Gov. Gavin Newsom unveiled the first pieces of a major $100 billion economic recovery proposal Monday morning that includes stimulus checks for two-thirds of the state.
Under what Gov. Newsom is referring to as the "California Comeback Plan," the state will spend $11.9 billion in direct payments to Californians.
People who earn less than $75,000 a year will receive $600, with an additional $500 for families.
“That tax rebate will impact just shy of 80% of all tax filers, will get a direct stimulus check,” said Gov. Newsom.
That amounts to about two-thirds of the state's overall population.
The announcement is part of the governor's May revise to the state budget proposal from January and comes as the state is experiencing an unexpected surplus, thanks in part to the roaring stock market, taxes on wealthy Californians and federal stimulus money.
“I’m about to make an announcement no other governor in California history has ever made and I would argue no governor in American history has ever made. Today we’re announcing a $75.7 billion budget surplus," said Newsom.
“This time last year we announced a $54.3 billion project shortfall. Today we’re announcing a $75.7 billion budget surplus. It’s a remarkable turnaround.”
Another $26 billion will come from the federal government.
Newsom also announced he wants to double rent assistance from an earlier proposal to $5.2 billion, “with the goal of getting 100% of all the back rent paid and provide 100% support over the next few months to renters that have been directly impacted.”
In addition, he is proposing $2 billion in utility assistance to help struggling Californians pay their water, gas and electricity bills.
The checks are the first of five proposals, with more information on how the rest of that $100 billion will be spent expected to come throughout the week.
"The California Comeback Plan has one goal: hit fast forward on our state’s recovery by directly confronting five of California’s most stubborn challenges," Gov. Newsom’s office said in a statement.
Newsom's proposal will require approval from the state legislature.
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