Governor Gavin Newsom Proposed $400 Gas Stimulus Check – In March, we reported that the Biden administration had dropped plans of distributing pre-paid gas cards to Americans all over the country to help ease the pain at the gas pump.
Speaking to Axios, a House Democrat familiar with the plans described how President Joe Biden was talked out of the idea over concerns that the project would cost too much, that it would be ineffective, and that it would put more pressure on the IRS at a time when it is already struggling to handle a backlog of tax filings.
Now, though, Democratic Governor of California Gavin Newsom is reportedly considering a similar plan in his state.
Stimulus Checks for Gas: What Is Newsom Planning?
Last week, the average cost of a gallon of gasoline in California rose to $5.80 – substantially higher than in many other states. It prompted Governor Gavin Newsom to build on rumored plans to use his state’s budget surplus to make direct stimulus payments to California residents – and a new legislative package proposed by the governor shows that the stimulus would be focused on reducing the cost of travel.
“$2 billion in relief for free public transportation for three months, pausing a portion of the sales tax rate on diesel, and suspending the inflationary adjustment on gas and diesel excise tax,” Newsom’s office said on March 23, announcing an $11 billion relief package.
Governor Newsom said that he was taking “immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine.”
Before the invasion of Ukraine, Newsom was said to be considering a new stimulus package but did not take immediate action to tackle the already rapidly rising prices of gasoline in his state.
“But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation – providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects,” Newsom said.
Under the package, some $9 billion will be set aside to make direct payments of $400 for every vehicle owned by a household. Each household has a limit of two vehicles, netting a family $800 in ‘stimulus checks’.
It would also give residents three months of free public transportation.
There will also be a pause to the inflationary adjustment of fuel excise tax rates.
Assuming the bill is passed, the stimulus checks could reach California citizens by July of this year.
Jack Buckby is a British author, counter-extremism researcher, and journalist based in New York. Reporting on the U.K., Europe, and the U.S., he works to analyze and understand left-wing and right-wing radicalization, and reports on Western governments’ approaches to the pressing issues of today. His books and research papers explore these themes and propose pragmatic solutions to our increasingly polarized society.
