Governor Hochul and Labor Leaders Announce New York State Pays Off Multi-Billion Dollar Unemployment Insurance Trust Fund Debt

Assemblymember Jon D. Rivera said, “This year’s budget delivers a long-overdue win for both workers and businesses. By fully paying off our $7 billion unemployment insurance debt, we’re lifting an unfair burden that has strained New York’s employers for years. Simultaneously, we’re finally increasing unemployment benefits for the first time in six years — providing a stronger and more dignified safety net for workers who fall on hard times. This is what balanced, worker-centered economic policy looks like, and I look forward to delivering more wins for our state’s small business community.”

Assemblymember Alex Bores said, “This is a smart move that makes New York work better for everyone. Clearing this debt lowers costs for employers and strengthens a system that people rely on in tough times. It’s the kind of practical step that helps build a safer, easier, and more resilient New York.”

Assemblymember Manny De los Santos said, “Paying off New York State’s Unemployment Insurance debt is a critical milestone that delivers real relief for our small businesses and working families—especially in communities like Inwood, Washington Heights, and Marble Hill. This achievement means lower taxes for our local employers and a stronger safety net for neighborhood workers who power our economy. I commend Governor Hochul for taking decisive action to strengthen New York’s economy and protect the livelihoods of those who keep our communities running.”

Assemblymember Nikki Lucas said, “Every New Yorker deserves fair treatment, protection, and the chance to thrive. Securing worker protections is an opportunity to realize these goals. Streamlining the process for our young people to enter the workforce, providing benefits to New Yorkers to exercise their right to strike, protecting vulnerable New Yorkers after losing their jobs and stabilizing unemployment insurance for our employers contribution rates are examples I am proud to stand behind for the members of my district. I applaud that this is a budget that takes meaningful steps to address the challenges many workers and employers face by strengthening key safety nets to protect us all.”

Assemblymember Judy Griffin said, “Paying off New York State’s Unemployment Insurance (UI) debt is one of the best ways we can help businesses across our state. Easing this burden on our small businesses is critical, since these high rates are not sustainable. This vital step will also benefit workers since their unemployment benefits insurance will increase based on the higher cost of living.”