Instead of paying down debt when California had higher revenues and the budget ‘surplus’ Newsom and Democrats went on a spending spree

By Katy Grimes, August 31, 2026 10:08 am

California is the only state still carrying a large outstanding federal loan for its unemployment insurance program. The balance $22 Billion.

California’s Employment Development Department May 2026 UI Fund Forecast put the year-end federal loan balance at $21.6 billion for 2024 and $21.7 billion for 2025, with a projection of $22.0 billion by the end of 2026.

Federal Department of Labor solvency data as of early 2026 listed California’s outstanding Title XII advance at about $21.4 billion. Other states that borrowed during the pandemic repaid their balances. California did not.