Gov. Gavin Newsom wants to send California drivers as much as $800 each and encourage public transit systems to offer free rides, the latest proposal from state policymakers seeking to offset the soaring cost of gasoline and other goods for struggling residents.
Newsom first earlier this month during his annual State of the State address, but details of his approach were slow to emerge, giving legislators time to . The governor鈥檚 Republican opponents have become increasingly critical of the lack of progress during the weeks since his announcement.
, unveiled today, California would send registered vehicle owners $400 debit cards, limited to two rebates per person. Those would likely arrive starting in July, after the state adopted a budget for the upcoming fiscal year. The governor鈥檚 office estimates the rebate would cost about $9 billion.
鈥淭hat direct relief will address the issue that we all are struggling to address and that is the issue of gas prices,鈥� Newsom said in a video .
The average price for a gallon has reached $5.88 in California, , the highest in the country.
Following extensive criticism in progressive circles that a rebate based on car ownership would send the wrong message about the state鈥檚 climate goals and leave out many poor Californians, the governor is now also proposing $750 million in grants for to offer up to three months of free transit, benefiting about 3 million daily riders.
The plan would also pause part of the sales tax on diesel and pause the scheduled inflationary increase to the state gas tax this summer, backfilling more than $1 billion in revenue for transportation projects. Legislative leaders have been to pause the gas tax increase since it was in January.
Any relief is subject to negotiation with the Legislature and will likely arrive months from now through the state budget. Lawmakers must pass a balanced spending plan by June 15 or lose their paychecks.
A group of Democratic Assemblymembers put forward a more far-reaching proposal last week to send every California taxpayer a $400 check, a plan that supporters estimate would also cost about $9 billion.
Days later, Senate President Pro Tem Toni Atkins, a San Diego Democrat, and Assembly Speaker Anthony Rendon, a Lakewood Democrat, endorsed an idea to give $200 payments to each California taxpayer and their dependents. Unlike the governor鈥檚 proposal, their approximately $7 billion plan would cap eligibility to households making less than $250,000 per year, a nod to concerns from some liberals that relief should be more targeted to the neediest Californians.
鈥淚 appreciate Governor Newsom鈥檚 work on developing another option to bring relief to Californians experiencing the rising cost of fuel and consumer goods,鈥� Atkins said in a statement. 鈥淭he Senate is focused on ensuring that state money is targeted to those who actually need relief.鈥�
Republicans, who unsuccessfully pushed last week for the Legislature to immediately suspend the state gas tax, have slammed Democrats for not acting more swiftly as gas prices continue to rise. Earlier this week they debuted a tracking 鈥渉ow long it鈥檚 been with no results since Governor Newsom promised relief in his State of the State address.鈥�
鈥淛uly? Seriously?鈥� Assembly Republican Leader James Gallagher of Yuba City said in a statement. 鈥淐alifornians are struggling and Capitol Democrats are dragging their feet. How could it possibly take that long? Capitol Democrats are all talk and no action.鈥�
Gallagher said Republican lawmakers would bring up their gas tax suspension bill for another vote this week.