ALBANY, N.Y. — New York State has raised its maximum weekly unemployment insurance (UI) benefit from $504 to $869, offering critical support to tens of thousands of unemployed workers, including 115,000 federal employees left without pay during the ongoing federal government shutdown.
Governor Kathy Hochul
Governor Kathy Hochul announced the benefit increase as part of the state’s FY26 Enacted Budget, which includes nearly $7 billion to pay off a longstanding federal UI Trust Fund loan. The move restores the fund’s solvency, boosts benefits for jobless New Yorkers, and cuts costs for employers statewide.
“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,” Hochul said, slamming GOP lawmakers for triggering the shutdown. “We’re cutting costs to businesses and fighting for working people.”
Starting the week of October 13
Starting the week of October 13, eligible unemployed workers can receive an increased benefit of up to $869 per week. Even claimants who don’t qualify for the maximum will likely see larger checks. Benefit amounts are based on prior earnings within a defined base period.
Labor Commissioner Roberta Reardon called the increase “historic,” noting it will help jobless workers bridge financial gaps during unemployment. “This puts money directly into the hands of those out of work through no fault of their own,” she said.
Before the pandemic, New York’s UI Trust Fund held a $2.5 billion surplus. That changed in 2020 as COVID-19 drove massive job losses and forced the state to borrow from the federal government to cover UI claims. Paying off the debt now brings multiple advantages, including long-term savings for employers.
Businesses will no longer face the annual Interest Assessment Surcharge, saving about $100 per employee in 2026 and $250 in 2027. The budget also includes changes to the taxable wage base starting in 2026, aimed at maintaining trust fund stability and employer affordability.
Labor leaders praised the move.
Labor leaders praised the move, especially in contrast to federal inaction.
“Governor Hochul is showing the nation what it looks like to fight for working people,” said Public Employees Federation President Wayne Spence. “When you’re out of work, added paycheck protection goes a long way”.
AFL-CIO President Mario Cilento echoed that sentiment. “We’re proudly taking action to support workers who are struggling to make ends meet,” he said.
The benefit boost comes at a moment of heightened economic anxiety. With federal paychecks frozen, Hochul’s administration framed the increase not only as economic relief but as a moral contrast to Washington gridlock.
Stay afloat
“This change ensures unemployed New Yorkers can stay afloat while continuing to support their families,” said New York State Building Trades President Gary LaBarbera. “That sustains the middle class and benefits the entire economy”.
The new benefits are available now. Workers can use the Department of Labor’s online tool to estimate their payment amount.
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Ten years of experience reporting. From car chases and courtroom verdicts to House fires, Holsford thrives during breaking news and finds it a privilege to help drive the conversation in Rockland County and the Greater New York Area. Born in San Bernardino, Thomas is a New York boy at heart. He received his bachelor’s degree in broadcast journalism, specializing in political science and sociology, from the University of Illinois
