State Unemployment Fund Out of Cash

Fed loans state $1.8 billion

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    NEWSLETTERS

    Mario Tama/Getty Images

    SACRAMENTO, Calif. -- The state Unemployment Insurance Trust Fund is about to run out of money, but unemployed Californians will still get their benefits.

    The state has secured a $1.8 billion federal loan to cover the roughly $34 million in benefits it pays out everyday. It is the second time in the fund's 60-year history that it will borrow money from the federal government.

    Unemployment Fund Goes Broke

    [LA] Unemployment Fund Goes Broke
    California secures a federal loan to cover unemployment benefits.

    In 2004, the state got a loan to cover one month of expenses.