Democrat Senators Reject Valladares' Plan To Require Sacramento - Not CA Businesses - To Repay Federal Unemployment Debt img:is([sizes="auto" i], [sizes^="auto," i]) { contain-intrinsic-size: 3000px 1500px } Democrat Senators Reject V
Democrat Senators Reject Valladares' Plan To Require Sacramento - Not CA Businesses - To Repay Federal Unemployment Debt
img:is([sizes="auto" i], [sizes^="auto," i]) { contain-intrinsic-size: 3000px 1500px }
Democrat Senators Reject V
Source: KHTS Hometown Station
Date: 05/28/2026 1:28pm
Article Summary:
Democrats Block Valladares Proposal to Use State Funds to Repay $20B Federal Unemployment Debt Instead of Raising Employer Taxes
Republican State Sen. Suzette Martinez Valladares’ proposal to have California repay its $20 billion federal unemployment insurance debt using state funds — instead of passing the cost onto businesses through higher payroll taxes — was rejected by Senate Democrats in a party-line vote. Valladares argued the debt, driven in part by widespread pandemic-era fraud and mismanagement, should be covered by Sacramento, while critics have faulted the state for failing to use a previous budget surplus to address the liability. California remains the only state that has not repaid its federal unemployment loan.
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Date: 05/28/2026 1:28pm
Article Summary:
Democrats Block Valladares Proposal to Use State Funds to Repay $20B Federal Unemployment Debt Instead of Raising Employer Taxes
Republican State Sen. Suzette Martinez Valladares’ proposal to have California repay its $20 billion federal unemployment insurance debt using state funds — instead of passing the cost onto businesses through higher payroll taxes — was rejected by Senate Democrats in a party-line vote. Valladares argued the debt, driven in part by widespread pandemic-era fraud and mismanagement, should be covered by Sacramento, while critics have faulted the state for failing to use a previous budget surplus to address the liability. California remains the only state that has not repaid its federal unemployment loan.
Read article here »
