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California becomes the first state to borrow cash from the federal government to pay out unemployment benefits


desiboys

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  • California became the first state to borrow federal cash to finance massive spending on unemployment benefits, The Wall Street Journal reported.
  • Illinois and Connecticut are set to follow suit in the coming weeks.
  • Over 30 million people filed for unemployment over the past two months. The unprecedented surge has overwhelmed state safety nets.
  • States that borrow money from the federal government have to readjust their budgets down the road, which could lead to tough decisions.
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