California Pandemic Relief Budget
Today Governor Gavin Newsom along with legislative leaders announced an immediate relief and stimulus package for families and businesses hit hardest by the COVID-19 recession.
The package offers $9.6 billion in assistance in the form of tax deductions, fee relief, stimulus payments, financial assistance, child care subsidies, and student aid for families and businesses who have faced devastating economic hardship because of COVID-19.
Families and businesses that have previously qualified for state programs and federal relief such as CalEITC, CalWORKs, CalFresh, state small business grants, and federal PPP business loans should read further to see how this stimulus and relief package could help.
Direct Relief to Individuals and Families
If you qualified for California EITC in 2020, have an Individual Tax Identification Number and were precluded from the federal stimulus, make less than $30,000 as an individual or $75,000 as a household you may be eligible for a one time, $600 stimulus payment.
In addition, if you are enrolled in CalWORKs or receive SSI/SSP and Cash Assistance Program for Immigrants (CAPI) you may be eligible for a one-time $600 grant.
Immediate Relief for Small Businesses
The package extends the Small Business Relief grant program from $500 million to more than $2 billion. If you are Small Business owner who already applied for a loan, don’t worry about reapplying. If you have not applied, please visit for more information when the application period will open again https://www.grants.ca.gov/grants/california-small-business-covid-19-relief-grant-program/
In addition, California small businesses who received federal PPP loans could be eligible for state tax deductions up to $150,000.
Fee Waivers and License Relief
The package provides for two years of fee relief for roughly 59,000 restaurants and bars as well as relief for more than 600,000 barbering and cosmetology businesses.
More Resources for Critical Child Care
The package adds over $400 million in new federal funds that will provide stipends of $525 per enrolled child for all state-subsidized child care and preschool providers.
The new federal resources will extend care for children of essential workers through June of 2022, and increase access to subsidized childcare for 8,000 additional children of essential workers and at-risk children during this time period.
Additional Aid for Individuals and Families
The package provides an additional $24 million for Housing for the Harvest – a program providing support for agricultural workers who have had to quarantine due to COVID-19.
The package also provides a combined $35 million for food banks and diapers.
Emergency Financial Relief to Support Community College Students
The package provides an additional $100 million in emergency financial aid for qualifying community college students who are enrolled in six or more units.
CalFresh Student Outreach and Application Assistance
The package provides roughly $16 million to support outreach and application assistance to income eligible higher education students for CalFresh food assistance.
Restoration of Reductions
The package restores previously enacted reductions, effective July 1st, for the UC, CSU, the Judicial Branch, Child Support Services, and for moderate-income housing.
This relief and stimulus package is intended to help as many families and businesses as possible with immediate relief. If you have questions about the specifics of this new package and wonder if you, your family or small business may qualify please don’t hesitate to contact my office at 562-406-1001.
Senator Bob Archuleta
Senate District 32