A new ballot initiative in California proposes a one-time 5% tax on the net worth of state billionaires to address a projected $30 billion shortfall in the state’s Medicaid program. If approved, the measure would appear on the November 2026 ballot after gathering the required 873,000 voter signatures.
The measure, officially titled the “2026 Billionaire Tax Act,” targets individuals with a net worth of $1 billion or more, including married couples treated as a single unit. Proponents argue California’s 200 billionaires hold approximately $2 trillion in wealth, and that tapping into these resources is a fair solution to support essential health care services.
According to the proposal, 90% of the funds collected would go toward Medi-Cal and other health programs, while 10% would support K–12 public education. Advocates say this targeted tax would ensure the wealthiest Californians contribute more directly to social services and education, especially during financial strain.
Opponents warn the tax could prompt legal challenges and encourage even more high-net-worth individuals to leave the state. California has already seen a significant outflow of businesses and wealthy residents in recent years, citing rising taxes and regulatory burdens. There are also questions about how billionaires’ wealth would be calculated, particularly for those with assets in private or illiquid holdings.
The proposal reflects a broader shift toward wealth-based taxation strategies in high-spending states. Rather than implementing structural budget reforms or reining in public expenditures, this approach aims to secure temporary relief through extraordinary revenue measures. The outcome will hinge on whether voters believe taxing billionaires’ net worth is a fair and sustainable solution to long-term budget pressures.
