Governor Kathy Hochul announced a major increase in unemployment benefits for New Yorkers — raising the maximum weekly payment from $504 to $869 starting this month, the state’s highest rate ever.
The increase, made possible by the state paying off nearly $7 billion in federal Unemployment Insurance Trust Fund debt, comes as the GOP-led federal government shutdown has left 115,000 federal workers in New York without paychecks.
“Donald Trump and Washington Republicans’ agenda is a direct attack on hardworking New Yorkers,” Hochul said. “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.”
New benefits start Oct. 13
Beginning the week of October 13, eligible workers will see their benefits increase automatically. State officials say many claimants — even those not receiving the maximum rate — will see a boost in payments.
The state’s Department of Labor said the move aligns New York with other states’ benefit levels and helps families keep up with rising living costs, especially during times of sudden unemployment.
Relief for workers — and businesses
The benefit increase follows a major fiscal milestone: the full repayment of the state’s unemployment trust fund loan, which had ballooned during the COVID-19 pandemic as jobless claims surged.
By restoring solvency to the fund:
- Businesses will save an average of $100 per employee in 2026
- Contribution rate hikes will be avoided
- The state has eliminated interest surcharges businesses had been paying for years
Lawmakers and labor back the move
Labor leaders and lawmakers hailed the change as overdue and vital — especially as federal aid disappears amid Washington gridlock.
- Mario Cilento, president of the New York AFL-CIO, said the increase provides “significant support” during uncertain times.
- Sen. James Sanders Jr. called it “long-overdue relief” for working families in Queens and beyond.
- Assemblymember Michaelle Solages said it would help “workers who are struggling to make ends meet — and it helps businesses too.”
- Assemblymember Jenifer Rajkumar noted she had advocated to exempt UI benefits from state income tax as well.
‘A lifeline’ during federal dysfunction
With tens of thousands of New Yorkers furloughed or working without pay due to the shutdown, advocates say the timing of the benefit boost couldn’t be more critical.
“This increase isn’t just about numbers,” said Assemblymember Al Taylor. “It’s about people trying to stay afloat while they work toward stability.”
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