• Matt Esnayra

Gov. Gavin Newsom & legislative leaders reach a deal on 2022-23 state budget

Gov. Gavin Newsom and California legislators have reached a deal on the state's 2022-2023 budget on Sunday, which includes stimulus checks for residents coping with the rising cost of gas and inflation.

Why it matters:

The “centerpiece of the agreement,” is the $17 billion inflation relief package that provides a mixture of tax refunds, direct payments, and the suspension of the state’s diesel sales tax.


In their joint statement, 23 million California residents could receive direct payments of up to $1,050, and KCRA reports those payments would arrive via refunds or debit cards in late October.

  • Under the new budget, the state will be “doubling down in our response to the climate crisis,” but doesn’t provide details outside of preparing for natural disasters and ‘securing’ more electricity for the summer.

  • Starting Oct. 1, the state would be temporarily suspending the diesel sales tax.

On health care, the new budget would invest $200+ million in reproductive health care services and a “$47 billion multi-year infrastructure and transportation package to education and health care.”

  • Officials mention the agreement would include rental assistance to help Californians pay their rent and utility bills.

In between the lines: According to the SF Chronicle’s Sophia Bollag Governor Newsom’s original proposal of sending $400 gas tax refunds to car owners is not going to be a part of the deal.

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