Politicians Propose Giving People Cash To Compensate for High Gas Prices, Inflation

High gas prices and large state budget surpluses are giving lawmakers from both parties an idea: send people cash to compensate for rising prices at the pump.

On Thursday, California lawmakers floated a proposal to spend some of the state’s $45 billion budget surplus on sending all California taxpayers a $400 check. That, according to proponent Assemblymember Cottie Petrie-Norris (D–Irvine), is the amount your average Californian pays in state gas taxes every year.

Earlier this week, New Jersey Assemblyman Edward Durr (R–Gloucester) introduced his “Gas Price and Inflation Tax Credit Act” that would give a $500 refund to families and $250 to individuals.

“Gas prices and inflation are both soaring, which is making it harder for New Jerseyans to fill their tanks and feed their families,” Durr said in a statement to NJ.com. New Jersey has a $10.1 billion surplus. In Minnesota, Gov. Tim Walz (D) has also suggested spending some of his state’s $10.5 billion budget surplus on $1,000 rebates to families and $500 to individuals.

Republicans in Minnesota and California have criticized the rebate proposals in their respective states as poorly targeted and have instead proposed gas tax holidays as a way of more directly helping drivers.

“People who are driving the most because let’s say they live in a rural area, or maybe they have to commute a long distance to work, or maybe they have several kids they have to drive to school, the benefit will be commensurate with the pain that they’re feeling right now,” California Assemblyman Kevin Kiley (R–Rocklin), who’s own gas tax holiday proposal was shot down in the assembly on Monday, told the Los Angeles Times.

A handful of states, most recently Georgia, have already gone