Effective Oct. 13, the maximum weekly New York state unemployment benefit is going up from the current $504 to $869. It’s expected that unemployed people who are not receiving the maximum benefit also will see an increase.
In addition to announcing that the increased benefit was going into effect, Gov. Kathy Hochul said on Oct. 8 that the state has paid off a loan from the federal government that was necessary to keep the Unemployment Insurance Trust Fund afloat when it was ravaged by the economic downturn caused by the Covid pandemic. Before the pandemic, the UI Trust Fund had a positive balance of nearly $2.5 billion. When Covid hit and businesses closed or reduced schedules and people were put out of work employer UI contributions went down. At the same time, unemployment insurance benefits paid out to New Yorkers drew down so much of the fund that New York state had to borrow from the federal government to continue paying eligible claims.
By now having paid off the debt to the federal government, the state expects unemployment insurance contribution rates for employers can be stabilized and the annual Interest Assessment Surcharge (IAS) that employers had to pay for the federal loan can be eliminated. Eliminating the IAS is expected to save employers an average of $100 per employee in 2026 and $250 in 2027.
Hochul said that paying off the debt and making the fund solvent has allowed the state to increase the maximum UI benefit rate so that it better aligns with other states and changes to the taxable wage base to help build up reserves and stabilize the UI Trust Fund for the future.
“With the weekly maximum benefits increasing starting this month, we are able to uplift unemployed New Yorkers, including those that Republicans in Washington have failed, while cutting costs to businesses,” Hochul said. “Donald Trump and Washington Republicans’ agenda is a direct attack on hardworking New Yorkers, with reckless trade wars causing skyrocketing prices, and now their decision to shutdown the federal government has left thousands of New Yorkers unemployed and unsupported.”
State Sen. Shelley Mayer, who represents the State Senate 37th District that includes parts of Westchester, noted that this marks the first increase in the maximum UI benefit since 2019.
“I am deeply proud that New York has stepped up to provide meaningful support to New Yorkers as they navigate unemployment and the hardships that result from loss of income,” Mayer said. “During particularly challenging times, with the rising cost of living and the federal government shutdown, it is critical that New York’s unemployment insurance benefits provide the necessary support to families that reflect the actual cost of living.”
The heads of three labor organizations added their praise for the UI benefit increase to Hochul’s announcement.
New York State Building Trades President Gary LaBarbera said, “It is important that we do what we can to uplift those New Yorkers who may be out of work or unsupported due to circumstances outside of their control, particularly during this challenging moment. Equipping these otherwise hardworking individuals to continue to support their families and contribute to their communities only benefits our larger economy and sustains the middle class.”
Hotel and Gaming Trades Council President Rich Maroko said, “Whether facing uncertainty due to the ongoing federal government shutdown or a labor dispute, New Yorkers and their families deserve financial security when facing unemployment. I am proud to celebrate this win for not just hospitality workers, but all workers across New York.”
Public Employees Federation President Wayne Spence said, “With the federal government shut down, 115,000 federal workers in our state have been furloughed and left without paychecks. When you’re out-of-work, added paycheck protection goes a long way.”
