Gavin Newsom plan would give California drivers up to $800 to deal with high gas prices
Californians who drive could receive up to $800 under a proposal released by Gov. Gavin Newsom on Wednesday.
The money — $400 per vehicle, capped at two vehicles — would come in the form of a debit card from the state, according to a statement from Newsom’s office.
The proposed $9 billion allocation comes as part of a $11 billion package aimed at helping provide relief from skyrocketing gas prices in California.
“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Newsom said in a statement. “But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation — providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects.”
Eligibility for the debit cards would be based on vehicle registration, not tax records, in order to include seniors on Social Security Disability income and low-income non-tax filers, according to Newsom’s office.
“The governor’s proposal does not have an income cap in order to include all Californians who are facing higher prices due to the cost of oil,” according to Newsom’s office.
If approved by the Legislature, the money could go out as soon as July.
Legislative response to Newsom’s rebate
However, Senate President Pro Tempore Toni Atkins, D-San Diego, signaled she may want to see a rebate for residents in specific income brackets, not necessarily for all drivers.
“I appreciate Gov. Newsom’s work on developing another option to bring relief to Californians experiencing the rising cost of fuel and consumer goods,” Atkins said in a statement on Wednesday. “The Senate is focused on ensuring that state money is targeted to those who actually need relief and we look forward to working with Governor Newsom, Speaker Rendon and our Legislative colleagues to quickly develop a proposal that delivers for struggling Californians.”
On the other side of the aisle, Republicans continued to push for a tax holiday and chastise Democrats for taking too long to provide relief funds.
Assembly Republican Leader James Gallagher criticized Newsom’s proposal in a statement released Wednesday afternoon.
“July? Seriously? Californians are struggling and Capitol Democrats are dragging their feet. How could it possibly take that long? Capitol Democrats are all talk and no action,” Gallagher said in a statement.
Assembly Republicans have attempted to force a floor vote on a suspension of the state gas tax, but the Democratic super-majority-controlled Assembly squashed the attempt. Gallagher said in a statement that Republicans will try again on Thursday.
Newsom’s proposal isn’t the only one Democrats in the Legislature are entertaining.
Democratic Assemblywoman Cottie Petrie-Norris has introduced a proposal to provide a $400 gas rebate to Californian taxpayers.
Newsom’s proposal also includes $750 million in incentive grants for transit and rail agencies in order to provide free transit for an estimated 3 million Californians, as well as $600 million to pause a part of the sales tax rate on diesel fuel for one year and $523 million to pause an inflationary adjustment to gas and diesel excise tax rates.
Lindsey Holden of The Sacramento Bee Capitol Bureau contributed to this story.
This story was originally published March 23, 2022 at 2:30 PM with the headline "Gavin Newsom plan would give California drivers up to $800 to deal with high gas prices."