California voters will decide in November whether to impose a one-time 5% tax on billionaires under a ballot measure supporters say could raise about $100 billion to help offset federal Medicaid funding cuts, despite opposition from Gov. Gavin Newsom and other state leaders.
The proposal would apply to California residents whose net worth exceeded $1 billion as of Jan. 1, 2026. Under the initiative, roughly 90% of the revenue would be directed toward healthcare programs, with the remaining 10% earmarked for education and food assistance.
Supporters of the measure, which they have branded the "Billionaire Tax," celebrated this week after qualifying for the November ballot, arguing the proposal would help keep hospitals and emergency rooms open as California grapples with reductions in federal healthcare funding.