California lawmakers have agreed on a deal that will provide financial aid to millions of low-income residents. Gov. Gavin Newsom announced the decision Wednesday, stating about 5.7 million Californians will receive $600 checks as part of the $9.6 billion “Golden State Stimulus” plan. The COVID-19 relief package will also include $2 billion in grants for small businesses, as well as fee relief for restaurants, bars, barber shops, and salons.
“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 a statement. “From child care, relief for small business owners, direct cash support to individuals, financial aid for community college students and more, these actions are critical for millions of Californians who embody the resilience of the California spirit.”
According to the Los Angeles Times, California residents who qualified for the state Earned Income Tax Credit on their 2020 tax returns are eligible to receive the stimulus checks. Those with an annual income of $30,000 or less typically qualify for that credit, which means the $600 stimulus checks will also be sent to taxpayers with individual tax identification numbers, including undocumented immigrants who did not receive the previous federal stimulus payments.
According to Newsom’s announcement, eligible residents will receive the direct payments “shortly after” they file state taxes this year. As of now, the $600 will be a one-time payment.
Just announced an economic relief package with the Legislature that includes:— Gavin Newsom (@GavinNewsom) February 17, 2021
$2 BILLION in grants for small businesses (QUADRUPLED)
Fee relief for 59,000 restaurants/bars
Fee relief for 600,000 barber & cosmetology businesses
$600 stimulus checks for 5.7 million Californians
The proposed “Golden State stimulus” payments will reportedly be expedited for legislative approval next week. According to the LA Times, the $600 checks will be in addition to the Democrats’ proposed federal payments of $1,400.