California billionaire tax heads to the November ballot as Governor Newsom rejects compromise

A proposal for a one-off 5% tax on the assets of California’s wealthiest residents has qualified for the ballot on 3 November 2026, after the Secretary of State’s office confirmed on 17 June 2026 that the petition had enough signatures. Governor Gavin Newsom has rejected a compromise put forward by the campaign to withdraw the measure from the ballot.

The proposal in detail

Under the initiative, a one-off 5% tax would apply to California residents with a net worth above US$1 billion as at 1 January 2026, affecting around 200 billionaires. The tax is estimated to raise US$100 billion, of which 90% would go to healthcare including the Medi-Cal programme, and 10% to education and food assistance. Taxpayers could pay in instalments over five years, and the initiative needs only a simple majority to pass.

The initiative is funded by the Service Employees International Union – United Healthcare Workers West (SEIU-UHW), which has contributed more than US$31 million. Supporters argue the tax would offset federal Medicaid cuts. Senator Bernie Sanders and former Labor Secretary Robert Reich are among those to have backed it publicly.

The rejected compromise

On 18 June 2026, the campaign wrote to Governor Newsom offering to withdraw the initiative from the ballot if he would support a 2% tax passed by the state legislature before the 25 June deadline. Mr Newsom declined.

The Governor’s spokesperson, Tara Gallegos, said the measure had “fundamental flaws that would harm California workers”, warning that “this poorly designed state-only measure would cut funding for teachers, schools, clinics and public safety”. Mr Newsom argues that raising taxes would drive wealthy residents out of the state.

Opposition and funding

Google co-founder Sergey Brin — whose net worth Forbes puts at around US$300 billion and who is reported to have moved to Nevada — has contributed US$82 million to the opposition effort. As of 15 June 2026, opposition campaigns had raised a combined US$107.9 million, according to state campaign finance data. The California Medical Association and the California School Boards Association also oppose the initiative.

Concerns about revenue

The state Legislative Analyst’s Office estimates that a 5% tax could raise tens of billions of dollars initially, but could then reduce income tax revenue by hundreds of millions a year. California currently relies on the top 1% of taxpayers for almost half of its personal income tax revenue.

Early polling puts support at 50–52%, although analysts note that such figures typically fall as election day approaches. California voters will decide the initiative’s fate in the ballot on 3 November 2026.