By Aman Jain. Originally published at ValueWalk.
California’s Golden State stimulus program has provided relief to millions of residents over the past two years. The state is now set to send more stimulus checks to its residents. Gov. Gavin Newsom and state lawmakers recently reached a budget deal that could send inflation checks to millions of California residents.
Stimulus Checks Are Part Of The Budget Deal
On Sunday, Newsom and state lawmakers struck a budget deal that could send “inflation relief” checks of up to $1,050 to about 23 million California residents. The stimulus checks for California residents are part of the $17 billion relief package.
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“This budget takes immediate actions to give $$ back to millions who are grappling with global inflation and rising costs while tackling some of the greatest challenges of our time,” the Office of the Governor of California tweeted.
California’s latest relief package ever will offer much-needed relief to residents who now face the highest gasoline prices in the U.S. The average price for a gallon of gas in California was $6.32 on Monday, or about 29% more than the national average.
Earlier this year, Newsom introduced a stimulus plan to send $400 checks to drivers in the state, with a cap of two vehicles. However, the proposal didn’t get much support at the time, as other lawmakers wanted to send bigger checks to those earning less.
In a tweet, Newsom referred to the latest relief package as a “middle class rebate,” saying it would put “more money in your pocket to help you fill your gas tank and put food on the table.”
Who Will Get The Stimulus Checks For California Residents?
Newsom will use the state’s record-setting $97 billion budget surplus to send the stimulus checks to California residents. These checks will be in the form of tax refunds. The eligibility and amount of the stimulus checks will depend on the resident’s income, tax-filing status and household size. This means that lower- and middle-income Californians will receive more money than those with higher incomes.
For instance, single taxpayers with an annual income of less than $75,000 or couples filing jointly earning less than $150,000 annually will receive a $350 stimulus check. Taxpayers with dependents will get an additional $350.
Thus, a couple with a combined annual income of $125,000 and two children will receive $350 per adult and $350 per dependent, or a total of $1,050. The stimulus checks for California residents will likely be sent via direct deposit or debit cards by late October.
In addition to sending stimulus checks to California residents, the relief package also suspends the state’s sales tax on diesel fuel for 12 months, starting Oct. 1. The state’s sales tax on diesel is currently at 23 cents per gallon. The package also sets aside funds for local transportation infrastructure projects and helps residents with rent and utility bills.
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