New Yorkers facing unemployment will now be able to receive up to $365 more in benefits per week, as Governor Kathy Hochul on Monday announced the new rules in which the maximum weekly figure will increase from $504 to $869.
Why It Matters
In addition to general economic uncertainty throughout the U.S., the federal government shutdown has impacted roughly 115,000 federal employees in the state of New York, leaving them without paychecks.
Hochul’s move to strengthen the lifeline will affect the hundreds of thousands of unemployed residents in New York, offering them greater financial stability as they seek new employment.
What To Know
Under Hochul’s FY26 Enacted Budget, the state invested nearly $7 billion to pay off the federal UI Trust Fund loan, bringing the maximum weekly benefit from $504 to $869.
“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,” Hochul said in a statement.
“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.”
The benefit increase begins for the week of October 13, with the exact weekly benefit payment amount determined by how much a worker earned during a specific base period.
As part of the change, employers will also save money, since they no longer will receive annual Interest Assessment Surcharge (IAS) bills. That will save an average of $100 per employee in 2026 and $250 in 2027.
What People Are Saying
New York State Department of Labor Commissioner Roberta Reardon, in a statement: “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.”
State Senator James Sanders Jr., in a statement: “I commend Governor Hochul for her leadership in restoring strength to New York’s Unemployment Insurance Trust Fund and providing long-overdue relief to working families. This increase—from $504 to $869 a week—means that unemployed New Yorkers can better support their families and communities while seeking new opportunities. Here in Queens, where hardworking people often carry multiple jobs to make ends meet, this boost will bring real breathing room. By paying off the federal loan and restoring the fund’s solvency, we’re also helping small businesses across the state—especially minority- and women-owned firms—to save money and reinvest in their workforce.”
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The decision to expand unemployment benefits for New York residents could be very well timed. Increasingly, both federal and state data is showing an economy that is cooling substantially from the growth we were experiencing just a few short years ago.”
Michael Ryan, finance expert and founder of MichaelRyanMoney.com, told Newsweek: “The next recession will test whether this fund can actually weather a storm without another federal bailout. Second, businesses got temporary relief, but someone’s paying for this. And it’s usually tomorrow’s taxpayers or tomorrow’s employers when the next crisis hits.”
What Happens Next
As many companies are not hiring at the moment due to economic uncertainty, Beene said the push by New York to boost unemployment benefits has arrived at the appropriate moment.
“The economic uncertainty of the moment is causing some employers to scale back their workforce and freeze hiring, all while coming at a time when many Americans are still feeling the full effects of inflationary pressures that have been persistent for years now,” Beene said. “Those facing unemployment are going to find it difficult to meet their needs unless unemployment benefits are boosted.”