California Legislature

What the Proposed Gas Rebate Would Mean for Californians

NBC Universal, Inc.

California Gov. Gavin Newsom and state lawmakers are hammering out the details on a proposed gas rebate for virtually every driver in the state in the form of gas cards plus some relief for those who don't drive.

The purpose of the rebate is to provide relief for skyrocketing gas prices, which on average across the state were at $5.88 as of Thursday morning, according to AAA.

Here's what state officials are proposing:

  • A $400 gas card for each driver for up to two registered vehicles (up to $800 total)
  • Gas cards to be issued in July
  • Relief package includes free public transit for three months for non-drivers
Governor Gavin Newsom is planning to put $400 back in the pockets of California drivers to ease the pain of high gas prices and it would all come from a relief package that would cost the state $11 billion. Ian Cull explains.

The gas rebate and the $750 million toward free public transit would be funded by the state's $11 billion surplus fund.

Lawmakers feel the rebate is a better option than putting a hold on the gas tax, which is applied at the pump and funnels money to roadway infrastructure.

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