Recently, the Governor of California, Gavin Newsom, has announced that the state itself would pay off all of the rent that has been unpaid during the pandemic.
Newsom brings up the $5.2 billion federal “pot” that will pay off the rent as “forgiveness”.
He is currently facing a recall election this upcoming fall, and is most likely to extend a ban on evictions beyond June 30 due to pandemic related orders. It was only supposed to be temporary but the results have shown that it is difficult to keep it only as a temporary order.
He tells social media platform, Twitter, “California is planning rent forgiveness on a scale never seen before in the United States”.
Democratic governor, Newsom, finds that his state has an unused COVID relief in cash and surplus tax income. He will be adding another $2 billion in order to cover electricity and water for those who make a lower income.
He says that “anybody that’s been impacted by this pandemic that can’t pay their rent, we will pay 100 percent of your rent going back to April of last year. Anybody that’s impacted by this pandemic that can’t pay their rent and can’t afford their water bill or their utility, California will pay those bills”.
There was a major shortfall in budgeting when lockdowns were first announced last April. The state holds more money than expected after the Congress has bailed out local governments from federal coffers.
Republican lawmakers located in Washington DC argue that the Biden administration should take the surplus and keep it for future infrastructure that he had planned in his laws.
The budge in California had skyrocketed even amidst the pandemic, having resources such as selling stocks and mansions and the technology boom in the state has increased. The wealth of the state relies on the market doing well and Silicon Valley had done well throughout 2020.
There will be a relief program catered to those who earn no more than 80% of the median income of the state. For example, a family of four residing in San Francisco would have to earn less that $146,350 a year to qualify.
Newsom is now talking to legislative leaders in order to allocate the $260 billion operating budget to a new education bill and buying hotels or apartments for the homeless.
