Proposition 40 will give Californians the opportunity to VOTE YES to save patient lives, prevent job losses, preserve coverage for millions, and keep emergency rooms open through one-time tax on billionaires

SACRAMENTO, CA — The Billionaire Tax Now coalition today announced that the California Secretary of State has assigned the Billionaire Tax its official ballot designation, Proposition 40, confirming that Californians will have the chance to vote this November on one of the most consequential measures in state history.

“The people of California now have the opportunity to decide what kind of future they want,” said Debru Carthan, Vice President of SEIU- United Healthcare Workers West. “Proposition 40 asks a simple question: at a time when hospitals are reducing services, working families are being squeezed, and essential services are under attack, should a few hundred billionaires contribute their fair share to protect the state that helped make their extraordinary wealth possible? We believe Californians will answer with a resounding yes.”

The measure 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. Voters consistently support the Billionaire Tax by large, double-digit margins. 

The Billionaire Tax has received hundreds of endorsements from elected officials, labor unions, and community-based organizations ranging from U.S. Senator Bernie Sanders, Representative Ro Khanna, Teamsters California, 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, many more. 

For healthcare workers who have dedicated their lives to caring for patients, today’s news isn’t just welcome, it’s critical. With no other viable alternatives proposed by Governor Newsom, the billionaire tax is the only available option to stop a cascade of hospital and clinic closures spurred by massive federal cuts in HR1, known as President Trump’s so-called “Big, Beautiful Bill.”

California’s healthcare system is facing a growing crisis as hospitals lay off thousands of workers and brace for widespread closures because of massive federal healthcare cuts that will slash as much as $20 billion annually over the next five years. 

The more than 400 hospitals statewide have already laid off more than 3,400 healthcare workers as of mid-March, with a second wave of layoffs expected as funding cuts tied to recent federal policy changes in HR1 are phased in over the next several years. Statewide, projections show the cuts could result in the loss of up to 145,000 healthcare jobs, impacting hospitals, clinics, and home care providers alike. 

Without revenue from the California Billionaire Tax, 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.  

Tax experts have underscored that what makes the billionaire tax unique is how it’s designed to be fair and enforceable — so billionaires can’t avoid responsibility by moving their assets or claiming residency elsewhere after the now-passed January 1, 2026 deadline for residency changes. 

In November, California voters will at last have a chance to make billionaires pay their fair share to help prevent widespread hospital closures, through a commonsense ballot initiative that places a one-time 5% tax on the wealth of approximately 200 billionaires who reside in the Golden State. Ninety percent of that funding will go to offset Medi-Cal cuts in order to prevent ER and other service closures, and 10% will go toward funding food assistance and public education.

Impact of federal healthcare cuts 

• Dozens of hospitals and ERs will close; dozens more will be forced to cut back services and lay off healthcare workers. The patient care crisis will worsen as patients are forced to wait longer and drive further for medical care. 
• Up to 3.4 million Californians could lose their healthcare coverage under Medicaid, including many seniors, children, veterans, and people with disabilities 
• The state could lose about $20 billion in federal healthcare funding every year — destabilizing the healthcare system and driving up healthcare costs for everyone.
• Insurance premiums for Californians who purchase Affordable Care Act plans could rise as much as 97%, and an estimated 400,000 Californians could be priced out of healthcare altogether. 

Impact of food assistance cuts

• Currently, 5.5 million Californians benefit from food aid. 3.5 million are senior citizens and children.
  
• At least 754,000 people could lose their entire monthly benefit, with over 3 million households facing reductions.
  
• The estimated funding loss is $2.5 to $4.5 billion annually.
  
• The SNAP/Cal-Fresh cuts, if not backfilled by other funding mechanisms, are expected to cost California approximately 400,000 jobs over the next nine years.

About Prop 40, the California Billionaire Tax Act

The Prop 40 California Billionaire Tax Act proposes a one-time emergency tax on the wealth of the state’s ultra-high-net-worth billionaires to safeguard Medi-Cal, keep hospitals and emergency rooms open, expand food assistance, and support public education. The initiative is a direct response to federal healthcare cuts under HR1 that threaten healthcare access and economic stability for millions of Californians.

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Paid for by Save California Health Care and Public Education, 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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