The California Democratic Party formally endorsed Proposition 40, a ballot measure that would levy a one-time 5% tax on the state’s roughly 200 billionaires. The endorsement passed with 145 votes in favor to 90 against (approximately 61.7% support) during the party’s general session in San Diego, following weeks of internal debate and initial failure to reach the 60% threshold on a first vote.
Prop. 40 is projected to generate an estimated $100 billion, with the bulk of this revenue intended to offset federal healthcare cuts linked to the Trump administration’s tax-and-spending law. Supporters argue this funding is critical to prevent the closure of as many as 83 California hospitals and clinics, preserving healthcare access for seniors, veterans, and low-income individuals. The measure also aims to dedicate 90% of the new revenue to healthcare, with the remaining 10% split between education and food assistance programs.
The initiative has garnered support from prominent figures like U.S. Senator Bernie Sanders and Representative Ro Khanna, as well as labor organizations such as Teamsters California and AFSCME California. Polling cited by SEIU-UHW President David Regan indicated strong backing for the measure, with over 80% of registered Democrats, 70% of union members, and 63% of teachers in favor. The California Young Democrats also ratified their endorsement on July 11th. The tax would apply retroactively to individuals living in the state on January 1, 2026, whose net worth exceeds $1.1 billion.
