California relies heavily on federal money when it comes to unemployment. The U.S. government pays for a series of extensions to benefits. Loree Levy with the State Employment Development Department says it's unclear whether the extension would be cut off if there's no debt ceiling deal. Additionally, Levy says the state's own unemployment insurance trust fund is insolvent and relies on a federal loan to pay for regular state benefits:
Levy: "Since that is a loan from the federal government to pay regular unemployment benefits, we could also be talking about those coming to an abrupt end, so we're very concerned about that and are awaiting further interpretation from the department of labor."