A press release from the governor’s office announced that Governor Newsom has proposed a $18.1 Billion inflation relief package.
“We enacted the most comprehensive economic stimulus program in the nation last year, getting billions in immediate relief to millions of Californians. But many folks are still struggling, especially with high costs due to inflation, so we’re leveraging this historic surplus to get money back into the pockets of Californians,” said Newsom. “This inflation relief package will help offset the higher costs that Californians are facing right now and provide support to those still recovering from the pandemic.”
The package will be broken down in the following ways:
- $11.5 Billion for Tax Refunds to Help Address Inflation: $400 checks to go to every eligible registered vehicle owner, capped at two checks per individual.
- $2.7 Billion for Emergency Rental Assistance: For significant state funds to help qualified low-income tenants who requested rental assistance before March 31, helping these Californians get the support they need.
- $1.4 Billion to Help Californians Pay Past-Due Utility Bills: This investment expands upon last year’s utility relief program to continue this vital support – $1.2 billion for electricity bills and $200 million for water bills.
- $933 Million for Hospital and Nursing Home Staff: This will provide up to $1,500 to hospital and skilled nursing facility workers who have been delivering care to the most acute patients during the COVID-19 pandemic and saved thousands of lives.
- $750 Million for Free Public Transit: Proposed incentive grants to provide three months of free public transportation for communities throughout the state.
- $304 Million to Make Health Coverage More Affordable for Middle-Class Families: This extends health insurance premium assistance under Covered California for families of four earning up to $166,500 annually, upwards of 700,000 Californians.
- $439 Million to Pause the Diesel Sales Tax: This will bring relief to the commercial sector and drivers, Newsom is proposing a 12-month pause in the sales tax rate for diesel fuel that would provide upwards of $439 million in relief.
- $157 Million to Waive Child Care Fees for Low-Income Families. Making state-subsidized preschool and child care more affordable, benefitting 40,000 low-income California families with savings of up to $595 per month.
According to the release minimum wage is also projected to increase to $15.50 on January 1, 2022.
