CAL Repayment Act
- Bill Number
- H.R. 8892
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-05-19: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-10T08:06:18Z
AI-Generated Summary
Purpose This legislation aims to ensure that states prioritize repaying outstanding federal advances for unemployment insurance before using certain federal funds for other purposes.
Key Provisions
- The bill amends Section 1202 of the Social Security Act by adding a new subsection (d).
- States receiving federal funds (such as grants or transfers) that can repay advances under Section 1201 must use those funds to pay any outstanding balances within 5 business days of availability, before any other use.
- If a state violates this rule, the Secretary may determine a breach, requiring the state to repay the full amount of the misused funds to the federal government within 5 business days.
- The changes apply only to funds awarded on or after the date the Act becomes law.
Significant Changes to Existing Law The bill introduces a new mandatory repayment requirement and enforcement mechanism to Title XII of the Social Security Act, which previously addressed advances without this explicit priority rule or penalty for misuse.
Potential Impacts
- Government agencies: Requires faster repayment of federal loans by states, potentially improving federal cash flow and reducing long-term debt for unemployment programs.
- Citizens: May indirectly affect state unemployment benefits if funds are redirected, though the focus is on fiscal accountability rather than benefit changes.
- No direct effects on international relations are outlined.
Main Stakeholders Affected
- State governments and their unemployment insurance agencies.
- The federal government, particularly agencies administering Social Security Act funds.
- Taxpayers, through ensured repayment of federal advances.
Notable Legal, Constitutional, or Political Implications The measure adds conditions on the use of federal funds, which is a standard approach to federal-state funding relationships. It emphasizes accountability without altering core constitutional structures or creating new rights.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (10)
Rep. Smucker, Lloyd [R-PA-11], Rep. Yakym, Rudy [R-IN-2], Rep. Kelly, Mike [R-PA-16], Rep. Calvert, Ken [R-CA-41], Rep. Van Duyne, Beth [R-TX-24], Rep. Obernolte, Jay [R-CA-23], Rep. Miller, Max L. [R-OH-7], Rep. Kim, Young [R-CA-40], Rep. Issa, Darrell [R-CA-48], Rep. Carey, Mike [R-OH-15]
Recent Actions
- 2026-05-19: Referred to the House Committee on Ways and Means.
- 2026-05-19: Introduced in House
- 2026-05-19: Introduced in House
Bill Versions
- Creating Accountability in Loan Repayment Act — issued 2026-05-19 — PDF (2 pages)