More than half of California's residents may soon receive a stimulus check from the state, Gov. Gavin Newsom's office announced earlier this week.
As part of an inflation relief package worth $17 billion, an estimated 23 million eligible Californians will receive payments, totaling up to $1,050 for joint filers with at least one dependent, later this fall. The relief package will be paid for by a record-setting $97 billion state budget surplus.
"That's more money in your pocket to help you fill your gas tank and put food on the table," Newsom wrote Sunday in a tweet describing the package as a "middle class rebate."
How the payments will work
Eligibility will depend on how much money each California resident earns, as well as how many dependents they have. The amounts are based on three tiers for either single or joint tax filers, per a preliminary summary of the proposed budget:
Single tax filers will receive:
- $350 if they earn less than $75,000 per year
- $250 if they earn between $75,001 and $125,000 per year
- $200 if they earn between $125,001 and $250,000 per year
Joint tax filers will receive:
- $700 if they earn less than $150,000 per year
- $500 if they earn between $150,001 and $250,000 per year
- $400 if they earn between $250,001 and $500,000 per year
If either single or joint filers have at least one dependent, they will receive an additional amount of either $350, $250 or $200, based on their tier.
Checks will be sent via direct deposit or debit card by late October, per a Newsom administration official, as reported by the Sacramento NBC affiliate TV station KCRA.
The state will also suspend the diesel sales tax — which is now 23 cents per gallon — for 12 months, starting Oct. 1. Money will be set aside for local transportation infrastructure projects, as well as for rent and utility cost relief programs.
Correction: An earlier version of this story stated that the maximum total payment was $1,050 per person. This has been updated to reflect that the amount is for joint filers with at least one dependent, not per person. An earlier version of this story stated that the inflation relief package was worth $17 million. This has been updated to reflect that it is worth $17 billion.
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