Gov. Gavin Newsom on Thursday announced a proposed $18.1 billion spending package to help Californians with rising inflation. The “centerpiece” of the proposal is $11.5 billion in tax refunds. This includes sending $400 checks to every eligible registered vehicle owner, capped at two checks per person.| VIDEO BELOW | California Democrats call for a $400 rebate to help with gas prices"This inflation relief package will help offset the higher costs that Californians are facing right now and provide support to those still recovering from the pandemic," said Newsom. Newsom also announced the expectation of the state's minimum wage to increase to $15.50 per hour for large and small companies by Jan. 1, 2023. This "accelerated increase" is due to a 2016 law, which is triggered when inflation exceeds 7%. The Department of Finance announced they are expecting the inflation rate to increase to 7.6% from the fiscal year 2020-21 to the fiscal year 2021-22. However, those numbers are finalized in July. | READ MORE | Inflation forces increase in California minimum wageThe spending plan also includes, according to the release:$2.7 billion for emergency rental assistance$1.4 billion to pay past-due utility bills for Californians $933 million for hospital and nursing home staff $750 million for incentive grants for free public transit for three months$304 million to extend health insurance for middle-class families$439 million to pause the diesel sales tax$157 million to waive child care fees for low-income familiesOn Wednesday, Newsom proposed a $125 million spending package focusing on expanding reproductive health care. The spending plan was a direct response to the leaked U.S. Supreme Court draft opinion suggesting that the 1973 landmark Roe v. Wade ruling will be overturned, upending decades of abortion protections for women.| READ MORE | California's proposed spending plan would expand abortion rights for uninsured, out-of-state patientsCurrently, both spending plans remain proposals. The May revision of the governor's proposed budget is based on the latest economic forecasts. The final budget needs to be approved by the Democratically-controlled Legislature and signed by the governor.This is a developing story, stay with KCRA 3 for the latest.