NY Gov. Hochul touts state's increased unemployment benefits

(The Center Square) — Democratic Gov. Kathy Hochul is touting a move to increase New York's jobless benefits as federal workers in the state hit the unemployment line amid the federal government's shutdown.

Speaking at a rally with union leaders Wednesday, Hochul said the state was able to increase jobless benefits by $300 a week after it paid off a nearly $7 billion federal unemployment loan dating back to the COVID-19 pandemic.

The Democrat said the increased benefits come as the Trump administration threatens to lay off federal workers in response to a government shutdown, and as 15,000 "good-paying union jobs" are "on hold" after the White House froze more than $18 billion in federal funding for infrastructure projects in New York City over the state's diversity, equity and inclusion policies.

"Donald Trump and Washington Republicans’ agenda is a direct attack on hardworking New Yorkers, with reckless trade wars causing skyrocketing prices, and now their decision to shut down the federal government has left thousands of New Yorkers unemployed and unsupported," Hochul said in remarks Wednesday. "With the weekly maximum benefits increasing starting this month, we are able to uplift unemployed New Yorkers, including those that Republicans in Washington have failed, while cutting costs to businesses."

Under the changes, more than half of unemployed New Yorkers will see an increase in their benefits beginning next week, according to the Department of Labor. At least 27% will get $869 per week — a nearly $300 per week increase — while 28% will see their overall benefits go up, the state agency said. The increase in benefits, the first since 2019, gives New York one of the highest jobless payouts in the nation.

New York shelled out billions of dollars in jobless benefits during the pandemic, as hundreds of thousands of workers were sidelined by government-imposed shutdowns meant to stop the spread of COVID-19. Laid-off workers also received money from federal pandemic unemployment programs. To keep the benefits flowing, the state borrowed billions of dollars from the federal government, which also increased costs for businesses that fund the system.

"We had millions for New Yorkers who needed unemployment benefits that they never dreamed they'd be asking for," Hochul said. "So we had a big deficit that we had to pay off to be able to increase how much we pay people for unemployment. But we made the determination to pay that debt off and take the burden off our businesses."

Supporters of the move to increase the benefits said the previous maximum rate of $504 per week meant workers struggled to keep pace with an increasingly high cost of living, particularly in New York City.

"Increasing the maximum weekly unemployment insurance benefit will greatly help New Yorkers navigating job loss," "New York State Department of Labor Commissioner Roberta Reardon said in a statement. "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."