Gov. Gavin Newsom, state Democrats offer ‘inflation relief’ payments to Californians


California Gov. Gavin Newsom and state lawmakers late Sunday announced a budget deal that will provide “inflation relief” payments of $200 to $350 per person for most state residents.

Persons earning less than $75,000 per year would receive $350 as part of tax refunds in the $17 billion agreement while couples making less than $150,000 who file jointly are eligible for $700.

Families in those categories with a dependent can qualify for another $350, meaning some families could see up to $1,050.

Millions of California tax filers are expected to see payments through direct deposit or debit cards by October.

“California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,” said Mr. Newsom, Senate President pro tempore Toni G. Atkins and Assembly Speaker Anthony Rendon — all Democrats.

Californians and people across the nation are reeling from the high cost of gas and everyday goods, as supply chains shake off the pandemic doldrums and Russia’s invasion of Ukraine exacerbates problems.

Critics say President Biden and Democratic allies fueled inflation with generous stimulus payments in early 2021, overheating the economy as supply struggled to keep up with demand.

Democrats in California and Congress are eyeing government levers to provide tax relief or cut the cost of prescription drugs.

In Sacramento, the state package also suspends a state sales tax on diesel while investing in green technologies.

“California is doubling down in our response to the climate crisis — securing additional power-generating capacity for the summer, accelerating our clean energy future, expanding our ability to prepare for and respond to severe wildfires, extreme heat and the continuing drought conditions that lie ahead,” Mr. Newsom and Democratic leaders said.


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