CAL Repayment Act

The CAL Repayment Act requires states to immediately use any federal funds received for unemployment insurance to repay outstanding advances before spending them on other purposes. This rule applies to all states and mandates that they make these repayments within five business days of the funds becoming available. If a state fails to follow this order and uses the money elsewhere first, it must return the full amount to the federal government within five days of being notified. The law takes effect for any unemployment insurance funds awarded after the bill is enacted.