STATE CAPITOL, PHOENIX – The Arizona House Commerce Committee late Tuesday passed HB2450, legislation introduced by House Majority Leader Michael Carbone to reform Arizona’s unemployment insurance system by adjusting the duration of benefits based on the state’s unemployment rate.

“This bill ensures that Arizona’s unemployment system is responsive to economic realities while keeping the focus on getting people back to work,” said Majority Leader Carbone. “Arizona is a state of opportunity, and we should always encourage workforce participation, not prolonged reliance on government benefits. This is a responsible approach that strengthens our economy, protects taxpayers, and prioritizes those who truly need assistance.”

Under current law, individuals receiving unemployment benefits can collect them for 24 to 26 weeks, regardless of the state’s economic conditions. HB2450 introduces a tiered approach, adjusting benefit duration based on the prior quarter’s unemployment rate. When unemployment is 5 percent or lower, benefits will be available for 12 weeks, with incremental increases as the unemployment rate rises.

Arizona’s seasonally adjusted unemployment rate for November 2024 was 3.7 percent, reflecting a strong job market and growing economy. Leader Carbone’s bill aligns unemployment benefits with these economic conditions, reinforcing House Republicans’ Majority Plan to preserve opportunity and promote economic growth.

“House Republicans are leading with strength and purpose, making sure government works for the people – not the other way around,” Leader Carbone added. “HB2450 is about keeping Arizona’s workforce engaged and ensuring our unemployment system serves as a safety net, not a substitute for employment.”

HB2450 now moves to the full House for further consideration.

Michael Carbone is a Republican member of the Arizona House of Representatives serving Legislative District 25 which includes portions of Yuma, Maricopa, and La Paz Counties. He also serves as House Majority Leader. Follow him on X at @MichaelCarbone.