Decisive vote reflects near total unity as largest labor group in California – including more than 1,300 individual unions and 2.3 million members – throws strong backing to Billionaire Tax
OAKLAND, CA – For months, opponents of the California billionaire tax have attempted to promote and exaggerate divisions in labor over a common-sense measure that will save patient lives in the face of lethal and extreme cuts to Medi-Cal that were part of Trump’s so-called “Big Beautiful Bill.”
After a small handful of union officials expressed concerns about the bill – concerns that were heavily touted and at times exaggerated relentlessly by consultants working for billionaire-backed groups – many public reports ignored the groundswell of labor support behind the California Billionaire Tax, now known as Prop 40.
Previous major endorsements had included the California Teamsters, AFSCME CA, California Nurses Association, UNITE-HERE Locals 11 and 30, and countless others.
Now, the largest labor group in the state has voted overwhelmingly to endorse the Billionaire Tax, putting to rest the exaggerated claims of labor disunity on an urgent initiative that will save patient lives and make 200 billionaires in California pay a small one-time 5% tax to keep hospitals, clinics, and ERs open in the Golden State.
“Trump and his lapdogs in Congress cut healthcare to fund tax breaks for billionaires. California’s over 200 billionaires should return those funds to California’s hospitals and healthcare programs. This initiative will help save lives, protect thousands of good, middle-class health care jobs, and keep California hospitals open,” said Lorena Gonzalez, President of the California Federation of Labor Unions, AFL-CIO. “The California Labor Movement has no sympathy for the billionaire tears.”
Prop 40 is consistent with the Federation’s fight to strengthen workers’ rights, improve wages and working conditions, expand access to quality healthcare, and build an economy that works for everyone.
“Labor is officially united to support the billionaire tax. The only thing controversial that remains on this topic are the lies and distortions of a handful of billionaires who feel entitled to even more tax breaks while patients lose access to life-saving healthcare services,” said Dave Regan, President of SEIU-United Healthcare Workers West. “The strong backing of nearly 1,300 unions and millions of union members across the state was evident in today’s endorsement of Prop 40 – which did not just pass a vote at the AFL-CIO meeting; it passed loudly and overwhelmingly.”
Prop 40 will also protect healthcare coverage for up to 3.4 million Californians and curb health insurance premium increases that are already slamming consumers and businesses across the state.
Clinics across California are closing, hospitals are laying off workers, and life-saving services are being cut. Working families in California are seeing their healthcare costs skyrocket, and it’s only getting worse.
At a packed AFL-CIO meeting in Oakland today, approximately 1,000 delegates to the state chapter of the AFL-CIO – the California Federation of Labor Unions – voted overwhelmingly in favor of backing the billionaire tax.
More than a dozen delegates who spoke out in favor of Prop 40 were cheered loudly by the crowd.
Out of the 1,000 delegates attending, only two spoke against the proposition – and they were met with either boos or deafening silence before being dramatically outvoted in a near unanimous motion that yielded a third major victory for Prop 40 supporters in the last three days.
Previously, on Sunday, the California State Democratic Party (CADEM) endorsed Prop 40. On Monday, the 100,000 member California Nurses Association endorsed Prop 40.
The number of major supporters for the billionaire tax has far outpaced the groups opposing it, despite repeated attempts by the opponents to portray Democrats and the labor movement as divided over a bill that media reports falsely label as “controversial” despite it holding a strong double-digit lead in most polls.
Polling shows 80% of Democrats support Prop 40 and more than 70% of individual union members support Prop 40. The small number of union officials who oppose the measure now find themselves at the fringe of the discussion – and they faced a tidal wave of rejection to their stance at the statewide AFL-CIO meeting.
After voicing early opposition and failing to put forth any alternative solutions to the looming federal Medi-Cal cuts, California Governor Gavin Newsom has been notably and largely silent on the issue through the CADEM and AFL-CIO processes.
The Governor’s silence follows poll numbers that were released showing his opposition to a California billionaire tax could devastate his chances with Presidential primary voters. His tightrope walking attempt to say he would support a national billionaire tax fell flat with advocates and the media.
