California Ballot Measure Would Tax Billionaires for Health Funds
California's Proposition 40, backed by SEIU-UHW, would impose a one-time 5% wealth tax on roughly 200 residents worth at least $1 billion, directing 90% of revenue to a state healthcare fund and splitting the rest between food assistance and education. Supporters say it could raise up to $100 billion over five years to offset an estimated $30 billion in annual federal healthcare cuts from the One Big Beautiful Bill Act, which is projected to nearly double California's uninsured population. Critics, including the California Budget & Policy Center and California Medical Association, warn the measure's broad language gives the governor and legislature wide discretion over spending, could let lawmakers supplant rather than supplement existing state dollars, and wouldn't deliver funds for months even if approved. Voters decide the measure in November, with proceeds potentially directed toward Medi-Cal eligibility losses, provider reimbursement rates, or Covered California subsidies.