“Harnessing the largest surplus in state history, we’re making transformative investments across the board that will help bring all our communities roaring back from the pandemic and pay dividends for generations to come,” Newsom said at the Barrio Action Youth & Family Center in El Sereno.
It provides immediate cash relief to middle-class families and businesses hit hardest by the pandemic, creating the biggest state tax rebate in U.S. history and the largest small-business relief package in the nation, Newsom’s office said in a statement.
Specifically, the package would send funds to small businesses and renters, and to Californians who have an annual income of $75,000 or less.
It also invests roughly $12 billion over two years to tackle the state’s homelessness crisis, Newsom’s office said. In addition, nearly two-thirds of Californians will now qualify for a stimulus check of $600; qualified families with children will receive an additional $500.
The administration noted that the state offers the largest renter assistance package in the country, with $5.2 billion set aside to assist low-income renters and landlords, covering 100 percent of back rent and all prospective rent for “several months into the future.” A further $2 billion is available for past-due water and utility bills and funds for tenant legal assistance.
The package also provides $4 billion in direct grants to the state’s small businesses, on top of the $6.2 billion in tax relief aimed to help small business owners. A $120 million tax credit grant program will also be created to incentivize businesses to relocate to California, Newsom’s office said.