High gas prices in the US: Californian Governor Newsom proposes $11 billion relief package

Governor Gavin Newsom released the outlines of his plan to provide $11 billion in assistance to Californians facing record-high gas prices, despite the fact that oil and gas firms continue making massive profits.

Furthermore, this proposition expedites $1.75 billion of part of the $10 billion ZEV package for the purpose of passenger cars and the construction of more charging infrastructure throughout the state – particularly for low communities – to further reduce the government's reliance on oil and save Californians cash.

People who own a vehicle registered will receive a tax return in the form of $400, and they will be entitled to up to two instalments. Over the course of a year, the average California driver spends about $300 in fuel excise tax.


The idea offers up to two $400 rebates per vehicle to owners to help households with multiple vehicles. To cover seniors who receive Social Security Disability income and low-income non-tax filers, qualification will be dependent on car registration rather than tax records. The Governor's plan has no income cap so order to cover all Californians who are seeing their rates rise due to rising oil prices.

In the following days, the Newsom administration will meet with legislators to discuss the legislation's specifics. The first payouts might start as soon as July if the bill is approved by the legislature.

Over the last 2 years, Governor Newsom has given Californians billions of dollars in direct relief, including $12 billion in direct checks through the Golden State Stimulus, $5.2 billion in rent relief, and $2 billion in utility relief. Since 2019, the Government and Council have made major improvements to the Earned Income Tax Credit, including extending it to taxpayers with ITINs, extending it to every Californian working at minimum wage, and adding the Young Child Tax Credit. Furthermore, the Governor's historic $37.6 billion climate package offers the funds needed to move the state toward a petroleum-free economy and strengthen the green power sector.