Gov. Gavin Newsom said he would sign into law
SACRAMENTO, California. – California lawmakers on Monday cleared the way for 5.7 million people to receive at least $ 600 in one-time payments, a state-sized coronavirus relief package aimed at helping low-income people weather What they hope is the last is the foot of the epidemic.
The state legislature on Monday passed the bill with a huge margin, moving faster than its counterparts in Congress, who are also considering another round of incentive checks for the nation.
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Gov. Gavin Newsom said he would sign into law on Tuesday. Those who are eligible for the money should receive it, according to the Franchise Tax Board, between 45 days and 60 days after receiving their state tax refund.
One of those people is Judy Jackson, a 75-year-old former teacher and survivor of cancer, who spends about $ 1,000 a month away from other government programs. Jackson said she would use the money to buy a freezer so she could deliver food to her home and avoid shopping for groceries during the epidemic.
“Mostly at the end of the month I’m worried about whether the money is going to run out before the month,” Jackson said, adding that he is at high risk for COVID-19 due to his age and underlying number of health conditions. “It would be possible to have a little something extra and maybe buy an ice cream occasionally.”
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The incentive payment is part of a broader aid package that the state legislature approved on Monday for $ 7.6 billion. It includes more than $ 2 billion in grants for small businesses, pays business fees of $ 25.6 million for struggling restaurants and hair salons, and $ 30 million for food banks and $ 5 million for diaper banks. Does.
Incentive checks target fewer people than federal incentive payments last year. About 2.3 billion dollars will go to those who claim and receive California earned income tax credits. In general, people who make $ 30,000 per year or less.
Another $ 470 million will go to those who earn a maximum of $ 75,000 per year after deductions and use an individual taxpayer identification number to file their income taxes. These are mostly people who do not have social security numbers including immigrants.
Some people fit both of those categories. In those cases, they would get $ 1,200, not $ 600. The Democratic-controlled state Legislature did so because most people who file their taxes in this way are immigrants who were not eligible for a federal stimulus check approved by Congress last year.
Approximately $ 993 million will go to state programs targeting low-income families, the elderly, the blind, and the disabled.
California has the money to do so because the state – the nation’s most populous with about 40 million residents – has a lot of wealthy people who have been less affected by the epidemic and continue to pay taxes.
California lost 1.5 million jobs last year, mostly low-paid in the hospitality and restaurant industry. Meanwhile, employment among those who earn $ 60,000 a year or more increased last year as people transitioned from home to work.
The result is an estimated $ 15 billion one-time surplus to spend in California this year, a number that could increase more later this year once more people file their tax returns.
“We need to accept that this epidemic has not killed all of us equally,” said State Assembly Joaquin Aramula, a Democrat from Fresno.
California has some of the most stringent coronovirus trade regulations in the country, banning indoor food in most parts of the state and ordering retailers to limit the number of people allowed inside their stores.
Last year, Newsome used its emergency authority to set aside $ 500 million for grants of up to $ 25,000 for small businesses affected by the epidemic. But in the first round of funding, the state received more than 334,000 applications, totaling more than $ 4.4 billion in grant funds.
On Monday, the Legislature added $ 2 billion to that program. Businesses with between $ 1,000 and $ 2.5 million in revenue are eligible, and must be open or at least have a plan to reopen if they have permission.
Assemblyman Mike Jipson, a Democrat from Carson, said that small businessmen in his district are “praying for answers.”
“This is the answer to their prayers,” he said.
But some Republicans criticized Newsom for “hurt and harm” when voting for the bill, ordering businesses statewide during the height of the epidemic that caused businesses.
“This bill was not as big today,” said Assemblyman James Gallagher, a Republican from the city of Yuba. “This governor arbitrarily and unilaterally decided to shut down most of the small business in this state. As a result, many businesses have already gone out of business and this should be a problem for every one of us.”