Photo courtesy of Susan Watts/Office of New York Governor Kathy Hochul
New York Gov. Kathy Hochul, State Senate Majority Leader Andrea Stewart-Cousins and labor leaders announced during an event in Albany on Oct. 8 that the maximum weekly unemployment insurance (UI) benefit has increased for unemployed workers across the State.
Officials said that as part of the governor’s enacted budget for Fiscal Year 2026, the State invested nearly $7 billion to pay off the federal Unemployment Insurance (UI) Trust Fund loan, bring the fund to solvency, and increase the maximum weekly benefit from $504 to $869 starting Monday, Oct. 13. They said increases are also expected for many customers even if they are not currently receiving the highest rate.
They said the weekly benefit payment amount is determined by how much a worker earned during a specific base period and New Yorkers can use this tool to estimate their weekly unemployment insurance benefit amount. They said the increase in UI benefits comes at the same time as the Republican Party federal shutdown is impacting 115,000 federal employees in New York, leaving them without paychecks.
“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 shut down the federal government has left thousands of New Yorkers unemployed and unsupported,” Hochul said.
The governor added, “It’s a stark contrast to everything we’re doing here in New York. 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.”
NYS Department of Labor Commissioner Roberta Reardon said the increase will greatly help New Yorkers navigating job loss, make ends meet when they need it most, and put money directly into the hands of those out of work through what she said was no fault of their own. She thanked those who worked together to pay off the Trust Fund debt and make the increases possible.
Before the COVID-19 pandemic, State officials said the UI Trust Fund had a positive balance of nearly $2.5 billion. However, they said due to the economic downturn caused by the pandemic, the balance was paid out to New Yorkers, requiring the State to borrow from the federal government to continue paying eligible claims.
They said 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.
By paying off the debt, State officials said the State government is also putting money back into the pockets of business owners, whose contribution rates, they said, had continued to climb while the debt was paid down. They said employers will no longer receive annual Interest Assessment Surcharge (IAS) bills and are projected to save an average of $100 per employee in 2026, and $250 in 2027.
Additionally, they said the taxable wage base will increase in 2026, strengthening the trust fund over time and helping to maintain affordable tax rates for New York’s employers in the long term.
For his part, State Sen. Robert Jackson (S.D. 31), who represents parts of northern Manhattan and the west Bronx, said unemployment insurance was more than a safety net. “It is a covenant between the government and the people it serves,” he said in part. “When a worker loses a job, they should not lose their dignity.”
Meanwhile, State Sen. Nathalia Fernandez (S.D. 34), who represents much of the East Bronx, said the increase was welcome news for New Yorkers. “At a time when so many families are feeling the impact of the federal shutdown, it’s reassuring to see our state step up to ensure those facing economic hardship are supported,” she said.
The news was also welcomed by Assemblymember Yudelka Tapia (A.D. 86), who broadly represents some or all of the Bronx neighborhoods of University Heights, Morris Heights, Mount Eden, Kingsbridge, Tremont and Fordham, who also said the increase was about dignity and stability for working families.
Photo by Síle Moloney
“In the Bronx, this change means that more families will have real support to be able to put food on the table,” she said. “Together with my colleagues in the Legislature and Governor Hochul, we delivered meaningful relief for unemployed New Yorkers and savings for small businesses.”
Her comments were echoed by Assemblymember George Alvarez (A.D. 78), who broadly represents some or all of Kingsbridge Heights, Bedford Park, Fordham, Belmont and Allerton, and who said the increase benefits were a lifeline for thousands of hardworking New Yorkers who are struggling to make ends meet.
“By restoring the Unemployment Insurance Trust Fund and raising the maximum benefit, Governor Hochul and the Legislature are ensuring that workers who lose their jobs through no fault of their own can support their families with dignity,” Alvarez said. “This action not only strengthens our workforce, but also helps stabilize small businesses and our economy here in The Bronx and across the state.”
Assemblymember John Zaccaro, Jr. (A.D. 80), who represents some or all of the Bronx neighborhoods of Norwood, Bedford Park, Parkside Housing Project, Pelham Parkway, Morris Park, Little Yemen, Pelham Gardens, Olinville, Allerton, Williamsbridge, and Van Nest, also applauded Hochul for taking what he said was an important step for unemployed workers.
“Across our state, and especially here in The Bronx, we are facing an economic crisis,” the assemblyman said. “For workers who are seasonal or have been laid off, in no small part due to President Trump’s government shutdown, this increase in benefits will go a long way toward helping them cover essential costs such as rent, groceries, and other necessities until they are able to secure employment.”
The move was also praised by New York State AFL-CIO President Mario Cilento, New York State Building Trades President Gary LaBarbera, and Hotel and Gaming Trades Council President Rich Maroko.
According to Time magazine, the latest shutdown is already poised to be among the longest in the country’s history. The outlet reported that the shutdown began on Oct. 1, the Senate isn’t set to vote on the issue again until Oct. 14, and by that point, the shutdown would rank as the fifth longest the U.S. has ever seen.
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