Sacramento, CA – Today, the California Assembly and Senate passed its budget for 2022-2023. Economic Security Project Action applauds the commitment of legislative Leaders to provide targeted economic relief to Californians struggling with rising prices, the housing crisis, and the continued impact of the pandemic.
“We are pleased to see major investments to help California’s most vulnerable populations and a commitment to direct payment policies, the most effective vehicles to distribute such relief. The historic surplus presents an extraordinary opportunity to provide relief to millions of people who are struggling with the state’s affordability crisis, rising costs of food, gas, and housing. With California’s investment in direct, targeted cash assistance, the state’s lowest-income families would have the flexibility to respond to their own individual needs. While not all of our priorities were included in the agreement – including a proposal that would support high school seniors struggling with homelessness – California continues to move in the right direction. We urge Governor Gavin Newsom to swiftly sign this deal and give the state’s struggling families the relief they deserve,” said Teri Olle, California Campaign Director at Economic Security Project Action.
The budget passed out of the California legislature invests over $12 billion in policies that can help low-income households afford rent, utilities and child care.
The budget passed by the legislature includes:
- Creating a $255 minimum CalEITC, which would significantly increase the tax credit for 3.1 million low- income taxpayers – including 400,000 families;
- Investing $20 million – double the current spending – to expand access to free tax preparation, so more low-income filers wouldn’t have to pay hundreds of dollars in paid tax prep fees to claim the money they are owed;
- Creating a Foster Youth Tax Credit, which would provide $1,000 to former foster youth;
- Eliminating the $1 earnings requirement for the Young Child Tax Credit (YCTC), which would give relief to families without income who have been excluded from this benefit in the past;
- $8 billion for the Better For Families (BFF) Rebates to provide a $200 credit per taxpayer and dependent, which will help Californians meet increasing costs of goods like food and gas; and
- Creating HOPE Account trust fund accounts for low-income children who have lost parents or caregivers to COVID-19 and long-term foster care.