Rep. Fong Files Bill to Push California Leaders to Pay Back $22 Billion Unemployment Insurance Debt
The proposal would require California to use eligible federal funds to repay the loan within five business days or cover the full balance.
- On Tuesday, GOP Rep. Vince Fong introduced legislation requiring California to repay its $21 billion federal unemployment insurance debt before spending eligible federal funds on other programs.
- Despite a past $98 billion budget surplus, Gov. Gavin Newsom and the Democratic-led Legislature opted against paying the loan principal, leaving California as the only state still owing the federal government.
- Each employer in California currently pays an extra $42 per employee on payroll taxes, with costs rising to $63 in 2027, as the state has spent $1.8 billion on interest payments since 2021.
- The Department of Labor previously warned of "inadequate fraud prevention and claimant service," prompting Labor Secretary Lori Chavez-DeRemer to establish a "strike team" to investigate abuse within the state's unemployment program.
- With the state's federal unemployment debt projected to reach $22 billion by the end of 2026, Fong's proposal mandates repayment within five business days of the state receiving eligible federal funds.
11 Articles
11 Articles
Republican Congressman Vince Fong introduced a bill aimed at containing California's rising unemployment insurance debt, noting that employers are ending up shouldering that burden because California has not covered its financial obligations. Specifically, his office explained, this legislation would require states with outstanding federal unemployment insurance debts to pay them before allocating any additional federal funds they receive for an…
Rep. Fong files bill to push California leaders to pay back $22 billion unemployment insurance debt
As California businesses shoulder the state government's unemployment insurance debt to the federal government, a Central Valley congressman filed a proposal Tuesday to push state leaders to pay up.
Fong introduces bill to address 'mismanagement and fraud' in unemployment insurance
WASHINGTON, D.C. – Today, Congressman Vince Fong (CA-20) introduced the Creating Accountability in Loan (CAL) Repayment Act to rein in pandemic-era unemployment mismanagement and fraud and protect taxpayer-funded public resources.
Coverage Details
Bias Distribution
- 82% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
