Rep. Chu endorses commonsense measure that will keep local hospitals and ERs open, increase food security, and help fund public education through one-time tax on billionaires 

LOS ANGELES — California’s billionaires pay much lower tax rates than what working families pay out of every paycheck. And now, massive federal funding cuts are beginning to push key parts of the California healthcare system to the brink of collapse, including many hospitals and clinics serving residents in Los Angeles County. 

To stop these dire consequences, U.S. Representative Judy Chu (CA-28) is calling on billionaires to pay their fair share, and encouraging her constituents to vote yes on Proposition 40 this November. 

“California’s billionaires have benefited enormously from the opportunities and infrastructure our state provides, and they can afford to protect the programs that make California strong. At a time when Trump’s federal cuts threaten healthcare coverage and put hospitals and communities at risk, we cannot afford to stand by and watch working families pay the price,” said Congresswoman Judy Chu. “I’m proud to support Prop 40 to protect healthcare for millions of Californians and invest in the future of our state.”

Several local hospitals in the area are at risk of closing or potential staffing cuts because of federal healthcare cuts. They include:

• Martin Luther King Jr. Community Hospital in Los Angeles
• Hollywood Presbyterian Medical Center in Los Angeles
• East Los Angeles Doctors Hospital in Los Angeles
• PIH Health Good Samaritan Hospital in Los Angeles

As federal healthcare cuts from H.R. 1 begin to rip healthcare away from millions of Californians, Chu is joining a growing list of lawmakers supporting Prop 40, a one-time 5% emergency tax on California’s roughly 200 billionaires as a direct response to the massive cuts. The commonsense measure is designed to ensure that billionaires pay their fair share to stabilize and protect the state’s vast healthcare system, including hospitals, nursing homes, community health centers, and home care services. 

“I want to thank Congresswoman Judy Chu for standing with us and supporting Prop 40. Right now, we’re seeing firsthand what happens when hospitals and clinics are stretched too thin. Her support sends a powerful message that healthcare professionals, our patients, and working families will not be left behind,” said Carrie Walker, a Licensed Vocational Nurse at Hollywood Presbyterian Medical Center.

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. 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. 

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 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. Meanwhile, California was already grappling with a longstanding shortage of healthcare workers, leaving hospitals and clinics stretched thin even before these new threats emerged.

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.  

In November, California voters will at last have a chance to make billionaires pay their fair share to help prevent that, 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.

About Prop 40, the California Billionaire Tax Act

Prop 40 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 Yes on 40 – Billionaire Tax Now – No on 41 & 42, 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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