Californians could get up to $1,050 in inflation relief if Newsom, lawmaker agreement holds

Californians could see inflation relief checks of $200 to as much as $1,050 by the fall under a tentative budget agreement between Gov. Gavin Newsom and legislative leaders.

Newsom, Sen. President Pro Tem Toni Atkins, D-San Diego and Assembly Speaker Anthony Rendon, D-Lakewood, have been negotiating over two plans to provide relief funds to Golden State residents struggling with high fuel costs and inflation.

Now, it seems the two parties have reached an initial budget agreement with $9 billion in relief — just in time for the end of the fiscal year on June 30, the Los Angeles Times first reported.

Newsom’s initial proposal involved sending $400 to vehicle owners — up to $800 for two cars — using the Department of Motor Vehicles (DMV) and a third-party vendor.

Democratic leaders wanted to target taxpayers within certain income brackets. They initially proposed sending $200 to all taxpayers earning $125,000 per year, or $250,000 for joint filers. Families would get an additional $200 per dependent.

The tentative agreement, obtained by The Sacramento Bee, shows lawmakers mostly got their way with a plan that doesn’t tie the relief funds to vehicle ownership.

However, some relief dollars will go to earners in higher income brackets — individuals earning up to $250,000 per year and joint filers up to $500,000 will be eligible

A three-tiered relief plan

The package is a three-tiered, income-based system in which those earning less will receive more. About 97.5% of all California taxpayers will be eligible for relief money.

The largest group of 14.2 million, earning $75,000 as individuals and $150,000 as joint filers, would get $350 each and another $350 if they have at least one dependent.

This means joint filers with one or more dependents would get $1,050.

The second tier of 2.1 million taxpayers, earning between $125,000 per individual and $250,000 for joint filers, would get $250 per person and another $250 for at least one dependent, for a total of up to $750.

The last tier of 1.1 million taxpayers, earning $250,000 as individuals and $500,000 as joint filers, would receive $200 per person and another $200 for at least one dependent, for up to $600.

About 500,000 taxpayers, those earning more than $250,000 or $500,000 for joint filers, would not be eligible for relief under the tentative plan.

Agreement still in the early stages

Newsom’s spokesman, Alex Stack, said he had no comment when reached Friday evening.

Katie Talbot, Rendon’s spokeswoman, said his office had no comment at this time.

Niesha Fritz, Atkins’ spokeswoman, declined to discuss details of the deal.

“No tentative agreement is final until all items of negotiations are resolved. Until that point, any tentative agreement can unravel,” she said.

The Senate Budget and Fiscal Review Committee will discuss the state budget, including the inflation relief plan, on Monday, the committee agenda shows.