SACRAMENTO—As inflation increases, Gov. Gavin Newsom proposed an $18.1 billion Inflation Relief Package May 12 that includes direct payments to state residents.

“This inflation relief package will help offset the higher costs that Californians are facing right now and provide support to those still recovering from the pandemic,” Newsom said in a statement.

The following is included in the package, according to the news release:

• $11.5 billion in tax refunds, including $400 checks to every registered vehicle owner in the state, capped at two checks per individual


• $2.7 billion for an emergency rental assistant for low-income tenants who sought state rental assistance prior to March 31


• $1.4 billion to assist residents with past-due utility bills, including $1.2 billion dedicated to electricity bills and $200 million for water bills


• $933 million for hospital and nursing home staff, including $1,500 to workers who delivered care during the COVID-19 pandemic


• $750 million for free public transit for up to three months


• $304 million for more affordable health coverage for middle-class families, including for families of four earning up to $166,500 annually


• $439 million to halt the diesel sales tax for 12 months


• $157 million to waive preschool and childcare fees for low-income families—resulting in $595 in savings per month per family

Aside from the $18.1 billion package, minimum wage is expected to increase to $15.50 per hour beginning Jan. 1, 2023, according to the governor’s office.

The proposal will have to be voted upon by lawmakers before passing.