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March 23 (UPI) — California Gov. Gavin Newsom released the details of a plan Wednesday that would send $400 to the state’s vehicle owners as relief payments for high gas prices.
The $11 billion proposal is designed to mitigate rising prices at the pump. Owners of multiple cars would receive a check for up to two vehicles, capped at $800. The plan would also include $750 million for public transit, which could provide riders with three months of free service.
As currently written, payments would be sent in the form of $400 debit cards to all vehicle registrants. There are no income requirements — eligibility for the proposal would be based on vehicle registration alone.
Newsom, who is up for re-election this year, also wants to freeze the state’s gas tax, which is currently tied to inflation.
Newsom’s proposal is subject to approval by the California State Legislature.
Democratic lawmakers are pushing for a different approach. Assembly Speaker Anthony Rendon and Senate President Pro Tem Toni Atkins want to address gas price relief for households earning no more than $250,000 per year. Their approach would send one $200 check per individual and dependent, rather than one check per vehicle.
“The Senate is focused on ensuring that state money is targeted to those who actually need relief,” Atkins said in a statement reported by Politico.
Newsom’s plan drew concerns over equitable distribution, as higher-income households own more cars and would disproportionately benefit. Californians who don’t own a registered vehicle wouldn’t receive any aid.
According to the Public Policy Institute of California, a non-partisan research group, the lowest income households spend more of their proportional income on gas, although higher-income families buy more gas overall.
Ahead of the governor’s announcement, Rendon told the Los Angeles Times that he was adamantly against any plan that grants refunds to the extremely wealthy.
“A lot of people have suffered recently,” Rendon said. “A lot of Californians have been struggling, and we’re looking for a solution to provide financial support for those Californians in particular.”
If Newsom’s plan moves forward, the first payments could be distributed as early as July, his office said.
