With gas prices at all time-highs across the nation, policy leaders in California and at the federal level are evaluating options to provide direct relief to Americans. Too many of these options fail to consider that it’s not just at the gas pump where families are being hit hard with the impacts of inflation. Economic relief must be provided to all those who are feeling financial pain right now, rather than just those that can afford to drive or own a car.
Gov. Newsom’s plan, focused solely on easing the burden of soaring gas prices, continues this short-sightedness. The plan ignores the downstream impacts of other high costs of living that families are enduring in the post-COVID recovery — whether they own a car or not. Plans that simply focus on providing relief through vehicle ownership will continue to leave the most impacted communities behind. Further, these proposals do not factor in the diverse immigration status of American families. Mixed-status families and other individuals facing restrictions in accessing government support have been uniquely impacted by the pandemic because they are consistently left behind when relief strategies are created.
When we look at the economic impact of COVID-19, our research at the UCLA Latino Policy and Politics Initiative (UCLA LPPI) shows that the unemployment rate for undocumented workers in the U.S. reached 29% and undocumented workers lost almost 25% of their income at the height of the pandemic. Yet Latino neighborhoods in Los Angeles alone were half as likely to receive a CARES Act stimulus check. When we examined the economic benefits of extending relief to undocumented taxpayers and their families, doing so would have added $10 billion to the U.S. economy and supported nearly 17,000 jobs in California alone. Similarly, extending tax credits under the HEROES Act would have generated $14 billion for the economy and supported 112,000 jobs nationally.
High gas prices take a toll on the Latino community independent of how many vehicles a household owns. In Fresno, it costs almost twice as much to fill up a tank today than a year ago. A recent PPIC study found that low-income families spend a higher share of their income on gas. Workers who spend time driving for work or using fuel for their services are bearing more of the costs of inflated gas prices. As we learned during the height of the pandemic, Latinos are more likely to work in sectors where work cannot be done remotely — over 78 percent of undocumented workers are employed in essential sectors. Families in these essential sectors will not be able to weather these high prices by lowering their fuel use like other communities.
Additionally, gas prices aren’t only felt at the pump. They are hidden in the cost of all goods that must be transported. This means that regardless of car ownership, individuals are feeling the pain of soaring gas prices when they shop at the supermarket, buy clothes for their family, and purchase school supplies for their children. Thus, families who can afford to own one or more vehicles should not reap more benefits than a low-income family trying to stretch their budgets.
Budgets have been stretched to a breaking point over the last two years and we need broad economic relief that is not just focused on today’s surging fuel prices. As a state, we must ensure that relief gets into the hands of those who need it most. Too many families were kept away from CARES Act and unemployment relief, despite disheartening realities such as Latinas experiencing the highest unemployment rate of all demographic groups. At the height of the pandemic, one Fresno neighborhood had some of the highest number of households behind on their utility bills, a concern given the area’s exposure to life-threatening extreme heat events, which increase their financial burden.
Housing affordability continues to be a challenge for Latino communities, especially undocumented tenants who were not adequately protected by eviction moratorium programs. Nearly half of Latino families in California spend over 30% of their income on housing, a quarter spend over 50%, and only 14% of distressed Latino renters in California applied for rent relief programs. The lack of a robust social support system has continued to force Latinas to leave the workforce at higher rates than any other demographic. California must do more to craft relief packages that support our community members and help them thrive — packages that are broader than just gas price relief.
California’s most vulnerable communities continue to bear the brunt of the economic fallout of the global pandemic and continuing economic instability. If we are to create an inclusive economy, one that creates opportunity and prosperity for all, we must prioritize the needs of these communities.
This story was originally published April 09, 2022 5:00 AM.