CAL Repayment Act

Key Points

• This bill changes how states handle money they get from the federal government. If a state owes money to the federal government for unemployment loans, they must use any new federal grants to pay back those loans first.
• States often take out loans from the federal government to pay unemployment benefits during tough economic times. This law would make sure those debts are settled quickly when new money becomes available.
• If a state spends the federal money on other projects instead of paying back their debt, they will be forced to pay the entire amount back to the federal government within five business days.
• The goal is to make sure states are held accountable for the money they borrow. It prevents states from using new federal aid for other programs while they still have unpaid debts from previous years.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.