New Stimulus Checks Approved: Up to $1,050 to Go to Eligible Californians

Another round of stimulus checks up to $1,050 will go to families in need as part of the relief package signed by California lawmakers Monday, June 26, 2022. Around 23 million residents in the Golden State are deemed eligible to receive the relief checks that will help pay for food and gas.

Amid the rising cost of living, Gov. Gavin Newsom said in a statement that the stimulus check would come from the $17 billion inflation relief package that will also include the suspension of taxes on diesel. Part of the budget will also address the climate crisis as the state plans to invest in "power-generating capacity" to improve its response to the yearly wildfires that also impact families and livelihood.

Newsom added that the relief package would include investments in education and health care so that California would be "the first state to achieve universal access" to medical coverage.

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Eligibility for California's 2022 Stimulus Check

The new stimulus check payments will be based on three tiers for single or joint filers. Per CNBC, California single taxpayers may receive $200 for those earning $125,001 to $250,000 per year, $250 for those earning $75,001 to $125,000 per year, and $350 for those earning less than $75,000 per year.

On the other hand, joint filers may get $400 for a combined earning of $250,001 to $500,000 per year, $500 for a combined earning of $150,001 to $250,000 per year, or $750 for those with a combined income earning below $150,000 per year. 

Single or joint filers with one or more dependents will get an additional $200, $250, or $350, depending on their income bracket. Thus, a couple with a joint income of $125,000 who have two children or dependents may qualify for $350 per taxpayer or adult and $350 for the children, totaling $1,050.

Families earning beyond $500,000 a year or single filers with a $250,000 income are no longer eligible for the stimulus check. The latest round of stimulus checks will be distributed from late October 2022 until early 2023 via direct deposit or debit cards.

The suspension of sales taxes for diesel will begin in October as well. Details of the other projects included in this relief package have not been divulged. It is understood that the governor will still iron out the arrangements with the lawmakers. 

Rising Cost of Living Unstoppable

The news comes as California's gas price has reached the highest level of any state in America, according to the American Automobile Association (AAA). The average gas price for California reached $6.30 a gallon as of Wednesday, June 29, while the national average is at $4.87.

Meanwhile, Market Watch reported that America's cost of living rose to 8.6 percent year-over-year in May 2022 and shows no sign of slowing down. Food prices increased by 12 percent for the past year, the highest uptick since 1981. The cost of rent has risen to 5.5 percent in the past year as well, the highest in 40 years.

Economists predict that prices of services, like hotel accommodation and travel tickets, will soon follow the trend.

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