Gavin Newsom to Fight Inflation by Spending Another $18.1 Billion

California Governor Gavin Newsom (D) is proposing to fight inflation by spending an additional $18.1 billion from the state’s budget surplus, adding money to the economy at a time when there are “too many dollars chasing too few goods.”

In a plan unveiled Thursday, Newsom’s office released several spending proposals to help Californians with high prices. Many of these are simply redistributive policies that spread money among key Democratic political constituencies, such as nursing staff:

• $11.5 Billion for Tax Refunds to Help Address Inflation. As the entire country faces increasing costs due to inflation, Governor Newsom proposed getting $400 checks to every eligible registered vehicle owner, capped at two checks per individual.
• $2.7 Billion for Emergency Rental Assistance. Governor Newsom is proposing significant state funds for qualified low-income tenants who requested rental assistance before March 31, helping these Californians get the support they need.
• $1.4 Billion to Help Californians Pay Past-Due Utility Bills. As Californians continue to face difficulties in paying for utility bills, this investment expands upon last year’s utility relief program to continue this vital support – $1.2 billion for electricity bills and $200 million for water bills.
• $933 Million for Hospital and Nursing Home Staff. Providing up to $1,500 to hospital and skilled nursing facility workers who have been delivering care to the most acute patients during the COVID-19 pandemic and saved thousands of lives.
• $750 Million for Free Public Transit. Governor Newsom is proposing incentive grants to provide three months of free public transportation for communities throughout the state.
• $304 Million to Make Health Coverage More Affordable for Middle-Class Families. This extends health insurance premium assistance under Covered California for families of four earning up to $166,500 annually, upwards of 700,000 Californians.
• $439 Million to Pause the Diesel Sales Tax. Bringing relief to the commercial sector and drivers, Governor Newsom is proposing a 12-month pause in the sales tax rate for diesel fuel that would provide upwards of $439 million in relief.
• $157 Million to Waive Child Care Fees for Low-Income Families. Making state-subsidized preschool and child care more affordable, benefitting 40,000 low-income California families with savings of up to $595 per month.

In addition, Newsom announced that California’s statewide minimum wage of $15 per hour will rise automatically to $15.50 after an inflation provision in the state’s minimum wage law was triggered for the first time since its passage six years ago.

The state’s budget surplus was recently projected to be $68 billion, thanks in part to $26 billion in funding from the federal government for the COVID-19 pandemic. Despite fears of a shortfall in 2020, the state — like others — has a windfall.

Earlier this year, California Democrats allowed the state’s gas tax to continue to increase, and it is scheduled to rise 3 cents in July.

Joel B. Pollak is Senior Editor-at-Large at Breitbart News and the host of Breitbart News Sunday on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET (4 p.m. to 7 p.m. PT). He is the author of the recent e-book, Neither Free nor Fair: The 2020 U.S. Presidential Election. His recent book, RED NOVEMBER, tells the story of the 2020 Democratic presidential primary from a conservative perspective. He is a winner of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter at @joelpollak.