New York State has asked the federal government for a $ 4 billion interest-free loan to help cover unemployment benefits for more than one million people unemployed as a result of the coronavirus pandemic.
The state Department of Labor has paid about $ 2.2 billion in unemployment insurance benefits to 1.1 million New Yorkers since the pandemic began in March, the department said on Monday.
The department worked with Alphabet Inc.
With the filing process resolved, the state must now determine how to pay unemployment benefits while combating declining income.
“All benefits, including the enhanced benefits, are being paid, and to help ensure that it stays that way, the state has requested a federal loan of up to $ 4 billion, interest-free,” Door said. – Speech by Department of Labor, Deanna Cohen, in an emailed statement.
The state projects a shortfall of between $ 10 billion and $ 15 billion due to the virus and a delayed tax filing deadline. The state tax filing deadline has been extended to July 15, consistent with the revised federal deadline.
The state’s $ 177 billion budget for the fiscal year, which began April 1, authorized the governor and the state budget office to adjust allocations throughout the year to cope reduced cash flow. It also made it possible to borrow $ 11 billion, not counting the federal request.
“I’m telling you, New Yorkers need funding for this budget because we can’t do it any other way,” he said.