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Gov. Gavin Newsom signs SB 87 into law on February 23, 2021. (Photo: Twitter)

Gov. Newsom Signs $7.6 Billion COVID-19 Economic Relief Package Into Law

$600 checks will be going out to 5.7 million Californians

By Evan Symon, February 23, 2021 2:38 pm

On Tuesday, Governor Gavin Newsom signed a $7.6 billion COVID-19 economic relief package less than a day after it had passed both the Senate and Assembly.

The relief package, known through it’s bill designation as Senate Bill 87, focuses on aid for those hit hardest during the COVID-19 pandemic, with different parts of the bill divesting relief to low-income Californians, immigrants who are not yet citizens but pay taxes, small business owners, those who receive Supplemental Security Income (SSI/SSP), food banks, college students, parents who need child care, and agricultural workers.

“Together with Senator Toni Atkins (D-San Diego) and Assemblyman Anthony Rendon (D-Lakewood), we just signed our Immediate Action Budget bills to get Californians the relief they need from the COVID-19 recession,” the Governor’s Office Tweeted  on Tuesday. “$7.6 billion in relief is coming to families, small biz & those who need it most.”

The largest part of the relief package are $600 checks set to go to 5.7 million low-income or needy Californians, totaling to $3.42 billion. According to the relief package, those receiving the checks include Californians who have the following:

  • Incomes lower than $30,000 a year who receive the earned income tax credit (EITC)
  • Were not included in federal stimulus payments, such as non-citizens with federal Individual Tax Identification Numbers (ITIN)
  • ITIN taxpayers who make under $75,000 a year. If they meet the previous requirement as well, recipients will receive $1,200.
  • Are currently enrolled in CalWORKS
  • Receive Supplemental Security Income (SSI/SSP)
  • Are currently enrolled in the Cash Assistance Program for Immigrants (CAPI)

Another large part of the relief package totaling $2 billion approved Tuesday was grants for small businesses. The grants will be given to individual small businesses, nonprofits, and cultural centers based on several factors such as size and need, with amounts per place to be in the range of $5,000 to $25,000. Originally planned at only $500 million, the amount was quadrupled at the urging of lawmakers from both parties due to the high number of currently struggling small businesses across the state.

The other divested relief package funds include $400 million to help enroll and pay for state-subsidized child care, $126 million to college students for financial aid, re-enrollment, and extended CalFresh assistance, $24 million to support agricultural workers who had to quarantine, and $35 million to food banks across the state.

Not included in the bill was a $2 billion section that would have given loan deductions for small businesses who took out Paycheck Protection Plan (PPP) covered loans during the pandemic, as well as waive state fees for restaurants, bars, barber shops, cosmetology businesses, and other similar businesses. Originally planned to be included in the package, amendments over the section had been changed to allow for more than $150,000 to be deducted. With the full amount now totaling over $2.3 billion, the now separate loan deduction section is expected to be voted on in both houses sometime next week.

The new California relief package

At the signing at Solomon’s Deli in Sacramento on Tuesday, Governor Newsom specifically noted the help that small businesses need during the pandemic, highlighting a point that had been touted by Republicans since the pandemic began.

“The backbone of our economy is small business. We recognize the stress, the strain that so many small business have been under,” said Newsom after signing the package into law. “And we recognize as well our responsibility to do more and to do better to help support these small businesses through this very difficult and trying time.”

State Senator Scott Wilk (Photo: Kevin Sanders for California Globe)

Democratic and Republican lawmakers alike also showed support for SB 87, with the package being passed unanimously on Monday in both houses.

“Every legislator could tell a personal story about a business that has shuttered its doors permanently because of the state’s confusing guidelines,” Senate Republican Leader Scott Wilk (R-Santa Clarita) said on Monday. “California has already lost more than 19,000 businesses or non-profits because of the state’s confusing guidelines and many more are in precarious situations. This won’t undo the damage caused by the shutdowns, but it will provide a definite boost in the arm for our job creators and non-profits. A win for bipartisanship is a win for our small business community because good ideas shouldn’t have party lines.”

Despite the large amount of support to get the package passed, some did note that the package may have more political heft, especially later this year.

“Governor Newsom right now is fighting to keep his job,” tax consultant and stimulus watchdog William Erving told the Globe. “This is a large amount of money going to those who need it the most and who have been severely affected by the coronavirus pandemic. Coincidently, these are also among some of the people most pissed off at Newsom right now. There is genuine want to help here, but at the very lest, this is also a low-risk way to try and win some of those people back before the end of the recall petition deadline or further down the line to the recall election. You can bet he’ll be touting this before the Gubernatorial in 2022, or if it happens, before the recall this year.”

