On Feb.17, Governor Gavin Newsom announced a new crisis stimulus package, 9.6 billion to help with economic recovery, aiding low income individuals and small businesses. The package provides a $600 stimulus check for low income families (approximately 5-6 million individuals) and grants for small businesses ranging in $5,000-$25,0000 in California to help the financial hardships that they bore during the COVID-19 pandemic.
As we quickly approach one year from the initial shutdown last March in the memorable year of 2020 we continue to fight against the pandemic in 2021.
“I am grateful for the Legislature’s partnership to provide urgent relief and support for California families and small businesses,” said Newsom.
Since the pandemic began, California has suffered immense economic hardship, along with the rest of the world. Millions of Americans were out of work due to the shutdown, some small businesses even left permanently.
“California’s unemployment rate jumped from a historically low 3.9% to 5.3% in March,”Public Policy Institute of California wrote.
Last month is when Newsom had proposed the $600 payments for Californians, costing roughly $2.3 billion dollars. Only one month later he announced the follow through of the stimulus checks to low income families in California.
“…[would] go to people including those receiving the California earned income tax credit for 2020… taxpayers with individual tax identification numbers who did not receive federal stimulus payments and whose income is below 75,000,” stated the Los Angeles Times
The stimulus package awaiting to be received by many Californian families follows along the path of President Biden’s American Rescue Plan. A two step plan meant to rescue and recover, helping lead into a more secure America, first step is to address the pandemic and then provide financial relief to those who need it most.
A budget committee hearing is to be expected as early as Thursday, Feb. 18. With the potential proposal vote next Monday, the 22.
“NEW: 5.7 million Californian’s will be receiving $600 stimulus checks from the State of California,” Tweeted Newsom.
Once the stimulus checks are signed and approved in law the distribution process will vary between all different groups suitable. Now, the 9.6 billion proposal is not just for individuals and families, it is also to provide a slight relief to small businesses.
“We can provide the kind of immediate emergency relief that families and small businesses desperately need right now,” said Senate President pro Tempore Atkins.
Families and individuals of low income as well as beloved small businesses are hopeful for the stimulus package Newsom has proposed.Many see this as a sign of hope and California’s much needed relief to help fight the pandemic.