On Wednesday, California Governor Gavin Newsom announced that his gas rebate proposal might save residents $400.
As the state average hit $5.88 per gallon — with some Los Angeles communities costing more than $7 per gallon – Newsom said drivers who felt the pinch would get debit cards.
In a video posted to Twitter, Newsom said, “That direct relief will address the issue that we are all struggling to address, and that is the issue of gas prices.”
Newsom announced his gas rebate plan earlier this month during his State of the State address but revealed on Wednesday that drivers would receive $9 billion of the proposed $11 billion in spending.
The rebate program would be based on car registrations and capped at two cars per family. It would not have an income limit, and it would be open to electric vehicles owners, but not to those who do not own a vehicle.
In addition, $750 million in funds would be provided to transit agencies to offer free trips for at least three months.
According to Newsom, his proposal also includes $600 million to pay for a “pause“ in the state‘s diesel fuel sales tax for one year and $523 million to stop another inflation adjustment to the gas tax for this summer.
Under the Democratic governor’s plan, $500 million would be allocated to transportation initiatives that promote biking and walking.
The governor’s office announced that Newsom would meet with state legislators in the coming days to discuss the proposal’s contents.
The first debit card payments for registered drivers might be distributed in July if the legislature approves it.
