On Feb 23, Gov. Gavin Newsom signed a legislative package to provide financial relief to low-income California residents. The package builds on Gov. Newsom’s January state budget proposal.
WHO IS ELIGIBLE?
Of the $7.6 billion legislative package, $3.7 billion will be used to provide $600 payments to 5.7 million low-income Californians. In general, it will be allotted to those that earn less than $30,000 a year that claimed the California earned-income tax credit.
Similarly, taxpayers who earn less than $75,000 a year and use Individual Tax Identification Numbers, a tax processing number for certain resident and non-resident workers, will also be eligible for $600. Those who meet the eligibility requirements will receive their payment four to five weeks after filing their taxes.
FEDERAL RELIEF
Along with Newsom’s $600 individual payment relief, President Joe Biden’s $1.9 trillion COVID-19 relief bill, the “American Rescue Plan” is being reviewed by the Senate after the House of Representatives passed it on Feb. 27.
The American Rescue Plan will include $1,400 for most Americans and billions of dollars to schools, businesses and state and local governments. Along with individual relief, the $1.9 trillion proposal will provide $170,000 billion to schools and universities and provide $25 billion for rental assistance. Biden explained that the American Rescue Plan will help stabilize the economy and “relieve the suffering” that the pandemic has caused.
