CAL Repayment Act

119th Congress Introduced by Ken Calvert and 10 co-sponsors

The bill requires states to prioritize repaying outstanding UI advances with any new federal funds within 5 business days, or face an automatic full repayment penalty.

Introduced in House

Overview

Bill: H.R. 8892 (119th Congress)

Short title: Creating Accountability in Loan Repayment Act (CAL Repayment Act)

Purpose: Require states to prioritize repayment of outstanding UI (unemployment insurance) advances before using newly awarded federal funds for other purposes.

Introduced: May 19, 2026, by Rep. Vince Fong; with several cosponsors

Status: Referred to the House Committee on Ways and Means

What the bill would do

Amend Title XII of the Social Security Act by adding a new subsection (d) to Section 1202.

Trigger: When a state receives any federal funds that may be used to repay an advance under Section 1201 (UI program financial advances from the federal government).

Core requirement:

The state must, within 5 business days of funds becoming available, use those funds to repay any outstanding UI advances before using the funds for any other purpose.

Enforcement and remedy:

If the Secretary determines a state violated the requirement by using funds for other purposes prior to repaying outstanding advances, the state must, within 5 business days of the determination, pay the Federal Government an amount equal to the full amount of the funds in question.

Who/what is affected

Affected entity: U.S. states receiving federal funds that could be used to repay UI advances (i.e., Section 1201 UI advances and related Section 1202 funds).

Financial impact: Establishes a repayment obligation to the federal government if a state uses funds for non-priority purposes before clearing outstanding UI advances; the repayment amount would equal the full funds involved in the improper use.

Key provisions and changes

Mandatory priority of repayment:

States must dedicate eligible funds to outstanding UI advances first, within 5 business days of availability.

Scope of funds:

Applies to funds awarded to states from the federal government that may be used to repay UI advances (grants, transfers, or other forms of payment).

Penalty mechanism:

If the requirement is not followed, the state must repay the full amount of the funds identified as misused within 5 business days after a formal determination by the Secretary.

Effective date:

The new requirement applies to funds awarded on or after the enactment date of the bill.

Procedural and timeline notes

Timelines:

5 business days to begin repaying outstanding UI advances after funds become available.
5 business days to repay the full amount after a determination of violation.

Legislative process:

Referred to the House Committee on Ways and Means; no floor passage or Senate action detailed in the provided text.

Potential implications

States would need to adjust budgeting and cash management practices to ensure UI advances are prioritized promptly.

The bill creates a fast-track repayment deadline and a monetary penalty for noncompliance, reinforcing accountability for use of federal funds related to UI financing.

If enacted, it could affect how states allocate newly awarded federal funds and how they coordinate with the Department of Labor/Secretary on UI advance repayments.