California is billions of dollars in debt to the federal government to pay for its unemployment insurance trust at a time when the state’s expenses far exceed its income.
The state’s government owes almost $21 billion to the federal government at an interest rate of around 2.6%, according to the Treasury Department. California borrowed the funds after a surge in unemployment which began during the COVID-19 pandemic, which sent the state’s employment trust into insolvency, according to The Los Angeles Times. (RELATED: California’s High-Speed Rail Isn’t Built, But It Is Putting Money In Unions’ Coffers)
The state’s debts are adding more pressure to the California budget, which is already in disarray, paying more than $650 million in interest on the loan already, with another $50 million due in September, according to the state’s Employment Development Department. The…
