California’s Debt to US Government for Unemployment Loan Default Tops $21 Billion

Businesses are set to pay higher payroll taxes that increase annually until the debt is repaid.

The flag of California in Newport Beach on Aug. 25, 2021. John Fredricks/The Epoch Times

California owes the federal government about $21.1 billion for loans the state received four years ago and failed to pay back, according to data released on Dec. 20 from the U.S. Treasury Department.

In response to a question by The Epoch Times, Gov. Gavin Newsom said finding the money for the state to work its way out of the debt is a priority for his administration.