New York state has asked the federal government for a $4 billion no-interest loan to help cover unemployment benefits for the over 1 million people jobless as a result of the coronavirus pandemic.
The state labor department has paid out about $2.2 billion in unemployment insurance benefits to 1.1 million New Yorkers since the beginning of the pandemic in March, the department announced Monday.
The department had been working with Alphabet Inc.‘s
With the filing process being addressed, the state must now figure out how to pay the unemployment benefits while struggling with decreased revenue.
“All benefits, including enhanced benefits, are being paid, and to help ensure it remains that way the state has applied for an up to $4 billion, no interest federal loan,” labor department spokeswoman Deanna Cohen said in an emailed statement.
The state is projecting a revenue shortfall of between $10 billion and $15 billion due to the virus and a delayed tax filing deadline. The state’s tax filing deadline was pushed to July 15, in line with the revised federal due date.
The state’s $177 billion budget for the fiscal year, which began April 1, gave the governor and state budget office permission to adjust allocations throughout the year to cope with reduced cash flows. It also allowed for $11 billion in borrowing, not including the federal ask.
“I’m telling you, New Yorkers need funding for this budget because we can’t do it otherwise,” he said.