New stimulus checks, rent relief, grants: Gov. Newsom signs more recovery bills

SACRAMENTO — As California emerges from the pandemic, state leaders have approved a $100billion plan to spur the recovery, with checks going out for rent relief, state stimulus payments and grants to businesses.

On Monday, Gov. Gavin Newsom capped a series of recent actions on what he is calling his California Comeback plan by signing budget legislation that will trigger a massive distribution of cash to struggling residents and businesses.

“Harnessing the largest surplus in state history, we’re making transformative investments across the board that will help bring all our communities roaring back from the pandemic — and pay dividends for generations to come,” Newsom said in a statement.

The budget will help the recovery by “providing stimulus checks to middleclass Californians and immediate relief for small businesses” among other initiatives, according to the governor and legislative leaders.

A host of additional measures are expected to get final approval in the coming days, including a program that would provide $500 savings accounts for children of low-income families.

The six budget bills signed by the governor Monday include one that expands the Golden State Stimulus program to provide $600 checks to California taxpayers who make up to $75,000 annually. Another newly signed measure will provide microgrants of up to $10,000 to seed small business creation, as well as direct relief to existing microbusinesses.

Newsom also recently signed legislation extending protections against evictions by three months to Sept. 30 and doubling the amount of rent relief available to $5.2 billion, allowing payment of 100% of back rent for low-income tenants.

The funding was approved as part of a $262.6billion state budget that is overflowing with a $76-billion surplus made possible by a windfall of tax dollars from high-income earners, on top of $27 billion the state is getting from the federal American Rescue Plan.

State agencies are now scrambling to get the money out just weeks after the state lifted coronavirus-related restrictions on most businesses that were imposed more than a year ago.

The timing couldn’t be better politically for Newsom, who is facing a recall election, according to Larry Gerston, professor emeritus of political science at San Jose State University.

“This is a windfall not only for the state, but particularly for the governor,” Gerston said. “At a time he’s facing a voter recall from office, he has bundles to target for the unemployed, renters, small businesses and public education — all of which were hurt in various ways by the pandemic.”