California will send an additional $ 600 to low-income families and provide $ 2 billion in grants to small businesses affected by the pandemic as part of a stimulus deal announced by Gov. Gavin Newsom and lawmakers on Wednesday afternoon.

The $ 9.5 billion bundle includes much of this Newsom proposed in January for “immediate action” to quickly get cash for struggling Californians.

It builds on what Newsom originally proposed, doubling payments for undocumented immigrant families and nearly quadrupling aid to small businesses.

A plan to reopen schools, which Newsom has been trying to negotiate for weeks, is particularly absent from the deal.

The deal announced on Wednesday will provide help in addition to the national stimulus package adopted by federal lawmakers late last year which provide $ 600 to people earning less than $ 75,000.

State payments of $ 600 will go to people who receive the California Earned Income Tax Credit, a credit for families earning less than $ 30,000 which includes some undocumented and mixed-status families. Newsom had proposed these payments in January.

After negotiations with lawmakers, Newsom has also agreed to provide additional payments of $ 600 to undocumented immigrant families who file using individual taxpayer identification numbers and are eligible for the earned income tax credit. in California. These families, who did not receive federal relief, will receive $ 1,200 in state relief as part of the agreement.

The agreement will also provide payments of $ 600 to people participating in the CalWORKS state welfare program, disabled and elderly people in the SSI / SSP program, and people participating in the Immigrant Cash Assistance Program.

In total, individual aid payments will cost the state nearly $ 3.7 billion, according to an estimate from the state’s finance ministry.

The deal also includes $ 2 billion in assistance to small businesses. Newsom had originally offered $ 575 million for the program, which provides subsidizes up to $ 25,000 for businesses affected by the coronavirus.

“People are hungry and suffering, and businesses that our communities have loved for decades are at risk of shutting down,” Senate Speaker pro Tem Toni Atkins said in a statement. “This is a critical time, and I am proud that we were able to come together to give Californians the relief they needed.”

Under the agreement, businesses that have received loans under the Federal Paycheck Protection Program or the Economic Disaster Loan Program can deduct up to $ 150,000 of expenses covered by those loans. on their state taxes.

The agreement also includes:

  • Fee waivers for 59,000 restaurants and bars licensed to serve alcohol and over 600,000 licensed barbers and cosmetologists
  • $ 24 million to house farm workers who must quarantine themselves away from their families
  • $ 35 million for food banks and diapers
  • $ 100 million in financial assistance for low-income community college students and $ 20 million to hire students who have left or are at risk of leaving due to the pandemic.

The deal will also distribute $ 400 million in federal child care funds, which can provide $ 525 for each of the 400,000 children enrolled in state-subsidized daycares and preschools. The funds will also provide access to subsidized child care services for another 8,000 who are not yet registered in the system.

The deal also reinstates $ 857 million cut last year by the University of California, California State University, the state justice system and other areas.

This story was originally published February 17, 2021 3:44 pm.

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Sophia Bollag covers California politics and government. Prior to joining The Bee, she reported in Sacramento for The Associated Press and The Los Angeles Times. She grew up in California and graduated from Northwestern University.
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