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Gov. Newsom Proposes Giving $400 To California Drivers To Help With Gas Prices Spike

SACRAMENTO (CBS13) — Gov. Gavin Newsom is proposing a $9 billion tax refund aimed at registered drivers in California, giving them $400 to help offset the recent spike in gas prices.

Newsom announced his proposal on Wednesday. It comes after lawmakers floated similar plans in recent weeks.

"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," Newsom said in a statement.

The proposal calls for giving Californians $400 for each vehicle they have registered, up to two vehicles.

California's gas prices, already the highest in the nation, keep hitting record highs. As of Wednesday, according to AAA, Golden State drivers are paying an average of $5.875 per gallon of regular.

Newsom's proposal also calls for giving grants to transit agencies that would give Californians free public transit for three months.

The governor's office says eligibility for the proposed $400 rebates would be based on vehicle registration, not tax records.

No income cap is part of Newsom's proposal.

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