N.J. unemployment trust fund rebuilt; modernization and fraud units cited for faster service

Labor Commissioner Robert Asaro-Angelo told the Senate Labor Committee that New Jersey's unemployment insurance (UI) trust fund is in strong condition and that the department has modernized operations to shorten wait times and reduce fraud.

Asaro-Angelo said the state's federal UI loan balance is $0 and the trust fund balance was about $2,700,000,000 at the most recent reporting. "Our trust fund is in great shape after being ravaged by the pandemic," he said. The commissioner attributed the improvement to collections and to reforms passed since 2018.

The department has invested in technology and staffing, the commissioner said. He told the committee the state has spent roughly $90,000,000 on modernization work, launched a cloud-based claimant intake app in April 2024, and reduced callback times via a cloud phone system from as long as one hour to about 90 seconds. The department also established a cyber fraud investigations unit and expanded ID verification options, saying the U.S. Postal Service will soon participate in in-person identity verification at post offices.

Senators questioned how the UI tax schedule for employers will change. Asaro-Angelo said the state remains at "Schedule D" for employer UI tax rates because of statutory choices made during the pandemic to smooth employer costs; he projected the schedule could move to "C" around fiscal year 2027 as the effects of those decisions fade.

Committee members asked how the department would respond if federal funding were reduced. The commissioner replied that federal funding is stable through the end of the federal fiscal year (Sept. 30) and that New Jersey's separate administrative and workforce development funds give the state stronger resilience than many counterparts.

No formal committee votes were taken. Senators requested follow-up materials and technical spreadsheets on projections and collections.