NY to Pay Off Unemployment Debt, Triggering Business Tax Cut (1)

May 5, 2025, 4:23 PM UTCUpdated: May 5, 2025, 5:33 PM UTC

Unemployment benefits will increase and taxes on businesses decrease in New York after Gov. Kathy Hochul announced Monday she had agreed to pay off a roughly $6.5 billion debt to the federal government.

The Democratic governor had previously ruled out using state reserves to retire the debt as part of a broader agreement with state Senate Majority Leader Andrea Stewart-Cousins (D) and Assembly Speaker Carl Heastie (D) on a budget expected to cost at least $254 billion. Lawmakers could vote on the spending bills as soon as this week on what will be the latest budget in 15 years.

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