In California, signatures were submitted on April 27 to the secretary of state for a ballot initiative known as the billionaire tax that would impose a one-time, 5% tax on individuals whose net worth exceeds $1 billion to fund state health care programs, such as Medi-Cal, state food assistance, and public education.
SEIU-UHW West, a labor union for health care workers in California, announced that the campaign had gathered over 1.5 million signatures for the initiative. The California secretary of state’s office has until June 25 to review the signatures and determine whether at least 874,641 are valid, meeting the threshold required to qualify for the Nov. 3, 2026, ballot.
If certified for the ballot and approved by voters, the initiative would apply retroactively to individuals residing in the state as of Jan. 1, 2026. It would impose a one-time tax, with a reduced rate for individuals whose net worth is between $1 billion and $1.1 billion, decreasing incrementally as net worth approaches $1 billion. Taxpayers would be allowed to pay the amount owed in five equal installments beginning in 2027, with each remaining balance subject to an annual deferral charge of 7.5%.
The initiative would create the 2026 Billionaire Tax Reserve Fund, where all taxes, interest, and penalties resulting from the initiative would be deposited. The fund would consist of two sub-accounts: the Billionaire Tax Health account, where 90% of the revenue would be deposited, and the Billionaire Tax Education and Food Assistance Account, with the remaining 10% of revenue.
The health account would fund reductions in federal spending or state appropriations, programs such as Medi-Cal, and access to health care services. The education account would fund public education from K-14 and reductions in federal or state appropriations, as well as food assistance programs such as CalFresh, CalFAP, CalFood, or California's Universal Meals Program for school meals.
The initiative was filed on Nov. 26, 2025, as a combined initiated constitutional amendment and state statute — a type of ballot measure that amends both a state's constitution and statutes — and is supported by Save California Health Care and Public Education, a campaign that is sponsored by SEIU-UHW West.
Save California Health Care and Public Education has reported more than $3.5 million in contributions as of Feb. 2026, with $1.3 million in cash contributions and $2.2 million in in-kind contributions.
Speaking in support of the initiative, Suzanne Jimenez, the chief of staff for SEIU-UHW, said, "Healthcare workers are going to the ballot to prevent California hospitals and emergency rooms from closing. Congress created a $100 billion crisis for California through HR1 last July — and California voters will solve that problem when they pass the billionaire tax act this November." U.S. Sen. Bernie Sanders (I) also endorsed the initiative, stating, "It should be common sense that the billionaires pay just slightly more so that entire communities can preserve access to life-saving medical care. Our country needs access to hospitals and emergency rooms, not more tax breaks for billionaires."
Two committees opposing the initiative — Stop the Squeeze and Golden State Promise — have reported a combined $10.3 million in contributions. Stop the Squeeze has raised $300,000 in cash contributions, and Golden State Promise has raised $10 million.
Speaking in opposition to the initiative, Gov. Gavin Newsom (D) said, "It’s really damaging to the state. ... The evidence is in. The impacts are very real — not just substantive economic impacts in terms of the revenue, but start-ups, the indirect impacts of … people questioning long term-commitments, medium-term. That’s not what we need right now, at a time of so much uncertainty. Quite the contrary." Additionally, Jack Guidi from the organization Americans for Tax Reform stated, "The tax is retroactive and would apply to all eligible residents beginning January 1st, 2026. However, the earliest this tax could go into effect would be November 2026. This means California could end up losing tax revenue even if the ballot initiative doesn’t pass, as it incentivizes wealthy residents to escape before the tax passes."
The wealth tax initiative would be the first ballot measure in the country to enact such a tax. In 2023, Texas voters approved Proposition 3 by a margin of 68% to 32%, thereby amending the state constitution to prohibit the state legislature from enacting a wealth tax or net worth tax in the future.
For the 2026 election cycle, 25 initiatives have been cleared for signature gathering, and five — including the billionaire tax initiative — are pending verification from the secretary of state. As of April 2026, six statewide ballot propositions have qualified for the ballot in California for the 2026 election cycle. Of these, three are citizen initiatives, and three are legislative referrals.
Additional reading: