CA Gov. Gavin Newsom proposes $400 debit cards for car owners amid record-high gas prices

• CA Gov. Gavin Newsom has proposed a bold funding package amid record-high gas prices in California.
• Registered car owners could receive $400 debit cards to use for gas, and transit could be free for 3 months.

California Gov. Gavin Newsom unveiled a new proposal on Wednesday to provide California car owners with $400 debit cards as gas prices have hit record highs in the Golden state.

"We're taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin's invasion of Ukraine," Governor Newsom said in a press release. "But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation – providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects."

According to AAA, the average price of gas per gallon in California is $5.875 while the national average is $4.237.

Newsom said that registered car owners in the state could qualify for tax refunds in the form of $400 debit cards to use for gas. Individuals would be able to qualify for payments for up to two cars as part of the proposed $11 billion dollar investment.

The funding package will need to pass through the California state legislature, and payments could be sent as soon as July.

The proposed payments are not based on income but car registration status. In the package, Newsom also proposed funding to make transit and rail agencies free for Californians for three months.