Last week, California’s Congress passed a bill that would allow the second round of stimulus checks to be sent to residents of the state with an expanded income threshold. The first round of checks for $ 600 was sent to residents making less than $30,000 a year. The new bill will not send a new check to those who already received one during the first cycle of distribution. Instead, this time, the ones who earn less than a sum total of $75,000 a year will receive a cheque.
Governor Gavin Newsom has said that a second stimulus check should cover 78% of California taxpayers and will benefit two in every three residents. Very few details have been given on when the payments will be made. However, the entity in charge of its distribution will be the California Franchise Tax Board (CFTB) which has mentioned that it will release more information once it receives instructions.
The checks will be mailed based on information provided this year during the final tax filing season. If someone has not yet filed their taxes, the state recommends them to submit a return to ensure they are eligible to receive the payment. Although the taxes were to be officially paid in the month of May this year, the state decided to extend the deadline until October 15. If the CFTB receives the statement before that date, it will send the cheque to the beneficiaries.
If someone has already filed their tax return, they should not necessarily file the same again as the State government already has the information that it needs to make the payment. California law requires the Governor to submit a balanced budget proposal to the Legislature by January 10 of each year. Thus, the budget must be approved before June 15th.
A provisional budget was approved on June 14, but negotiations on spending the money from the historic budget surplus have left the state with no official budget. One of the most critical points of contention is the inclusion of a $1 billion allocation to local governments to combat homelessness. The historic investment was not included in the government budget, and to date, there has been no agreement reached on whether it will be included in the final budget. Experts believe that once the negotiations are over, details on how the new round of stimulus checks will be distributed and made public.