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Millions of Californians to get inflation relief payments as soon as October

Tax filers will get either $350, $250 or $200 based on their income level. A family can receive up to $1,050.

SACRAMENTO, Calif. — 23 million Californians are set to get "inflation relief" payments after an agreement was reached Sunday on the 2022-23 state budget.

"The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians. 23 million Californians will benefit from direct payments of up to $1,050," according to a joint statement from Gov. Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon.

It's meant to come to the aid of people like Dashawn Williams, who has has a four-year-old and another child on the way. 

“It's been hard to afford a lot of things," Williams said. "I mean, honestly, what usually used to be like $30 goes up to $80.”

While he’d like the relief now, he knows exactly what he will spend the money on come October at the earliest. 

“Diapers and food at this point," he said. "Honestly, just the essentials to keep the bills low and just survive.”

The direct deposits are for people who filed tax returns in 2020 and are on a sliding scale of income. The breakdown is as follows:

  • Those who make less than $75,000 a year will get $350. 
  • Those who make less than $125,000 a year will get $250
  • Those who make less than $250,000 a year will get $200. 
  • Taxpayers with dependents will get an additional $350. 
  • The most a family can get is $1,050.

“I think that would be very helpful," said Ray Vargas. "And sounds kind of amazing, honestly.”

Vargas and many others already know exactly what they'll spend it on: essentials. 

“Probably a bill," Barbara McCullough said. "Pay a bill.”

However, those like retirees, who no longer pay income tax, will not get the direct deposit.

“They have to go through the same thing we do that file our taxes," McCullough said. "I think they should be a part of it also.”

The budget does however include additional grant funding for those on the state's Supplemental Security Income Program meant for those 65 and older, disabled or blind. 

What else is in the budget?

Gas Tax

The package will also include a suspension of the state sales tax on diesel, and additional funds to help people pay their rent and utility bills

Climate Change

Funds will go toward securing additional power-generating capacity for the summer, accelerating clean energy in the future, and expanding the ability to prepare for and respond to severe wildfires.

Health Care & Education

California would be the first state to offer healthcare to every resident, regardless of immigration status, as part of a $47 billion multi-year infrastructure and transportation package for education and health care.

More than $200 million will go towards reproductive care services.

Billions of dollars will go toward additional funding for universal preschool, children’s mental health and free school meals.

“In the face of growing economic uncertainty, this budget invests in California’s values while further filling the state’s budget reserves and building in triggers for future state spending to ensure budget stability for years to come," according to a joint statement from Gov. Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon. 

WATCH ALSO: 

Survey: 1 in 3 Californians suffering because of inflation, economy

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