California

Newsom rolls out $18bil in fresh spending to stop inflation

An $18.1 billion package to help reduce the impact of inflation on California residents was put forward by Gov. Gavin Newsom on Thursday. The proposal includes tax refunds to eligible vehicle owners, rental assistance, and money for hospital and nursing staff.

The announcement also included a projected minimum wage increase to $15.50 per hour for all workers starting Jan. 1, 2023 (an increase required under law when inflation is over 7%).

Included in the proposal package is:

  • $11.5 billion in tax refunds to help address inflation (in the form of the previously announced $400 checks to every registered vehicle owner)
  • $2.7 billion in emergency rental assistance for low-income tenants
  • $1.4 billion to help residents pay past-due electricity and water bills
  • $750 million to support free public transport
  • $304 million to extend health insurance premium assistance under Covered California for families of four earning $166,500 annually
  • $439 million to pause the diesel sales tax for 12 months
  • $157 million to waive child care fees for low-income families, benefitting 40,000 low-income families

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Staff reports from The San Joaquin Valley Sun staff.