New York Pays Off Federal UI Loan, Projects Employer Cost Saving

New York has paid off its federal unemployment loan, which will result in savings for employers and an increase in unemployment insurance benefits in October, according to an Aug. 14 press release from the governor’s office.

Records from the federal Treasury Department indicate that the state fully paid off its roughly $4.7 billion federal unemployment insurance loan in late June.

As long as New York continues to have no outstanding federal unemployment loans on Nov. 10, the state will not be subject to a Federal Unemployment Tax Act credit reduction for 2025. Complete repayment of the federal loan is expected ...