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California Gov. Gavin Newsom unveiled Wednesday that his gas rebate plan could siphon $400 to Golden State drivers as prices at the pump soar to wallet-busting new heights.
Newsom said drivers feeling the pinch would get debit cards as the state average hit $5.88 per gallon – with some Los Angeles neighborhoods charging more than $7 per gallon.
“That direct relief will address the issue that we are all struggling to address and that is the issue of gas prices,” Newsom said in a video posted on Twitter.
Newsom first introduced his gas rebate plan earlier this month during his State of the State address, but on Wednesday he revealed $9 billion of the proposed $11 billion in spending would go directly to drivers.
Eligibility would be based on car registrations and would be capped at two cars per family. There would be no income limit for the rebate program and it would include electric vehicle owners, but would exclude other such as those who don’t own cars.
The package would also provide $750 million in grants for transit agencies to give free rides for at least three months.
Newsom’s proposal also includes $600 million to pay for a “pause” of part of the state’s sales tax on diesel fuel for one year, and another $523 million to stop another inflation adjustment in the state’s gas tax scheduled this summer.
Transportation projects that promote biking and walking would get for $500 million under the Democratic governor’s plan.
Newsom will meet with state legislators to negotiate the details of the proposal in the next few days, the governor’s office said Wednesday.
If approved by the legislature, the first debit card payments for registered drivers could be distributed as soon as July.
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