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California May Need $7 Billion Federal Loan

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California May Need $7 Billion Federal Loan

U.S.

California May Need $7 Billion Federal Loan

California May Need $7 Billion Federal Loan

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  • <iframe src="https://www.npr.org/player/embed/95329931/95329896" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

California is running out of cash. The Los Angeles Times reports that Gov. Arnold Schwarzenegger sent a letter to Treasury Secretary Henry Paulson informing him that the state might need to borrow $7 billion to keep operating. Evan Halper, who co-authored the story, tells Renee Montagne that California routinely borrows money to even out its cash flow, but this time it's locked out of the credit market.