Californians Could See New Stimulus if Governor Newsom’s Proposal Passes
Coming off an unexpected $76 billion surplus, California’s Governor Gavin Newsom proposed a $1,100 stimulus for Californians affected by the COVID-19 pandemic. Additionally, the proposal would also cover more than $7 billion in aid directed toward resident’s outstanding rent and utility bills. California will receive an additional $27 billion as part of the federal government’s newest coronavirus spending plan.
This hypothetical stimulus check is only one part of Newsom’s $100 billion proposal to boost the economic recovery process. This plan would give nearly 11 million Californians a one-time-only payment. The amount received would depend on income and household size. Homes, where the combined income is between $30,000 and $75,000 a year, would receive a $600 payment. If the household includes at least one child, families get an additional $500. Newsom’s plan includes immigrants and undocumented individuals who did not receive any stimulus payments from the federal government.
shoutout to Gavin newsom for proposing a second round of stimulus payments
— karla (@karlaadoe_) May 10, 2021
If the plan passes, the state will pay about $8.1 billion directly to its own residents. California would set aside $5.2 billion to cover back rent, with $2 billion going directly to covering overdue utility bills.
The economic recovery proposal is in line with the state’s law that requires the government to refund taxpayers if the surplus goes over the limit. As of May 11, California expects the surplus to reach $16 billion over the law’s threshold. The state is experiencing an increase after collecting income tax from those who profited off the pandemic, as well as an economic lift from a booming stock market.
So California residents could be getting another stimulus check, I’m down for that.
— Tim Jarrell of PWUnlimited (@TimmyBuddy) May 10, 2021
The next step for Newsom’s proposal will be revealed by the end of the week when the Governor officially lays out the entire stimulus plan and introduces the newly revised state budget.
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