I’m actually surprised it’s only California.. I would expect this from all Democrat states like Minnesota, Illinois, New York, etc.. But it’s just California, that hasn’t paid back it’s $23 billion in COVID era unemployment loans back to the federal government… What did Greasy Gavin do with this money? It sure didn’t go towards high speed rail!
A House Republican is moving to rein in California’s ballooning unemployment insurance debt, arguing employers are being stuck with the bill as the state fails to repay what it owes.
Rep. Vince Fong, R-Calif., will introduce legislation on Tuesday that would require California to pay its outstanding $21 billion loan to the federal government before spending federal money on other programs.
Under Fong’s bill, California would have to direct eligible federal funds toward repayment within five business days of the money becoming available. If it violates that provision, the state would have to pay the full amount of misused funds to the federal government.
California is the only state that has not paid back its loans for a COVID-19-era program that helped states finance a surge in claims for unemployment benefits with federal money. Instead, the state’s federal unemployment debt continues to climb and is projected to top $23 billion by the end of the year, according to CalMatters.