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Department of Labor Announces Gavin Newsom’s California Owes Over $22 Billion to Unemployment Insurance Trust Fund

by The Gateway Pundit
July 9, 2026
in Aggregated, Opinions
The Gateway Pundit
Christian and Conservative news hand-curated the way it’s supposed to be. Stay full-MAGA despite the so-called “civil war” waged by the Islam-loving “woke right”.

In this The Gateway Pundit article, Jim Hoft reports that the Trump Labor Department announced California under Governor Gavin Newsom owes over $22 billion to the U.S. Unemployment Insurance Trust Fund — the only state still in debt from pandemic loans — burdening businesses with higher federal payroll taxes.

  • The massive debt stems from loans taken during COVID to pay unemployment benefits, which were heavily looted by fraud under Newsom’s administration.
  • Every other state that borrowed has repaid its loans, leaving California alone in default and forcing its businesses to cover the shortfall via elevated taxes.
  • California raked in record budget surpluses nearing $100 billion yet prioritized other spending over repayment, allowing the debt to balloon with interest.
  • The state has paid $1.8 billion in interest since 2021, with Newsom’s latest budget allocating another $668 million for interest and zero toward principal.
  • The California EDD projects the balance will hit $22 billion by the end of 2026, highlighting ongoing fiscal mismanagement.
  • The Trump administration is expanding scrutiny, with the DOL Inspector General deploying a strike team to probe similar fraud losses in states like New York.
  • This exposes Sacramento Democrats’ incompetence and corruption, punishing California employers and taxpayers for leadership failures.

Read the full story:
https://www.thegatewaypundit.com/2026/07/department-labor-announces-gavin-newsoms-california-owes-22/


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Tags: The Gateway Pundit
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