A California ballot initiative backed by SEIU UHW West would impose a one-time 5% tax on individuals with a net worth over $1 billion who were residents on January 1, 2026, aiming to raise about $100 billion to offset federal healthcare funding cuts for low-income people.

supporters say the measure could have broad fiscal impact, potentially affecting up to 40 million Californians through interconnected budget effects.

More than 1.5 million signatures have been gathered, with county verification still needed; supporters believe they will clear roughly the 875,000-signature threshold required to qualify.

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Notable supporters include SEIU-UHW West’s Suzanne Jimenez and Senator Bernie Sanders, while Governor Gavin Newsom opposes the measure; major business group leaders warn about unintended consequences.

Public commentary raises concerns about the measure’s design, residency classifications, and which taxpayers would be affected.

Opponents include prominent tech figures such as Sergey Brin and other business leaders, with rival measures seeking to shield retirement savings and personal property from such taxes.

Industry groups argue the measure would harm the economy, reduce investment, and raise living costs for working families.

The initiative has created tension within the Democratic Party, with Bernie Sanders backing it as a model for other states, while Newsom remains opposed to wealth taxes at the state level.

If multiple measures qualify, the one with the most 'yes' votes would prevail, inviting competition from rival tax measures.

A June 24 deadline is set for signature submission to county elections officials, with an upcoming announcement outlining when signatures will be officially filed.

SEIU-UHW President Dave Regan emphasizes immediate healthcare funding needs and practical problem-solving motivations behind the measure.