Editor’s note: This story has been updated to correct a figure provided by the Franchise Tax Board of California.

SACRAMENTO, Calif. (KTXL) — Governor Gavin Newsom and Democratic leaders of the state legislature announced Sunday they reached a budget agreement that would provide direct payments to taxpayers in response to rising gas prices and inflation. 

The size of the payment would be based on income and family size. Single filers who earn up to $75,000 a year would receive $350, while joint filers earning up to $150,000 would receive $700. If single or joint filers have at least one dependent, they would receive an additional $350.

Single filers who earn between $75,001 and $125,000 would get $250, while joint filers earning between $150,001 and $250,000 would receive $500.  If single or joint filers have at least one dependent, they would receive an additional $250.

Single filers who earn between $125,001 and $250,000 would get $200, while joint filers earning $250,001 and $500,000 would receive $400. If single or joint filers have at least one dependent, they would receive an additional $200.

In a joint statement, Governor Newsom, Senate Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon said, “California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries.”

Newsom’s administration said Sunday, Direct Deposit or Debt card recipients could see the payments by late October. The Franchise Tax Board estimates ALL rebates could be issued by the end of the year or by early next year.

The rebates make up $9.5 Billion of a $17Billion relief package that also includes assistance with rent and utilities for eligible Californians, plus a suspension of the state’s sales tax on diesel fuel. The suspension would go into effect October 1 and last for one year, providing a savings of 23 cents per gallon, according to state officials.

Newsom’s administration said it plans to provide local governments with $439 million to backfill funds for road projects and transportation that would be provided by the tax.

The plan still needs full legislative approval, and hearings on the deal are scheduled for Monday morning.

The announcement comes more than three months after Governor Gavin Newsom and Democratic legislative leaders initially promised to provide relief in response to rising gas prices and inflation, but clashed for months on who would be eligible for payments and how they would be provided.

Governor Newsom initially proposed sending $400 debit cards to car owners, while legislative Democrats originally proposed sending $200 payments back to taxpayers, with that amount increasing based on family size. The state has an estimated $100 billion budget surplus.

Republicans and some Democrats have been pushing for a suspension to the state’s 51 cent gas tax, which will rise another three cents on July 1. The idea has been a non-starter for Democratic leadership.