State increases maximum weekly unemployment benefit significantly

ALBANY | Gov. Hochul and labor leaders have announced the maximum weekly unemployment insurance (UI) benefit increase for unemployed workers across the state. As part of the Governor's FY26 Enacted Budget, the State invested nearly $7 billion to pay off the federal UI Trust Fund loan, and bring the fund to solvency and increase the maximum weekly benefit from $504 to $869. The increase in UI benefits comes at the same time as the GOP federal shutdown impacts 115,000 federal employees in New York. New York State Department of Labor Commissioner Roberta Reardon said, "Increasing the maximum weekly unemployment insurance benefit will greatly help New Yorkers navigating job loss. This historic increase will help more people make ends meet when they need it most and put money directly into the hands of those out of work through no fault of their own. I am grateful to Governor Hochul and the State Legislature for working together to pay off the Unemployment Insurance Trust Fund debt and make these increases possible." Before the COVID-19 pandemic, the UI Trust Fund had a positive balance of nearly $2.5 billion. However, 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. 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. Starting with payments issued the week of Oct. 13, the maximum amount customers can receive weekly will increase from $504 to $869, and increases are expected for many customers even if they are not currently receiving the highest rate. The weekly benefit payment amount is determined by how much a worker earned during a specific base period. New Yorkers can use this tool to estimate their weekly Unemployment Insurance benefit amount. By paying off the debt, the State is also putting money back in the pockets of business owners, whose contribution rates had continued to climb while the debt was paid down. 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, 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.

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State increases maximum weekly unemployment benefit significantly

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