Washington, D.C.--Congressman Eliot Engel announces that New York State has qualified for unemployment insurance (UI) modernization funds from the American Recovery and Reinvestment Act (ARRA). U.S. Secretary of Labor Hilda Solis notified Governor David Paterson of New York’s qualification in a phone call on Thursday. The Department of Labor (USDOL) is certifying the release of $137.6 million in modernization funds.

“This is great news for those New Yorkers who are in desperate need of some good news. By helping extend the unemployment payments to out-of-work New Yorkers, we enable them to continue to make ends meet and better provide for their families until they can find work. Unemployment payments are considered to be among the best types of government spending for stimulating the economy as the money is spent on essentials, such as food, clothes, gas, etc. This is something New Yorkers needed, and this is one of the many reasons why I supported ARRA,” said Rep. Engel.

About 56,000 New Yorkers are scheduled to receive the last of their current unemployment payments next week, according to state labor officials. Each week after that, about 5,000 additional people would exhaust their benefits, they estimated. All told, as many as 120,000 New Yorkers would qualify for the extended benefits.

“I look forward to working on the federal level to help Governor Paterson and the State Legislators as we move forward towards economic recovery,” added Rep. Engel.