Governor Gavin Newsom and legislative leaders announced on Wednesday that they had agreed to provide low-income Californians with a $ 600 state stimulus payment to help them cope with financial difficulties during the COVID-19 pandemic, part of a $ 9.6 billion economic recovery package that also includes $ 2.1 billion in grants for small businesses.
The “Golden State stimulus” payments provided for in the state proposal, which will be accelerated for legislative approval next week, are in addition to the $ 600 per person stimulus checks already approved by Congress and would be in addition to direct payments of up to $ 1,400 per person that were proposed by House Democrats.
The proposed immediate action package also provides more than $ 400 million in new federal funds for $ 525 per child enrolled stipends for all state-subsidized daycare centers and daycare centers, which serve nearly 400,000 children in subsidized daycare centers across the state .
“As we continue to fight the pandemic and recover, I am grateful for the Legislature’s partnership in providing urgent relief and support for California families and small businesses where it is most needed,” Newsom said in a statement announcing the accelerated aid package with the President of the Senate pro Tem Toni Atkins (D-San Diego) and President of the Assembly, Anthony Rendon (D-Lakewood).
The state has suffered significant economic losses since the pandemic began in March 2020, with millions of people unemployed due to business closures or restrictions on operations under the direction of state health officials to slow the spread of the virus.
The new aid package comes a few weeks after the legislature and the governor accelerated approval of an extension of eviction protections until June for tenants paying part of the rent.
The one-time payment of $ 600 for families, which Newsom proposed last month, would cost about $ 2.3 billion, and would go to people who received California’s income tax credit in 2020. In addition, the deal would provide a stimulus check for taxpayers with individual tax identification numbers that have not received federal stimulus payments.
Beneficiaries include immigrants who are in the country illegally and who complete tax forms. ITIN taxpayers who also qualify for California income tax credit would receive a total of $ 1,200, state leaders said.
In all, the state would provide 5.7 million payments to low-income Californians.
California residents could qualify for earned income tax credit if they had an annual income of $ 30,000 or less, which last year included 3.9 million taxpayers.
The aid package offers a one-time $ 600 allowance for families enrolled in the CalWORKS public assistance program and recipients of supplemental security income and the state’s cash assistance program for immigrants.
“Californians are suffering,” said Rendon in a statement. “Our response addresses COVID’s human and economic impacts in a way that echoes President Biden’s American Rescue Plan and will help those who are suffering the most.”
Newsom’s legislative leaders and Democrats said the subsidies will help small businesses survive during the economic crisis caused by the pandemic.
“With billions of additional dollars, we will be able to provide … tens of thousands of additional grants for small businesses, nonprofits and cultural centers from $ 5,000 to $ 25,000,” Newsom said during a news conference on Wednesday -market.
The grant proposal, which requires legislative approval, is based on a $ 500 million program that has provided financial assistance to 21,000 small businesses since December, Newsom said.
The tax reduction will be provided over the next few years, exempting the first $ 150,000 of expenses paid by the federal Paycheck Protection Program and federal Economic Injury Disaster Loan funds. In addition, the package includes $ 116 million in two-year fee exemptions for heavily affected service sectors.
Other provisions of the aid package announced on Wednesday include:
- $ 100 million in emergency financial aid to qualify low-income students with six or more units at California Community Colleges.
- $ 24 million for financial aid and services through Housing for the Harvest, which supports farm workers who need to be quarantined because of COVID-19.
- $ 35 million for food banks and diapers.
- $ 6 million for outreach and application assistance to students at the University of California, California State University and California Community College who became eligible for CalFresh, the federal food assistance program.
A legislative budget committee is scheduled to hear the bills as early as Thursday, with a vote in plenary possible on Monday.
State leaders said they also agreed to restore funding for State University of California and University of California systems, the judiciary, alimony services and for moderate-income housing that were cut next year, before resources additional funds arrived from the federal government.
Legislative leaders said on Wednesday that they are in separate and ongoing discussions about measures that can be taken to safely reopen the state’s K-12 schools.