Gov. Newsom: California Can't Afford Trump's $400 Weekly Unemployment Order

After stimulus talks broke down last week on Capital Hill, President Trump signed an executive order on Saturday that would provide enhanced unemployment benefits of up to $400 per week for jobless individuals throughout the nation. "I'm taking action to provide an additional $400 a week and expanded benefits, $400. That's generous but we want to take care of our people," Trump said.

On Monday, California Governor Newsom announced that the state cannot fully fund the proposed benefits. With millions of Californians still without work due to the pandemic, the cost of these benefits is staggering - Newsom said that that the state would be paying $700 million per week, with the balance being offset by California's CARES Act funds.

Only 25% of the initial CARES Act allocation remains and that had been allocated to other areas, including aid for businesses. When the federal funds from the CARES Act are depleted, the proposed unemployment benefits would cost California $2.8 billion per week.

Given the precarious state of the California's budget, Newsom has called for the federal government to provide upfront funding of the enhanced benefits, so that state's won't face financial crisis.

Newsom also said that the program would require new certifications, which will likely cause delays in processing and payment.

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