all across Texas, large and small, are the foundation of the Texas miracle," said House Appropriations Chair Bonnen. "With this appropriation, our business leaders can be confident that their state government supports them. I look forward to continuing our work to promote policies that ensure Texas remains the most business friendly state." 
 
Typically, these additional funding needs would be paid through an increased assessment to businesses. Governor Abbott, Lieutenant Governor Patrick, Speaker Phelan, Senator Huffman, and Representative Bonnen will allocate state funding in the next legislative session to keep these rates stable for businesses. With this allocation, TWC will not need to raise the minimum unemployment insurance fee paid by all businesses and instead keep it flat.