FinancialRegulatory
California becomes first state to borrow federal money to pay unemployment claims
May 4, 2020 / By Andrew O’Reilly | Fox News
California has become the first state in the nation to borrow money from the federal government to help it pay out the soaring number of unemployment claims tied to the coronavirus pandemic.
The country’s most populous state borrowed $348 million after receiving approval to use up to $10 billion in federal funds until the end of July, a Treasury Department spokesman told the Wall Street Journal on Monday.
Along with California, Illinois and Connecticut have also been approved to tap into federal funds to aid with the unemployment claims — $12.6 billion and $1.1 billion, respectively – but neither state has yet to borrow the money as of the end of April.
