California billionaire tax measure qualifies for 2026 ballot

California's billionaire tax measure cleared the last hurdle for the November 3, 2026, ballot on June 17, putting a one-time levy on the state’s richest residents before voters next year. The proposal would tax Californians whose net worth topped $1 billion at the start of 2026, a group of roughly 200 people, and send the first payments in 2027.

The initiative, backed by SEIU-United Healthcare Workers West, would impose a 5% tax on billionaire wealth and allow taxpayers to spread payments over five years. SEIU-United Healthcare Workers West estimates it could raise about $100 billion, with 90% reserved for health care and the remaining 10% for K-12 education, food assistance and related programs. The Legislative Analyst’s Office, in its fiscal summary, estimated the measure would probably generate tens of billions of dollars over several years.

Gov. Gavin Newsom opposes it, and wealthy Silicon Valley allies have warned that a wealth tax could push capital out of California while raising the risk of misjudging what billionaires actually own. Critics have also questioned whether the state can accurately appraise private holdings, a problem that could shape both compliance and any legal challenge if the measure reaches the ballot and then passes.

The initiative would also carve the new revenue out from some constitutional rules, including requirements tied to school funding, budget reserves and the state spending limit. It would create a dedicated funding stream for Medi-Cal, California’s Medicaid program, amid federal cuts that could force hospital and clinic closures, reduce access and cost jobs.