Gov. Kathy Hochul says the state budget will now pay off all of the more than $6 billion in unemployment insurance debt that ballooned during the COVID-19 pandemic. 

A week ago, the governor said the state would only pay off the interest on that debt. 

The burden of the debt has been carried by businesses through increased taxes and has led to unemployment payments being cut until the debt is paid off. 

State Assembly Speaker Carl Heastie says the state will pay upward of $8 billion to wipe out the debt and keep the fund solvent for the future.

The Business Council of New York State says this will help employers reinvest in their businesses and local economies. 

"There's a lot of concern about the fragility of the economy and I think a recognition that we need to put this debt behind us and put the pandemic behind us so we can get our feet underneath us as we move forward," said Heather Mulligan, president and CEO of the Business Council of New York State.