The spending package is meant to help Californians with rising inflation and must be approved as part of the state budget by the California legislature, according to a May 12 news release from the governor’s office.
Included in the proposal:
- $933 million for hospital and nursing home staff, providing up to $1,500 to hospital and skilled nursing facility workers
- $11.5 billion in tax refunds: Registered vehicle owners would be sent $400 checks, capped at two checks per individual
- $2.7 billion for emergency rental assistance for qualified low-income tenants who requested rental assistance before March 31
- $1.4 billion for past-due utility bills: $1.2 billion for electricity bills and $200 million for water bills
- $750 million for free public transit: Incentive grants to provide three months of free public transportation for communities throughout the state
- $304 million to make health coverage more affordable: Extend health insurance premium assistance under Covered California for families of four earning up to $166,500 annually, for upward of 700,000 Californians
- $439 million to pause the diesel sales tax: A 12-month pause in the sales tax rate for diesel fuel that would provide upwards of $439 million in relief
- $157 million to waive child care fees for low-income families: Making state-subsidized preschool and child care more affordable and benefiting 40,000 low-income California families with savings of up to $595 per month
Additionally, California’s minimum wage is projected to increase to $15.50 per hour for all workers on Jan. 1. The increase is required by a provision in the state’s minimum wage law when inflation exceeds 7 percent.