New York’s maximum weekly unemployment insurance benefit increase goes into effect next week, raising from $504 to $869, state officials reminded residents Wednesday.

The maximum rate for unemployed workers had been frozen at $504 for years due to $7 billion in unemployment insurance debt the state owed to the federal government that ballooned during the COVID-19 pandemic. The burden of the debt since the outbreak of the pandemic had been carried by businesses through increased taxes.

State lawmakers included that $7 billion unpaid debt in the state budget earlier this year and paid off that amount in June. New York was one of two states that still had COVID-related federal unemployment insurance debt after the state failed to use $25 billion in federal stimulus aid for unemployment

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