New York state will apply for a federal program created by President Donald Trump to offer an additional $300 in unemployment benefits to people out of a job, State Budget Director Robert Mujica confirmed Friday afternoon.
The federal government had, initially, said that $400 would be provided to unemployed individuals, but that a quarter of that cost would be paid for by states.
Gov. Andrew Cuomo, facing a $14 billion budget deficit over the next year, said New York wouldn’t be able to pay the $100 for each unemployed worker that would trigger the additional federal payment of $300.
But earlier this week, the U.S. Department of Labor issued new guidance that said states could forego contributing to the program, but still apply. In that case, unemployed individuals would only receive an additional $300 in unemployment, not $400.
Mujica said Friday that New York would apply for the program after the new guidance was issued, meaning New Yorkers would be able to receive an additional $300 per week in unemployment.
The U.S. Department of Labor still has to approve the state’s application.
"Now that the federal government has blinked and will no longer make states provide funding they do not have, New York State will apply for the Lost Wages Assistance program,” Mujica said.
“But make no mistake, this does not absolve Washington from doing its job, and they must pass a comprehensive aid package that provides a stable extension of unemployment benefits, repeals the SALT cap and supports local and state governments. Anything else would simply be unacceptable."
Trump created the program through an executive program earlier this month after his administration failed to come to an agreement with Congress on a new stimulus package. Those talks are expected to continue in September.
People out of work were previously receiving an additional $600 each week in unemployment from the federal government. But that program, established through a previous stimulus bill, expired in early August.
In July, New York had the second-highest unemployment rate in the country at 15.9%, according to the U.S. Bureau of Labor Statistics.
