California Governor Gavin Newsom wants to send $600 stimulus checks under a new multibillion-dollar spending plan.
What We Know:
- Newsom’s Golden State Stimulus plan would allot 11 million low and middle-income Californians payments. Households with an annual income of between $30,000 and $75,000 would receive $600 payments. Families with at least one child would receive an extra $500 for their payment. Newsom said during a press conference on Monday that two-thirds of California would be eligible for payments.
- Newsom’s new plan arrives as he faces a recall election. Critics of his plan include former San Diego mayor Kevin Faulconer. Faulconer is Newsom’s rival in the election race.
“One-time payments for just one year isn’t enough, not nearly enough. We need permanent, lasting tax relief for middle-class families,” states Faulconer.
- If Newsom’s plan passes, the stimulus checks will total $8.1 million. Additionally, Newsom also proposed spending $5.2 billion to help residents make rent payments. This is in addition to $2 billion for assistance to pay past-due utility bills. Newsom’s proposal still needs approval from state lawmakers before it can pass.
- Wealthy Californians paid more in taxes last year, which has given the state a $76 billion state budget surplus. Although California lawmakers have lifted many pandemic-related restrictions, many families still struggle financially. The U.S Treasury Department stated that $350 billion in state and local government COVID-19 payments were going out this week. Counties will split $65 billion, and major cities will divide $46 billion.
Most governments will receive their federal funding in two batches, one this year and the other in 12 months.
