Governor Gavin Newsom, Senate President Pro Tempore Toni G. Atkins, and Assembly Spokesman Anthony Rendon announced yesterday that they have reached an agreement on a package of emergency measures that will expedite the necessary relief for individuals, families and businesses that are under Major economic problems are suffering hardship from the COVID-19 recession.
The compromise builds on the initiatives in the governor’s proposal on the state budget to relieve low-income Californians from cash, increase aid to small businesses, and waive license renewal fees for companies affected by the pandemic. In addition to these measures, the agreement provides tax breaks for businesses, provides additional resources for critical childcare services, and funds emergency financial aid for community college students.
“As we continue to battle and recover from the pandemic, I am grateful that the Legislature Partnership provides California families and small businesses with urgent help and support where they are most needed,” said Governor Newsom. “From childcare to small business venture relief to direct cash assistance for individuals, financial assistance for community college students, and much more, these efforts are vital to the millions of Californians who embody the resilience of the California spirit.”
“We have been in this pandemic for nearly a year and millions of Californians continue to feel the impact on their wallets and bottom line,” said Senate President Pro Tempore Atkins. “Companies are fighting. People find it difficult to make ends meet. This agreement builds on and in many ways improves upon Governor Newsom’s proposal so that we can deliver the kind of immediate relief that families and small businesses urgently need right now. People are hungry and hurt, and companies that have loved our communities for decades are in danger of closing their doors. We are at a critical moment and I am proud that we have come together to give the Californians the relief they need. “
“The Californians were injured,” said spokesman Rendon. “Our response addresses the human and economic impact of COVID in a way that mirrors President Biden’s American rescue plan and helps those who are most injured. We are creating an economic foundation for job restoration, small business and indeed our everyday lives. “
Separately, the governor and lawmakers said discussions will continue on measures to safely reopen state K-12 schools, including strategies to address the learning loss caused by the pandemic.
The key provisions of the agreement are as follows:
Direct relief for individuals and families
The agreement includes the governor’s Golden State Stimulus Plan to support California households that have borne the disproportionate economic burden of the COVID-19 recession – those with incomes below $ 30,000 as well as those wrongly excluded from previous federal stimulus payments .
The agreement provides a one-time relief of $ 600 for households receiving the California EITC for 2020. Additionally, the agreement provides for a one-time payment of $ 600 for taxpayers with individual tax identification numbers (ITINs) excluded from receiving the $ 1,200 per person payment issues last spring and recent payments of $ 600. The agreement would provide the $ 600 payments to households with ITINs and incomes below $ 75,000. ITIN taxpayers who also qualify for the California EITC would receive a total of $ 1,200. Payments will be made to these households shortly after filing their 2020 tax returns.
The agreement extends that original plan to include more help for lower-income Californians through a one-time grant of $ 600 for households participating in the CalWORKS program, as well as recipients of SSI / SSP and Immigrant Cash Assistance (CAPI ). Grant payments for CalWORKS households are expected by mid-April. The timing of SSI / SSP and CAPI grants is currently being discussed with federal officials.
Taken together, the agreement includes a total of 5.7 million payments to low-income Californians.
Instant relief for small businesses quadrupled
The agreement reflects a quadrupling of grants of up to $ 25,000 for small businesses affected by the pandemic, from $ 500 million to over $ 2 billion. In addition, US $ 50 million will be made available for cultural institutions.
The agreement also partially aligns California tax law with the new tax treatment of loans through the Paycheck Protection Plan, allowing companies to deduct up to $ 150,000 in expenses covered by the PPP loan. Any company that has borrowed $ 150,000 or less could maximize its withdrawal for government purposes. Larger companies that have taken out larger loans are still subject to the same $ 150,000 deductibility limit. California small businesses have raised more than 750,000 PPP loans. This tax treatment would extend to the catastrophe loans for economic injury.
Fee waiver for most affected licensees
The agreement provides a two-year fee relief for approximately 59,000 restaurants and bars licensed by the state Department of Alcohol Control, which can range from $ 455 to $ 1,235 annually. The agreement also reflects fee reductions for more than 600,000 hairdressers and beauticians who are licensed through the Department of Consumer Affairs.
More resources for critical childcare
The agreement calls for just over $ 400 million in new federal funding that provides grants of $ 525 per child enrolled to all government-subsidized childcare and preschool providers who care for approximately 400,000 children in subsidized childcare nationwide. The new federal funds will extend the care of children of essential workers until June 2022 and improve access to subsidized childcare for more than 8,000 children of essential workers and children at risk – who are currently not cared for in the system – until June 2022.
Additional help for individuals and families
The agreement provides an additional $ 24 million in financial assistance and services through Housing for the Harvest – a program to assist farm workers who are in quarantine due to COVID-19. The agreement also provides a combined total of $ 35 million for food banks and diapers.
Emergency financial assistance to support community college students
The agreement provides an additional $ 100 million in emergency financial aid for qualified, low-income students promoting six or more units. The premium amounts must be determined on site and made available by the beginning of April. The agreement also provides $ 20 million to re-engage students who either left their community college degree because of the pandemic or to recruit students who are at risk of leaving.
Contacting CalFresh students and support with applications
The agreement provides approximately $ 6 million to support public relations support and application for students at the University of California, California State University, and California Community College who are new to CalFresh – the federally administered supplementary food aid program – come into question. The agreement also provides US $ 12 million in government funding to support the county’s administrative workload.
The agreement also contains the following provision:
Restoration of discounts
Effective July 1, the agreement restores previously enacted cuts for the University of California, California State University, the Justice Department, childcare services, and middle-income homes.
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