SACRAMENTO, Calif.—Vehicle owners in California would receive $400 debit cards from the state under a proposal unveiled by Gov. Gavin Newsom as part of an effort to provide relief from skyrocketing gas prices, especially in the Golden State, which has the country’s highest prices.
Under Newsom’s proposal, Californians would receive a $400 debit for each registered vehicle they own, with a limit of two. According to the governor’s office, the average motorist pays about $300 in gasoline excise taxes each year.
There is no income limit on receiving the cards under the plan.
The rebate program will cost a total of $9 billion. Newsom also proposed $2 billion in other measures that include:
- $750 million to provide grants to transit agencies to offer free rides for three months
- $600 million to pause a portion of the sales tax on diesel fuel for a year
- $523 million to pause inflation adjustments to gas and diesel excise tax rates
“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Newsom said in a statement.
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