California will begin sending residents direct payments of up to $1,050 to help combat rising inflation, according to reports.
The one-time payments, part of the Middle Class Tax Refund, are expected to begin as soon as Friday. The plan will disburse $9.5 billion among 17 million California households over the next few weeks, according to ABC 10.
Individuals who are current residents of the state and filed their 2020 taxes by Oct. 15, 2021 and were residents for more than half of the 2020 tax year are eligible for the payments. Other qualifications include making less than $250,000 per year for individuals filing separately while couples need to make less than $500,000.
BEVERLY HILLS, CALIFORNIA – SEPTEMBER 07: Governor of California Gavin Newsom speaks onstage during Vox Media’s 2022 Code Conference – Day 2 on September 07, 2022 in Beverly Hills, California. (Photo by Jerod Harris/Getty Images for Vox Media)
While some individuals may receive $1,050, others may get around $200, according to ABC 10.
Democratic California Gov. Gavin Newsom signed a $308 billion state budget in June to deliver tax relief.
“California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,” Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon said in a joint statement in June. (RELATED: Stocks Tumble On The Heels Of Another Disastrous Inflation Report)
“The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians,” the statement continued. “Twenty-three million Californians will benefit from direct payments of up to $1,050.”
California is one of several states sending out inflation relief checks according to ABC7. Critics, such as Harvard Professor Jason Furman, have warned that in California’s case, the checks may make inflation worse.
Inflation has risen nationwide, with the average cost of groceries jumping 13.5% in August, the highest rate since 1979. Inflation remained near historic highs in August at 8.3%, with so-called “core inflation,” which excludes food and energy as they are typically more volatile, jumping to 6.3% from 5.9%. The number of Americans living paycheck-to-paycheck climbed to 60%.