Hits: 217

GOVERNOR HOCHUL AND LABOR LEADERS ANNOUNCE NEW YORK STATE PAYS OFF MULTI-BILLION DOLLAR 

Governor and New York State Legislature Paid Off Trust Fund Loan in FY 2026 Budget, Bringing the Fund to Solvency, Increasing Benefits for Unemployed New Yorkers and Cutting Costs to Businesses

Governor Kathy Hochul today rallied with the Hotel and Gaming Trades Council, AFL-CIO to announce New York State has paid off the nearly $7 billion federal Unemployment Insurance (UI) Trust Fund loan — a move that will bring the fund to solvency, increase benefits for unemployed New Yorkers and cut costs to businesses. The Governor announced this action back in May as part of the Fiscal Year 2026 Enacted Budget.

“By paying off this unprecedented Unemployment Insurance Trust Fund debt, we are delivering long-overdue relief to New York’s workers and businesses,” Governor Hochul said. “This is about doing what’s right — raising benefits for unemployed New Yorkers who need support, cutting costs for businesses that are driving our economy forward, and putting money back into New Yorkers’ pockets. I’m proud to stand with our labor partners in making this progress possible.”

Senate Majority Leader Andrea Stewart-Cousins said, “Paying off New York’s Unemployment Insurance debt is a major victory for our entire economy. Our nearly three million small businesses are New York’s true economic engine. As federal leaders imposed damaging tariffs and trade wars, we lifted a heavy burden off small businesses while strengthening the safety net for working people. I thank Governor Hochul and Speaker Heastie for their partnership on this issue that will help our businesses thrive and support workers across all regions of our state.”

Assembly Speaker Carl Heastie said, “By paying off the Unemployment Trust Fund debt we’re securing relief to our local businesses – especially our small businesses – and ensuring that the UI benefits can keep up with inflation,” said Speaker Carl Heastie. “The Assembly Majority and especially Assembly Labor Chair Harry Bronson fought hard for this inclusion in the budget as we understand the vital support this provides to businesses and hardworking families as they get back on their feet.”

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 allows the state to increase the maximum UI benefit rate so that it better aligns with other states and changes the taxable wage base to help build up reserves and stabilize the UI Trust Fund for the future. The maximum weekly benefit to unemployed workers, which has been frozen because of the debt, will increase from $504 to $869 in October.

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 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.

New York State Department of Labor Commissioner Roberta Reardon said, “Paying off New York’s Unemployment Insurance Trust Fund debt is a win for workers and businesses. It will put more money in the pockets of unemployed New Yorkers at a time when they need it most and will also cut costs for our businesses. I thank Governor Hochul for stabilizing this critical safety net for our workforce and making the state more affordable for all.”

For more information on the Unemployment Insurance Trust Fund, please visit the New York State Department of Labor’s webpage.

Hotel and Gaming Trades Council President Rich Maroko said, “Today, I’m proud to stand with our members in celebrating a victory that will provide real, immediate relief for hardworking New Yorkers and their families. Paying off the Unemployment Insurance Trust Fund debt will be a lifeline for workers who are laid off or lose their jobs. This policy, along with reducing the benefits delay for striking workers fighting for a fair contract to the lowest in the nation, is crucial as we officially mark one year until the expiration of our industry-wide contract. We thank Governor Hochul, Majority Leader Stewart-Cousins, and Speaker Heastie for delivering this critical win for working families.”