For people who don't have cars, Newsom wants the state to pay for their bus or train fare for three months. His proposal would give $750 million to transit and rail agencies, which Newsom said would be enough to give free rides to 3 million people per day. About $1.1 billion would pay to pause scheduled inflationary increases for diesel and fuel taxes this summer, and another $500 million would pay for projects that promote biking and walking.
“This package is also focused on protecting people from volatile gas prices, and advancing clean transportation,” Newsom said.
Newsom's plan must be approved by the Legislature, where Democrats dominate both the Assembly and the Senate. Democratic leaders, however, don't like the idea of giving money to rich people. They have been discussing their own rebate proposal, one that would give $200 rebates to every taxpayer, and their children, who have taxable income less than $125,000 for single filers and $250,000 for joint filers. That means a family of five would get $1,000 while a single parent with two children would get $600.
“The Senate is focused on ensuring that state money is targeted to those who actually need relief and we look forward to working with Gov. Newsom, Speaker Rendon and our Legislative colleagues to quickly develop a proposal that delivers for struggling Californians,” said state Senate President Pro Tempore Toni Atkins, a Democrat from San Diego.
A spokesperson for Democratic Assembly Speaker Anthony Rendon called Newsom’s idea “consistent with the Speaker’s goal of providing targeted financial relief to Californians most in need,” but stressed that the idea is “in the very early stages.”
Newsom's plan is similar to a separate proposal floated last week by more moderate Democrats in the state Assembly that would give every taxpayer $400, regardless of income. Assemblymember Cottie Petrie-Norris, a Democrat from Laguna Beach who supports that plan, on Wednesday urged the Legislature and Newsom to act quickly.
"The contours of the governor's proposal are a little different than what we proposed, but I would be very happy to support this," she said.
The governor's office said Newsom would be willing to negotiate with lawmakers about who can get the money, a process that could take some time to sort out.
Republicans favor a temporary suspension of the state's gas tax, arguing it's the quickest way to offer relief. Rebates like the ones Newsom is proposing take time to deliver, with the governor's office saying people could see the money by July.
“People need relief now,” said Assembly Republican Leader James Gallagher. “We've got now, like, four different competing plans amongst the Democrats. These guys are going to negotiate against themselves for weeks to months and who knows what we're going to get.”
