California's Governor Plans To Help Driving Californians Out With Rising Gas Prices

California Governor Gavin Newsom plans on sending out $400 debit cards to help Californian residents with rising fuel costs.
Written by Serena Aburahma
Reviewed by Kathleen Flear
Updated on Apr 08, 2022
With the effects of the COVID-19 pandemic and the recent conflicts in Ukraine and Russia, gas prices have
risen to an all-time high
and may continue to rise for at least another month. 
California leads the nation with the highest gas prices in the country, which puts a huge damper on
car ownership
in the state. 

What is Governor Newsom's proposal for gas in California?

With the rise in gas prices all over the country, California stands out as one of the highest in the nation for cost of fuel. Currently, the average, according to
, is around $5.83, which changes almost every day. 
Governor Newsom proposes that everyone in the state receive a $400 debit card to help offset the high prices at the pump. Each individual would get one card, but the proposal says it will cap out at two cards per household. 
He also wants to temporarily add $523 million to temporarily halt the adjustment to the gas excise tax and $600 million to stop sales taxes on diesel fuel for one year. 
On top of that, he wants to use $750 million in grants for rail agencies to encourage free rides for Californians for at least three months, according to

What are the requirements, and when will they be implemented?

Every California resident who owns a vehicle qualifies for the debit card if the proposal goes through, with up to two cards per household. There are no income requirements to worry about, as state officials would go by car registration information and not by income taxes or other financial documents. 
As of right now, it needs to be brought to the state legislature to get hashed out with Newsom's administration. If it goes through as intended, the debit cards could go out as soon as July. 
But, some members of the house are concerned that it's too far away and that residents of the state need them mailed out now. 
Because the state already has one of the highest reports regarding the cost of living, add to the increasing inflation, and you have a state in desperate need of help. Representatives plan to force a vote soon to stop the gas tax. 

Will the California gas proposal be beneficial to its residents?

While it may help offset some of the costs, one must wonder if the proposal would really help in the long run. When you think about it, the high fuel prices fall on the state wanting to encourage more electric vehicle purchases and less fuel getting burned up in the environment. 
To inspire consumers to go green, they've
implemented higher gas taxes
that continue to climb.
Having $400 to pay for the gas at the pump will likely help for only a couple of fuel-ups, as some areas report paying over $6 a gallon. That will eat up the money given by the state rather quickly. 
Unless curbed, fuel will continue to rise, making it harder for residents to gas up their vehicles to get around. 

Other ways to save money to help offset fuel costs

You can save money by limiting how many trips you make with your vehicle, or
you could simply slow down
. While you need to get to work, you don't have to drive fast to get there. Speeding uses more gas than moving slowly. Another way to save money is to find an insurance agency to offer a more affordable policy. 
Since that can be difficult, you can use
to help you out. Our service will search through companies to find the best options for your situation. You pick which one meets your budget demands, saving you money in the end.
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