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New York Raises Maximum Unemployment Benefit to $869, With Payments Updating Next Week

The increase became possible after the state cleared a $7 billion federal unemployment loan that had kept the cap frozen.

Overview

  • Checks reflecting the higher rates will begin the week of Oct. 13, with existing claims adjusted automatically and no action required by recipients.
  • More than half of claimants will see larger payments, with at least 27% receiving the new $869 maximum and about 28% getting increases below the cap.
  • This is the first boost since 2019 following a yearslong freeze linked to the pandemic-era trust fund debt.
  • With the debt repaid, employers will no longer get federal interest assessment surcharge bills, saving roughly $100 per employee in 2026 and $250 in 2027.
  • The timing could aid unpaid federal employees in New York during the ongoing shutdown, which has affected an estimated 115,000 workers in the state.