Once passed, initiative will save countless patient lives by backfilling disastrous Medi-Cal cuts enacted by Trump and Congress
SACRAMENTO, Calif. – Frontline healthcare workers and allies with the Billionaire Tax Now Coalition announced today that county election officials have verified enough signatures to advance the Billionaire Tax to the November ballot.
“Now that California’s historic Billionaire Tax has surpassed the state’s signature requirement, we’re one step closer to saving the hospitals and emergency rooms that we all rely on,” said Debru Carthan, a spokeswoman for the Billionaire Tax Now Coalition. “With today’s news, David won the second round against Goliath, but healthcare workers and our allies won’t quit until we protect patients from the looming California healthcare collapse manufactured by Trump and Congress.”
Carthan is referring to the fact that President Trump’s “big beautiful bill” cut $100 billion from California’s healthcare system to pay for massive tax breaks for billionaires. Soon, local hospitals, emergency rooms, and clinics could be forced to shut their doors forever because billionaires insist on paying lower tax rates than hardworking families.
While a few of California’s most controversial billionaires have spent tens of millions of dollars to mislead voters about the proposal in an effort to avoid finally paying their fair share, the Billionaire Tax remains hugely popular, with voters consistently and overwhelmingly supporting it by large double-digit margins.
The one-time tax will generate billions in critical funding to offset devastating cuts that have already begun impacting hospitals, emergency rooms, and clinics across the state.
California’s 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 are phased in over the next several years. Statewide, projections show the cuts could result in the loss of up to 145,000 health care 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.
Experts note that measures such as the Massachusetts Fair Share Amendment and Washington State’s capital gains tax have generated billions in new revenue for public services, and the number of high-income residents AND their cumulative wealth in both states have increased since the policies went into effect.
The next step in the ballot measure process is the Secretary of State confirming the measure has qualified for the ballot. Then in November, California voters will at last have a chance to make billionaires pay their fair share, 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 health care system and driving up health care 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 the California Billionaire Tax Act
The 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.
| 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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