California lawmakers reached a budget deal with Democratic Gov. Gavin Newsom late Sunday that includes sending "inflation relief" checks to millions of state residents.
Per the terms of the agreement, around 23 million Californians will receive direct payments of up to $1,050 as part of a $17 billion relief package. The package will also include a suspension of California’s sales tax on diesel and additional funds to help people pay their rent and utility bills.
The payment will be issued via direct deposit refunds or debit cards to tax filers and their dependents later this year or early next year, according to California’s Franchise Tax Board.
Recipients will receive either $350, $250, or $200 based on their income level, plus an additional payment for the same amount if they have at least one dependent.
Single filers making less than $75,000 a year will get $350. Joint filers with an income of less than $150,000 will receive $350. Filers with at least one dependent will receive an additional $350. According to the state, the majority of Californians – roughly 82% – fall under this category.
Single filers making more than $75,000 a year but less than $125,000 will get $250. Joint filers making more than $150,000 but less than $250,000 will receive $500. Filers in this category with at least one dependent will receive an additional $250.
Single filers making more than $125,000 a year but less than $250,000 will get $200. Joint filers making more than $250,000 but less than $500,000 will receive $400. Filers in this category with at least one dependent will receive an additional $200.
Sunday night’s tentative deal includes suspending the 23-cent gas tax for Diesel for at least a year.
For now, the budget needs to be voted and approved on by the state Legislature – which is overwhelmingly Democratic – then signed by Gov. Newsom. That isn’t expected until next week when lawmakers will finalize the state budget.
The statewide average price for a gallon of regular unleaded gasoline in California hit an all-time high of $6.44 last week. The average price was $6.35 cents per gallon on Friday compared to the national average of $4.93.
The Associated Press contributed to this report.