Overview
- The measure, placed on the November 3, 2026 ballot, would impose a one-time 5% tax on net worth above $1 billion for residents counted on Jan. 1, 2026, with payments due in 2027 and an option to pay over five years at added cost.
- Backers say the tax is meant to backfill lost federal Medicaid funding so California can preserve Medi‑Cal coverage for millions of residents, while analysts warn the levy is only a temporary patch and may not solve longer-term healthcare funding shortfalls.
- The campaign has fractured Democrats and labor: the California Democratic Party and the California Labor Federation have endorsed the measure, while Gov. Gavin Newsom, Xavier Becerra and several major unions oppose it or remain neutral.
- Opponents have mounted a heavily funded effort to defeat the tax, with the PAC Building a Better California raising about $118 million including an $82 million donation from Sergey Brin that has financed widespread advertising and outreach.
- Analysts and commentators point to unresolved legal and enforcement questions about retroactive valuation, the risk that wealthy residents could relocate and the political cost to Democratic leaders, any of which could erode long‑term revenue gains for the state.