California Today

California's Billionaire Tax: Health Care at Stake

20 May 2026 10:10

California's proposed billionaire tax aims to raise $100 billion to offset federal Medicaid cuts that threaten health care access for millions. The measure, on the November ballot, faces opposition from billionaires who threaten to leave the state.

- The tax would impose a 5% levy on wealth over $1 billion, payable over five years. - Federal cuts from H.R.

1 could slash $30 billion annually from Medi-Cal, endangering 83 hospitals. - Rural hospitals and clinics, already financially strained, face closures or service reductions.

- Proponents argue the tax is a lifeline for 14 million Medi-Cal recipients, while critics focus on billionaire flight. The outcome will determine whether vulnerable communities retain access to essential health care services.

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