California’s wealthiest residents could face a one-time 5% tax on their net worth under a new proposal aimed at replacing billions of dollars in federal funding cuts to healthcare.
The measure – called the "2026 Billionaire Tax Act" – seeks to counter $30 billion in potential federal funding cuts to California's Medicaid program, with a portion of the revenue earmarked for public education, according to supporters, which include the Service Employees International Union (SEIU).
Proponents of the measure sent a request to the California Attorney General’s Office on Oct. 21 to get approval to begin collecting signatures.
WEALTHY CALIFORNIANS ARE FLEEING THE STATE, PUTTING TAX REVENUE AT RISK
Supporters of the measure argue that around 200 billionaires in California hold about $2 trillion in wealth, but the state's other 19 million taxpayers pay a "much larger portion" of their true income.
"If we do not do this, millions of people are going to lose health care, an untold number of people will go without treatment and there will be tragedy after tragedy," Dave Regan, president of SEIU-United Healthcare Workers West, said in a statement, according to Newsweek.
CALIFORNIANS TEMPTED TO LEAVE IT ALL BEHIND FOR MIAMI'S SCORCHING REAL ESTATE MARKET
The measure would need to garner more than 870,000 signatures by next spring in order to be placed on the November 2026 ballot, Realtor.com reported.
If enacted, California's wealthiest residents, including tech executives like Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang, could face massive bills.
The proposal also comes as the state continues to grapple with population outflows to lower-tax states such as Florida.
Between 2023 and 2024, more Americans left California than any other state, Newsweek reported, citing Census Bureau data.
"Miami represents a new start, a refreshing reset. I think that it's a place where policies, economics and lifestyle align together very well," Mast Capital CEO Camilo Miguel, Jr., whose company is developing the Cipriani Residences Miami and The Perigon Miami Beach, recently told Fox News Digital.
Earlier this year, President Donald Trump signed into law the One Big Beautiful Bill Act, which includes about $1.2 trillion in spending cuts over a decade, largely from changes to spending on healthcare programs.
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The Service Employees International Union did not immediately respond to FOX Business' request for comment.
FOX Business' Eric Revell and Kristen Altus contributed to this report.
