GOP bill targets blue state for billions in COVID-era unemployment debt dumped on businesses
A Republican bill aims to address California's significant unemployment insurance debt, which has reached over $21 billion. The legislation, introduced by Rep. Vince Fong, would require the state to prioritize repayment before allocating federal funds to other programs. Critics, including Fong, argue that the debt has unfairly burdened California employers with higher taxes.
- ▪California is the only state that has not repaid its pandemic-era unemployment loans, with the debt projected to exceed $23 billion by the end of the year.
- ▪Rep. Vince Fong's bill mandates that California must direct eligible federal funds towards repaying its loans within five business days of receiving the funds.
- ▪Employers in California have faced increased federal payroll taxes due to the state's failure to repay the loans, costing them an additional $42 per employee this year.
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Politics GOP bill targets blue state for billions in COVID-era unemployment debt dumped on businesses California is the only state that hasn't repaid its pandemic-era unemployment loans, with debt projected to top $23B By Adam Pack Fox News Published May 19, 2026 8:05am EDT Facebook Twitter Threads Flipboard Comments Print Email Add Fox News on Google close Video Turner: Gavin Newsom Has Shuttered What Was A Very Viable Oil Production Operation In California Founder and Executive Director of Power The Future Daniel Turner joins ‘Fox Across America with Jimmy Failla’ to explain how California Gov. Gavin Newsom has stifled oil production in his state, which has contributed to gas prices that exceed the national average.
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