Newsom says California cannot afford President Trump’s new unemployment plan

Local News

SACRAMENTO, Calif. (KTXL) — Governor Gavin Newsom says California cannot afford President Donald Trump’s new unemployment plan.

“I can’t, I can’t even deal with the stress of it anymore,” said hairstylist Sheri Reinhard. “I just want my normal life back.”

Out of work and stuck at home, Reinhard relied on $600 a week in federal unemployment relief until it ran out in July.

“The little bit that we were receiving was just enough to keep my house afloat,” Reinhard explained.

The mother of two said state unemployment benefits simply are not enough to pay her bills.

So, she was relieved this weekend when President Trump signed an executive order extending the benefits, even though it would mean a reduction to $400 a week.

“Honestly, anything is better than nothing,” she told FOX40.

Under the plan, however, states would have to cover 25% of the funding, which Governor Newsom said would cost California roughly $700 million a week.

“That state does not have an identified resource of $700 million per week that we haven’t already obliged,” Newsom said. “There is not money sitting in the piggy bank.”

Trump proposed states use their CARES Act funding to cover the expenses. But Newsom said roughly 75% of California’s portion has already been allocated to schools, health and other social programs responding to the pandemic.

“It would create a burden the likes which even a state as large as California could never absorb without, again, massive cuts to important services,” he said.

Reinhard said she is just hoping Congress can come to some sort of compromise. Her livelihood depends on it.

“These Democrats and these Republicans don’t see eye to eye but when it comes to us, the people, they need to,” she said.

The executive order will likely be challenged in court.

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