Gov. Gavin Newsom proposed that owners of registered vehicles in California will be eligible to receive at least $400 per vehicle with a maximum of two cars and three months of free public transportation to combat the cost of gasoline.
"We are taking immediate action to put money directly into the pockets of Californians facing higher gas prices as a direct result of Putin's invasion of Ukraine," Newsom said.
His proposal includes three months of free public transportation, promoting clean energy transportation, quick incentives for electric vehicles and charging stations and new funding for local biking and walking projects.
Newsom's proposal calls for $9 billion in tax refunds to Californians in direct payments of $400 per vehicle, limiting two cars. This package also provides $2 billion in broader relief.
The tax refund will take the form of $400 debit cards for registered vehicle owners, and individuals will be eligible for up to two payments. An average California driver spends approximately $300 in excise taxes on gasoline.
The proposal provides up to two $400 rebates per vehicle for owners to support families with more than one vehicle. In addition, eligibility will be for vehicle registration, not tax records.
Newsom proposed $750 million in incentives for transit agencies and railroads to provide free transit to Californians for three months.
As a result, roughly 3 million Californians a day who take the bus, subway, or light rail won't have to pay a fare each time they ride.
He also proposed up to $600 million to pause a portion of the diesel sales tax rate for one year, and $523 million to pause the inflationary adjustment to gas and diesel excise rates.
"The Newsom administration will meet with the Legislature to negotiate the proposal's details in the coming days. Once approved by the Legislature, the first payments could begin as early as July," Newsom's press office reported.
