Gavin Newsom to Fight Inflation by Spending Another $18.1 Billion


California Governor Gavin Newsom (D) is proposing to fight inflation by spending an additional $18.1 billion from the state’s budget surplus, adding money to the economy at a time when there are “too many dollars chasing too few goods.”

In a plan unveiled Thursday, Newsom’s office released several spending proposals to help Californians with high prices. Many of these are simply redistributive policies that spread money among key Democratic political constituencies, such as nursing staff:

* $11.5 Billion for Tax Refunds to Help Address Inflation. As the entire country faces increasing costs due to inflation, Governor Newsom proposed getting $400 checks to every eligible registered vehicle owner, capped at two checks per individual.

* $2.7 Billion for Emergency Rental Assistance. Governor Newsom is proposing significant state funds for qualified low-income tenants who requested rental assistance before March 31, helping these Californians get the support they need.

* $1.4 Billion to Help Californians Pay Past-Due Utility Bills. As Californians continue to face difficulties in paying for utility bills, this investment expands upon last year’s utility relief program to continue this vital support – $1.2 billion for electricity bills and $200 million for water bills.

* $933 Million for Hospital and Nursing Home Staff. Providing up to $1,500 to hospital and skilled nursing facility workers who have been delivering care to the most acute patients during the COVID-19 pandemic and saved thousands of lives.

* $750 Million for Free Public Transit. Governor Newsom is proposing incentive grants to provide three months of free public transportation for communities throughout the state.

* $304 Million to Make Health Coverage More Affordable for Middle-Class … (Read more)