Undocumented immigrants, cash economy workers and people who are self-employed are not giving up on establishing a separate, permanent unemployment insurance program, as they remain ineligible for state or federal benefits.
A bill called Excluded No More failed to advance this session. It would expand coverage to about 50,000 workers in the state per month earning less than 80% or 100% of the state’s median individual earnings. That amounts to roughly $45,000 and $56,000 a year, depending on the type of worker.
The proposed program would cost about $800 million in its first year. Any surplus would roll over to the following fiscal year.
"We believe that the money is there," said Iridian Lucas Garcia, Excluded Worker Fund regional implementation coordinator with the Columbia County Sanctuary Movement. "We know that the governor used $1 billion for a vanity project, which is the stadium for the Buffalo Bills, and so if there's money to fund that project, we believe that the governor and the Legislature can and should, should... really prioritize this program."
Lucas Garcia, an undocumented New Yorker who lives in Rhinebeck, is a Deferred Action for Childhood Arrivals recipient. Her parents, originally from Mexico, moved to the states about 20 years ago.
Lawmakers worked to amend Excluded No More this session, including narrowing the trades of eligible cash economy workers, clarifying necessary documents to prove identity and residency, providing more flexibility in how to receive benefit payments, capping freelancers' use of the fund to 25% and giving the state Labor Department more time to set up the program if signed into law.
"At the heart of this legislation is an understanding that our current unemployment insurance system is not reflective of the realities of New York’s labor force," said Senate sponsor Jessica Ramos, who chairs the Labor Committee. "We need to update our infrastructure to cover not just cash workers, but also freelancers and gig workers who increasingly make up more and more of the market share. [Pandemic Unemployment Assistance] and the stimulus checks are long gone, and I’m not optimistic that they would be renewed on the federal level. If another crisis hits, a permanent fund for excluded workers will be there to mitigate the ripple effect of sudden mass unemployment. It’s about stability for all of us."
If Excluded No more becomes law, applicants would have to show a lack of work similar to regular unemployment benefits. They would receive monthly $1,200 payments to match the average state unemployment insurance rate. Workers would be able to apply the month after their unemployment, and must reapply every month up to six months per year.
Lawmakers against the fund say it's inappropriate to use public funds for undocumented immigrants and noted the record-high inflation, which hit 9.1% Wednesday.
"To propose hundreds of millions and billions of additional government spending that is going to be given out, really, just free taxpayer cash to those in this country illegally, it's just unacceptable," said Assemblyman Colin Schmitt, a Republican from Woodbury.
Schmitt is a member of the Assembly Labor Committee and joined Republicans who unified in fighting against including the $2.1 billion Excluded Worker Fund in last year's budget.
"This proposal shows the dangers to taxpayers of one-party control in Albany and in Washington, D.C.," Schmitt said, adding he's concerned programs like in Excluded No More exasperate immigration issues at the overwhelmed southern border.
Hundreds of thousands of workers eligible for Excluded Workers Fund relief in 2021 did not get the aid — especially upstate — because of language barriers, transportation issues and other difficulties.
Ramos said Thursday the awards injected millions of dollars into local communities across the state, bolstering the local economy.
"Covering this sector of workers made it so people were able to pay back rent, to pay of medical debt, to buy school supplies and groceries to feed their families. We have a sizeable freelance and independent contractor population in this state. If we hit another crisis or if that recession that’s being promised comes down without us building a stable replacement program for PUA, it’s going to cost a lot more than $800 million to climb out of that."
Ramos stressed the need for the Legislature to pass her other legislation to annually increase the minimum wage by a percentage based on inflation to help New Yorkers overcome the rising price of utilities and living essentials.
Some lawmakers pushed for an additional round of the Excluded Workers Fund from the state's budget surplus this session, but the governor and legislative leaders did not include it in the final spending plan.
Advocates argue human beings cannot be illegal and should have equal labor rights.
"When the next pandemic, when the next crisis hits, we want to make sure there's a program in place for these communities to be able to rely on," Lucas Garcia said.