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Armed with a sturdy finances surplus, Gov. Gavin Newsom on Thursday introduced an $18.1 billion inflation reduction bundle meant to assist Californians amid the skyrocketing inflation charges.
“We enacted essentially the most complete financial stimulus program within the nation final yr, getting billions in rapid reduction to hundreds of thousands of Californians,” Newsom stated in a press release. “However many of us are nonetheless struggling, particularly with excessive prices on account of inflation, so we’re leveraging this historic surplus to get a reimbursement into the pockets of Californians.”
The governor stated the reduction bundle will assist offset the upper prices that Californians are going through and supply assist for these nonetheless recovering from the consequences of the pandemic.
A lot of the cash will go in the direction of sending out $400 checks funds to automotive house owners.
Newsom’s workplace previewed what his inflation reduction bundle will embrace. Right here’s what to know:
As previously announced, the governor is proposing spending $11.5 billion for tax refunds within the type of $400 checks despatched to each eligible registered car proprietor.
Californians who’ve multiple car registered to their identify would get $800. That’s as a result of the funds are capped at two automobiles per particular person, officers introduced beforehand.
Legislative leaders have announced different plans to assist Californians with money rebates that places Democrats within the California Senate at odds with Newsom. They might want to attain a compromise.
Newsom can also be proposing spending $2.7 billion on emergency rental help, serving to certified low-income tenants who requested rental help earlier than March 31.
Beneath the governor’s plan, one other $1.4 billion could be spent to assist assist Californians pay past-due utility payments. The funding would construct on final yr’s utility reduction program that helped residents with water and electrical payments.
One other $933 million could be spent offering as much as $1,500 funds to hospital and expert nursing facility staff who had been caring for sufferers throughout the COVID-19 pandemic.
Newsom additionally needs to spend $750 million on incentive grants to supply three months of free public transportation for communities all through the state.
The governor’s plan additionally contains $304 million to make well being protection extra inexpensive for some households. The proposal would prolong medical health insurance premium help underneath Lined California for households of 4 incomes as much as $166,500 yearly.
The governor’s workplace stated this may have an effect on upwards of 700,000 Californians.
Newsom can also be proposing $439 million for a 12-month pause within the gross sales tax price for diesel gas.
Waiving youngster care charges for some households Newsom additionally needs to spend $157 to make state-subsidized preschool and youngster care extra inexpensive.
His workplace stated this may profit 40,000 low-income households, serving to them save as much as $595 per 30 days.
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