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State budget would cover $634 million UI interest payment; EDD seeks $124 million for modernization and $13.8 million for cybersecurity

California State Assembly Budget Subcommittee No. 5 (Labor and Workforce Development) · February 25, 2025
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Summary

The administration proposes a $634 million one-time general fund payment toward the federal unemployment insurance (UI) loan interest; LAO warns the program is chronically insolvent and urges structural reforms. EDD requested $124 million for EDD Next modernization work this year and $13.8 million ongoing for cybersecurity staffing and tools; the

The governor's budget includes a $634 million one-time general fund payment to cover the upcoming interest payment on the state's outstanding federal unemployment insurance loan, and the Employment Development Department requested further funding to modernize claims systems and bolster cybersecurity.

Caleb Horrell, EDD chief financial officer, told the subcommittee the $634 million payment is the administration's fiscal action for the coming year. Chaz Alamo of the Legislative Analyst's Office said the outstanding federal loan was about $21.8 billion at the time of the hearing and that the interest payment estimate is likely to increase in…

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