California is flush with cash – and they’re using it to launch the biggest rent forgiveness initiative in American history.
The State Legislature is finalizing the details on a $5.2 billion dollar package that would completely eliminate the rent debt accrued by lower-income residents during the pandemic. They’re also likely going to extend the state’s eviction moratorium past its June 30 expiration date.
“The stock market may be fine, we may be technically reopened, but people in low-wage jobs — which are disproportionately people of color — are not back yet,” said Madeline Howard, senior attorney for the Western Center on Law and Poverty.
A separate provision would provide billions in rental assistance to middle-income families. In San Francisco, a family of four would have to earn less than $146,350 to qualify for that program, according to The New York Times.
California has a $75.7 billion surplus. The state has already sent $600 stimulus checks to many Californians. The state’s budget surplus could also be used on wildfire mitigation, childcare subsidies, and fighting homelessness, according to Governor Gavin Newsom.
California’s windfall is thanks, in part, to federal largesse approved by Congress during the pandemic. The state’s economy has also had a better than anticipated year because the tech industry has thrived during lockdown, which has resulted in a boon in income and capital gains taxes.
California is not the only state with cash to spend. More from The New York Times:
At least 22 states that had unused pandemic relief money and that had trimmed their budgets anticipating fiscal challenges have now found themselves with a surprising surplus in revenue. Idaho is on track for a record-breaking $800 million surplus at the end of this month, while others like Oklahoma, Utah and Washington reported similar budget increases. And while some states haven’t yet decided how to spend the money, others are funneling the cash into education, construction and reviving local arts.
