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New stimulus checks are coming – if you live in this state

Published May 11th, 2021 1:49PM EDT
New stimulus check
Image: cabania/Adobe

California’s leadership just did what the US federal government can’t right now because of political gridlock — propose an all-new round of stimulus checks. Of course, the new round of payments is only for citizens of the Golden State.

In public remarks on Monday in the city of Oakland, California Governor Gavin Newsom proposed a second wave of $600 stimulus checks, part of his plan to give $8 billion in cash payments to millions of California residents. This will be made possible thanks to the governor’s $100 billion economic recovery plan supported by a large budget surplus and an apparent windfall in state tax revenue. And his plan doesn’t just stop at a new round of one-time stimulus checks — he’s also promising to increase rent assistance (to the tune of $5 billion), as well as some $2 billion in cash payments to struggling Californians who’ve gotten behind on their utility bills.

The original wave of $600 stimulus checks that Newsom proposed was part of an earlier $9.6 billion relief package that included the direct payments to lower-income Californians as well as those who were “unfairly excluded from previous federal stimulus payments.” Among other things, according to the governor’s website, that relief package funded an estimated 5.7 million stimulus checks for California residents. “Direct stimulus checks going into peoples pockets and direct relief — that’s meaningful,” Newsom said this week during his visit to a nonprofit in Oakland’s Fruitvale neighborhood.

As far as this new round of proposed stimulus payments, some important additional details to know:

  • The plan would provide financial aid to some two-thirds of California residents.
  • The proposal, which requires approval from the state legislature, would make the new stimulus checks available to households earning up to $75,000 in adjusted gross income.
  • This plan is bigger than $600 stimulus checks. Newsom also wants families with children to get an additional $500.

The governor’s office is describing this plan as also including the largest state tax rebate in American history. “California’s recovery is well underway, but we can’t be satisfied with simply going back to the way things were,” Newsom said in a press release about the stimulus proposal. “We are tripling the Golden State Stimulus to get money in the hands of more middle-class Californians who have been hit hard by this pandemic. Two in three Californians will receive a check from the state and more than $5 billion in aid will be made available to those who need help paying their rent or utility bills.”

This proposal is being called the “California Comeback Plan” and the biggest economic recovery package in the state’s history. As part of it, the state would also offer “the largest renter assistance package of any state in America, with billions of dollars to help low-income Californians pay back 100 percent of their back-rent, their rent for the months to come and overdue water and utility bills.”

Andy Meek
Andy Meek Trending News Reporter

Andy Meek is a reporter who has covered media, entertainment, and culture for over 20 years. His work has appeared in outlets including The Guardian, Forbes, and The Financial Times, and he’s written for BGR since 2015. Andy's coverage includes technology and entertainment, and he has a particular interest in all things streaming. Over the years, he’s interviewed legendary figures in entertainment and tech that range from Stan Lee to John McAfee, Peter Thiel, and Reed Hastings.