No Federal Cuts to Unemployment Benefits in New Jersey Coming Before September
On April 30th, 2025, the New Jersey Monitor reported that New Jersey Labor Commissioner Rob Asaro-Angelo announced that there will be no cuts in the amount of federal support for unemployment benefits coming to New Jersey before September of 2025. However, Commissioner Asaro-Angelo cautioned that it is possible changes could come after that time and state lawmakers needed to be fully prepared for any federal cuts. Here, our New Jersey unemployment benefits attorney discusses the issue in more detail.
Federal Funding for Department of Labor in New Jersey is Stable—At Least For Now
New Jersey’s Department of Labor will likely maintain its current level of federal funding through the end of the federal fiscal year in September 2025. That has important implications for unemployment benefits in our state. Commissioner Rob Asaro-Angelo testified before Assembly lawmakers that the department is operating under a “status quo” scenario in the short term.
With that being said, he expressed concerns about what Congress may do beyond that point. While most of the proposed federal budget cuts are not focused on labor, there remains uncertainty. A big issue centers around a recent executive order issued by President Donald Trump that temporarily froze all disbursements of federal assistance. That order was later paused by a Rhode Island federal court—but its initial impact was significant.
New Jersey Workforce Development Relies Heavily on Federal Dollars
Federal funds matter for labor issues in New Jersey. Indeed, these dollars are not just a supplement to New Jersey’s Department of Labor—they are actually a foundational part of its operating structure. In the upcoming July-to-June state fiscal year, federal dollars are projected to account for $603.2 million. For reference, that is nearly half of the department’s total operating budget. The reliance is even greater when it comes to staffing. Approximately three-quarters of the department’s 3,184 positions are funded by federal sources—including every job associated with unemployment insurance administration. That means that federal cuts could have big downstream effects for unemployment claims in New Jersey.
New Jersey’s Unemployment Fund is Recovering—But Employer Rates Stay High
The COVID-19 pandemic disrupted unemployment funds all across the country. The state’s Unemployment Compensation Trust Fund has made strides since the pandemic. It has grown from a balance of $1.6 billion and expected to hit $2 billion after Q1 2025 collections. Commissioner Rob Asaro-Angelo attributes the fund’s recovery to strong state employment and business growth. With that being said, employers in our state are still feeling the weight of elevated unemployment tax rates. It is projected to persist at the current level through the fiscal year of 2027.
Contact Our New Jersey Unemployment Attorney Today
At Poulos LoPiccolo PC, our New Jersey unemployment lawyer is standing by, ready to fight to protect your rights and your interests. Have questions about an unemployment case? We are here as a legal resource. Call us now or contact us online to arrange your fully private, no obligation case review. We handle unemployment benefit cases throughout the region in New Jersey.
Source:
newjerseymonitor.com/2025/04/30/federal-unemployment-funds-likely-safe-through-september-commissioner-says/
