Starting in October 2025, New York State will increase the maximum weekly unemployment benefit from $504 to $869, following the repayment of a nearly $7 billion federal unemployment insurance trust fund loan. This decision, announced by Governor Kathy Hochul as part of the 2026 fiscal year budget, aims to strengthen the state’s unemployment system, which was depleted during the COVID-19 pandemic, while providing significant relief to both unemployed workers and businesses.
For workers, the over 70% increase in the maximum weekly benefit will align New York’s support with other states and offer robust protection for those who lose their jobs through no fault of their own.
To qualify, individuals must have sufficient prior employment and earnings in New York within the last 18 months, be actively seeking work, and be able and willing to work. Eligible scenarios include job loss due to layoffs, company closures, restructuring, or other business-related reasons beyond the worker’s control, as well as termination for not meeting performance standards or qualifications.
However, ineligibility may apply if the job loss results from absenteeism, misconduct, policy violations, voluntary resignation without good cause, or absence due to a strike in the last 14 days.
The benefit amount depends on prior earnings. For example, someone who was earning $1,200 weekly before job loss could receive up to $869 per week for a maximum of six months within a benefit year. The state encourages applying for benefits even if a former employer disputes eligibility, as the state will independently assess all claims.
For businesses, repaying the federal loan eliminates post-pandemic surcharges and rising contribution rates. Governor Hochul’s office estimates that businesses will save approximately $1 per employee in 2026 and $250 per employee in 2027, enabling better cost management and reinvestment.
Before the pandemic, the unemployment insurance trust fund had a positive balance of nearly $2.5 billion, but mass job losses in 2020 depleted it, forcing the state to borrow from the federal government. By clearing this debt, New York ensures immediate relief and long-term stability for the unemployment system.
Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
