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much as $250,000 for individuals or $500,000 for joint filers. In both of these tiers, parents would receive an additional $250 or $200, respectively, if they have at least one dependent.

Californians with incomes above $250,000 for an individual or $500,000 for joint filers would not receive a rebate. The plan would also include an increase to recipients of Supplemental Social Security who do not file taxes.

Differences in proposed spending for universities, housing and social safety net programs, as well as the details of a major climate package, lingered as the Legislaturepassed a placeholder budget earlier this month. But the biggest holdup to a bargain, which must go into print by Monday in order to pass before lawmakers leave for summer recess at the end of the month, has been the dispute over direct financial assistance for taxpayers.

Newsom and legislative leaders were at odds for months over whether to target the relief at drivers or the neediest Californians.

During his State of the State speech in March, the governor called for a plan to address spiraling gas prices, which have since reached an average ofmore than $6 per gallon. He proposed tosend $400 debit cards to every registered vehicle ownerin the state, up to two per person.

Legislative leaders firmly resisted that approach, which did not include an income limit. Progressive critics noted that it would benefit millionaires and billionaires while leaving out Californians too poor to own their own cars.

The deal announced today is much closer to theprogram that Atkins and Rendon devised, under which the state would have cut $200 checks for each eligible taxpayer and their dependents living in households making less than $250,000 per year for a couple or $125,000 per year for an individual.

Despitegrowing demandsfrom Republican lawmakers, plus an increasing number of Democrats, the plan does not include a suspension of the state’s gas tax, which is set to increase by three cents on July 1.

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