This “Immediate Action Agreement” is part of a $9.6 billion economic package.
On Wednesday, Governor Gavin Newsom and other legislative leaders announced that they had reached an agreement on a COVID-19 economic relief package. The $9.6 billion package will provide low-income Californians with $600 one-time stimulus checks to help mitigate the impacts of the pandemic. It also includes $2.1 billion in grants for small businesses, child care stipends and financial relief for college students.
“As we continue to fight the pandemic and recover, I’m grateful for the Legislature’s partnership to provide urgent relief and support for California families and small businesses where it’s needed most,” Newsom said in the announcement.
The agreement provides $600 to households receiving the California EITC for 2020, taxpayers who were excluded from receiving the $1,200 per person federal payments issues and households with an income below $75,000. These payments are expected to be made after 2020 tax returns have been filed.
Additionally, the package adds over $400 million in new federal funds, providing stipends of $525 per enrolled child for all state-subsidized child care and preschool providers.
“We’re nearly a year into this pandemic, and millions of Californians continue to feel the impact on their wallets and bottom lines. Businesses are struggling. People are having a hard time making ends meet. This agreement builds on Governor Newsom’s proposal and in many ways, enhances it so that we can provide the kind of immediate emergency relief that families and small businesses desperately need right now,” said Senate President pro Tempore Atkins.
“People are hungry and hurting, and businesses our communities have loved for decades are at risk of closing their doors. We are at a critical moment, and I’m proud we were able to come together to get Californians some needed relief.”
[Featured image: California Governor Gavin Newsom via Twitter]