California becomes first state to borrow from D.C. to help pay unemployment claims
California became the first state in the nation to borrow federal funds to help its beleaguered unemployment system, state officials said Tuesday.
“This has been an unprecedented time for unemployed workers across our state. As of April 30, California borrowed $348 million from the federal government to ensure Unemployment Insurance (UI) benefit payments are made to eligible unemployed workers,” the Employment Development Department said in a statement to The Bee.
“We are using every tool at our disposal to ensure people have the resources they need during this difficult time, and that funding is available to continue to meet the increased demand for these benefits,” said the department, which manages the state’s unemployment program.
The state could tap as much as $10 billion through the end of July.
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