$600 Stimulus Checks to Go to Majority of People in California

Mandatory Credit: Photo by Marcio Jose Sanchez/AP/Shutterstock (11899778b)California Gov.
Marcio Jose Sanchez/AP/Shutterstock / Marcio Jose Sanchez/AP/Shutterstock

Gov. Gavin Newsom unveiled a new $100 billion proposal Monday for what would result in about $12 billion of direct payments and another $5 billion in renter’s insurance.

See: Millions of Americans Are About to Get $3,600 in New Stimulus — Are You One of Them?
Find: $3,600 Stimulus Payments for Families to Start in July

The governor previewed his “California Comeback Plan,” the largest economic recovery package in the state’s history, as investments to “tackle five of California’s most persistent challenges.”

Acting as a tax rebate, the proposal will provide direct payments to families that make $75,000 and under. Newsom’s office claimed that two-thirds of Californians will benefit from $600 payments under this plan and qualified families with dependents will also be eligible for an additional $500. This sum would be per family, not per dependent.

California is already in the process of sending $600 payments to residents who fall under the $30,000 income bracket, CNBC reports. Those payments went to residents who filed both with social security numbers and individual taxpayer identification numbers. Newsom’s new state stimulus checks will also be available to undocumented residents.

Newsom’s plan also includes $5 billion in assistance for renters. His office claims billions of dollars will be distributed to help “low-income Californians pay back 100 percent of their back-rent, their rent for the months to come and overdue water and utility bills.”

Make Your Money Work for You

Additional details are expected later in the week.

See: Biden to Expand Employee Retention Tax Credit Amidst Weak Jobs Report
Find: Biden Addresses Weak Jobs Report, Announces Initiatives to Boost

The proposal must first pass through the state legislature before payments can begin to be distributed.

According to Richard Auxier, senior policy associate at Urban Brookings Tax Policy Center, California’s income tax structure enabled it to collect levies for the wealthy, “many of whom did really well in the past year, thus creating the budget surplus,” CNBC reported. That money will now pass through to help fund some of the programs Newsom is proposing.

California has a progressive income tax structure, where the wealthiest pay the greatest amount in tax. Other states like New York and Hawaii also have a progressive income tax system, but were hit harder by the pandemic in areas California was not.

More From GOBankingRates

Make Your Money Work for You

About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.