California is distributing direct payments of up to $1,050, with the next round of cards expected to be distributed in the coming weeks.
The funds are distributed to recipients via direct deposit and state-issued debit cards at the end of the month.
All payments are scheduled to be made by the end of January 2023.
The amount that filers receive is determined by their annual income and the number of dependents they have.
Married filers with a combined income of $150,000 or less and dependents will receive $1,050.
Filers who are single, have no dependents, and earn between $125,000 and $250,000 will receive $200 payments.
"We're sending out refunds worth thousands of dollars to help families pay for everything from groceries to gas," said the governor of the state.
Other states and cities are also experimenting with various programs to assist people who are struggling with rising prices on almost every item as a result of high inflation.