A coalition of frontline healthcare workers, unions, and economists has launched an initiative to build support for a proposed ballot measure in California. The initiative aims to impose a one-time tax on the state’s billionaires to address a looming crisis caused by significant Medicaid funding cuts approved by national Republicans.
The proposed ballot initiative, titled “The 2026 Billionaire Tax Act,” would levy a 5% tax on the wealth of approximately 200 billionaires in California. This measure is intended to offset healthcare funding shortfalls resulting from roughly $1 trillion in Medicaid cuts enacted by former President Donald Trump and congressional Republicans earlier this year.
Service Employees International Union–United Healthcare Workers West (SEIU-UHW), one of the largest healthcare worker unions in the country, is leading the effort to place the proposal on the California ballot in November 2026. Organizers anticipate growing public support in the coming weeks and hope the campaign will serve as a model for other states seeking to counteract the effects of the Republican-led Medicaid cuts.
Dave Regan, president of SEIU-UHW, stated during a press call that “it is a 100% certainty that we have the ability to put this on the ballot in 2026, and we intend to do so.” He emphasized the urgency of the situation, noting that failure to act could lead to hospital closures, healthcare job losses, and widespread disruption in patient care.
Supporters of the initiative warn that without new revenue sources, California could face the loss of around 145,000 healthcare jobs and widespread hospital closures, which would severely impact vulnerable populations. Mayra Castanada, an ultrasound technologist in Lynwood, California, described the current strain on the healthcare system: “We are already short-staffed, and every week more patients walk through our doors with fewer places to go. If these cuts take effect without replacement funding, it won’t just mean longer lines—it means people won’t be able to get care when they need it.”
The proposed tax is considered relatively modest compared to the vast wealth held by California’s billionaires. Experts estimate that the one-time 5% tax would generate approximately $100 billion, a fraction of the $2 trillion in combined wealth controlled by the state’s top 200 individuals. Among those affected would be high-profile figures such as Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang.
Emmanuel Saez, an economics professor at the University of California, Berkeley, expressed support for the initiative, stating that “the wealth of California billionaires has exploded in recent years while health and education in California are getting defunded by the Trump administration.” He added that the tax, while small relative to their gains, would be sufficient to sustain essential programs critical to the state’s economy and future success.
Former U.S. Labor Secretary Robert Reich also endorsed the proposal, calling the GOP Medicaid cuts a “manufactured crisis.” He argued that the cuts were not accidental but rather designed to shield the wealthy from contributing while shifting the burden onto patients and workers. Reich described a time-limited emergency tax on the ultra-wealthy as a practical solution to maintain the functionality of the healthcare system.
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