Labor & Employment Law Daily Wrap Up, BENEFITS NEWS—New York increases maximum weekly unemployment insurance benefit to $869, (Oct 9, 2025)
By Patricia K. Ruiz, J.D.
The benefit increase takes effect as the federal government shutdown leaves 115,000 federal employees in New York without paychecks.
The State of New York has increased the maximum weekly unemployment insurance (UI) benefit from $504 to $869, according to a press release from New York Governor Kathy Hochul. The increase comes after the State, under Hochul’s FY206 Enacted Budget, invested nearly $7 billion to pay off the federal UI Trust Fund loan, bringing the fund to solvency.
Federal debt. The UI Trust Fund had a positive balance of nearly $2.5 billion before the COVID-19 pandemic. After the resulting economic downturn, the balance was paid out to New York residents, and, to continue paying eligible claims, the State borrowed $7 billion from the federal government. Paying off the debt allows the State to make changes to the taxable wage base to help build up reserves and stabilize the UI Trust Fund for the future.
Benefit increase. The increase begins with payments issued the week of October 13. The benefit amount is determined by how much a worker earned during a specific base period. Increases are expected for many individuals even if they are not currently receiving the highest rate. According to Assemblymember Harry Bronson, the UI benefit level has been stagnant since 2019. The new maximum benefit is indexed at 50 percent of the average weekly wage, going up each year thereafter. Business owners, whose contribution rates continued to climb while the State paid down its debt, are projected to save an average of $100 per employee in 2026 and $250 per employee in 2027. The taxable wage base will also increase in 2026, strengthening the trust fund over time.
“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,” said New York State Senator James Sanders Jr. “This is the kind of balanced economic progress New York needs: protecting workers while strengthening the foundation for future growth.”
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