New York State raised the weekly maximum unemployment insurance benefit rate to $869 on Monday, the first state raise in the weekly rate since 2019. Before Monday, the maximum rate was $504.
NYS Commissioner of Labor Roberta Reardon and Gov. Kathy Hochul ushered in the change Wednesday morning. Though the new rate went into effect Monday, New Yorkers can expect to see the change reflected in unemployment checks starting next week. The increase in rate of over 72% is the largest increase of the unemployment cap in state history.
“This change will make a real difference for families across the state,” Reardon said at a press briefing last week. “It will provide more money for basic essentials, for jobless New Yorkers receiving unemployment insurance they may now have access to hundreds of dollars more each week to pay for rent, groceries or transportation.
The new rate will increase weekly benefits for more than half of unemployed New Yorkers. More than a quarter of those on unemployment insurance will receive the new maximum while another quarter will see their payments increase.
In a Wednesday news release, Hochul said the increase is of particular importance amid an ongoing federal government shutdown that has withheld paychecks from hundreds of thousands of federal workers across the country — 115,000 of whom are in New York State.
“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 the news release. “It’s a stark contrast to everything we’re doing here in New York.”
After six years of no maximum increases, the state is now able to bring the maximum rate up after having repaid its $7 billion federal Unemployment Insurance Trust Fund loan earlier this year. Repayment restored the fund’s solvency, Reardon said, enabling the state to increase the weekly maximum benefit rate.
Reardon noted that the restoration of the fund’s solvency will eliminate federal surcharges tied to the loan for businesses across the state.
“This is a major step in making New York more affordable, and I am so proud that under Governor Hochul’s leadership the state is strengthening our safety net for unemployed workers,” Reardon said.
The increase marked a win for labor in the state’s Fiscal Year 2026 Enacted Budget. In June, Gov. Kathy Hochul celebrated the raise with members of the Hotel and Gaming Trades Council.
“These are really tough times for our people, and when we can do something like this, it sends a message that we care so deeply about every stress that people are going through, especially the high cost of living,” Hochul said in June.
In addition to raising the maximum rate, the legislation enacted in Albany gives unionized workers more financial leeway in contract negotiations, reducing the benefits delay for striking workers from three weeks to two.
The previous maximum rate of $504 per week has struggled to keep pace with an increasingly high cost of living, particularly in New York City, and a shortage of housing. With the increase, the state looks to alleviate some financial burden facing unemployed New Yorkers — a top-of-mind issue for state and local officials alike.
New Yorkers on unemployment can visit the Department of Labor’s calculator to determine if they might be eligible for new rates.
