Vince Fong Pushes Bill Forcing California to Repay $21 Billion Unemployment Debt

1 articles · Updated · Fox News · May 19

Rep. Vince Fong plans to introduce a bill Tuesday requiring California to use eligible federal funds to repay its $21 billion unemployment loan before spending on other programs.
Under the measure, the state would have five business days to direct available federal money to the debt or repay the full amount of any funds used in violation of that rule.
California is the only state still carrying unpaid federal unemployment loans from the COVID-era program, and the balance is projected to exceed $23 billion by year-end.
That unpaid debt has already raised costs for employers, who paid an extra $42 per employee in federal payroll taxes this year to help service the loan.
Fong cast the bill as a response to broader fiscal mismanagement and fraud concerns, as California's unemployment system and other benefit programs face growing federal scrutiny.

As federal pressure and employer taxes rise, what is California's long-term plan for fiscal solvency beyond repaying its debt?

With fraud costing taxpayers billions, what systemic reforms will protect California's public funds and its most vulnerable residents?