CALIFORNIA, USA — Governor Newsom announced Thursday during a media conference his historic $116.5 million vaccine incentive program to help reinforce the value of vaccination for all Californians, especially those in communities hardest hit by the pandemic, as California prepares to safely reopen the economy on June 15th.
"We need to do more and we need to do better," Newsom said.
Newsom said Californians who have received the vaccine are already entered for cash prizes, and those who haven’t yet should get vaccinated ASAP to receive a $50 card and a chance to win cash prizes.
The state estimates 12 million eligible Californians have not yet been vaccinated. Ten people will win $1.5 million each on June 15, the state's planned reopening date. That's the largest prize announced so far in any state. Another 30 people will win $50,000 each, starting on June 4. And the next 2 million people to get shots will each get a $50 gift card.
Some questioned whether the incentive program was a good use of tax payer dollars.
"The cost of not being vaccinated is exponentially and incalculably higher, I don't think this, I know this. Just ask the State Treasury," Newsom said.
Others question whether huge cash prizes truly motivate people to get their vaccine. or whether it could possibly backfire.
"You send a message. When you give incentives, you send a message," said Professor Uri Gneezy, a behavioral economist at UC San Diego's Rady School of Management.
He warned that offering too much in the form of incentives may lead to unintended consequences and skeptical questions.
"Why are they paying us so much money to do something that we should want to do ourselves?" he said.
Gneezy said that instead, the message should be on the value of getting the vaccine for yourself and your community.
He is more supportive of the smaller, guaranteed incentive of gift cards.
"I think that is much better," he said. "It makes sense: fifty dollars is a reasonable amount."
However, he said he believes an emphasis by the Governor on spending that money locally would be more in sync with California's push to re-energize its economy, especially for struggling small businesses.
"Use it in order to help them, and that way, your message is: 'Look, this vaccine is good for you and and it is good for the community... your local community'," he told News 8.
For more details on the 'Vax for the Win" program, click here.
$16.5M IN CASH PRIZES FOR ALL VACCINATED CALIFORNIANS
$15 MILLION GRAND CASH PRIZES FOR 10 WINNERS:
- Ten winners will be selected on June 15 to win cash prizes of $1.5 million each, totaling $15 million in cash prizes. Californians with at least one dose of the COVID-19 vaccine who are 12 years of age and older will be eligible to win. If someone under 18 wins, the cash will be put in a savings account for them until they turn 18.
$50,000 FRIDAYS FOR 30 WINNERS:
- Thirty winners will be selected to win a $50,000 cash prize each, with fifteen winners selected on Friday, June 4 and fifteen winners selected on Friday, June 11 – totaling $1.5 million in cash prizes. Californians with at least one dose of the COVID-19 vaccine who are 12 years of age and older will be eligible to win. If someone under 18 wins, the cash will be put in a savings account for them until they turn 18.
$100M INCENTIVE CARDS FOR NEWLY VACCINATED CALIFORNIANS
$50 INCENTIVE CARDS FOR THE NEXT 2 MILLION VACCINATED CALIFORNIANS:
- Beginning May 27, the next two million people who begin and then complete their COVID-19 vaccination will automatically be eligible for a $50 Virtual Prepaid Card (which can be spent online, in-store where major debit cards are accepted, or added to a mobile wallet), or a $50 grocery gift card for Kroger (Ralphs, Food 4 Less, Foods Co.) or Albertsons (Safeway, Vons, Albertsons, Pavilions, Andronico’s), while supplies last.
WATCH: Governor Newsom announces "Vax for the Win" program