California Gov. Gavin Newsom wants to send money to drivers to relieve some of the pain caused by recent sky-high gas prices and offset the increasing costs.
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"We're announcing a $9 billion tax refund to tens of millions of Californians," Newsom announced in a Wednesday social media video. "Four hundred dollars for each registered vehicle owns, up to two vehicles."
If the governor gets his way, every car owner in the state gets a rebate in the form of a debit card for up to two vehicles registered in their name.
"That direct relief will address the issue that we all are struggling to address, and that's the issue of gas prices," Newsom said. "Not only here in our state, but of course all across this country."
Newsom said he also wants to dole out $750 million in grant money to transit agencies so they could offer free rides for "upwards of three months," as well as $500 million for existing transportation projects around the state that promote biking and walking.
The price of a regular gallon of gasoline in California on Wednesday was $5.88, according to AAA. Solano ($5.78), Contra Costa ($5.85), Alameda ($5.86) and Santa Clara ($5.84) were the only Bay Area counties falling below that average.
Democrats in the California Legislature have proposed sending rebates to all taxpayers in the state, whether or not they own cars. Republicans want to suspend California's gas tax.
Newsom's office said in a release the proposal includes registered vehicle owners, rather than taxpayers, so low-income non-filers and seniors on Social Security. It also includes as much as $600 million to pause part of the sales tax rate on diesel for a year, as well as $523 million to pause the gas and diesel excise tax rates' inflationary adjustment.
If the legislature approves Newsom's proposal, the first payments are expected to be mailed out in July.
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