New York to pay out new $300 in federal unemployment benefits starting next week

ALBANY -- Jobless New Yorkers who stopped receiving federal coronavirus benefits in late July can expect some relief next week.

The state will begin doling out a new $300 weekly unemployment benefit to over two million people beginning next week, the state Department of Labor announced Thursday.

New York was approved to distribute the new funds from the Federal Emergency Management Agency last month after President Trump allowed states to sign up for the additional benefits.

The Cuomo administration only agreed to enter the program after Trump dropped a stipulation that would have forced New York and other cash-strapped states to pony up an additional $100 a week.

“Throughout this crisis, states' unemployment systems have been pushed to the limit and constantly-changing federal guidance -- including this haphazard Presidential executive order -- have only delayed our efforts to get benefits to New Yorkers in need," state Labor Commissioner Roberta Reardon said in a statement. “But we have worked day and night to stand up this program, and millions of New Yorkers will see payments next week.”

Another 400,000 New Yorkers are eligible for the new program, but must submit additional information starting Friday, officials said. FEMA has so far released funding covering the first three weeks of the program’s benefits dating back to early August.

Trump enabled the use of money after Congress failed to reach a deal to extend $600 in weekly benefits that were part of a COVID-19 stimulus package. That program expired at the end of July.

States such as New York have struggled to keep up with the demand for unemployment benefits as millions were left jobless and systems became overwhelmed by applicants.

So far the state has paid out nearly $44 billion in unemployment benefits to 3.5 million jobless New Yorkers during the coronavirus pandemic. That’s roughly the same as 20 typical years' worth of benefits paid in just six months, according to the labor department.

The additional funds will come to an end in late December or earlier if the federal Disaster Relief Fund balance falls below $25 billion, the $44 billion set aside for the program is depleted or if Congress enacts a replacement unemployment relief program.

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