NYS Pays Off $7 Billion Unemployment Insurance Trust Fund Debt

New York State has paid off its entire federal Unemployment Insurance (UI) Trust Fund debt of nearly $7 billion. The announcement came Monday morning from Governor Kathy Hochul at a rally with labor leaders in New York City. Hochul says the move will bring the fund to solvency, allowing the state to increase the maximum UI benefit rate from $504 to $869 in October. She says that maximum benefit has been frozen because of the debt...

Kathy Hochul: lifting people up

Hochul says paying off that debt will also help cut costs to businesses, which are projected to save an average of $100 per employee in 2026 and $250 in 2027. Before the COVID-19 pandemic, the UI Trust Fund had a positive balance of nearly $2.5 billion, but the state had to borrow from the federal government in order to continue paying eligible claims.

Photo by Governor Kathy Hochul's Office