Buffalo, N.Y. (WBEN) - A big change is coming for New Yorkers collecting unemployment benefits.
A large rate increase is in store for people on unemployment after the state paid off their nearly $7 billion federal Unemployment Insurance Trust Fund loan.
"Due to COVID, the Unemployment Insurance Trust Fund loaned the money so to speak to New York State so they weren't able to increase unemployment benefits since 2019," said Esther Gulyas, CEO of EG Tax.
Starting Oct. 1, the rates will increase significantly.
"They just paid that off, so now people on unemployment that qualify for the maximum are going to get a $365 per week raise," Gulyas said.
That means the maximum weekly benefit to unemployed workers will increase from $504 to $869 starting in October.
It should not directly increase unemployment insurance rates for employers either. Employers are projected to save an average of $100 per employee in 2026 and $250 in 2027, because there is no longer interest on the debt to be paid.