Millions of people in one state will get direct payments of up to $1,050 to help offset the high cost of gasoline and other items.

The payments will be sent to California residents when Gov. Gavin Newsom and legislative leaders achieve an agreement on the framework for the 2022/2023 state budget, according to the governor's office on Sunday.

The idea is to return a portion of California's record-breaking $97 billion budget excess to taxpayers. According to a news release from Newsom's office, 23 million Californians would get payments of up to $1,050 as part of a $17 billion inflation relief plan.

Who Can Claim $1,050 in Gas Tax Rebate?

Those who earn less and have dependents will get higher direct benefits under the deal. Singles earning less than $75,000 per year and couples earning less than $150,000 per year will get $350 per taxpayer, with an additional $350 if they have at least one dependent.

So a married couple earning less than $150,000 a year and having one child would receive $1,050. Singles earning less than $125,000 per year and couples earning less than $250,000 per year would get $250 apiece, with an additional $250 for dependents.

Individuals earning less than $250,000 per year and couples earning less than $500,000 per year would each get $200, plus extra $200 for dependents. The package will also include a suspension of the state's fuel sales tax and more funding to assist California citizens in paying their rent and energy bills.

It has also increased funding for reproductive health care services in the aftermath of the Supreme Court's surprise decision on Friday to overturn Roe v. Wade, the historic 1973 decision that established a constitutional right to abortion, Newsweek via MSN reported.

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Federal Gas Tax Rebate

The White House announced in a June 22 statement that President Joe Biden supported halting the federal gas tax for three months and encouraged individual states to pursue comparable cost-cutting measures, such as consumer refunds and relief payments.

The president told reporters that a statewide gas rebate card program is part of what we're contemplating. According to The Washington Post, the administration originally explored rebate cards in March but found that a computer chip shortage would make it difficult to generate enough cards.

Furthermore, there would be no way to guarantee that users did not use the cards for transactions other than fuel, and gaining congressional backing would be a long shot.

With gas prices nationally hovering around $5 per gallon, politicians are searching for ways to alleviate the agony at the pump. Some states have implemented a gas tax holiday, while President Joe Biden has proposed a federal gas tax moratorium.

Another idea being promoted is a gas stimulus check, which would provide qualified Americans with $100 per month until the end of the year, or for as long as gas prices in their state reach $4 per gallon. The Gas Rebate Act of 2022, proposed in March by Democratic Reps. Lauren Underwood, Mike Thompson, and John Larson is promoting the proposal in Congress.

"Americans are suffering the effect of Vladimir Putin's unlawful invasion of Ukraine at the pump right now, and we must work together on practical policy solutions to lessen the financial burden that my people are facing," Thompson said in a statement on March 17, as per CNET.

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