The $7.6 billion in relief is expected to be divested in the coming weeks.

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18 thoughts on “Gov. Newsom Signs $7.6 Billion COVID-19 Economic Relief Package Into Law

  1. So non-citizens with federal Individual Tax Identification Numbers (ITIN) will all get checks for $600? Ugh. Both Democrat and Republican lawmakers alike also showed support for SB 87, with the package being passed unanimously on Monday in both houses? Ugh, California’s Republican party is full of useless RINOs?

    1. No, people making less that 75k with ITIN numbers get 1,200 dollars. US citizens making less than 30k get the 600 dollar checks.

  2. Had this child in a man’s suit actually followed science, he would have opened California months back and this would be moot. It is an additional welfare hand out to his protected class, illegal aliens. And where pray tell does 7.6 billion dollars magically appear from when the taxpayers have not been working?

    1. If the money does not rain from heaven just print more of it. Just as Pochahantis says “There is always money”.

  3. Where is THIS latest batch of magical fairy dust helicopter money going to come from???

    Your & my taxes, that’s right….

    The solution becomes clearer by the day….

  4. This Gruesome is a menace; worse than most, in fact. We’ve known that for a long time; way WAY before he was installed as CA Governor. Now more people than ever have seen it with their own eyes. Sign and send the petition today, please; the guy needs to be “uninstalled” from office.

  5. CITIZEN tax money to FOREIGNERs who are NOT HERE LEGALLY in violation of FEDERAL LAWS

    aiding, abetting, and harboring laws are being punk’d by governor

  6. In Newsom’s kingdom, this is equitable. It really reflects how leftist policies work…
    He orders the state shut down for a year, which forces businesses to close, families forced into food bank lines, property owners to relinquish their income but still pay property taxes.
    Then he stands before us all and hands our hard earned money out to all, a pittance mind you and you are suppose to be grateful for it! Kiss the ring and you shall be rewarded.
    Imagine, the rush for him. Only a tyrant and his minions would behave this way. Hugo Chavez would be so proud that his playbook is being followed in the United States of America!

    The shear audacity to use a small deli as his back drop is just the perfect optic for this out of touch elitist politician! ????

    1. Great points throughout, Cali Girl. As usual.
      YES, the tired old repetitive song: Put people in a bad position, then blame them for it, then offer “help.”
      With any luck the silver lining of our shared COVID-aftermath ordeal will be that seeing this nonsense and experiencing it ourselves can teach the lessons we need to learn like nothing else.

      1. Thank you ShowandTell. I hope you are right about the silver lining. History is a good teacher. I hope our fellow Californians understand how we all got here and to never repeat the mistakes of this current one party dominated legislature.
        Where there is life there is hope.

  7. Comrades
    inflation coming. 600 bucks will get ya a box of cornflakes and six pack of Mountain Dew soon….
    So sad…..anything to keep power Deplorables….anything…..

  8. This POS is nothing but a LIAR!! He’s trying to win people back so he doesn’t get recalled and if he wins he’ll go right back to doing what he does best DICTATE!! OPEN CALIFORNIA COMPLETELY DICK AND WE WON’T NEED YOUR BULLSHIT MONEY!!!!!

  9. Amazing. Newsom causes all these problems and hardships, now wants to be recognized for throwing crumbs in succor. I’m not getting anything from this. Recall Newsom!

  10. Newscum is the living embodiment of the Hegelian Dialectic: Cause the PROBLEM > Wait for REACTION > Propose SOLUTION. This bum needs to be thrown out on his ear ASAP. Giving legal taxpayers money to illegal aliens! What nerve! And he still thinks he’ll get away with it. This recall has to be successful, there’s no other way to begin to right this state (no pun intended). I’m sick of seeing his greasy hair and smirk!

  11. And the bankers come calling….Mortgage foreclosure approaching, Lost my job due to CA Shutdown, Native Californian. NO Help for this Single WHITE Female, NO Dependents, NO Children in the home, NOT Pregnant, NOT Undocumented, Served eight years in the military, NEVER on welfare, NEVER received food stamps…ZERO HELP, NOTHING, NADA, ZIP, ZERO..!!!
    It sure is COLD OUT THERE….

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