State budget deal includes rent aid, programs for small businesses

Agreement also calls for $12B to tackle homelessness, expand hotel-to-housing conversions

The budget projects a massive tax pool of $76 billion (Getty)
The budget projects a massive tax pool of $76 billion (Getty)

California’s $262.6 billion budget will include billions set aside to tackle homelessness, rent aid and other housing issues.

An agreement has been hammered out with just a handful of issues unresolved, according to the Los Angeles Times.

The budget projects a massive tax pool of $76 billion. It also includes federal coronavirus relief dollars.

About $12 billion of those relief dollars and cash surplus is earmarked to address homelessness over the next two years.

That includes expanding Project Homekey, a statewide program to buy and convert hotels into permanent housing for the recently homeless. The state will also expand its health and human services programs.

Another $7.2 billion is set aside to assist existing renters. About $5.2 billion of that will cover unpaid rent accrued during the pandemic and $2 billion will cover overdue utility bills.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

Households with incomes below $75,000 and that did not receive a stimulus check from the state last year will receive a $600 stimulus check. Families with children will get an additional $500.

Around $4 billion is set aside for various programs to help small businesses. That includes $1.5 billion in grants from the state.

The budget deal came after 11 days of negotiations between Gov. Gavin Newsom’s office and Democratic legislative leaders, who hold the majority in the state Senate and Assembly.

Final legislative votes on the main components of the budget are expected Monday.

[LAT] — Dennis Lynch