Singleton: Use Federal Funds To Offset $250 Million UI Increase

Senator says relief is needed to avoid impending disaster for NJ’s businesses

Trenton – In response to the New Jersey Department of Labor’s announcement last week that the unemployment insurance tax will increase $250 million, Senator Troy Singleton today sent a letter to Governor Phil Murphy urging him to immediately dedicate a portion of New Jersey’s federal relief funding to offset this burden on the business community. The text of the letter is below:

Dear Governor Murphy,

As the State Senator of the 7th Legislative District, I am contacting you today to respectfully request that you immediately dedicate a portion of New Jersey's federal relief funds to offset the $250 million Unemployment Insurance tax hike that New Jersey businesses will face in the coming months.

Recently, the New Jersey Department of Labor announced an increase in the unemployment insurance tax that businesses will pay come October 1st. This increase comes at a particularly difficult time for many of our state's businesses who are just beginning to re-establish their economic footing.

As you are aware, the American Rescue Plan was created to assist State and Local governments with their economic recoveries. Specifically, the money can be used to support the public health response; replace public sector revenue loss; invest in water and sewer infrastructure; address negative economic impacts; provide premium pay for essential workers; and invest in broadband infrastructure. Certainly, an increase in the unemployment insurance tax would qualify as a steep negative economic impact. In fact, other states have used federal assistance to replenish the funds and it is my hope that New Jersey will do the same to avoid this unwelcome and untimely burden on our businesses.

I recognize that there are many competing needs for the funding our State will receive. Furthermore, my office is all too familiar with just how many people in our district and beyond needed to rely on their unemployment benefits during the pandemic. That being said, we must take action now to avoid this impending disaster that could arrive on the doorsteps of our business community on October 1st.

Thank you for your immediate attention to this matter. I am available to discuss this further, if necessary.

Most sincerely,


Hon. Troy Singleton

Senator, 7th Legislative District


cc: Senate President Steve Sweeney

Assembly Speaker Craig Coughlin