New York pays off nearly $7B in unemployment insurance debt that piled up during pandemic
New York has paid off the nearly $7 billion in unemployment insurance debt to the federal government that ballooned in the state during the COVID-19 pandemic after it was included in the state budget that was passed in May, Gov. Kathy Hochul announced Monday.
After initially declaring the state would only pay off the interest on the unemployment insurance debt earlier this year, Hochul said she met with business leaders during state budget negotiations this spring and reasoned this payout would help businesses should an economic downturn take place. The funding came from the state’s reserves, which Hochul at the beginning of her tenure as governor labeled the state’s rainy day fund.