California Prop 40 Results: Voters Decide on Billionaire Tax Measure

Could California make history as the first state to impose a tax on billionaires? Proposition 40 would direct new revenue toward the state’s healthcare system, which faces significant reductions under the One Big Beautiful Bill Act, by requiring the ultra-wealthy to contribute.

The proposal calls for a one-time 5% levy on the total wealth of California taxpayers whose assets exceed $1 billion — a group estimated at roughly 250 people. If approved, Prop. 40 would cover anyone who was a legal California resident on Jan. 1, 2026.

California polls close at 8 p.m. Tuesday, with election results expected to begin arriving shortly afterward.

Here’s a closer look at Proposition 40:

What are supporters saying about Prop. 40?

Backers estimate the measure could generate $100 billion. They say 90% of that money would be used to restore healthcare funding, while the remaining 10% would support food assistance programs and public education.

“Here in California, we’re finally telling them that they need to contribute a small amount — a one-time emergency tax — so millions of people can keep their healthcare,” said Dave Regan, president of the SEIU United Healthcare Workers Trust. “That doesn’t make you a victim. It makes you a participant in the society that helped make you extraordinarily wealthy.”

Regan’s union led the campaign for Prop. 40. He warns that without action, 3.5 million Californians could lose coverage, 20 million could face higher premiums, and some hospitals and clinics could be forced to shut down.

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“Neither Gov. Newsom nor Secretary Becerra has presented a solution to California’s approaching healthcare crisis, even though they agree about what the consequences will be,” Regan said.

What are opponents saying about Prop. 40?

Prop. 40 faces opposition from a broad coalition that includes some of California’s most influential Democrats, including Gov. Gavin Newsom and gubernatorial candidate Xavier Becerra. Stuart Waldman, who represents economic development, public policy and the Los Angeles business community, argues that California’s core problem is excessive spending.

“Thirty-eight percent of our state budget comes from the top 1%,” Waldman said. “If those residents leave — and some already have — the effect on the state budget would be dramatic. It would affect healthcare, teachers and education.”

Newsom has endorsed the idea of a federal wealth tax but has criticized Prop. 40. He says the measure could weaken California’s economic competitiveness and encourage wealthy residents and businesses to relocate.

Opponents have also questioned the proposal’s design. They point out that 90% of the revenue would be dedicated to a single category, leaving out priorities such as public safety, housing and wildfire prevention. Critics also worry that future state lawmakers could use the measure as a pathway to broaden taxation.