New York’s maximum weekly unemployment insurance benefit increase goes into effect next week, raising from $504 to $869, state officials reminded residents Wednesday.
The maximum rate for unemployed workers had been frozen at $504 for years due to $7 billion in unemployment insurance debt the state owed to the federal government that ballooned during the COVID-19 pandemic. The burden of the debt since the outbreak of the pandemic had been carried by businesses through increased taxes.
.@GovKathyHochul @AndreaSCousins standing with heads of AFL-CIO, Building Trade, HTC, NYSNA & others to highlight the state budget’s inclusion of $7B in unemployment insurance payoff for businesses that’s grown since the pandemic — legislature/gov put it off for a couple years pic.twitter.com/OK7r6vS8uX
— Bernadette Hogan (@bern_hogan) October 8, 2025
State lawmakers included that $7 billion unpaid debt in the state budget earlier this year and paid off that amount in June. New York was one of two states that still had COVID-related federal unemployment insurance debt after the state failed to use $25 billion in federal stimulus aid for unemployment tax relief.
“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 Labor Commissioner Roberta Reardon said in a statement Wednesday.
The increase will start with payments issued the week of Oct. 13, 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.