California residents will receive an “inflation relief” check to temper down the rising cost of living.
Around 23 million residents will receive checks worth up to $1,050 as part of the state’s $17 billion relief package.
The package will also halt state sales tax on fuel after the average price per gallon of gas rose to $6.27 last week — 29% higher than the national average.
The checks are expected to put $9.5 billion back into the pockets of Californians.
“In the face of new challenges and uncertainties, we’re providing over $17 billion in relief to help families make ends meet,” said Governor Newsom.
Lower- and middle-class households will receive the largest checks. Taxpayers who make less than $75,000 a year, or couples who make less than a combined $150,000 annually, will receive $350 per taxpayer.
Single taxpayers making between $75,000 and $125,000 annually, or couples making between $150,000 and $250,000, will receive $250 per taxpayer and dependent.
Couples making above $500,000, or single households making more than $250,000, will not be eligible for the checks.
Stimulant payments have become slightly more widespread since the onset of the pandemic. Now, as inflation rises and workers remain at home, economic activity has decelerated.
The goal of this cash infusion is to encourage residents to put more money into their local economies, but it is still to be seen whether California’s stimulus checks can keep up with the pace of increased costs.