The fund the state uses to pay unemployment benefits is already more than $18 billion in debt. That’s because the fund ran out of money and had to borrow from the federal government during the pandemic, when Newsom ordered most businesses to close and caused a massive spike in unemployment. The fund was also beset by massive amounts of fraud that cost the state billions of dollars."

The reasoning and background, if anyone is curious

[–] Corkyskog@sh.itjust.works 10 points 1 year ago (2 children)

I want to know more about the fraud. At what level is/was the fraud happening?

[–] HorseWithNoName@lemm.ee 12 points 1 year ago

Also the "Newsom ordered most businesses to close." I guess I thought it was a pandemic that had ordered most businesses to close?

[–] Cheers@sh.itjust.works 7 points 1 year ago

PPP was notoriously fraudulent. Big corps we're taking PPP loans