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California's governor proposes $400 debit cards for car owners 

The Governor’s office claims that the package will help alleviate the pressure on California drivers

March 23, 2022 7:36pm

Updated: March 25, 2022 8:06am

California Governor Gavin Newsom released his $11 billion relief package on Wednesday, which includes $400 debit cards for car owners with vehicles registered in the state.

“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” said Governor Newsom. “But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation – providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects.”

The Governor’s proposal includes $9 billion in tax refunds to Californians, which will be distributed as direct payments of $400 per vehicle with a cap of two cars per person.

“Eligibility will be based on vehicle registration, not tax records, in order to include seniors who receive Social Security Disability income and low-income non-tax filers,” the statement added. “The Governor’s proposal does not have an income cap in order to include all Californians who are facing higher prices due to the cost of oil.”

The proposal also includes $750 million in relief for public transportation for three months, $600 million to pause the sales tax rate on diesel, and $523 million to help halt the inflationary adjustment of gas and diesel excise tax.

The Governor’s office claims that the package will help alleviate the pressure on California drivers, who are affected by rising gas prices and spend around $300 on gasoline excise tax every year.

The details of the proposal will be negotiated with the Legislature in the next few days. If approved, the first payments could be handed out in July.