Gov. Newsom proposes $400 rebate for all CA car owners; free public transit for 3 months

KFSN logo
Thursday, March 24, 2022
Gov. Newsom proposes $400 rebate for all CA car owners
EMBED <>More Videos

Gov. Gavin Newsom. announced a new $11 billion proposal aimed at easing the pain at the pump.

With gas prices soaring nationwide and some of the highest prices being seen here in California, Gov. Gavin Newsom announced a new $11 billion proposal aimed at easing the pain at the pump.

As part of the relief package announced Wednesday, all Californians with a registered vehicle, up to two vehicles per person, would receive $400 tax rebates on a debit card. That part of the plan, would cost $9 billion, which would be funded from the state budget surplus.

According to the Governor's office, the average California driver spends approximately $300 in gasoline excise tax over a year.

Newsom also proposed spending another $750 million in grants to incentivize public transit and rail agencies to give Californians free rides for three months.

Another $600 million would be used to pause part of the state's diesel sales tax rate for a year and another $523 million to put a hold on inflationary adjustments made to gas and diesel tax rates.

RELATED: Are California drivers paying a hidden gas fee?

The Governor's office said Newsom is expected to meet with the Legislature to discuss the relief package. If approved, Californians could see payments by July.

VIDEO: Experts give Newsom's gas rebate plan mixed reviews