Democratic California Gov. Gavin Newsom is close to striking a deal with the state legislature that would give taxpayers hundreds of dollars in gas rebates.
The proposed plan, supported by both Newsom and state legislative leaders, would hand out rebates to taxpayers making under $250,000.
Negotiations are expected to run into the weekend as lawmakers finalize a budget for the project.
The current proposal, which is expected to change, earmarks approximately $10 billion to the gas rebates.
Individuals making under $75,000 annually will receive $350 in rebates. Individuals making under $125,000 will get $250, and individuals making under $250,000 will receive $200.
People making more than $250,000 will not receive a rebate. California has the highest gas prices in the nation. As of June 23, the state’s average price for a gallon of gas was $6.35, according to AAA.
Inflation accelerated again in May, the federal government reported earlier this month, with the consumer price index rising by 8.6%, much higher than economists expected. It marks the fastest pace of inflation since December 1981, underscoring just how strong inflationary pressures in the economy still are.
Scorching-hot inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food, gasoline and rent. The burden is disproportionately borne by low-income Americans whose already-stretched paychecks are heavily impacted by price fluctuations.
The White House is taking steps ahead of the midterms to quell voter unrest over surging inflation by signaling that Biden understands what U.S. households are enduring and that officials are maximizing efforts to bring prices under control.
But Republicans said in a Friday report that the White House has made little effort to quantify the financial pain that inflation has imposed on millions of Americans, citing their own analysis that suggests the average household had to spend an extra $569 in April to afford the same amount of goods and services it bought in January 2021.
FOX Business’ Megan Henney contributed to this report.