SACRAMENTO (KNX) — The state of California is making good on its promise to give Californians a rebate for skyrocketing gas prices, with Gov. Gavin Newsom on Wednesday proposing to offer $400 to all registered vehicle owners in the state, up to two vehicles.
"This package [is] focused on protecting people from volatile gas prices, and advancing clean transportation," Newsom said in a statement, explaining that that three months of free public transportation will also be included.
The $11 billion relief package includes $9 billion in direct payments to Californians and $2 billion in relief for free public transportation for three months, "pausing a portion of the sales tax rate on diesel, and suspending the inflationary adjustment on gas and diesel excise tax," Newsom said.
The $2 billion will be broken down into:
$750 million: To be used for incentive grants to transit and rail agences to provide free transit.
$600 million: Up to this amount will be used to pause a part of the sales tax rate on diesel for one year.
$523 million: To be used to pause the inflationary adjustment to gas and diesel excise tax rates.
An additional $500 million will be used to support active transportation programs, like walking and biking projects.
The $400 for registered vehicle owners in California will come in the form of debit cards, Newsom's office said, and was determined as the average California driver spends about $300 in gasoline excise tax per year.
"Eligibility will be based on vehicle registration, not tax records, in order to include seniors who receive Social Security Disability income and low-income non-tax filers," Newsom said.
An income cap will not be implemented and the $400 will be sent to all eligible Californians as they all face the higher prices due to the cost of oil.
Now that Newsom's proposal is out, the next steps are to take it to the Legislature to negotiate the details.
One approved, Newsom said payments could go out as early as July.
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