Newsom proposes $400 debit cards to all vehicle owners amid gas spike

Gov. Gavin Newsom unveiled his proposal on Wednesday to funnel $11 billion back to taxpayers in the form of $400 debit cards along with three months of free public transportation as lawmakers look to lessen the pain of surging gas prices amid a booming budget surplus.

Under the proposal, registered vehicle owners would be eligible for $400 in payments for each vehicle they own, capped at two vehicles. There is no income limit to the direct cash back program, which would total $9 billion in relief, Newsom’s office said.

“That direct relief will address the issue that we are all struggling to address – and that’s the issue of gas prices,” Newsom said in a video statement.

We’re proposing $9 billion in tax refunds to address rising gas prices — $400 per registered vehicle, up to 2 per person. We’re also proposing grants so public transit can be free for 3 months.

We know Californians are paying at the pump & with this refund, millions get $ back. pic.twitter.com/fNZOT3ds4S

— Office of the Governor of California (@CAgovernor) March 23, 2022

If approved by the legislature, Californians could see debit cards at their doors steps as soon as July.

The package would also provide $750 million in grants to allow transit agencies to provide free transit for three months and over a billion dollars in funding to pause tax increases on diesel fuel and gasoline.

This latest package comes ahead of budget negotiations, with a flurry of proposals from Sacramento aiming to put cash back in Californians’ wallets as gas prices break records on a near-daily basis and the cost of living continues to surge.

Check back for more on this developing story.