Hundreds of elected officials, labor unions, and community-based organizations have endorsed Prop 40, including U.S. Senator Bernie Sanders, Representative Ro Khanna, Teamsters California, California Nurses Association, AFSCME California, SEIU-UHW, Committee of Interns and Residents / SEIU, UNITE HERE Local 11, UNITE HERE Local 30, AFT Local 1521, Disability Voices United, Our Revolution California, Oxfam America, Color of Change, and many more.
Billionaires already pay much lower tax rates than what working families pay out of every paycheck. They insist on paying less and sticking the middle class with the bill. Prop 40 will enact a tax paid ONLY by Californians worth more than $1 billion, a small group of people who together hold $2 trillion in wealth – most of which will never be taxed due to loopholes that favor the ultra-wealthy.
By voting YES on Prop 40, California voters can raise about $100 billion to replace the healthcare funding Trump and his billionaire donors took from working people to hoard even more wealth. The funds will go to life-saving medical care for seniors, veterans, and families. It will allow millions of Californians to keep their health insurance and not see their premiums skyrocket. It will also help prevent teacher layoffs in our public schools and keep children fed through food assistance programs.
“The support of the California Federation of Labor sends a powerful message that protecting access to healthcare, defending good jobs, and ensuring that California’s billionaires contribute their fair share are priorities shared by workers across our state. We look forward to working together with unions across California to pass Prop 40 in November,” said Rashaad Pritchett, a healthcare worker with SEIU-United Healthcare Workers West, one of the lead sponsors of the California Billionaire Tax Act.
Voters consistently support the California Billionaire Tax by large, double-digit margins. A new poll of likely 2026 California voters found that the billionaire tax holds a strong double-digit, 19-point lead statewide. Support rises dramatically among constituencies that form the backbone of the Democratic Party, with 80% of Democrats, 70% of union members, 63% of teachers, 63% of healthcare workers. Additionally, 56% of independent and no-party-preference voters supporting Prop 40.
Prop 40 qualified for the ballot after supporters submitted more than 1.6 million signatures from Californians across the state — nearly twice the number required to qualify — making it one of the strongest citizen-led ballot qualification efforts in California history.
More than 400 hospitals statewide have already laid off more than 3,400 healthcare workers, and a second wave of layoffs is expected as funding cuts from Trump’s “Big, Ugly Bill” hit healthcare providers. Statewide, projections show the cuts could result in the loss of up to 145,000 healthcare jobs, impacting hospitals, clinics, and home care providers. California has already been grappling with a longstanding shortage of healthcare workers, leaving hospitals and clinics stretched thin even before Trump’s cuts.
Without revenue from Prop 40, these federal healthcare cuts are expected to put an estimated 83 California hospitals and clinics at risk of closure. Cuts and closures have already started, impacting communities from Los Angeles to Oakland to Glenn County.
About the California Federation of Labor Unions, AFL-CIO
The California Federation of Labor Unions, AFL-CIO represents over 1,300 affiliated unions in California with over 2.3 million union members in trucking, retail, hospitality, janitorial, construction, health care, local and state government, education, arts and entertainment, warehousing and logistics, manufacturing, and every other sector of the economy.
About Prop 40, the California Billionaire Tax Act
Trump’s “Big, Ugly Bill” slashed funding for healthcare in California to pay for more billionaire tax breaks. These cuts eliminate healthcare coverage for up to 3.4 million Californians and double health insurance premiums for millions more. Prop 40, the California Billionaire Tax Act, will make billionaires finally pay their fair share in taxes to keep local hospitals and ERs open and healthcare affordable for millions of Californians.
Vote YES on Prop 40 to save lives, tax billionaires.
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Editor’s note: Billionaire tax proponents are available for interview on the status of the campaign and the momentum generated by the California Democratic Party endorsement
| Paid for by Yes on 40 – Billionaire Tax Now, Sponsored by Service Employees International Union – United Healthcare Workers West. Committee’s Top Funder Service Employees International Union – United Healthcare Workers West |
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