Sacramento, California – A union-backed proposal to place a one-time tax on California billionaires has qualified for the November ballot, setting up a high-cost fight over healthcare funding, state taxes, and the future of Medi-Cal.
The measure would levy a one-time 5% tax on California residents whose net worth exceeded $1 billion at the start of 2026. CalMatters reported that the tax would apply to roughly 200 people and could be paid over five years. Supporters estimate it could raise about $100 billion, with 90% going to healthcare and 10% to education and food assistance.
The Service Employees International Union-United Healthcare Workers West is backing the measure, arguing that California needs new revenue to offset federal Medicaid cuts under President Donald Trump’s tax and spending law. The union has spent more than $31 million supporting the initiative.
Opposition is already heavily funded. Google co-founder Sergey Brin has contributed tens of millions of dollars to committees backing countermeasures that could weaken or block the tax. Gov. Gavin Newsom also opposes the proposal, warning it could push wealthy residents out of California.
CalMatters noted there is no evidence yet that most California billionaires are leaving, though the measure would likely face legal challenges if voters approve it.
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