Gov. Newsom Passes California Comeback Plan, Provides Statewide Relief

July 16, 2021 /

Governor Gavin Newsom signed off on his California Comeback Plan on Monday—a $100 billion plan that is being called the “biggest economic recovery package in California’s history.”

Gov. Newsom proposed this plan in May, looking to bolster the California economy. The Plan provides a total of $5.2 billion to now cover 100 percent of back-rent and all prospective rent for several months into the future for income-qualified tenants. The Plan also includes $2 billion for past-due water and utility bills and more money than ever for tenant legal assistance. These supports are in addition to Governor Newsom extending the state’s eviction moratorium.

“As the state comes roaring back from the pandemic, we’re laser-focused on getting this assistance out the door as quickly as possible and providing supports across the board to help Californians get back on their feet,” Gov. Newsom stated. “With robust COVID rental protections and the largest rent relief program of any state in the nation, we’re protecting millions of struggling Californians worried about keeping a roof over their heads or making next month’s mortgage by covering 100 percent of past-due and prospective rent payments, as well as overdue water and utility bills.”

On top of covering unpaid rent and utilities, a total of $12 billion will be sent out to nearly two-thirds of Californians this fall via direct payments. Governor Newsom’s California Comeback Plan will be providing individuals who earn up to $75,000 with $600 stimulus checks, as well as additional $500 checks to families with children. The checks will come regardless of immigration status Gov. Newsom revealed on Tuesday during a live press event. Additionally, billions of dollars would also be put toward tackling some of the state’s biggest issues.

The California Comeback Plan focuses on providing relief to those that need it most and major investments to address the state’s most persistent challenges. In directly confronting what the state believes to be the most “stubborn challenges,” the California Comeback Plan will accelerate the states recovery by:

  • Providing immediate relief to Californians hit hardest by the pandemic
  • Confronting homelessness and the housing affordability crisis
  • Transforming public schools into gateways of opportunity
  • Bolstering wildfire resilience and tackling climate change
  • Building the infrastructure of the next century

“Harnessing the largest surplus in state history, we’re making transformative investments across the board that will help bring all our communities roaring back from the pandemic – and pay dividends for generations to come,” said Governor Newsom.

Fueled by a resurgent economy, a surge in state revenues and additional federal recovery funds, the $75.7 billion surplus reflected in the California Comeback Plan stands in stark contrast to the $54.3 billion budget shortfall estimated just over a year ago. The budget is built on a strong fiscal foundation that includes over $25 billion in reserves, pays off educational deferrals and continues to pay down long-term retirement debts. It also appropriately prioritizes one-time spending over ongoing, allocating 85 percent of discretionary funds to one-time spending.

Gov. Newsom announced that California can now seize this once-in-a-lifetime moment to address long-standing challenges that threaten our state’s future and ensure every California family – regardless of their race or zip code – can thrive.

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Victoria Rodgers

Victoria Rodgers

Victoria Rodgers is an editor and reporter for Kern Sol News. Born in Bakersfield, CA, she received her Bachelor of Arts in English from Rockford University in Illinois. She can be reached at victoria@southkernsol.org.